Asia Pacific Ammonium Nitrate Market

Asia Pacific Ammonium Nitrate Market Size

The Asia Pacific Ammonium Nitrate Market size was calculated to be USD 3.15 billion in 2024 and is anticipated to be worth USD 3.81 billion by 2033, from USD 3.22 billion in 2025, growing at a CAGR of 2.12% during the forecast period.

The Asia Pacific ammonium nitrate market refers to the production, distribution, and utilization of ammonium nitrate is a key chemical compound primarily used in agricultural fertilizers and industrial explosives. As a nitrogen-rich source, it plays a crucial role in enhancing soil fertility and crop yield, particularly in large-scale farming operations. In addition, its application in mining, quarrying, and construction sectors as an ingredient in ANFO (ammonium nitrate fuel oil) formulations makes it indispensable for industrial growth. According to the Food and Agriculture Organization, agriculture remains a dominant economic sector in many Asia Pacific countries, with over 60% of the population in nations like India and Indonesia engaged in farming activities. This high level of agricultural dependence directly fuels the demand for ammonium nitrate-based fertilizers to boost productivity.

In China, as per the Ministry of Agriculture and Rural Affairs, ammonium nitrate continues to be a preferred nitrogenous fertilizer due to its efficiency in promoting plant growth and compatibility with mixed nutrient applications. Meanwhile, in Australia, the Department of Industry, Science and Resources reports that ammonium nitrate is a critical component in open pit mining operations, supporting the country’s mineral extraction and export economy.

MARKET DRIVERS

Expansion of Agricultural Activities Across Developing Economies

One of the primary drivers of the Asia Pacific ammonium nitrate market is the continuous expansion of agricultural activities in developing economies such as India, Indonesia, and Vietnam. Ammonium nitrate is widely used as a high-nitrogen fertilizer that enhances soil nutrient content and supports higher crop yields, which makes it essential for sustaining food production in densely populated regions. According to the Food and Agriculture Organization, over 65% of smallholder farmers in Southeast Asia rely on nitrogenous fertilizers, including ammonium nitrate, to maintain soil fertility and meet rising food demand. In India, the Indian Council of Agricultural Research notes that government subsidies on fertilizers have significantly boosted ammonium nitrate usage among rice, wheat, and sugarcane cultivators.

Increasing Demand from Mining and Construction Industries

Another major driver propelling the Asia Pacific ammonium nitrate market is the rising demand from mining and construction industries, where ammonium nitrate serves as a core component in explosive mixtures such as ANFO (Ammonium Nitrate Fuel Oil). The need for efficient blasting agents has surged with infrastructure development projects accelerating across emerging economies.

According to the Asian Development Bank, more than 40 new large-scale mining projects were initiated in Indonesia and the Philippines between 2021 and 2023, all requiring ammonium nitrate-based explosives for rock fragmentation and site preparation. In Australia, the Minerals Council of Australia reports that ammonium nitrate accounts for nearly 80% of industrial explosives used in iron ore and coal extraction. In South Korea, the Korea Institute of Industrial Technology notes that ammonium nitrate is also being explored for controlled demolition and tunnel excavation projects in urban expansion initiatives.

MARKET RESTRAINTS

Stringent Regulatory Frameworks and Safety Concerns

A key restraint affecting the Asia Pacific ammonium nitrate market is the implementation of stringent regulatory frameworks governing its storage, transportation, and usage due to safety risks associated with its explosive properties. Several governments have imposed licensing requirements and monitoring systems to prevent misuse, which has led to increased compliance costs and supply chain complexities. According to the United Nations Office on Drugs and Crime, multiple terror-related incidents involving ammonium nitrate globally have prompted regional authorities to enforce stricter controls. The Department of Interior and Local Government requires all ammonium nitrate-handling entities to undergo extensive background checks and facility audits before approval. As reported by the Australian Federal Police, similar restrictions apply in Australia, where ammonium nitrate is classified under Schedule 7 Dangerous Goods, which necessitates specialized storage and transport protocols.

