The global ammonium carbonate industry value reached USD 770.3 million in 2023. Over the forecast period, the value is anticipated to rise at a 5.4% CAGR. The market is predicted to increase from USD 771.5 million in 2024 to USD 1,301.8 million in 2034. In terms of volume, consumption of ammonium carbonate is estimated to grow around 1.6X of its current value.
Ammonium carbonate is a versatile chemical, which is set to be utilized across various industries for exhibiting properties such as leavening agents, inhalants, cleaning agents, fertilizer additives, reagents, and other processing aids. Consumption of this chemical as a leavening agent and inhalant tops the usage purpose when compared with other applications. The application of ammonium has expanded across the pharmaceutical industry, agriculture sector, and various industrial processes.
| Attributes | Description |
|---|---|
| Estimated Global Ammonium Carbonate Market Size (2024E) | USD 771.5 million |
| Projected Global Ammonium Carbonate Market Value (2034F) | USD 1,301.8 million |
| Value-based CAGR (2024 to 2034) | 5.4% |
As of 2023, sales of ammonium carbonate constitute between 18% and 20% of the overall carbonate value share and this share is expected to remain consistent through the forecast period. The market is fairly consolidated with East Asia dominating in terms of supply with a volume share of around 41%.
Due to its widespread use as an ingredient in ready-to-eat foods, the food industry accounts for more than half of the use of ammonium carbonate. The global ready-to-eat meal market is worth billions of dollars, and around 6% annual growth is predicted through the forecast period. By 2034, this industry attribute is projected to indirectly help maintain a steady demand for ammonium carbonate.
This chemical is extensively used in several industries in different forms such as lumps, granules, and powder. It is utilized at greater purity levels of 98% for food and pharmaceutical applications, and above 95% for technical use. This compound's powder form is expected to witness a 1.6X increase in volume through the assessment period.
Ease of blending and formulation of controlled dosage properties make powder form highly preferred in food and pharma industries. The United States Food and Drug Administration (FDA) identifies ammonium carbonate or [NH4]2CO3 in compliance with Generally Recognized as Safe (GRAS) standards, which further boosts its acceptability in these industries.
Apart from usage in food and pharmaceutical industries, [NH4]2CO3 is also utilized in textile, personal care, agrochemicals, and analytical chemistry. Collectively, all these industries are expected to witness around 65% increase in the market value by 2034, reflecting a combined CAGR of 5.1% for the same period.
Ammonium carbonate is also utilized as a cleaning agent where it functions as a pH adjuster. As it is less alkaline than other chemicals, including sodium hydroxide, it is the recommended substance for stone and sculpture care and repair.
It is commonly used to clean soiling from stones and other artifacts by combining it with clay or paper. It is estimated that a rising number of programs aimed at monument and artifact conservation are set to offer a mild push for the usage of this chemical.
Ammonium carbonate is gaining traction in the cosmetic industry as one of the ingredients in the manufacturing of hair care and skin care products. It is primarily used as a foaming and cleansing agent in these products. It is identified as safe for use when formulated in mild concentrations.
Usage of this chemical is regulated by cosmetic safety authorities such as the United States FDA and the European Union Scientific Committee on Consumer Safety. The global personal care ingredient industry is estimated to reach USD 13 billion in 2024, indicating a steady growth of 4.1% by 2034. Such consistent uptake of cosmetic ingredients suggests a positive outlook for the use of [NH4]2CO3 in the near future.
The table below presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the market. This analysis reveals vital shifts in the performance and indicates revenue realization patterns, thereby providing stakeholders with a better vision of growth trajectory over the year.
The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December. Moving into the subsequent period, from H1 2023 to H2 2033, the CAGR was thriving at 5.1% and 5.5% in the first half and the second half, respectively.
| Particular | Value CAGR |
|---|---|
| H1 | 5.1% (2023 to 2033) |
| H2 | 5.5% (2023 to 2033) |
| H1 | 5.2% (2024 to 2034) |
| H2 | 5.6% (2024 to 2034) |
On the other hand, from the period H1 2024 to H2 2034, the CAGR is estimated to decline slightly to 5.2% in the first half and increase to 5.6% in the second half. In the first half (H1) and second half (H2), sales witnessed an increase of 10 BPS.
