by The Australia ammonia market comprises products containing ammonia that are used widely as fertilizers to increase the productivity of agriculture. Ammonia has nitrogen content that enriches the soil and promotes better growth of crops and plants. It is colorless with a characteristic pungent smell and is lighter than air. The increasing demand for food due to the rising population in Australia is driving the need for high agricultural yields, which is propelling theAustralia ammonia market.
The Global Australia Ammonia Market is estimated to be valued at US$ 934.85 Million in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the Australia ammonia market are Incitec Pivot Limited, Yara International ASA, Orica Limited, and Wesfarmers Chemicals, Energy & Fertilisers. Incitec Pivot Limited is a major producer of ammonia and ammonium nitrate fertilizers in Australia. Yara International ASA is a leading global fertilizer company and offers a wide range of fertilizer products including ammonia in Australia.
The demand for ammonia as fertilizers is increasing in the agriculture sector in Australia due to the rising need to boost farm yields to meet the food demand of the growing population. Ammonia enhances soil fertility and quality and enables farmers to improve crop productivity substantially. The increasing imports and exports of agricultural commodities indicate a high scope for the growth of the ammonia fertilizer market over the forecast period.
The Australia ammonia market is also expanding globally with manufacturers exploring opportunities in overseas markets. Leading players are focusing on international trade, joint ventures, and partnerships to strengthen their global presence. Strategic collaborations aid companies to cater to the fertilizer demand from other agriculture-based economies and diversify their business domains.
Market Key Trends
A key trend in the Australia ammonia market is the shifting preference of farmers towards liquid and gas forms of ammonia as fertilizers. While traditionally solid forms such as ammonium sulfate and diammonium phosphate were widely used, farmers are increasingly adopting anhydrous ammonia due to advantages such as greater solubility and enhanced nutrient absorption by plants. The market for liquid ammonia is growing at a faster pace compared to other types. Manufacturers are also developing innovative application techniques and equipment for efficient usage of gaseous and liquid ammonia among agricultural producers. This is expected to further support the demand over the coming years.
Porter’s Analysis
- Threat of new entrants: The threat of new entrants is moderate as existing players have built huge infrastructure and economies of scale advantage over the years. However, barriers to entry are not very high for manufacturers.
- Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of many established manufacturers supplying similar products. Buyers can negotiate on price to some extent.
- Bargaining power of suppliers: Suppliers have low-to-moderate bargaining power due to the availability of substitute raw materials and less differentiation in materials. Suppliers are dependent on manufacturers for their business.
- Threat of new substitutes: The threat of substitutes is low as ammonia has very few close substitutes that can provide similar properties and functionality. Established alternatives require huge investments to gain significant market share.
- Competitive rivalry: Competition is high amongst established players due to availability of similar product offerings. Manufacturers compete based on pricing, product differentiation, reliability, and relationships with buyers/suppliers.
Geographically, the value share of the Australia ammonia market is highly concentrated in New South Wales. It accounted for over 35% of the country’s total ammonia demand in 2023, driven by a well-established chemicals industry and proximity to major ports. Victoria is another lucrative region, driven by manufacturing and agricultural activities.
The fastest growing region in the Australia ammonia market during the forecast period is expected to be Western Australia. It is projected to witness a CAGR of around 8% during 2023-2030. This can be attributed to growing investments in mining, resource extraction and infrastructure development projects – key end-use industries. Additionally, Western Australia has ambitious plans for green energy and hydrogen production utilizing clean ammonia.