Environmental and Health-Related Concerns

Another major restraint impacting the Asia Pacific ammonium nitrate market is the growing concern regarding its environmental and health impacts when improperly stored or applied. Ammonium nitrate runoff from agricultural fields can contribute to groundwater contamination and eutrophication, which is prompting environmental agencies to scrutinize its usage. According to the World Health Organization, excessive nitrate levels in drinking water have been linked to methemoglobinemia in rural areas where fertilizers are heavily used. In China, the Ministry of Ecology and Environment has issued directives urging farmers to adopt precision farming techniques to minimize excess ammonium nitrate application. Additionally, as per the New Zealand Ministry for the Environment, recent assessments indicate that ammonia emissions from ammonium nitrate-based fertilizers contribute to air pollution and acid rain formation, leading to calls for alternative nutrient management strategies.

MARKET OPPORTUNITIES

Adoption of Controlled-Release Fertilizer Technologies

An emerging opportunity in the Asia Pacific ammonium nitrate market is the growing adoption of controlled-release and stabilized ammonium nitrate-based fertilizers that enhance nutrient efficiency while minimizing environmental impact. Governments and agricultural research institutions across the region are encouraging the development of modified formulations that reduce nitrate leaching and gaseous emissions by aligning with sustainable farming practices.

According to the International Fertilizer Association, several agrochemical firms in Japan and South Korea have introduced coated ammonium nitrate products designed to release nitrogen gradually, improving crop uptake and reducing waste. According to the Fisheries and Forestry, precision agriculture initiatives are promoting the use of low-emission ammonium nitrate blends tailored for environmentally sensitive regions. Furthermore, as per the Indian Institute of Soil Science, pilot programs in Punjab and Haryana have demonstrated up to 30% improvement in nitrogen retention through modified ammonium nitrate formulations.

Growth in Industrial Applications and Infrastructure Projects

Another promising opportunity in the Asia Pacific ammonium nitrate market is the surge in industrial applications driven by infrastructure development and resource extraction projects. The demand for ammonium nitrate-based explosives for quarrying and earthmoving operations has grown substantially as governments invest heavily in roadways, railways, and energy facilities. In Indonesia, the Ministry of Public Works and Housing reports that ammonium nitrate-based explosives are being prioritized for dam and highway expansion projects due to their cost-effectiveness and performance.

In Australia, the Chamber of Minerals and Energy notes that the country's expanding lithium and rare earth mining sectors have increased reliance on ammonium nitrate for controlled blasting in hard-rock formations. The Asia Pacific region offers strong potential for ammonium nitrate beyond traditional agricultural applications with continued investment in industrial modernization and extractive industries.

MARKET CHALLENGES 

Risk of Misuse and Explosions Leading to Supply Restrictions

One of the foremost challenges facing the Asia Pacific ammonium nitrate market is the persistent risk of misuse and accidental explosions, which has led to tighter supply chain controls and reduced availability in some markets. Incidents involving ammonium nitrate in terrorist attacks and industrial accidents have prompted governments to implement strict licensing and monitoring mechanisms, which complicates procurement for legitimate users.

According to the United Nations Office on Drugs and Crime, several ammonium nitrate-related blasts in the region since 2020 have triggered policy reforms aimed at restricting unauthorized access to the compound. In Malaysia, the Department of Occupational Safety and Health has introduced mandatory storage audits and security clearances for ammonium nitrate warehouses following a series of unregulated depot explosions.

