Ammonium Bicarbonate Market

Industry Overview

The Global "Ammonium Bicarbonate Market" Size was estimated at USD 1228.36 million in 2023 and is projected to reach USD 799.88 million by 2029, exhibiting a CAGR of -6.90% during the forecast period.

Ammonium bicarbonate is an inorganic compound with formula (NH4) HCO3, simplified to NH5CO3. It is the bicarbonate salt of ammonium. It is a colourless solid that degrades readily to carbon dioxide and ammonia.

The extensive applications of ammonium bicarbonate in sectors such as chemicals, food and beverage, agriculture, and pharmaceuticals are driving the global market for the product. It is frequently utilised in many chemical reactions, as a nitrogen fertiliser in agriculture, and as a leavening ingredient in baked goods. Because of the region's significant demand in the farming and food processing industries, Asia-Pacific, particularly China, dominates the market. However due to stricter laws and a move towards substitute leavening agents, use is declining in North America and Europe. The market is anticipated to increase moderately in spite of regulatory obstacles, especially in areas with high agricultural demand.

Ammonium bicarbonate, however, is still useful in the chemical industry because it's used to make fire retardants, ceramics, dyes, and pigments. Stable demand is also anticipated over the upcoming years due to the growing emphasis on sustainable agriculture and the affordability of ammonium bicarbonate in developing countries. The market is anticipated to expand internationally at a moderate rate notwithstanding specific regulatory and environmental concerns, propelled by continuing industrial and agricultural wants, particularly in the Asia-Pacific area.

Segmental Overview

Food Grade to hold the highest market share: By Type

In terms of type the global Ammonium bicarbonate industry has been segmented as Agriculture Grade, Food Grade, and Technical Grade.

In the global ammonium bicarbonate market, food grade ammonium bicarbonate has the largest market share. This is because it is widely used in the food and beverage sector, mostly as a leavening agent in baked products including cookies, crackers, and biscuits. It is perfect for baking applications because of its low temperature decomposition, which releases carbon dioxide, especially in items that need to rise quickly without retaining ingredients or taste.

Ammonium bicarbonate suitable for agriculture, on the other hand, has a lower share due to its application as a nitrogen fertiliser in emerging agricultural economies. Although it accounts for the smallest portion of the market, technical-grade ammonium bicarbonate, which is utilised in the ceramics, dye, and fire retardant industries, nevertheless adds to the total demand. Nonetheless, the global baking and food processing sectors' steady demand means that the food-grade category remains dominant.

Food Industry to hold the highest market share: By Application

In terms of application the global industry has been segmented as Food Industrial, Rubber and leather industrial, Agriculture and Others.

In the global ammonium bicarbonate market, the food industry holds the highest market share among its various applications (Food Industrial, Rubber and Leather Industrial, Agriculture, and Others).

Its dominance in this segment is driven by its widespread use in the food processing sector, particularly in emerging markets where traditional leavening agents are still prevalent. Ammonium bicarbonate is a widely used leavening agent in the food industry, particularly in baked goods like crackers, cookies, and flatbreads, where it helps achieve the desired texture and fluffiness. Its affordability and effectiveness as a leavening agent also contribute to its strong position in the food industry.

Regional Overview

In terms of region the global ammonium bicarbonate industry has been segmented as North America, Europe, Asia Pacific, Middle East and Africa and South America.

The global ammonium bicarbonate sector is characterised by a very variable regional landscape, which is shaped by specific farming practices, regulatory policies, and market dynamics.

Due to its plentiful raw materials and affordable manufacturing techniques, China, which makes up a significant portion of production, is the dominant country in the Asia-Pacific area. The need for ammonium bicarbonate as a fertiliser is driven by the expanding agricultural industry in the region, which supports the market's robust expansion.

The market is well-established in North America and is mostly driven by agricultural applications. On the other hand, strict environmental restrictions force businesses to invest in more environmentally friendly industrial technologies. Due to increased production costs, North American businesses are now less competitive when compared to their Asian rivals.

Competitive Analysis

• BASF
• ADDCON
• Sumitomo Chemical
• MCF
• Shandong ShunTian Chemical
• Anhui Jinhe
• Haoyuan Chemical
• Anhui Huaertai Chemical
• Jinshi Group
• Sanning Chemical
• Huaqiang Group
• Shandong Hualu-Hengsheng Chemical
• Jinyimeng Group
• Weijiao Group
• Jiuyuan Chemical
• Fengxi Fertilizer
• Yulong Chemical
• Sanhe Chemical
• Xiangfeng Group
• Yuhua Chemical

The ammonium bio-carbonate industry is competitive in nature, because of the presence of both well established companies as well as new startups competing for market share through strategic planning, positioning and new innovation. Leading companies in the industry has been using their cutting edge technologies platforms in-order to offer high fidelity simulation environment.

