Ammonium Chloride Market

Ammonium Chloride Market Outlook (2023 to 2033)

The global ammonium chloride market is valued at US$ 1.4 billion in 2023 and is forecasted to reach US$ 2.1 billion by 2033-end, expanding at a CAGR of 4.1% from 2023 to 2033.

• Worldwide demand for food-grade ammonium chloride is projected to rise faster as compared to other grades at a CAGR of 5% over the next ten years.

Food products employ food-grade ammonium chloride as an acidifier and preservative. It is used in the production of sodium bicarbonate as well as baking powder and other culinary goods such as candies.

The Solvay method for producing sodium carbonate serves as the main source for ammonium chloride production. The ammonium chloride produced by the method, however, can be used as a nitrogen fertilizer or for other purposes if there is an external supply of ammonia.

Ammonium chloride is a widely used fertilizer in paddy cultivation. During the projection period, the market will be driven by the demand for ammonium chloride in fertilizers, especially for the production of wheat and rice. 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.

An increase in industrial applications such as leather tanning, textile printing, metal flux, cosmetics, and personal care have been identified as niche uses of ammonium chloride and are expected to witness steady growth during the forecast period. The market for ammonium chloride will see considerable expansion over the forecast period as a result of the organic compound's ability to boost crop productivity on rarely accessible cultivable land.

Food-grade ammonium chloride is expected to gain traction over the coming years with the increasing penetration of ammonium chloride as a food additive. 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.

Report Attributes	Details
Market Size in 2023	US$ 1.4 Billion
Projected Market Value (2033)	US$ 2.1 Billion
Global Market Growth Rate (2023 to 2033)	4.1% CAGR
Market Share of Food-grade Ammonium Chloride (2023)	50%
Key Companies Profiled	Zaclon LLC BASF SE Liuzhou Chemical GFS Chemicals The Chemical Company Dallas Group Central Glass Tuticorin Alkali Tinco Hubei Yihua Jinshan Chemical

What’s Catalyzing Global Demand for Ammonium Chloride?

“Surging Need for Ammonium Chloride in Chemical-etching Processes”

The unwanted portions of a component are dissolved in acids, bases, or alkaline chemicals during the photolithographic process known as chemical etching or chemical milling to produce the appropriate form for the final product. Photo-chemical etching and electrochemical etching are the main chemical milling procedures in the automotive, aerospace, electronics, and semiconductor sectors, which employ ammonium chloride extensively.

The market will experience significant growth during the forecast period due to the high demand for etching chemicals used in the manufacturing of several products. Ammonium chloride's expanding uses as an etching agent and the rising demand for etchants from end-use sectors will both substantially contribute to the rising consumption of ammonium chloride over the coming years.

“Modernization of Production Techniques”

Ammonium chloride is increasingly being used for several applications other than fertilizers, which is a key factor in the market expansion. Demand from emerging economies is also on the rise, and there is an increase in R&D activities in the industry, which are other significant market-driving factors. Additionally, throughout the projection period, the market for ammonium chloride would benefit from an increase in new developments and modernization of manufacturing methods.

“Growing Ammonium Chloride Usage in Pharmaceutical Production”

Ammonium chloride is increasingly in demand in the pharmaceutical sector due to its application in the manufacturing of a variety of pharmaceuticals and medications. Diuretic-induced chloride depletion is treated with ammonium chloride.

For hypokalemic individuals, potassium chloride and isotonic or sodium chloride (NaCl) solutions are often more efficient than ammonium chloride. In addition, alkalosis caused by excessive use of alkalinizing medications is treated with ammonium chloride.

How is Market Growth Being Restrained to Some Extent?

“Volatility in Raw Material Costs and Availability of Alternatives”

The market is hindered by the lack of global regulations relevant to ammonium chloride uses. Regarding the usage of ammonium chloride, each country has its regulations and laws. Companies find it challenging to follow these directions and laws. This may deter investments and constrain the consumption of ammonium chloride to some extent.

According to pricing trends, manufacturers of ammonium chloride are projected to have difficulties due to the volatility in raw material costs over the coming years. The accessibility of alternatives is hampering market demand. The market is being hampered by rising restrictions on a worldwide scale and a growing movement towards environmental and sustainability trends along the whole value chain.

The market will face significant challenges due to ammonium chloride's side effects. Despite having many beneficial uses, ammonium chloride has some side effects that might seriously restrain the expansion of the worldwide ammonium chloride market.

What Strategies Should New Market Entrants Focus On?

“Uncovering Breakthrough Products – Key Priority of Start-ups”

New entrants should focus on discoveries and product implementation to drive the business worldwide. Through creative marketing plans, they can keep their competitive advantage.

Aspiring market players should make an effort to produce pure ammonium chloride, not the byproduct of any other process. For the finished product to be utilized in food-grade applications, purity, quality, and safety criteria must be met.