Availability of Substitute Nitrogen-Based Fertilizers

Another critical challenge confronting the Asia Pacific ammonium nitrate market is the increasing availability and adoption of substitute nitrogen-based fertilizers such as urea and ammonium sulfate, which are considered safer and easier to manage. These alternatives are gaining traction among farmers and agrochemical producers seeking to comply with evolving regulatory standards and avoid the logistical complexities associated with ammonium nitrate. According to the International Fertilizer Development Center, urea consumption in India surpassed ammonium nitrate by a factor of five in 2023, largely due to its lower volatility and ease of distribution. Additionally, as per the Japan Agricultural Chemicals Association, domestic fertilizer manufacturers have shifted toward slow-release nitrogen compounds that do not carry the same regulatory and safety implications as ammonium nitrate. These substitutes are influencing procurement decisions in both commercial and smallholder farming, which is limiting the growth of the ammonium nitrate market in certain agricultural contexts across the Asia Pacific.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Application Insights

The fertilizers segment dominated the Asia Pacific ammonium nitrate market by capturing 62.3% of the total share in 2024 due to the widespread use of ammonium nitrate as a nitrogen-rich fertilizer that enhances soil fertility and crop yield across major agricultural economies in the region. According to the Food and Agriculture Organization, over 70% of smallholder farmers in Southeast Asia rely on nitrogenous fertilizers, including ammonium nitrate, to maintain soil productivity for staple crops such as rice, wheat, and corn. In China, as per the Ministry of Agriculture and Rural Affairs, government-backed initiatives promoting balanced nutrient application have led to increased adoption of ammonium nitrate in combination with phosphorus and potassium-based fertilizers. Similarly, in Indonesia, the Department of Agriculture notes that ammonium nitrate remains a preferred option among sugarcane and palm oil plantations due to its rapid nitrogen availability and compatibility with tropical soil conditions.

The explosives segment is swiftly emerging with an anticipated CAGR of 8.4% from 2025 to 2033. This growth is being driven by increasing demand for ammonium nitrate-based formulations such as ANFO (Ammonium Nitrate Fuel Oil) in mining, quarrying, and construction activities across the region. In Australia, the Minerals Council of Australia studies have shown that ammonium nitrate accounts for nearly 80% of industrial explosives used in iron ore and coal mining operations, supporting the country’s export-driven resource sector. Furthermore, as reported by the Korea Institute of Industrial Technology, South Korean companies involved in tunneling and controlled demolition projects are increasingly adopting modified ammonium nitrate compositions for safer blasting alternatives. 

By End-user Industry Insights

The agriculture segment was the largest in the Asia Pacific ammonium nitrate market with 58.4% of the share in 2024. According to the International Rice Research Institute, more than 60% of rice cultivation in Vietnam and the Philippines involves nitrogenous fertilizers, with ammonium nitrate being a preferred choice due to its rapid nutrient-release properties. In India, the Ministry of Agriculture and Farmers Welfare reports that ammonium nitrate-based fertilizers are widely used in rabi and kharif seasons to enhance yields of wheat, maize, and pulses. In China, the National Engineering Laboratory for Clean Fertilizer Production notes that ammonium nitrate is frequently blended with other nutrients to improve efficiency and reduce environmental impact. Additionally, as per the Indonesian Center for Agricultural Technology, the government has encouraged the usage of ammonium nitrate in plantation sectors such as palm oil and rubber to maintain soil productivity.

The mining industry is lucratively growing with a CAGR of 9.1% from 2025 to 2033. Ammonium nitrate serves as a core component in industrial explosives, particularly in ANFO (Ammonium Nitrate Fuel Oil) mixtures used for rock fragmentation and mineral extraction. According to the Australian Bureau of Resources and Energy Economics, ammonium nitrate consumption in mining applications increased by 12% year-over-year in 2023, driven by expansion in lithium, gold, and coal extraction projects. In Thailand, the Department of Primary Industries and Mines emphasizes that ammonium nitrate is preferred over alternative explosives due to its ease of handling and storage under local regulatory frameworks. As per the Philippine Department of Environment and Natural Resources, several new quarrying licenses issued in Mindanao and Luzon have led to increased procurement of ammonium nitrate for limestone and granite extraction.

