The Nitric Acid Market continues to evolve as one of the most critical segments within the global chemicals and fertilizers industry, propelled by expanding agricultural activities, industrial manufacturing, and a rising emphasis on sustainable chemical production. Nitric acid remains indispensable in the creation of fertilizers, explosives, dyes, pharmaceuticals, and metal-processing agents. With the global population demanding higher agricultural yields and industries transitioning toward cleaner production technologies, nitric acid is positioned for sustained growth over the next decade.
In 2023, the global nitric acid industry reached a valuation of US$ 19.8 Bn. Supported by strong fertilizer demand and increasing investments in concentrated nitric acid (CNA) production, the market is projected to expand at a CAGR of 4.2% from 2024 to 2034, ultimately achieving US$ 31.0 Bn by 2034. As emerging economies emphasize agricultural productivity and industrialization, and developed nations prioritize environmentally responsible production routes, nitric acid will remain a vital intermediary chemical across multiple value chains.
Market Introduction
Nitric acid plays a fundamental role as one of the most essential inorganic chemicals globally, extensively utilized in the production of fertilizers, explosives, organic intermediates, and specialty chemicals. It is predominantly consumed in the production of ammonium nitrate, a core component of nitrogen-based fertilizers. Regions such as North America, Japan, and Western Europe have traditionally been major producers; however, production dynamics are increasingly shifting due to cost efficiencies and rising demand in Asia.
Nitric acid is integral to adipic acid manufacturing, contributing to the production of nylon. It also facilitates organic oxidation processes in the production of terephthalic acid and other key organic compounds. In the explosives industry, nitric acid is used in the nitration of organic compounds to produce materials such as nitroglycerin and trinitrotoluene (TNT). Its nitration capabilities are also central to the production of nitrobenzene, dinitrotoluene, and other chemical intermediates that support downstream applications including paints, plastics, and synthetic fibers.
Given its broad application spectrum, demand for nitric acid remains closely tied to global industrial expansion, agricultural modernization, and government-led efforts to ensure food security by enhancing crop yields.
Analyst Viewpoint
Rising global demand for nitrogen-based fertilizers is a primary catalyst driving the growth of the nitric acid market. As the global population inches toward the projected 9.1 billion by 2050, the emphasis on food security and agricultural efficiency is magnifying. Nitric acid, being a cornerstone for ammonia and ammonium nitrate production, continues to witness strong consumption across agricultural economies.
Additionally, the market is shaped by an increasing number of investments in Concentrated Nitric Acid (CNA) facilities, which supply critical feedstock to fertilizer and explosives production plants. The expansion of CNA capacity not only strengthens supply chains but also promotes more stable pricing dynamics, particularly in regions where production constraints and energy costs have historically hindered growth.
Environmental considerations are also dramatically influencing market trends. Nitric acid production significantly contributes to N₂O emissions, a potent greenhouse gas. Consequently, companies are implementing N₂O abatement technologies to reduce environmental footprints. Leading producers are integrating advanced catalytic decomposition systems and adopting more energy-efficient production methods to align with global sustainability mandates.
In summary, the nitric acid market is poised for steady expansion, supported by agricultural imperatives, technological modernization, policy-driven environmental accountability, and strategic production capacity enhancements across key regions.
Market Dynamics
1. High Demand for Fertilizers Fueling Market Growth
Nitric acid is a vital component in the production of ammonium nitrate and calcium ammonium nitrate, which are widely used fertilizers. With the global population rising and urbanization reducing arable land, intensifying agricultural productivity is essential. Nitrogen-based fertilizers are indispensable in modern agricultural practices due to their ability to promote plant growth and maximize yield.
According to the Food and Agriculture Organization (FAO), food production must increase by 70% by 2050 to accommodate the growing global population. This surge in food demand directly contributes to the expanded use of nitrogen fertilizers, thus strengthening nitric acid demand.
Furthermore, the global fertilizer trade reached US$ 143 Bn in 2022, up from US$ 97.4 Bn in 2021, demonstrating robust momentum in the sector. Major fertilizer exporters such as Russia, Canada, China, the U.S., and Morocco continue to rely heavily on nitric acid as a feedstock, highlighting the intertwined nature of global fertilizer production and nitric acid consumption.
2. Increasing Investment in Concentrated Nitric Acid Production
A significant growth driver is the rise in investments toward expanding Concentrated Nitric Acid (CNA) and Weak Nitric Acid (WNA) production facilities. These expansions are designed to meet the growing needs of industries ranging from fertilizers to explosives.
For example:
Gujarat Narmada Valley Fertilizers Chemicals Limited (GNFC) in India has been increasing its CNA production capacity, targeting a total output of 165,000 MT by the end of 2022 through the installation of its fourth CAN plant.
