Ammonium Sulfate Market size was over USD 3.2 Billion in 2023 and is anticipated to cross USD 21 Billion by the end of 2036, witnessing more than 7% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of ammonium sulfate is assessed at USD 5 Billion.
Alongside creating a need for housing and commercial facilities, the growing population puts increased pressure on farmers to grow more crops on a limited amount of land. One of the main obstacles to crop production is the scarcity of agricultural land.
With 6.60 billion people on the planet in 2006, each person had 0.20 hectares of arable land. The number of people on the planet was 7.4 billion in 2016, and by 2020, each person's share of the land will have dropped to 0.19 hectares as per the Food and Agriculture Organization. It is commonly evaluated that the amount of arable land available globally will continue to diminish, leading to a rise in the usage of fertilizers that are intended to enhance output per hectare. It is projected that these factors will increase ammonium sulfate consumption.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
7% |
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Base Year Market Size |
USD 3.2 billion |
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Forecast Year Market Size |
USD 21 billion |
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Regional Scope |
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Product (Solid, Liquid)
Solid segment is likely to hold more than 80% ammonium sulfate market share by 2036. The growth of the segment can be attributed to the surge in demand for the solid category.
Ammonium sulfate crystals in solid form are frequently used as fertilizers in alkaline soils globally because they can improve soil nitrogen levels and address sulfur deficiency. It is expected that crystalline or solid grades will be selected by the pharmaceutical sector due to their purity.
Application (Fertilizers, Pharmaceuticals, Food & Feed Activities, Water Treatment)
Fertilizers segment in the ammonium sulfate market is estimated to showcase growth rate of over 5.5% between 2024 and 2036. Ammonium sulfate is broken down into ammonia, sulfur dioxide, sulphuric acid, nitrogen, and water in the soil.
Nitrogen and sulfur include ammonium sulfate content of 21% and 24% respectively which is a normal nutrient required for fertilizer. However, growth is foreseen to be driven by increasing consumption of fertilizers in agricultural economies.
Production Process (Caprolactam, Coke Oven Gas, Gypsum Process, Neutralization)
In production process segmentation, the gypsum process segment in the ammonium sulfate market will hold a notable size in the upcoming years. The reaction of gypsum to ammonium carbonates in the manufacture of ammonia sulfate is a special method. The gypsum process has been chosen as the preferred choice for the production of this compound, which is suited to a wide range of industrial needs.
The market for ammonium sulfate are supported by other production methods. For example, caprolactam, coke oven gas, neutralization, and a number of alternative approaches along with the gypsum process. Gypsum is utilized in various domains numerous times on a large scale. In more than 90 countries over 110 million tons of gypsum is produced and processed.
Our in-depth analysis of the global market includes the following segments:
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Product |
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Application |
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Production Process |
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APAC Market Statistics
Asia Pacific ammonium sulfate market is predicted to dominate revenue share of over 35% by 2036. The Asia-Pacific region is known for its rapid economic growth, industrialization, and expansion of key end-use sectors. Notably, rice plays a crucial role as a staple food across Asia. The Food and Agricultural Organization reports that approximately two billion people in Asia cultivate this crop, and it is a dietary staple for four billion individuals.
Many economies in this area, for instance, India, Bangladesh, and Sri Lanka, rely heavily on agriculture as their main economic activity. While the agricultural sector is advancing gradually, continuous progress is anticipated to create substantial opportunities for the growth of various fertilizers used in farming.
India's status as the largest consumer of pulses globally means it uses 27% of its total production, which constitutes 25% of the global production. Due to the growing population and limited agricultural land, farmers are facing increased pressure. As a result, there is a growing demand for fertilizers, leading to an increase in the demand for ammonium sulfate in the country.
High demand for ammonium sulfate in order to match the need for fertilizers and crop growing industry to propel the market expansion in China.
The high usage of nitrogen-based fertilizers in agricultural practices in Japan is evaluated to boost the demand for ammonium sulfate in the area.
European Market Analysis
Ammonium Sulfate Market size for Europe region is estimated to exceed USD 8 Billion by the end of 2036. The agriculture industry in Europe is exponentially growing due to ample land availability and favorable weather conditions. This leads to increased production of various crops, followed by the high demand for fertilizers. However, several organizations are implementing rules concerning synthetic fertilizers in the area. The European Commission has established multiple regulations governing the production and utilization of chemically produced fertilizers to minimize potential pollution of the soil and underground water sources in the region.
In 2022, the Commission intended to create an Integrated Nutrient Management Action Plan, expanding on the Zero Pollution Action Plan. This initiative is designed to improve coordination and focus on addressing nutrient pollution at its origin. Utilizing recovered nitrogen to replace inorganic fertilizers decreases CO2 emissions, while reclaimed phosphates lessen reliance on imported phosphate rock, and the remaining organic fractions can be utilized in local fields.
The growth in the United Kingdom can be attributed to the growing need for fertilizers in crop cultivation. Regulations related to the use of synthetic fertilizers are currently being implemented in the area.
There has been an increasing demand for fertilizers used in the cultivation of various crops, leading to the development of regulations for their use in Germany by multiple agencies.
Author Credits: Rajrani Baghel
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