Ammonium Chloride Market to Witness Steady Growth, as China Dominates 70% of Global Exports
Ammonium chloride market is partially fragmented, with majority of the world’s production highly concentrated in China, which accounts for nearly 70% of global exports.
- Ammonium chloride is a widely used fertilizer in paddy cultivation. Being a nitrogenous fertilizer, its demand will intensify with higher growth in rice cultivation globally.
- Demand for pharma grade ammonium chloride is anticipated to grow in sync with the demand for OTC cold & cough medicines. Besides, ammonium chloride is also used in animal medication to prevent the formation of stones in the kidneys and bladder of grazing animals.
- Likewise, a number of industrial applications like leather tanning, textiles printing, metal flux, cosmetics & personal care have been identified as niche applications of ammonium chloride and are expected to witness steady growth during the forecast period.
- Ammonium chloride-based zinc-carbon batteries have been phasing out due to the presence of other alkaline batteries which show better performance than zinc-carbon batteries. This could restrain the market in the long-term forecast.
- In addition, with the increasing penetration of ammonium chloride as a food additive, food-grade ammonium chloride is expected to gain traction in the mid-term forecast.
- This trend has been observed primarily in Western Europe where ammonium chloride is being used as an alternative to common salt and as an additive in bread making. Further, this trend is anticipated to shift to other regions especially North America. On the backdrop of the aforementioned factors, the global ammonium chloride market is expected to witness moderate growth of 4.0% CAGR over the forecast period of 2019-2029.
Prices of ammonium chloride have been stable over the past five years in various regions. As per Fact.MR estimates, the price of ammonium chloride is expected to have minimal fluctuation over the forecast period.
Furthermore, overcapacity and Chinese trade dependency will govern the ammonium chloride prices over the assessment period.
Cost-effective Manufacturing Giving Tailwind to China Ammonium Chloride Market
China has been a lucrative market for ammonium chloride and is set to maintain its dominance throughout the forecast period.
The country’s ammonium chloride production capacity is estimated to be around 17,000 KT, which accounts for over 90% of global ammonium chloride capacity.
Ammonium Chloride is predominantly manufactured using the Hou’s process in China and other Asian countries. The Hou’s process is also known as modified Solvay process. Hou’s process yields Ammonium chloride along with soda ash as a by-product, which has higher price value than that of the traditional Solvay process.
Thus manufacturers of ammonium chloride using Hou’s process have gained a competitive advantage over other players using the conventional Solvay process. Currently, China has an overcapacity of both ammonium chloride and soda ash.
China has witnessed a number of capacity expansions with domestic manufacturers entering the market.
The market in China also has the presence of global manufacturers that have joint-venture manufacturing facilities in the country. The extent of capacity increase in the country has been higher than that of the domestic demand which is escalating the rate of overspill into exports.
Majority of production is consumed locally and as per fact.MR estimates, the country exports 5-10% of its total ammonium chloride to other countries.
- The global supply of ammonium chloride has been concentrated in selected countries such as China, India, and Germany. Prominent players with established market presence in global ammonium chloride market include Haohua Junhua Group Co Ltd, Hangzhou Jingang Chemical CO., LTD., Dahua Group Dalian Chemical Co., Ltd., Tuticorin Alkali Chemicals & Fertilisers Ltd., BASF SE, and Zaclon LLC.
- Manufacturers are trying to reinforce their position in the market by providing cost-effective solutions. Global Ammonium chloride market is dominated by Chinese suppliers, of which the top five companies account for around 17% share of the global supply.
- China remains the largest exporter of ammonium chloride, accounting for around 70% of the global exports. With such large export quantities and import dependency, the on-going trade wars and geopolitics can have a huge impact on the global ammonium chloride market.
- MEA and Latin America have limited ammonium chloride production for which these regions remain to be the major importers of ammonium chloride.
Know More Details About the Report
Ammonium Chloride Market Segmentation
Fact.MR has studied the ammonium chloride market with detailed segmentation on the basis of grade, application and key regions.
Ammonium Chloride Market- Scope of the Report
The recent study by Fact.MR on ammonium chloride market offers a 10-year forecast between 2019 and 2029. The study analyzes crucial trends that are currently determining the growth of ammonium chloride market.
This report explicates on vital dynamics such as the drivers, restraints and opportunities for key market players along with key stakeholders as well as emerging players associated with the manufacturing of ammonium chloride. The study also provides dynamics that are responsible for influencing the future status of the ammonium chloride market over the forecast period.
A detailed assessment of ammonium chloride value chain analysis, business execution, and supply chain analysis across the regional markets has been covered in the report.
A list of prominent companies operating in the ammonium chloride market along with their production capacity analysis enhances the reliability of this comprehensive research study.
Ammonium Chloride Market: Report Summary
The study offers a comprehensive analysis on diverse features including production capacities, demand, product developments, revenue generation and sales in ammonium chloride market across the globe.
A comprehensive estimate on the ammonium chloride market has been provided through an optimistic scenario as well as a conservative scenario, taking into account the sales of ammonium chloride during the forecast period. Price point comparison by region with the global average price is also considered in the study.
Ammonium Chloride Market: Analysis on Market Size Evaluation
The ammonium chloride market has been analyzed for each market segment, in terms of volume (Kilotons) and value (US $ Mn).
Market estimates at global and regional levels for ammonium chloride is available in terms of “US$ Mn” for value and in “kilo tons” for volume. A Y-o-Y growth contrast on prominent ammonium chloride market segments, along with the market attractiveness evaluation has been incorporated in the report. Furthermore, the absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve along with identifying potential resources, considering sales and distribution perspective in the global ammonium chloride market.
Ammonium Chloride Market: Inspected Assessment on Regional Segments
Key sections have been elaborated in the ammonium chloride report, which helped to deliver projections on the regional markets. These chapters include the regional macros (political-economic, and business environment outlook), which are expected to have a momentous influence on the growth of the ammonium chloride market during the forecast period.
Country-specific valuation on demand for ammonium chloride has been offered for each regional market, along with the market scope estimate and forecast, price index, and impact analysis of dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.
Detailed breakup in terms of value & volume for emerging countries has also been included in the report.
Ammonium Chloride Market: In-depth Analysis on Competitive Landscape
The report sheds light on the leading manufacturers of ammonium chloride along with their detailed profiles. Essential and Up-to-date data information related to the market performers, who are principally engaged in the production of the ammonium chloride, has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permit the report readers to take preemptive steps in advancing their businesses.
Company profiles have been included in the report, which includes essentials such as product portfolio, key strategies along an all-inclusive SWOT analysis on each player. The company presence is mapped and presented through the matrix for all the prominent players thus providing the readers with actionable insights, which helps in thoughtfully presenting market status, and predicting the competition level in the ammonium chloride market.
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