REGIONAL ANALYSIS

China held the largest share in the Asia Pacific ammonium nitrate market with 34.2% of the share in 2024. According to the Ministry of Agriculture and Rural Affairs, over 50 million metric tons of nitrogenous fertilizers were consumed in China in 2023, with ammonium nitrate continuing to play a vital role in grain-producing provinces such as Heilongjiang and Shandong. Additionally, the China Association of Explosives Industries reports that ammonium nitrate is a key ingredient in commercial explosives used in open-pit and underground mining operations. Moreover, as per the National Development and Reform Commission, government incentives for precision agriculture and sustainable nutrient management have led to innovation in stabilized ammonium nitrate formulations, enhancing efficiency while reducing environmental risks.

India was positioned second in the Asia Pacific ammonium nitrate market with 18.3% of the share in 2024. According to the Ministry of Agriculture and Farmers Welfare, ammonium nitrate-based fertilizers accounted for nearly 15% of all nitrogenous fertilizer applications in 2023, particularly in states like Punjab, Haryana, and Uttar Pradesh. In the industrial sector, as reported by the Federation of Indian Chambers of Commerce and Industry, ammonium nitrate is increasingly being adopted in quarrying and road construction projects, especially in hilly and rocky terrains.

Australia maintains a strong presence due to its well-established mining industry, stringent safety regulations, and advanced agricultural practices that integrate ammonium nitrate-based fertilizers for high-yield crops and pastureland. According to the Minerals Council of Australia, ammonium nitrate accounts for nearly 80% of industrial explosives used in iron ore, coal, and rare earth extraction, making it indispensable for the nation’s mining exports. In agriculture, as per the Department of Agriculture, Fisheries and Forestry, ammonium nitrate is employed in controlled-release fertilizers to support dairy farming and broadacre cropping in regions like New South Wales and Queensland. Additionally, the Australian Federal Police enforces strict licensing and tracking mechanisms for ammonium nitrate distribution to prevent misuse and ensure compliance with national security protocols.

Indonesia's ammonium nitrate market is likely to have prominent growth opportunities in the coming years. According to the Indonesian Department of Agriculture, ammonium nitrate-based fertilizers are extensively used in plantation sectors such as palm oil, rubber, and coffee, which require high-nutrient input to sustain export-oriented production. Additionally, as per the ASEAN Secretariat, the Government of Indonesia has been actively encouraging domestic manufacturing of ammonium nitrate to reduce import dependency and support economic self-sufficiency. Several state-owned enterprises have expanded production capacities to align with this initiative.

Vietnam ammonium nitrate market growth is driven by the increasing agricultural activity and infrastructure expansion, which together drive demand for ammonium nitrate in both fertilizer and explosive applications.

LEADING PLAYERS IN THE ASIA PACIFIC AMMONIUM NITRATE MARKET

Yara International ASA (Asia Operations)

Yara International plays a pivotal role in the Asia Pacific ammonium nitrate market through its extensive presence in agricultural and industrial applications. The company supplies high-quality ammonium nitrate-based fertilizers tailored for diverse soil conditions across countries like India, China, and Southeast Asia. Yara’s commitment to sustainable nutrient management and responsible production practices has positioned it as a trusted supplier in both fertilizer and controlled explosives markets. Its regional distribution network ensures reliable supply to key end-users while aligning with global safety and environmental standards.

Indian Farmers Fertiliser Cooperative Limited (IFFCO)

IFFCO is a dominant player in the Asia Pacific ammonium nitrate market, particularly in the agriculture sector. As one of India's largest fertilizer manufacturers, IFFCO produces and distributes ammonium nitrate-based products that support food security and crop yield enhancement. The company’s cooperative structure enables it to directly serve millions of farmers across the country, reinforcing its influence in the region. IFFCO also invests heavily in R&D to develop safer and more efficient formulations that meet evolving regulatory expectations.

PT Pupuk Indonesia (Persero)

PT Pupuk Indonesia is a leading provider of nitrogenous fertilizers in Southeast Asia, playing a crucial role in the ammonium nitrate market. The company serves a wide range of agricultural sectors, especially palm oil, rice, and sugarcane farming, where ammonium nitrate supports high productivity.

