Ammonium Thiosulfate Market

Key Points Covered

• Market estimates and forecast 2015-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on XYZ and How to Navigate
• Recommendation on Key Winning Strategies

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2016-2020 Ammonium Thiosulfate Market Outlook Compared to 2021-2031 Forecast

Future Market Insights forecasts, the global ammonium thiosulfate demand is expected to enjoy year-on-year (YoY) growth of 5.4% in 2021, totaling 462,575.8 Tons.

As per FMI, steady rise in the agriculture & agrochemicals sector coupled with rapid urbanization globally will drive the ammonium thiosulfate market's growth. Over the past few years, strong growth has been witnessed in the agricultural sector across the globe.

This is due to increasing demand for food and other cash crops from the growing population. Growth in the agricultural sector led to increasing demand for fertilizers, thereby aiding the market growth.

Global ammonium thiosulfate market is expected to grow further due to an increase in the packaged food demand, especially across the U.S. and India. This will result in increased demand for fertilizers to cope up with the demand for food crops production for better yields and quality of crops.

Increased government spending by various other economies, especially in India, for further agricultural development will also support the market growth during the forecast period.

Moreover, decreasing cultivation area and need to high yields per unit land area, owing to increasing urbanization and shrinking cultivation unit land sizes, will boost the demand for fertilizers in the near future.

Decreasing nutrition values of the soil will increase the need for increased nitrogen, phosphorous, and potassium (NPK) nutrition for the crops productivity. As ammonium thiosulfate is beneficial for the crop productivity and increases NPK nutrition values, this will fuel the market growth over the forecast period.

How will Increasing Demand for Food Shape the Ammonium Thiosulfate Market?

Growing population, rising disposable income, and increased food demand are the macroeconomic factors driving the global ammonium thiosulfate market.

According to Food and Agriculture Organization (FAO), world population is expected to grow by over a third, or 2.3 billion people, between 2009 and 2050, wherein urban areas will account for 70% of world population in 2050.

At the same time, per capita income in 2050 is projected to be a multiple of today’s levels. This in turn will raise multiple challenges for the agriculture industry such as producing crops for increasing population with shrinking rural labor force and slower rate of crop yield.

Inorganic compounds such as ammonium thiosulfate could be used to meet these challenges and at the same time cater to the rising food demand. As it is soluble in water, ammonium thiosulfate provides a yield increase on crops due to its composition of 26% sulfur and act as a favorable return of investment for farmers.

How will Government Initiatives and Subsidies Fuel Market Growth?

Government across the globe aims to reduce the usage of pesticides, trying to increase support towards production of harmless fertilizers, which can increase the productivity of the soil.

For instance, government in the Netherland support program GENEOG aims at identifying effective products and assists in funding for registration, as well as helps in increasing grower knowledge for sustainable crop protection products.

The Indian government has approximately 200 labs producing crop protection products, and also allocates funding for crop protection products.

India is an emerging market in the South Asia region where contribution of the agricultural sector to overall GDP growth is significant. Therefore, there are several government initiatives that promotes growth of the agricultural sector. One such initiative offers subsidies on fertilizers, such as N, P and K fertilizers, to enhance production and maximize output.

What Is the Impact of COVID-19 on Ammonium Thiosulfate Market?

The global economy witnessed a significant downfall due to the sudden outbreak of COVID-19. Global shutdown halted trade activities, resulting in disruption of supply-chain network. Industrial sector, mining sector and construction sector suffered the most.

However, agricultural sector showed a stable trajectory during the pandemic, as it falls under essential services category and agricultural produce being categorized as critical commodities, thus exempting them from restrictions.

Moreover, demand and supply of certain fertilizers decreased due to the pandemic. Ammonium thiosulfate is produced from sulphur and is extracted from oil & gas refineries.  Due to pandemic, production of ammonium thiosulfate decreased due to supply chain disruption and reduction in the oil & gas demand.

Country-wise Insights

How Big is the Opportunity for Ammonium Thiosulfate Market in India?

India’s ammonium thiosulfate market is anticipated to witness fastest growth during the forecast period. Demand for ammonium thiosulfate in India is set to rise at 5.1% in 2021, estimates FMI.

Increased government investments in the Indian agriculture sector is one of the main factors supporting the market growth. One of the key driver propelling the use of ammonium thiosulfate is the lower current market penetration rates and growing awareness of sustainable farming methods.

Agriculture sector accounts for the major chunk of India’s economy. As country’s largest work force is dedicated to the agriculture sector, adoption of ammonium thiosulfate is expected to double with increasing crop production.

Furthermore, increasing use of nitrogenous fertilizers and rising food production in the country will create lucrative growth opportunities for ammonium thiosulfate manufacturers.

Why is Demand for Ammonium Thiosulfate Increasing in the U.S.?

In 2021, the U.S. ammonium thiosulfate market is expected to grow by 4.7% year-on-year, contributing over 93% of market share in North America.

Due to presence of leading companies in the region, the U.S. is projected to account for more than 60% of worldwide production and consumption, which in turn is set to drive the growth of ammonium thiosulfate market.

Increasing consumption of ammonium thiosulfate in the U.S. as a fertilizer due to its wide array of benefits such as its nitrification inhibitor properties and increased soil fertility will spur the sales.

Increasing production of corn and soya crops in U.S. will result in increased adoption of ammonium thiosulfate, accelerating the demand.

How will Development in China’s Agricultural Sector Benefit Ammonium Thiosulfate Market?

China is expected to be the key consumer of ammonium thiosulfate and will account for 84.6% of market share in 2021.