Which Region Will Provide Lucrative Opportunities for Market Players?

“Rising Demand for Dry-cell Batteries in Asia Pacific”

• Asia Pacific is the leading regional market for ammonium chloride with 50% market share in 2023.

Ammonium chloride-based fertilizers have become more popular in Asia Pacific as a result of many factors, including the rising production of rice and wheat. Ammonium chloride has been used as a component of pyrotechnics, safety matches, and contact explosives.

The market for ammonium chloride in the region is anticipated to develop as a result of the rising demand for dry-cell batteries.

Country-wise Insights

What is the Market Scenario for Ammonium Chloride in the United States?

“High Demand for Industrial-grade Ammonium Chloride”

The market in the United States is expanding due to the high demand for industrial-grade ammonium chloride and significant investments in new product launches. The increasing need for fertilizer additives and the huge adoption of ammonium chloride in the pharmaceutical industry are the key factors supporting market expansion.

How is Demand for Ammonium Chloride Shaping Up in Germany?

“Market Players Benefiting from Rapid Expansion of Agriculture Industry”

The market in Germany is driven by increasing urbanization and rapid expansion of the agriculture industry. High demand for ammonium chloride as a nitrogen source in fertilizers is driving market value. A positive market outlook will be supported by businesse's specific marketing campaigns.

Why is Japan an Opportune Space for Ammonium Chloride Producers?

“Cost-effective Ammonium Chloride Manufacturing Boosting Revenue of Manufacturers”

Japan has been a lucrative market for ammonium chloride and is set to maintain its dominance throughout the forecast period. Ammonium chloride is predominantly manufactured using Hou’s process in Japan.

Hou’s process is also known as the modified Solvay process. Hou’s process yields ammonium chloride along with soda ash as a by-product, which has a higher value than that of the traditional Solvay process. The market in Japan has the presence of global manufacturers that have joint-venture manufacturing facilities in the country.

Category-wise Insights

Why are Sales of Food-grade Ammonium Chloride Gaining Traction?

“Food-grade Ammonium Chloride Gaining Popularity as Flavoring Agent”

By grade, the market is segmented into agriculture grade, industrial grade, and food grade.

• Food-grade ammonium chloride accounts for 50% share of the global market in 2023.

Ammonium chloride that is safe for human consumption is food-grade ammonium chloride. It satisfies the standards established by food regulatory organizations and has been purified to remove harmful substances.

The majority of people are gravitating toward prepared, processed snacks, desserts, and other foods. To extend the shelf life of processed food, improve flavor, and give it the appropriate crisp texture, ammonium chloride is an essential component.

In the food business, ammonium chloride is widely utilized as a food ingredient and as yeast nutrition during the baking process. In addition, because it functions in synergy with other components added to the product, it improves its final characteristic.

Rising use of ammonium chloride in processed foods and ready-to-eat food items is the reason for promoting market expansion. Additionally, the growing usage of flavor sweeteners in bakery and confectionery goods will boost market expansion throughout the projection period.

Increased marketing of healthy food additives by various food and beverage companies is projected to spur market expansion. Rapid urbanization and a rise in consumer spending on healthy food goods are the main factors generating a profitable potential for the industry.

Which Application of Ammonium Chloride Leads in Terms of Revenue Generation?

“Ammonium Chloride Usage in Fertilizers Improving Crop Efficiency”

Based on application, the market is segmented into fertilizers, agrochemicals, medical/pharmaceuticals, food additives, leather & textiles, batteries, and metal works.

Ammonium chloride is highly demanded in the fertilizer industry because it contains chlorine, which makes pests and illnesses more resistant. Farmers who grow rice and other crops in low-lying locations can use fertilizers based on ammonium chloride.

Ammonium chloride improves crop efficiency, which is projected to boost market growth over the forecast period. The increased use of fertilizers, such as nitrogenous fertilizers based on ammonium chloride, and novel techniques to increase the productivity of the existing arable land is a result of the rising demand for food products. Ammonium chloride offers crucial minerals for plant development, soil fertility, and agricultural production.

Competitive Landscape

Manufacturers are trying to strengthen their position in the marketplace by providing cost-effective solutions while following safety regulations. They are focusing on collaborations, product standards, quality control, and supply chain management to increase their revenue.

For instance :

• The Dallas Group of America announced its commercial development with new facilities in China and the Netherlands. The additional facilities are planned to accommodate the company's expanding needs.

Key Segments of Ammonium Chloride Industry Research

• By Grade :

  • Agriculture Grade
  • Industrial Grade
  • Food Grade

• By Application :

  • Fertilizers
  • Agrochemicals
  • Medical/Pharmaceuticals
  • Food Additives
  • Leather & Textiles
  • Batteries
  • Metal Works

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa