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Ammonium chloride efficacy in pharmaceuticals and food intensifies, and use in nitrogen fertilizers gains traction

Published by , Assistant Editor
World Fertilizer,

Ammonium chloride is an inorganic chemical compound, which is predominantly used as a fertilizer. Other bundled applications of ammonium chloride in pharmaceuticals, food, textiles and other metal industries, have fetched notable advancements over the past decades. The global ammonium chloride market is poised to reflect moderate growth under 5% for these sectors. However, agrochemicals would still be the dominant application of ammonium chloride. The recent past has witnessed a resurgence of fertilizer grade ammonium chloride whose market is forecast to surpass US$2 billion in 2029, according to a study in a recently published report on the ammonium chloride market.

Key takeaways of the global ammonium chloride market

  • Ammonium chloride is used as a fertilizer for gaining high yield in paddy crops, which is a dominant grade, and accounts for around 90% of the market share.

  • The use of ammonium chloride as a salty flavour additive, a replacement to common salt, is trending in Western Europe, and the trend is likely to migrate to other regions in the mid-term forecast.

  • Owing to technological advancements in Lithium-ion and polymer based batteries, the ammonium chloride battery is now outdated. Therefore, battery grade ammonium chloride is poised to experience stagnant growth until 2029.

  • Demand for ammonium chloride from medical/ pharmaceuticals in 2029 is anticipated to increase two-fold from that of 2019.

  • East Asia is expected to maintain its reign in terms of supply and demand, accounting for more than three quarters of the global ammonium chloride supply.

  • The ammonium chloride market is fragmented in nature, with prominent manufactures of ammonium chloride coming from China.

  • The global ammonium chloride market is highly import-oriented, China is the largest exporter of ammonium chloride, the demand for ammonium chloride in Latin America and MEA is predominantly met through imports only.

"Owing to established application of ammonium chloride in fertilizers, the manufacturers need to re-configure strategy for focused development in other niche applications. Prominent manufactures are now focusing on exploring newer applications to track developments in ammonium chloride market," said an analyst.

Key manufacturers are adopting dual a process to ease out production cost

Ammonium chloride manufacturers are predominantly using the Hou's process, which produces soda ash with ammonium chloride as a by-product. Through this, manufacturers have achieved a competitive advantage as the price of soda ash has been decreasing worldwide, therefore leading to a reduction in production cost. Some global manufacturers have targeted this product specification by closely monitoring market attractiveness.

These insights are based on a report on Ammonium Chloride Market by Fact.MR

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Fertilizer project news Ammonia news