Published July 2023
The largest market for nitric acid is the production of ammonium nitrate (AN) and calcium ammonium nitrate (CAN), accounting for more than 78% of the total world consumption of nitric acid in 2023. It is used predominantly as an intermediate for fertilizer production (primarily ammonium and calcium ammonium nitrate) and for the production of nitro-containing organic intermediates. The major end use for AN fertilizer is in decline because of concerns about nitrate groundwater contamination and security issues. As a result, AN fertilizer is being increasingly substituted by solid urea, which has a higher nitrogen content (46%) than AN (34%), is less costly and is less dangerous. The largest chemical end uses for nitric acid include nitrobenzene, adipic acid, toluene diisocyanate (TDI) and nitrochlorobenzenes. Other important end uses include the production of explosives, metal treatment and uranium processing.
The following pie chart shows world consumption of nitric acid:
Consumption of AN in explosives and blasting agent applications continues to grow, but is much more regulated as a reaction of various terrorist attacks. Other nitric acid–based products such as nitrophosphates and potassium nitrates are also used in fertilizer applications.
Most nitric acid is consumed captively, and the merchant portion of the market accounts for less than 10% of the total. International trade is minor and has little impact on the nitric acid balance. The world average operating rate has been at the high 70% level in the last 10 years, indicating a relatively healthy market balance.
The nitric acid market is dominated by fertilizer-producing companies such as Yara and CF Industries. On a global level, the market is fairly fragmented, with the top producer owning just about 10% of total installed production capacity. The top 10 producers account for about 36% of global production capacity. However, in certain regions (e.g., Western Europe and Japan), the regional share by leading companies can exceed 40%.
The CIS and Baltic States, mainland China, Western Europe and North America dominate the market statistics. Together, these regions account for more than 70% of global supply and demand. Since 2013, the largest increases in capacity, production and consumption have occurred in mainland China.
For more detailed information, see the table of contents, shown below.
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