Ammonium Chloride Market

Ammonium Chloride Expanding its Demand in Multiple Industries

Ammonium chloride is a systemic, water soluble, and urinary acidifying salt that helps sustain pH and exerts a mild diuretic effect. This acid forming salt is also used as a mucoactive agent used to treat coughs. Ammonium chloride is popularly used in veterinary medicine to avoid urinary stones in sheep, goats, and cattle. The primary source to produce ammonium chloride is through the Solvay process for making sodium carbonate. However, with an external source of ammonia, the ammonium chloride may be obtained from the process, and utilized as a nitrogen fertilizer or for other purposes. The demand for ammonium chloride as a nitrogen source in fertilizers, primarily for the cultivation of wheat and rice in Asia and Russia is driving the global ammonium chloride market during the forecast period.

Popularly known as Sal Ammoniac, ammonium chloride has multiple uses such as an electrolyte in dry cells, and it is also extensively used as a component of galvanizing, tinning, and soldering fluxes to eliminate oxide layers from metals and thereby enhance the adhesion of the solders. Moreover, ammonium chloride is a component of several exclusive cold medicines and cough treatments due to its effectiveness as an expectorant, and also in veterinary medicine. Furthermore, there is a heavy demand for ammonium chloride in the food industry has been increasing. This is expected to expand the Asia Pacific and Russia ammonium chloride market in the near future.

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COVID-19 Limiting Expansion, Supply of Ammonium Chloride 

Asia and Russia have been using ammonium chloride in larger amounts during the COVID-19 outbreak. Such trends are affecting the expansion of the ammonium chloride market in different regions of the world. The pandemic has been responsible for holding the demand for nitrogen fertilizers, leading to a price drop for ammonium chloride and limiting the global supply chain. Excess supply and thin blending margins for solder adhesives are affecting the growth of the ammonium chloride market.

Suppliers were putting excess ammonium chloride in storage during the peak of the coronavirus outbreak in April with plans to remain stored until the end of 2021. Moreover, refineries have been functioning in a restricted practice following which there has been a slowdown in ammonium chloride flows. As such, mass production and supply for COVID-19 vaccines and sturdy financial planning of business activities are anticipated to revive market growth in the ending quarters of 2021.

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China Dominates World’s Ammonium Chloride Exports

The Asia Pacific holds the largest share of the ammonium chloride market with the majority of the world’s production highly concentrated in China, which accounts for more than 80% of global exports. China is largely producing ammonium chloride using Hou's Solvay process that yields ammonium chloride, along with soda ash as a byproduct. It has a better price value than that of the conventional Solvay process. Thus, using these process manufacturers of ammonium chloride have earned a competitive edge over other players. However, APAC has witnessed several capacity expansions with domestic manufacturers entering the ammonium chloride market.

The ammonium chloride market in Asia Pacific and Russia is anticipated to expand at a CAGR of ~4% during the forecast period of 2021 to 2031. Owing to several factors, including the expanding rice and wheat crop production in Asian and Russian countries have increased ammonium chloride-based fertilizers in these regions. Moreover, the use of ammonium chloride in various applications is creating better opportunities for manufacturers in the global market. Moreover, ammonium chloride has also found its methods as a component in contact explosives, fireworks, and safety matches. Besides, the use of dry cell batteries is growing in demand and expected to contribute to the growth of the Asia Pacific and Russia ammonium chloride market.

Medicinal Side Effects of Ammonium Chloride May Limit Growth Opportunities

Ammonium chloride is famously used in laboratory applications around the world and was previously more popular for producing low temperatures in cooling baths. For paleontological research, ammonium chloride vapor is deposited on fossils to form a brilliant white, easily extracted, harmless inactive layer of tiny crystals. This process helps to cover up the coloration of the fossil and helps to enhance contrast in photographic documentation of three-dimensional specimens. These techniques are also used in archaeological processes. Due to increasing research and development activities in Russia and APAC regions, the ammonium chloride market is anticipated to grow during the forecast period.

As with the other applications of ammonium chloride, the market is witnessing rising demand in the pharmaceutical industry, as it is used in the development of several drugs and medicines. Ammonium chloride is used as a systemic acidifier in patients with metabolic alkalosis, resulting from chloride loss following vomiting, gastric suction, gastric fistula drainage, and pyloric stenosis. The chemical is also proving effective for the treatment of diuretic-induced chloride depletion. However, the medicinal use of ammonium chloride is a bit complicated, due to the side effects found in patients such as metabolic acidosis, rash, EEG abnormalities, seizures, etc. This is leading researchers to find alternatives for the chemical, thus, can hinder the growth of the pharmaceutical industry.

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Analysts’ Viewpoint

The globally popular applications of ammonium chloride are ensuring strong demand for ammonium chloride in Asian and Russian markets. Manufacturers are proactively operating with governments for financial assistance during the COVID-19 pandemic to maintain a steady stream of cash flow. Ammonium chloride used as nitrogen in fertilizers is gaining popularity in the Asian and Russian markets, owing to the increasing need for wheat and rice cultivation. The Asian food and pharmaceutical sector is subject to a broad set of administrative and medical regulations due to the side effects witnessed in multiple processes. Hence, companies in the Asia Pacific and Russia should focus on expanding the export across the world to tap into global market revenue opportunities. Moreover, the deficiency of universal directives about applications of ammonium chloride is estimated to thwart the ammonium chloride market in the Asia Pacific and Russia in the near future. However, key applications of ammonium chloride, including fertilizers, pigments, dyes & colorants, food additives, feed supplements, cleaning, acidifiers, and others are contributing to overcome restraints and generate further demand for the Asia Pacific and Russia ammonium chloride market during the forecast period.