TOP STRATEGIES USED BY KEY MARKET PARTICIPANTS

One of the primary strategies adopted by leading players in the Asia Pacific ammonium nitrate market is enhanced safety compliance and secure supply chain management, where companies implement advanced monitoring, tracking, and storage protocols to meet stringent regulatory requirements. Another crucial approach is product diversification and formulation innovation, with firms developing stabilized and controlled-release versions of ammonium nitrate to cater to environmentally conscious users and improve application efficiency. Additionally, strategic partnerships and localized manufacturing expansion are widely pursued, which allows companies to strengthen regional footholds, reduce logistical costs, and ensure timely delivery to both agricultural and industrial customers across the Asia Pacific.

KEY MARKET PLAYERS AND COMPETITION OVERVIEW

Major Players in the Asia Pacific Ammonium nitrate market include CF Industries Holdings Inc., EuroChem Group, Orica Limited, Yara International ASA, Incitec Pivot Limited, Enaex S.A., San Corporation, Neochim PLC, Rashtriya Chemicals and Fertilizers Ltd (RCF), URALCHEM JSC.

The competition in the Asia Pacific ammonium nitrate market is shaped by a mix of state-backed producers, multinational chemical firms, and local agro-industrial enterprises vying for dominance in both agricultural and industrial applications. While global players such as Yara International bring technological expertise and international best practices, regional giants like IFFCO and PT Pupuk Indonesia leverage their deep-rooted supply networks and policy alignment to maintain strong market positions. Governments in several countries regulate ammonium nitrate closely due to its dual-use nature, influencing market access and distribution dynamics.

Consumer demand remains largely driven by agricultural needs, but industrial applications in mining and construction are expanding rapidly, prompting suppliers to diversify their offerings. At the same time, rising environmental concerns and stricter handling regulations are pushing companies toward safer formulations and improved logistics. To stay ahead, market participants are focusing on vertical integration, process optimization, and customer education on responsible use. This dynamic environment fosters continuous evolution, pushing companies to differentiate through technical excellence, sustainability dominance, and operational agility.

RECENT HAPPENINGS IN THE MARKET

• In March 2024, Yara International announced an expansion of its distribution facility in Vietnam to enhance ammonium nitrate availability for both agricultural and industrial users. This initiative was aimed at strengthening Yara’s position in Southeast Asia by improving logistics efficiency and ensuring compliance with local safety standards.
• In July 2023, IFFCO launched a new line of stabilized ammonium nitrate fertilizers designed to minimize leaching and gaseous emissions. Developed in collaboration with Indian agricultural research institutions, this product line was intended to address environmental concerns while maintaining high nutrient efficiency for farmers.
• In November 2023, PT Pupuk Indonesia expanded its ammonia-nitrate complex in Gresik to increase domestic ammonium nitrate production capacity. This move was part of a broader effort to support national food security programs and reduce dependency on imports for critical agricultural inputs.
• In February 2024, SABIC Agri-Nutrients signed a long-term supply agreement with Australian mining companies to provide industrial-grade ammonium nitrate for open-pit mineral extraction projects. This strategic engagement was targeted at increasing SABIC’s footprint in Australia’s resource-rich regions.
• In August 2023, Deepak Fertilisers & Petrochemicals Corporation established a new ammonium nitrate blending unit in Gujarat, India, to cater to growing demand from quarrying and infrastructure development sectors. This investment was intended to expand Deepak Fertilisers' reach beyond traditional agricultural markets into industrial applications.

MARKET SEGMENTATION

This research report on the Asia Pacific Ammonium Nitrate Market has been segmented and sub-segmented based on application, end user, and region.

By Application

• Fertilizers
• Explosives
• Other Applications

By End-user

• Agriculture
• Mining, Defense
• Other Industries

By Region

• India
• China
• Japan
• South Korea
• Australia
• New Zealand
• Thailand
• Malaysia
• Vietnam
• Philippines
• Indonesia
• Singapore
• Rest of Asia-Pacific