China has largest agricultural sector with abundant agricultural resources, and is the largest importer of agricultural products in the world. Over the past decade, China witnessed strong growth in the agricultural sector.

China’s agricultural sector generates more than one trillion dollar of economy in the country. Due to the high crop production in the country, adoption of ammonium thiosulfate will continue to increase. Consequently, boosting the demand for fertilizers including ammonium thiosulfate.

Manufacturers in the country have a competitive advantage as they have access to cutting edge technologies and researches to address the unmet challenges. Additionally, they are constantly investing in research & development activities to expand product lines and develop efficient fertilizers and pesticides.

Favorable government policies to improve agriculture sector’s performance, decreasing arable land, extensive use of fertilizers and pesticides, and increasing concern for food security are major factors driving the market growth.

How is the Market of Ammonium Thiosulfate Flourishing in Germany?

Germany is expected to account for around 30.4% of the global ammonium thiosulfate sales. Germany and France are major agricultural producers across Europe and holds considerable market share.

Key factors such as rising demand for water soluble macro nutrient fertilizers, compatibility of ammonium and thiosulfate fertilizer with various crop protection agents, and the wide range of uses for these products, results in high demand for ammonium thiosulfate in the country, boosting market growth.

Also, key manufacturers in the country are aiming to extend their business through major capacity expansions. For instance, In October 2020, TIB Chemicals launched into operation newly built storage tanks for TIB THIO ATS (Ammonium Thiosulfate), which has contributed to the safekeeping of large quantities of the chemical. 

Category-wise Insights

Why is the Demand for Liquid Form in Ammonium Thiosulfate Continuously Rising?

Liquid form type is witnessing a considerable growth in the global market. Liquid form segment is expected to account for over 76.9% of the global volume consumption in East Asia.

Liquid form type is the top choice due to its blending nature. Based on its diverse characteristic such as fertilizer, herbicide safener, bleaching agent, and reducing agent, liquid form will witness high demand.

How will Application of Ammonium Thiosulfate as Fertilizer Spur Sales?

Revenues in the fertilizer segment are expected to grow at 4.6%CAGR in 2021. Demand of mining segment is expected to increase at 4.6% between 2020 and 2021, according to FMI.

Rise in the agricultural activities in major regions, increased government spending on the agricultural development and rising demand of food are the key factors for the segment growth.

Consumption of ammonium thiosulfate is growing as a fertilizer as it provides better crop yields, and has high amount of sulfur and nitrogen which is essential for crops. Further, the decreasing nutrition values from the soil is boosting the demand for nutrients based fertilizers, which will improve the adoption of ammonium thiosulfate.

Which Grade Type will Lead the Market Growth?

The industrial grade segment is estimated to account for around 97.0% in the North America owing to increasing application in agriculture, pharmaceutical, mining and metallurgical industries.

As a nitrification inhibitor ammonium thiosulfate prevents ammonium (NH4) from being converted to nitrate and is also a sulphur source that aids in improving crop yields and quality. These characteristics are expected to fuel the demand for industrial grade ammonium thiosulfate.

Competitive Landscape

Companies operating in ammonium thiosulfate market are aiming at strategic collaborations and strategic partnerships with other manufacturers to expand their product manufacturing and address the demand of an expanding patient pool.

Key players are also expanding their production capacities by establishing new production units, especially in the U.S. and Europe.

• For instance, In October 2017, Tessenderlo Group opened a new liquid fertilizer manufacturing facility in East Dubuque, Illinois (USA). This added to the production capacity for Thio-Sul, the company’s ammonium Thiosulfate.
• In May 2021, Koch Fertilizers, LLC started building a 2-million-gallon ammonium thiosulfate (ATS) terminal at its Fort Dodge facility to support growing demand. This terminal will be commissioned and operational by December 2021.

Some of the leading companies operating in the market are:

• Tessenderlo Kerley, Inc.
• Koch Nitrogen International Sarl
• Kugler Co.
• Martin Midstream Partners
• TIB Chemicals AG
• Esseco Srl
• PCI Nitrogen
• Shakti Chemicals

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of Report

Key Questions Answered in the Report

• Which Is the Highest Grossing Ammonium Thiosulfate Market?  

  The U.S. is anticipated to remain prominent market for ammonium thiosulfate, and is expected to account for about 93.4% across North America in 2021.

• Which is the Top-Selling Grade Type in the Ammonium Thiosulfate market?

  Industrial Grade is anticipated to remain top choice over the forecast period, accounting for around 97% market share across East Asia.

• Which are some of the leading companies offering Ammonium Thiosulfate?

  Tessenderlo Kerley, Inc., Kugler Co., Martin Midstream Partners, TIB Chemicals AG, Esseco Srl, and PCI Nitrogen are the top key players. As per FMI, over 70% of the market share is currently covered by the top 6 players.

• At what rate did the ammonium thiosulfate market expand in 2021? 

  The global ammonium thiosulfate market is expected to grow at 5.4% in terms of volume in 2021.

• What is the North America ammonium thiosulfate market outlook?

  Demand in North America is expected to rise at 6.1% CAGR during the forecast period.

• At what rate will ammonium thiosulfate sales increase in Europe?

  Ammonium thiosulfate sales are expected to increase at a robust pace of 6.5% CAGR in Europe, estimates Future Market Insights.

Ammonium Thiosulfate Market by Category

By Form Type:

• Powder
• Liquid

By Grade:

• Industrial Grade
• Photo Grade

By End Use:

• Fertilizer
• Photochemical
• Mining
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia Pacific
• Middle East and Africa (MEA)