Rising Use in Medication to Treat Respiratory Ailments Pushes Demand
Ammonium carbonate is a vital element in the pharmaceutical sector, used in expectorants and smelling salts for treatment of respiratory ailments. This compound is preferred in formulation of cough syrups, lozenges, and aromatic oils to help alleviate respiratory symptoms and provide comfort for patients with bronchitis and asthma. This expanding usage of vital medicinal products pushes the consumption of this chemical in the pharmaceutical industry.
Demand for ammonium carbonate is also being driven by the increasing prevalence of lifestyle-related diseases like obesity and diabetes, which require long-term medication management. With 10.5% of the adult population suffering from diabetes, the pharmaceutical sector needs essential compounds like ammonium carbonate to sustain revenues.
Rising healthcare spending, particularly in high-income nations, further bolsters demand for premium pharmaceutical ingredients. According to World Bank data, the average current health expenditure per capita is USD 1,265.6 million worldwide. The strategic importance of ammonium in the pharmaceutical supply chain ensures its sustained sales growth as healthcare systems work to satisfy the changing demand.
Leavening Properties of Ammonium Propelling Consumption in Food Industry
Ammonium carbonate is considered an essential compound in baking and food processing due to its leavening properties. Its rapid release of carbon dioxide and ammonia gases results in the creation of mild, airy, and fluffy textures in baked items such as cookies, crackers, and biscuits.
Growing demand for ready-to-eat and easy-to-prepare food options is set to surge the need for ammonium. Trend toward clean-label substances in the food industry, particularly among health-conscious consumers, further supports the demand for [NH4]2CO3.
Companies Harness Ammonium Carbonate for Carbon Capture and Utilization
Ammonium carbonate is gaining traction in carbon capture and utilization (CCU) technologies due to its ability to convert CO2 into valuable carbon-reducing compounds. It captures CO2 directly from the exhaust or ambient air and processes it to form ammonium bicarbonate or urea.
The chemical has numerous industrial applications. This loop method reduces CO2 emissions and creates opportunities for producing fertilizers and other expensive chemicals, thereby increasing economic returns.
Volatility in Raw Material Prices with Strict Regulations Posing a Significant Restraint to Growth
Ammonia and carbon dioxide are the key raw ingredients that influence the price of ammonium carbonate. The energy required to produce the substance also plays a significant role. Industry characteristics, such as production levels and emission regulations, are set to lead to price volatility for certain raw commodities.
The cost of energy, influenced by gas and oil prices, is another important factor in determining the cost of [NH4]2CO3 production. Economic factors like supply and demand fluctuations, trade policy changes, and inflation are expected to affect raw material prices. Trade regulations are set to disrupt supply chains, raise expenses, and increase production costs.
Geopolitical tensions are set to impact raw material prices and availability. This geopolitical variable is projected to create an unstable environment for producers of ammonium. This will likely make it difficult to plan and budget efficiently, thereby potentially increasing costs passed on to customers.
The global ammonium carbonate industry witnessed a CAGR of 2.5% from 2019 to 2023. By 2023, the industry experienced significant changes due to economic conditions, technological advancements, regulatory changes, and evolving consumer preferences.
Economic fluctuations affected industrial demand for chemicals like [NH4]2CO3, with periods of economic downturns leading to reduced production and lower demand in some regions. Advancements in chemical engineering and production technologies have significantly influenced dynamics, leading to improved manufacturing processes, catalyst innovations, and sustainable production practices.
Regulatory landscapes governing chemicals, particularly environmental regulations, played a vital role in shaping the market. Strict emissions standards and chemical safety regulations prompted manufacturers to invest in clean technologies and adhere to high compliance standards.
Ammonium carbonate has diverse applications across various industries, including food, pharmaceuticals, and agriculture. Regional dynamics also impacted trends, as regions with robust industrial sectors and agricultural activities showed high demand.
Consumer awareness of environmental sustainability influenced trends for the [NH4]2CO3 industry. End-users increasingly preferred products made with environmentally friendly processes and ingredients.
