Nitric acid, a versatile chemical compound, is experiencing significant growth in the global market due to the rapidly increasing population and its wide range of applications. With its solubility in water, strong oxidizing properties, and conductivity, nitric acid plays a crucial role in various industries and processes. Its usage spans across fertilizers, explosives, adhesives, medicinal products, metal purification, dye intermediates, engraving, drug detection, furniture coating, and laboratory applications. Additionally, nitric acid serves as a component in liquid rocket fuel, a vital ingredient in plastics manufacturing, and a cleaning product in food processing facilities.

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The growing demand for nitric acid stems from fertilizer formulators and the increased usage of fertilizers in rural economies around the world. According to the US Food and Agriculture Organization (FAO), global fertilizer demand is projected to reach 197.93 million tonnes in 2021 and 200.92 million tonnes in 2022, with nitrogen-based fertilizers expected to grow by 1.4% year over year in 2021. The rising global food demand has prompted the widespread adoption of fertilizers and agricultural practices to enhance crop output, reduce cultivation time, and ensure healthy crop growth. As a major component in the production of nitrogen fertilizers, nitric acid holds promising growth prospects in the market.

Fertilizers are anticipated to be the fastest-growing segment in the nitric acid market over the forecast period. The surge in food demand has led to the global expansion of fertilizer units, as farmers seek to maximize crop yield in the shortest time possible. Over 80% of nitric acid is utilized in fertilizer production, particularly in the manufacturing of ammonium nitrate and calcium ammonium nitrate. With the growing need for arable land to meet the demands of a burgeoning global population, the demand for fertilizers is on the rise. Consequently, the worldwide fertilizer industry is predicted to achieve a compound annual growth rate (CAGR) of approximately 5% during the projection period.

Ammonium nitrate, a popular and effective nitrogen-based fertilizer, contains around 35% total nitrogen by mass. Another nitrogen-rich fertilizer, calcium ammonium nitrate (CAN), contains 25-28% nitrogen. CAN fertilizer provides essential nitrogen for accelerated plant development. By mixing molten ammonium nitrate and calcium carbonate at approximately 170°C, calcium ammonium nitrate is produced. Its hygroscopic properties enable it to collect moisture from the air, making it suitable for soil application even in areas with limited water availability.

Asia Pacific is poised to lead the nitric acid market in terms of manufacturing, driven by the increasing demand for agricultural commodities resulting from the expanding world population and rising affluence. The region, including countries like India, China, and Pakistan, witnesses significant production output of wheat, maize, cotton, and potatoes, thereby driving the utilization of nitric acid in fertilizers. The projected increase in demand for nitric acid in the region is attributed to the highest production and consumption of fertilizers in countries such as China, India, and South Korea. According to the ITC trade map, South Korea emerged as the largest exporter of nitric acid in 2021, with 534.2 thousand tonnes exported, while China stood as the second-largest importer in 2020, with 152.8 thousand tonnes imported for various end-user industries, including fertilizers, inks, pigments, dyes, and chemical manufacturing.

In India, the Fertilizer Association reports that the total production of fertilizer products reached 43.49 million MT in 2020-21, reflecting a 1.7% increase over the previous year. Nitrogen-based fertilizer production also experienced a slight growth of 0.2%, reaching 13.74 million MT in 2020-21. Furthermore, the National Bureau of Statistics reveals a 2% increase in grain production in China in 2021, with output reaching 682.9 million tonnes compared to 650 million tonnes the previous year. Corn acreage increased by 5%, and output rose by 4.6% year-on-year. The utilization of fertilizers to boost productivity and compensate for shrinking cultivated land is expected to drive the market in the country. Notably, nitric acid serves as a crucial raw material for inks, pigments, and dyes, primarily in the textile industry. The Ministry of Sector and Information Technology reports a rapid growth rate of 31.7% year-on-year in China's textile industry during the first nine months of 2021, with earnings of 171.1 billion yuan (approximately USD 26.80 billion) (MIIT).

Competitive Landscape in the Global Nitric Acid Market

The global nitric acid market features several key players striving to capture market share and enhance their operations. For instance, LSB Industries, Inc. signed a new long-term nitric acid supply contract in October 2020, aiming to improve profits through focused marketing efforts and product mix adjustments. In July 2020, KBR collaborated with Haifa Group, utilizing patented technology to enhance the production capacity of two nitric acid factories in Israel. This collaboration aims to increase production capacity while reducing plant emissions and operational costs.

Leading 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 rapidly increasing population worldwide is driving the growth of the nitric acid market. With its wide range of applications, nitric acid plays a vital role in various industries and processes. The demand for nitric acid is further fueled by the increasing usage of fertilizers, driven by the growing food demand and the need to improve crop productivity. As the global population and affluence continue to expand, Asia Pacific is emerging as a leading market for nitric acid due to its significant agricultural production. The competitive landscape of the global nitric acid market is characterized by key players striving to meet the rising demand and enhance their market presence.

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