Ammonia Procurement Intelligence 2030 : Ammonia Category Is Estimated To Expand Further At A CAGR Of 5.4%

Ammonia Procurement Intelligence

The ammonia category is anticipated to grow at a CAGR of 5.4% from 2023 to 2030. Asia Pacific region dominated the category with more than 50% in 2022.

According to Ammonia Energy Association, India accounts for 8% of the global production. A rise in the production of fertilizers is expected to drive the demand, as approximately 70% of this product is used to make fertilizers. Ammonia production also accounts for 1.3% of CO2 emissions, owing to which governments of various countries are focusing on adopting low-carbon ammonia to reduce greenhouse gas emissions. For instance, the Government of India approved USD 2.4 billion budget for National Green Hydrogen Mission in January 2023, which aims to achieve 5 million mt/year of renewable hydrogen by 2030. To achieve net-zero emissions, various new production methods are emerging, such as electrolytic hydrogen from green ammonia.

Order your copy of the Ammonia category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Ammonia Procurement Intelligence Report Scope

The Ammonia category is expected to have pricing growth outlook of 10 – 13% (annual), with below pricing models.

Volume-based pricing
Raw material-based pricing
Quality standards pricing
Competition based pricing
Supplier Selection Scope of Report

Cost and pricing
Past engagements
Production capacity
Supply chain
Logistics
Supplier selection criteria of Report

Quality standards
production capacity
pricing
supply chain transparency
transportation and handling
source of manufacturing
operational capabilities
category innovations
others
Ammonia Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

Market Intelligence along with emerging technology and regulatory landscape
Market estimates and forecasts from 2022 to 2030
Growth opportunities, trends, and driver analysis
Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
Porter’s 5 forces
Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
Engagement and operating models, KPI, and SLA elements
LCC/BCC analysis and negotiation strategies
Peer benchmarking and product analysis
Market report in PDF, Excel, and PPT and online dashboard versions
Ammonia Procurement Cost and Supplier Intelligence

The cost of producing ammonia may range from USD 200 – 1000/ton. Raw material, electricity, labor, manufacturing process, machinery, packaging, and transportation are the major cost components in producing the product. Prices are interconnected to the prices of feedstock i.e., natural gas. Natural gas accounts for around 70 – 80% of the total cost of production. Prices of natural gas in Western Europe and Northeast Asia were around USD 35/MMBtu in March 2022. U.S. natural gas prices were at USD 5.00/MMBtu in March 2022 as compared to USD 2.60/MMBtu in March 2021. Natural gas prices are expected to highly impact the prices of ammonia.

While sourcing for this category, it is crucial to adhere to the best practices such as cost-effectiveness on bulk purchasing, compliance with regulations, and quality of the product. Businesses should verify supplier certifications such as Low Carbon Ammonia Certification, and ISO 9001. It is essential to confirm suppliers’ compliance with regulatory bodies such as Ammonia Energy Association, USDA, and others. Businesses also look for suppliers offering cash discounts on bulk purchases. Establishing open communication channels with suppliers fosters collaboration and enables ongoing improvement of sourcing practices.

List of Key Suppliers

Yara
CF Industries Holdings, Inc.
Koch Fertilizer LLC
Nutrien Ltd.
Sabic
Qatar Fertiliser Company
BASF SE
OCI
Togliattiazot
CSBP
Add-on Services provided by Grand View Research Pipeline:

Should Cost Analysis
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process

Rate Benchmarking
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier

Salary Benchmarking
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.

Supplier Newsletter
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.

Browse through Grand View Research’s collection of procurement intelligence studies:

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Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

Market Intelligence involving – market size and forecast, growth factors, and driving trends
Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Ammonia Procurement Intelligence 2030 : Ammonia Category Is Estimated To Expand Further At A CAGR Of 5.4%