Supply chain disruptions, such as raw material availability and logistics challenges, occasionally affected the ammonium industry. Fluctuations in energy prices and geopolitical tensions also impacted supply chain dynamics, influencing the pricing and availability of raw materials essential for ammonium carbonate production.
From 2019 to 2023, the industry reflected a dynamic interplay of economic, technological, regulatory, and consumer-driven factors. Despite economic uncertainties and regulatory pressures, innovations in production technologies and increasing application diversity have maintained relevance across various global industries.
The revenue estimated in 2024 is USD 771.5 million. In the forecast period, sales are expected to surge at 5.4% CAGR.
Tier 1 companies comprise key manufacturers with a revenue of above USD 5 million, capturing a significant share of 10% to 15% in the global market. These key manufacturers are characterized by high production capacity and a wide product portfolio. Tier 1 companies are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base.
The companies provide a wide range of products by utilizing the latest technology and meeting the regulatory standards. Prominent companies within Tier 1 include BASF SE, Avantor®, Honeywell International Inc., and others.
Tier 2 companies include mid-sized players with revenue of USD 5 to 10 million. These have their presence in specific regions and are highly influencing local sales.
The companies are characterized by a strong presence and knowledge. These companies have good technology and ensure regulatory compliance. Prominent companies in Tier 2 include Kanto Chemical Co., Inc., Spectrum Chemical Mfg Corp, ProChem Inc., and others.
Tier 3 includes several small-scale companies operating at the local level and serving niche markets. These have a total revenue below USD 5 million. These companies are notably oriented towards fulfilling local consumer demands and are consequently classified within the Tier 3 segment.
Tier 3 companies are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized sector, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
The section below covers the analysis of the sales growth for different countries. Demand analysis on key countries in several regions of the globe, including North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa, is provided.
Chile is anticipated to remain at the forefront in Latin America, with a CAGR of 7.6% through 2034. In East Asia, China, South Korea, and Japan are projected to witness CAGRs of 6%, 9.2%, and 8% respectively, in the forecast period.
| Countries | CAGR 2024 to 2034 |
|---|---|
| South Korea | 9.2% |
| Japan | 8% |
| Chile | 7.6% |
| China | 6% |
| India | 5.7% |
China is set to rise by 1.8 times, achieving a CAGR of 6% from 2024 to 2034. The country is projected to reach USD 335.4 million by 2034. Demand in the country is experiencing a moderate surge due to the rapid growth of its commercial zone.
China's growing manufacturing base, which includes the production of textiles, ceramics, and glass, is based on ammonium for diverse approaches. As these industries keep innovating and modernizing, the need for essential chemicals like ammonium carbonate increases. This industrial growth is a key driving factor in the country.
The textile sector is set to contribute to growing opportunities for ammonium carbonate manufacturers in China. Demand in the country is surging significantly because of its booming textile industry.
As per a report published by the State Council of the People's Republic of China, textile and garments exports by China reached USD 293.6 billion in 2023. As the country maintains its dominance in the worldwide textile sector, the demand for this chemical is likely to rise. This is because of its rising use in dyeing and printing to enhance fabric quality and color.
Growth of local fabric manufacturers, driven by domestic consumption and exports, significantly increases demand for this compound, a vital component for maintaining and enhancing fabric performance and durability. The supportive regulatory framework and incentives for chemical manufacturing and agricultural improvements in China have also strengthened sales.
Incorporation of ammonium carbonate in the agriculture sector and wine industry has resulted in a high demand for this compound in the country. Backed by this factor, Chile is set to exhibit moderate growth at a CAGR of 7.6%, resulting in a value of USD 42.9 million by 2034.
Chile is a highly productive agricultural sector globally, contributing significantly to fruit exports like apples, cherries, blueberries, and grapes due to favorable climate conditions. The country's agriculture sector primarily uses ammonium as a nitrogen source, a vital nutrient for plant growth.
Chile is a global wine producer known for producing high-quality wines. In 2022, the country produced 1,244 million liters of wine, with domestic consumption reaching 292 million liters. Ammonium carbonate is an essential chemical in the winemaking process, controlling acidity to achieve the desired stability and flavor. This control contributes to the balance and smoothness of the finished product, making Chile a significant player in the global wine industry.
