Nitric acid, a versatile chemical compound with a wide range of applications, is poised to experience significant growth in the global market. Its presence is felt across multiple industries and processes, and continuous development of patents reveals new uses for nitric acid. Key applications in fertilizers, explosives, adhesives, medicinal products, metal purification, dye intermediates, engraving, drug detection, furniture coating, and laboratory use contribute to the promising growth of the nitric acid market. Additionally, nitric acid plays a crucial role as a component of liquid rocket fuel, an important ingredient in plastic manufacturing, and a cleaning product in food processing facilities.

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The increasing demand from fertilizer formulators and the rising usage of fertilizers in rural economies worldwide are predicted to fuel the growth of the nitric acid market. The US Food and Agriculture Organization (FAO) predicts that global fertilizer demand will reach 197.93 million tonnes in 2021 and 200.92 million tonnes in 2022, with nitrogen-based fertilizers growing by 1.4% year over year in 2021. The global proliferation of various fertilizers and agricultural practices, driven by growing food demand, aims to improve crop output, reduce cultivation time, and ensure healthy crop growth. Nitric acid, being a major component in the production of nitrogen fertilizers, further supports the positive growth outlook for the nitric acid market.

According to Fertilizers Europe, annual nitrogen fertilizer use in the European Union is projected to reach 10.6 million tonnes by the 2029/2030 season, down from 11.2 million tonnes in the present season. After several years of recovery, annual fertilizer consumption is expected to decline for the fourth consecutive year during the next decade, limiting industry growth. However, the increasing use of HNO3 in agriculture to produce fertilizers such as ammonium nitrate, potassium nitrate, calcium ammonium nitrate, and nitro phosphate would support the healthy expansion of the nitric acid market. The use of fertilizers to enhance crop productivity and meet the needs of a growing population will create opportunities for the nitric acid sector.

Improving Food Quality due to Fertilizer to Drive Nitric Acid Market Growth

The fertilizer segment is expected to be the fastest-growing segment of the nitric acid market over the forecast period. This growth is primarily driven by rising food demand, which has led to the global expansion of fertilizer units. Farmers are increasingly relying on fertilizers to maximize crop yield in the shortest possible time. Over 80% of nitric acid is utilized in the production of fertilizers, particularly ammonium nitrate and calcium ammonium nitrate. As the growing global food demand requires more arable land for cultivation, the need for fertilizers is on the rise. Consequently, the worldwide fertilizer industry is projected to grow at a compound annual growth rate (CAGR) of around 5% during the forecast period.

Ammonium nitrate, a popular and effective nitrogen-based fertilizer containing approximately 35% of total nitrogen by mass, and calcium ammonium nitrate (CAN) fertilizer containing 25-28% nitrogen, play significant roles in driving the nitric acid market. CAN fertilizer provides nitrogen to facilitate faster plant development. By mixing molten ammonium nitrate and calcium carbonate at a temperature of approximately 170°C, calcium ammonium nitrate is produced. Its hygroscopic nature allows it to absorb moisture from the air, making it suitable for use in soil even under conditions of insufficient water availability.

Rising Production of Wheat, Maize, Cotton, and Potatoes to Drive Nitric Acid Market Growth in Asia Pacific

The Asia Pacific region is expected to dominate the nitric acid market in terms of manufacturing. The demand for agricultural commodities is predicted to continue rising as the world's population and affluence expand. The increased output of wheat, maize, cotton, and potatoes in countries like India, China, and Pakistan primarily drives the utilization of nitric acid in fertilizers. These factors will drive the demand for nitric acid in the region over the projection period. Notably, China, India, and South Korea have the highest production and consumption of fertilizers in the Asia Pacific region. According to the ITC trade map, South Korea was the largest exporter of nitric acid in 2021, exporting 534.2 thousand tonnes, while China emerged as the second-largest importer in 2020, importing 152.8 thousand tonnes for various end-user industries such as fertilizers, inks, pigments and dyes, and chemical manufacturing.

In India, the Fertilizer Association of India reports that total fertilizer production reached 43.49 million MT in 2020-21, representing a 1.7% increase over the previous year. Nitrogen-based fertilizer production also experienced a slight increase of 0.2%, reaching 13.74 million MT in 2020-21. The National Bureau of Statistics reveals a 2% rise in grain production in China in 2021, with a total output of 682.9 million tonnes, up from 650 million tonnes the previous year. Corn acreage increased by 5% and output increased by 4.6% compared to the previous year. The market in these countries is expected to be driven by the increasing use of fertilizers to boost productivity and keep up with the shrinking cultivated land. Nitric acid is not only utilized in fertilizers but also serves as a raw material for inks, pigments, and dyes, with the textile industry being its primary application. According to the Ministry of Sector and Information Technology, China's textile industry experienced rapid growth in the first nine months of 2021, with earnings of 171.1 billion yuan (about USD 26.80 billion), representing a 31.7% year-on-year rise (MIIT).

Global Nitric Acid Market: Competitive Landscape

In the highly competitive nitric acid market, several key players are striving to capture market share and enhance their operations. For instance, in October 2020, LSB Industries, Inc. signed a new long-term nitric acid supply contract with a client, securing an annual supply of 70 to 100 KT of nitric acid. This strategic move aims to improve profits by focusing on marketing efforts and changing the product mix. Another notable development occurred in July 2020 when KBR collaborated with Haifa Group, leveraging patented technology to enhance the production capacity of two nitric acid factories in Israel. This collaboration is expected to increase production capacity while simultaneously reducing plant emissions and operational costs.

Some of the prominent players in the nitric acid market include The Chemours Company, Dyno Nobel, National Chemical Group, KBR, Koch Fertilizers, OCI Nitrogen, Potash Corp, Eurochem Group, CF Industries, LSB Industries, and Agrium Inc.

In conclusion, the rapid growth of the global population is expected to fuel the expansion of the nitric acid market. Nitric acid finds applications in various industries and processes, and its demand is propelled by the increasing usage of fertilizers to meet the growing food demand. The fertilizer segment, in particular, is projected to witness significant growth due to rising crop productivity requirements. Asia Pacific, with its burgeoning population and expanding agricultural output, ispositioned as the leading market for nitric acid production. The region's increasing production of wheat, maize, cotton, and potatoes, especially in countries like India, China, and Pakistan, drives the demand for nitric acid in fertilizers. Furthermore, India and China, with their significant fertilizer production and consumption, play a crucial role in shaping the nitric acid market.

As the market grows, competition among key players intensifies. LSB Industries, Inc. and KBR are among the companies taking strategic steps to enhance their operations and improve profits. The market landscape is dynamic, with continuous developments and collaborations aimed at increasing production capacity and reducing environmental impact.

To meet the rising demand, it is essential for the nitric acid market to adapt and innovate. Sustainable practices and technologies that promote efficient fertilizer use and minimize environmental footprint will be crucial in driving future growth. With the rapid increase in population and the need for enhanced food production, the nitric acid market is set to play a pivotal role in supporting agricultural productivity and ensuring food security.

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