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Ammonium Chloride: Its Efficacy in Food & Pharmaceuticals Increases, Use in Nitrogen Fertilizers Picks Up Steam

Ammonium chloride is an inorganic chemical compound, which is predominantly used as a fertilizer. Other bundled applications of ammonium chloride in pharmaceuticals, food, textiles and other metal industries, have achieved notable advancements over the past decades. The global ammonium chloride market is poised to reflect moderate growth under 5% for these sectors. However, agrochemicals would still be the dominant application of ammonium chloride. The recent past has witnessed a resurgence of fertilizer grade ammonium chloride whose market is forecast to surpass US$2 billion in 2029, according to a study in a recently published report on the ammonium chloride market.
There are key takeaways of the global ammonium chloride market to pay attention to: Firstly, ammonium chloride is used as a fertilizer for gaining high yield in paddy crops, which is a dominant grade, and accounts for around 90% of the market share. Secondly, the use of ammonium chloride as a salty flavor additive, a replacement to common salt, is trending in Western Europe, and the trend is likely to migrate to other regions in the mid-term forecast. Thirdly, owing to technological advancements in Lithium-ion and polymer based batteries, the ammonium chloride battery is now outdated. Therefore, battery grade ammonium chloride is poised to experience stagnant growth until 2029.
Another fact to remember is that demand for ammonium chloride from medical/ pharmaceuticals in 2029 is forecast to increase two-fold from that of 2019. Having said that, East Asia is expected to maintain its reign in terms of supply and demand, accounting for more than three quarters of the global ammonium chloride supply. The ammonium chloride market is fragmented in nature, with prominent manufactures of ammonium chloride coming from China. The global ammonium chloride market is highly import-oriented, with China being the largest exporter of ammonium chloride, while on the demand for the substance in Latin America and MENA is predominantly met through imports only.

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