Key companies has also been continuously investing in research and developmental activities. Because ammonium bicarbonate is used so widely in so many different industries—including food, chemicals, and agriculture—it is a highly competitive market on a global scale. Regulations pertaining to the environment, price changes, and the availability of raw materials are important elements that impact competition. The market's major companies are mostly based in Asia, particularly in China, where production costs are low and raw ingredients like carbon dioxide and ammonia are easily accessible.

Recent Development

• July 18 2024, Sumitomo Chemical announced the launch of its new digital platform Biondo in-order to unlock new value in Natural Material and connect sellers and buyers through its component Analysis service.
• July 18^th 2023, Ginkgo Bioworks and Sumitomo Chemical announced expanded partnership in-order to develop functional chemical with synthetic biology and expand upon the companies’ existing biomanufacturing partnership.

End Use industry analysis

The market size of food processing sector in India is estimated to reach US$ 1,274 billion in 2027 from US$ 866 billion in 2022, backed by the rise in population, changing lifestyle and food habits due to rising disposable income and urbanization.

The global agricultural production of primary crops grew by 54 percent between 2000 and 2021, reaching 9.5 billion tonnes in 2021 that were used as food, feed or inputs to be transformed into products ranging from biofuels to cosmetics

The United Nations projected in 2022 that by 2050, there might be 9.7 billion people on the planet (United Nations, 2022). Despite the fact that this estimate is marginally lower than previous estimates, the assumption that agricultural production must double between 2010 and 2050 is still valid. This is especially true given that the assumption does not specifically take into account any negative effects of climate change, which will continue to have a significant impact on agricultural outputs and production.

Industry Dynamics

Industry Trend

Growing emphasis on Sustainability

A number of significant trends are driving a dramatic transition in the ammonium bicarbonate industry. Manufacturers are being pressured by a growing global emphasis on sustainability to embrace more environmentally friendly industrial practices and adhere to more stringent environmental standards, especially in North America and Europe. This change is accompanied by an increase in the market for organic fertilisers, which positions ammonium bicarbonate as a more environmentally friendly substitute for synthetic alternatives. Technological developments are improving product purity and production efficiency, and market consolidation is enabling larger businesses to become more competitive and enter new markets.

Furthermore, the emergence of e-commerce is altering the dynamics of distribution and allowing businesses to interact directly with their clients. Nonetheless, corporations are tackling the issues posed by volatile raw material prices—especially for ammonia and carbon dioxide—by looking for alternate sources. When taken as a whole, these tendencies point to a dynamic business environment where success depends on creativity and adaptation.

Industry Drivers

Growing demand from Agriculture Sector

The primary driver of the ammonium bicarbonate sector is the growing need for fertilisers in agriculture due to the growing requirement for increased crop yields to meet the demands of an increasingly populous world. Sustainability efforts are particularly important since farmers are looking for more environmentally friendly fertilisers and ammonium bicarbonate is a good substitute for synthetic fertilisers. While the employment of ecologically sustainable farming practices is encouraged by legislative assistance in some countries, technological advancements in production processes are increasing efficiency and lowering prices. Ammonium bicarbonate producers can also benefit greatly from market expansion in emerging economies, where the agriculture sector is expanding at a rapid pace. Investments in agricultural inputs are further motivated by growing worries about food security, and the emergence of e-commerce platforms is changing distribution networks and helping producers connect with consumers more efficiently. When taken as a whole, these factors impact the growth and strategic orientation of the ammonium bicarbonate sector.

Industry Restraint

Fluctuation in price of raw materials

There are many challenges facing the ammonium bicarbonate sector that could hinder its expansion. Prices for raw materials can fluctuate, especially for ammonia and carbon dioxide, which can lead to uncertainty and reduce producer profit margins. Environmental regulations encourage sustainability, but they also frequently impose strict compliance requirements that raise the complexity and cost of operations. There are a lot of substitutes for ammonium bicarbonate in the market, which makes it extremely competitive and may put pressure on prices and market share. Disruptions to the supply chain, such as difficulties with logistics and increased transportation costs, make it more difficult to distribute both raw materials and completed goods. Market saturation restricts development prospects in developed areas, forcing businesses to innovate in their marketing strategies and product offerings. Limited awareness and education regarding the benefits of ammonium bicarbonate among farmers can hinder adoption, while economic factors, such as downturns or fluctuations in agricultural commodity prices, can affect farmers' purchasing power and overall demand for fertilizers. These constraints necessitate strategic responses from industry players to successfully navigate the challenges of the market landscape.

Report Scope

The report includes Global & Regional market status and outlook for 2017-2028. Further, the report provides breakdown details about each region & countries covered in the report. Identifying its sales, sales volume & revenue forecast. With detailed analysis by Types, Application. The report also covers the key players of the industry including Company Profile, Product Specifications, Production Capacity/Sales, Revenue, Price, and Gross Margin 2017-2028 & Sales with a thorough analysis of the market’s competitive landscape and detailed information on vendors and comprehensive details of factors that will challenge the growth of major market vendors.