Japan is estimated to rise at 8% CAGR throughout the forecast period, reaching a value of USD 76.3 million by 2034. Ammonium carbonate is set to be widely used in the country because of its high versatility and effectiveness in various culinary and industrial applications. Ammonium, a traditional leavening agent in cooking, softens cookies, crackers, and bread, ensuring neutral flavor and maintaining authenticity in delicate pastries.
The Annual Pharmaceutical Production Statistics Report from the Japan Ministry of Health, Labor and Welfare (MHLW) indicates that the combined revenue of prescription and non-prescription pharmaceuticals in Japan reached USD 106 billion in 2021. High stability and ease of use make [NH4]2CO3 an ideal choice for high-purity chemical synthesis in the pharmaceutical sector. This highlights its significant role in chemical manufacturing and drug development.
The section below contains information about the leading segments in the industry. By product grade type, the food grade segment is estimated to account for a 46.5% share in 2034. By product form, the powder segment is forecast to hold a share of 67.9% in 2034.
| Segment | Food Grade (Product Grade) |
|---|---|
| Value Share (2034) | 46.5% |
The global sales of food-grade [NH4]2CO3 are experiencing steady growth because of its vital role within the baking sector. It is a popular leavening agent in baked goods like cookies, crackers, and biscuits due to its ability to release carbon dioxide without flavor.
Health-conscious consumers prefer gluten-free alternatives as part of a healthy diet. Food manufacturers are focused on this trend by increasing the production of new gluten-free product ranges, thereby fueling demand for food-grade ammonium.
Ammonium carbonate, derived from natural resources and recognized for its safety and efficiency, aligns well with these customer preferences. Food manufacturers are increasingly adopting this compound to meet the clean label standards, ensuring their products align with a wide segment that prioritizes natural and minimally processed ingredients. High consumption of processed, convenience, and ready-to-eat food items is also anticipated to bolster demand.
| Segment | Powder (Product Type) |
|---|---|
| Value Share (2034) | 67.9% |
Powdered [NH4]2CO3 is gaining traction because of its ease of maintenance and storage. Powdered ammonium is stable and can be easily measured, mixed, and stored without considerable hazard of degradation. This stability makes it suitable for manufacturers and customers, as it can be stored for longer periods without losing any properties.
Powdered ammonium reduces the risk of spillage and contamination, which is an important factor in industries. It is also considered significant in food manufacturing and prescribed drugs in which product purity is essential. Powdered ammonium’s versatility in various industries is due to easy incorporation into formulations and processes, making it a widely accepted compound in diverse processes.
Competitors in the ammonium carbonate industry are focusing on innovation and diversification to enhance product offerings and meet evolving consumer demands. They are also leveraging strategic partnerships and growing production capacities to gain a competitive edge and increase value share.
The market is competitive, with key enterprises focusing on innovation, sustainable sourcing, and research. Leading manufacturers and companies are extending their geographical presence and product portfolio to gain a competitive edge.
Leading companies and manufacturers also invest in research and development, undertake strategic activities, and focus on environmentally friendly operations and product certifications. Key manufacturers aim to improve business standing by focusing on client preferences, innovation, and quality.
Industry Update
A Few Leading Companies
In terms of product grades, the industry is divided into food, pharmaceutical, and technical grades.
As per product types, the industry is divided into powder and lumps.
Based on end-use industries, the industry is divided into pharmaceutical, cosmetics and personal care, food, textile, and others.
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia Pacific, and the Middle East and Africa have been covered in the report.
Ammonium carbonate is mainly used in medicines to treat respiratory illnesses. It is also utilized in baking powders, mordant dyeing, tanning, as a reagent, and in smelling salts
Ammonium phosphate-based fire extinguishers are increasingly being used to control electrical fires or fires generated from grease, gasoline, or combustible substances such as wood
The global ammonium carbonate market is projected to reach USD 1,301.8 million by 2034
Thermo Fisher Scientific Inc., Merck Group, and Kanto Chemical Co. are leading ammonium carbonate manufacturers
Baking powder is considered an ideal substitute for ammonium carbonate worldwide
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Ammonium Carbonate Market
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