In 2023, Casale partnered with Agropolychim to double nitrogen-based fertilizer manufacturing capacity, deploying a new dual-pressure nitric acid plant aimed at enhancing green energy integration.
These investments are not only strengthening global supply but also supporting price stabilization and market competitiveness. The availability of advanced engineering technologies is further driving efficiency, reducing operational costs, and improving environmental performance.
3. Technological Advancements and Sustainability Trends
Environmental sustainability is reshaping the nitric acid market. Nitric acid production is traditionally associated with high N₂O emissions, prompting regulatory pressures and technological upgrades. Companies are increasingly adopting:
N₂O abatement technologies
Energy-efficient production reactors
Wastewater recycling systems
Low-emission catalyst technologies
For instance, KBR Inc.'s MAGNAC CNA technology, recently deployed in partnership with GNFC, recycles process water without treatment, reduces emissions, and enhances energy efficiency. Producers that adopt such innovations are well-positioned to secure a competitive edge, especially as governments strengthen climate policies.
Regional Outlook
Asia Pacific – Leading Regional Market
Asia Pacific dominated the nitric acid market in 2023 and is expected to maintain its leading position through 2034. Several factors contribute to the region’s prominence:
Intensive fertilizer usage across India, China, and Southeast Asia
Growing investments in nitric acid and CNA production
Rising demand for chemical intermediates used in plastics, fibers, and automotive industries
Competitive production costs due to affordable labor and energy sources
South Korea and Europe together account for over 80% of global nitric acid exports. However, production disruptions and high energy costs in Europe are shifting manufacturing activities toward Asia, particularly India. European chemical companies are increasingly considering relocating production facilities to Asia to leverage cost advantages and a favorable business environment.
This shift is strengthening Asia Pacific’s role not only as a consumer market but also as a global nitric acid manufacturing hub.
Europe
Europe has historically been a strong nitric acid producer; however, recent energy crises and environmental regulations have impacted its output. Nonetheless, the region continues to invest in greener production methods and remains a key market for high-purity nitric acid used in specialty applications.
North America
North America benefits from advanced industrial infrastructure and high fertilizer consumption, particularly in the U.S. Corn Belt. The region is expected to see steady growth, supported by domestic investments and technological modernization.
Latin America, Middle East Africa
Latin America: Increasing agricultural modernization is driving demand, particularly in Brazil and Mexico.
Middle East Africa (MEA): Investment in fertilizer production and industrial expansion, particularly in GCC nations, is boosting nitric acid consumption.
Competitive Landscape
The nitric acid market is characterized by strong competition among global and regional players prioritizing sustainability, capacity expansion, and technological advancement.
Key Companies
BASF SE
The Chemours Company
Eurochem Group
Dyno Nobel
Nutrien Ltd.
Sumitomo Chemical Co., Ltd.
Yara
CF Industries
Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL)
OCI
Companies are focusing on:
Expanding production capacity
Adopting N₂O abatement solutions
Integrating green energy technologies
Strengthening product portfolios
Optimizing fertilizer and chemical feedstock production
Recent Developments
January 2024: Saudi Chemical Co. Holding (SCCH) and Dyno Nobel signed an MoU to develop a nitric acid and ammonium nitrate facility in Ras Al Khair, with an annual nitric acid capacity of 440,000 tons.
August 2023: DFPCL announced a major expansion at the Dahej plant in Gujarat, India, with the installation of a 300 KTPA Weak Nitric Acid plant and two CNA plants with 150 KTPA combined capacity.
These expansions underscore a global trend toward strengthening nitric acid production hubs, particularly in Asia and the Middle East.
Market Segmentation
By Application
Fertilizers
Nitrobenzene
Toluene Diisocyanate (TDI)
Adipic Acid
Metal Processing
Others
By Region
North America
Europe
Asia Pacific
Latin America
Middle East Africa
Countries Covered
U.S., Canada, Germany, France, U.K., Italy, Russia CIS, China, India, Japan, ASEAN countries, Brazil, Mexico, GCC countries, South Africa.
Market Snapshot
2023 Market Size: US$ 19.8 Bn
2034 Forecast: US$ 31.0 Bn
CAGR (2024–2034): 4.2%
Historical Data: 2020–2022
Quantitative Units: US$ Bn (Value)
The market report includes Porter’s Five Forces Analysis, value chain assessment, qualitative and quantitative growth indicators, and competition analysis.
Conclusion
The nitric acid market is at the center of global agricultural and industrial development. Increasing fertilizer consumption, rising investments in CNA production, technological advancements aimed at reducing emissions, and shifting global production hubs are collectively shaping the market’s trajectory. With strong demand from Asia Pacific and growing emphasis on sustainable chemical production, the industry is poised for robust, long-term expansion through 2034.