Asia Pacific & Russia Ammonium Chloride Market: Overview

• Ammonium chloride is highly soluble in water. Solutions of ammonium chloride are mildly acidic. Sal ammoniac is a name of the natural, mineralogical form of ammonium chloride. Aluminum chloride is used as catalyst or component of catalytic systems for various chemical reactions.
• Key applications of ammonium chloride include fertilizers, pigments, dyes & colorants, food additives, feed supplements, cleaning, acidifiers, and others. Ammonium chloride is employed in a wide range of applications. This is boosting the Asia Pacific & Russia ammonium chloride market. It is employed as flux in the preparation of metals that are to be soldered, galvanized, or tin coated. It is also used for the maintenance of pH and as an expectorant in cough medicine.
• Aluminum chloride is utilized as catalyst or as a component of catalytic systems for various chemical reactions. Akin to ferric chloride, aluminum chloride is a low Lewis acid. Furthermore, aluminum chloride serves as an auxiliary in the manufacture of pigments, dyes, and colorants.

Key Growth Drivers of Asia Pacific & Russia Ammonium Chloride Market

• Increase in need for better yield of food crops in decreasing arable land is expected to propel the ammonium chloride market in Asia Pacific and Russia during forecast period. The market in Asia Pacific and Russia is driven primarily by the demand for ammonium chloride as nitrogen source in fertilizers, primarily for the cultivation of wheat and rice in Asia. Use of ammonium chloride as compound fertilizer in agricultural fields for wheat cultivation is increasing. NH4Cl fertilizer application at the tillering–jointing and flowering stages has nearly equal effects on the Cd concentration in wheat grain. Basal dressing with NH4Cl fertilizer increases Cd concentrations in wheat grain to a greater extent as compared to topdressing. The usage of ammonium chloride has been increasing as a nitrogen fertilizer in Japan. Ammonium chloride is a widely used fertilizer in paddy cultivation. Being a nitrogenous fertilizer, its demand is estimated to intensify with higher growth in rice cultivation. This is expected to boost the ammonium chloride market in Asia Pacific during the forecast period.
• Demand for ammonium chloride is increasing in the pharmaceutical industry, as it is used in the preparation of various drugs and medicines. Thus, rise in demand for ammonium chloride in the pharmaceutical industry is expected to boost the ammonium chloride market during the forecast period. Ammonium chloride is employed as a systemic acidifier in patients with metabolic alkalosis, resulting from chloride loss following vomiting, gastric suction, gastric fistula drainage, and pyloric stenosis. Ammonium chloride is also employed in the treatment of diuretic-induced chloride depletion. A solution containing isotonic or hypotonic sodium chloride with potassium chloride is usually more effective than ammonium chloride in hypokalemic patients. Ammonium chloride is also used to treat alkalosis resulting from excessive use of alkalinizing drugs.

Key Challenges of Asia Pacific & Russia Ammonium Chloride Market

• Dearth of universal directives pertaining to applications of ammonium chloride is estimated to hamper the ammonium chloride market in Asia Pacific and Russia in the near future. Every country has different directives and legislations pertaining to the use of ammonium chloride. Companies find it difficult to comply with these country-wise directives and legislations. This can discourage investment in the ammonium chloride market, thereby restraining the market.
• Volatility in prices of raw materials is expected to pose a challenge to ammonium chloride producers over the next few years. Furthermore, easy availability of favorable substitutes, such as rosin resin is anticipated to hinder the ammonium chloride market during the forecast period. Rise in regulations on a global level and increasing shift toward environment and sustainability trends throughout the value chain are hampering the ammonium chloride market.

Lucrative Opportunities for Players in Asia Pacific & Russia Ammonium Chloride Market

• Key players such as
  • Dallas Group
  • Tinco
  • Shijiazhuang Shuanglian Chemical
  • Haohua Junhua Group
  • Jiangsu Debang Chemical
  • Jiangsu Huachang Chemical
  • Shindoo
  • Shaanxi Xinghua Chemistry Co., Ltd
  • Korund
• are focusing on expanding their global footprint through strategic capital allocation and increase in production capacity
• Companies need to focus on product improvements in order to create new interest in existing products. This can help draw customers and improve the perception of the quality of products.

Leading Players in Asia Pacific & Russia Ammonium Chloride Market

• Players operating in the ammonium chloride market in Asia Pacific and Russia are adopting various organic and inorganic growth strategies such as mergers & acquisitions, new product launches, strategic collaborations, expansion, and joint ventures to expand their product portfolio and business operations

Asia Pacific & Russia Ammonium Chloride Market – Segmentation   

TMR’s research study segments the ammonium chloride market in Asia Pacific & Russia in terms of grade, application, end user, and region. This report presents extensive market dynamics and growth trends associated with different segments and explains how they are influencing the growth of the ammonium chloride market in Asia Pacific & Russia.