The estimated size of the ammonium thiosulfate market in 2022 was close to US$ 345.4 million. The same market is likely to have produced US$ 719.6 million by 2033, alongside a CAGR of 6.9% from 2023 to 2033. The market is expected to grow further due to an increase in the packaged food demand, especially across the United States and India. This will result in increased demand for fertilizers to cope up with the demand for food crops production for better yields and quality of crops.
Increased government spending by various other economies, especially in India, for further agricultural development will also support the market growth during the forecast period. Decreasing cultivation area and need to high yields per unit land area, owing to increasing urbanization and shrinking cultivation unit land sizes, will boost the demand for fertilizers in the near future.
Decreasing nutrition values of the soil will increase the need for increased nitrogen, phosphorous, and potassium (NPK) nutrition for the crops productivity. This will fuel the market growth over the forecast period as ammonium thiosulfate is beneficial for the crop productivity and increases NPK nutrition values.
Ammonium Thiosulfate Market Historical Analysis (2018 to 2022) Vs. Forecast Outlook (2023 to 2033)
Future Market Insights forecasts, the global ammonium thiosulfate demand is expected to enjoy year-on-year (YoY) growth of 5.5% in 2021, totaling 462,575.8 tons.
As per FMI, steady rise in the agriculture & agrochemicals sector coupled with rapid urbanization globally will drive the ammonium thiosulfate market’s growth. Over the past few years, strong growth has been witnessed in the agricultural sector across the globe.
This is due to increasing demand for food and other cash crops from the growing population. Growth in the agricultural sector led to increasing demand for fertilizers, thereby aiding the market growth.
What is primarily driving the Regional Market for Ammonium Thiosulfate?
Government Initiatives and Subsidies to Fuel Market Growth
Governments across the globe aims to reduce the usage of pesticides, trying to increase support towards production of harmless fertilizers, which can increase the productivity of the soil. For instance, government in the Netherland support program GENEOG aims at identifying effective products and assists in funding for registration, as well as helps in increasing grower knowledge for sustainable crop protection products.
The Indian government has approximately 200 labs producing crop protection products, and also allocates funding for crop protection products. India is an emerging market in the South Asia region where contribution of the agricultural sector to overall GDP growth is significant. Therefore, there are several government initiatives that promotes growth of the agricultural sector. One such initiative offers subsidies on fertilizers, such as N, P and K fertilizers, to enhance production and maximize output.
Increasing Demand for Food to Shape the Ammonium Thiosulfate Market
Growing population, rising disposable income, and increased food demand are the macroeconomic factors driving the global ammonium thiosulfate market.
According to Food and Agriculture Organization (FAO), world population is expected to grow by over a third, or 2.3 billion people, between 2009 and 2050, wherein urban areas will account for 70% of world population in 2050.
At the same time, per capita income in 2050 is projected to be a multiple of today’s levels. This in turn will raise multiple challenges for the agriculture industry such as producing crops for increasing population with shrinking rural labor force and slower rate of crop yield.
Inorganic compounds such as ammonium thiosulfate could be used to meet these challenges and at the same time cater to the rising food demand. As it is soluble in water, ammonium thiosulfate provides a yield increase on crops due to its composition of 26% sulfur and act as a favorable return of investment for farmers.
What can be the Possible Reasons to Impede the Growth in the Market?
Global Restrictions, such as the Covid-19 Lockdown, may Stifle Growth.
The global economy witnessed a significant downfall due to the sudden outbreak of COVID-19. Global shutdown halted trade activities, resulting in disruption of supply-chain network. Industrial sector, mining sector and construction sector suffered the most.
Agricultural sector showed a stable trajectory during the pandemic, as it falls under essential services category and agricultural produce being categorized as critical commodities, thus exempting them from restrictions.
Demand and supply of certain fertilizers decreased due to the pandemic. Ammonium thiosulfate is produced from sulfur and is extracted from oil & gas refineries. Due to pandemic, production of ammonium thiosulfate decreased due to supply chain disruption and reduction in the oil & gas demand.
Why is Demand for Ammonium Thiosulfate Increasing in the United States?
Presence of Key Players will support the Entire Regional Market Growth
In 2022, the United States ammonium thiosulfate market is expected to grow by 4.8% year-on-year, contributing over 93.5% of the market share in North America. The United States is projected to account for more than 60% of worldwide production and consumption due to presence of leading companies in the region, which in turn is set to drive the growth of ammonium thiosulfate market.
Increasing consumption of ammonium thiosulfate in the United States as a fertilizer due to its wide array of benefits such as its nitrification inhibitor properties and increased soil fertility will spur the sales. Increasing production of corn and soya crops in United States will result in increased adoption of ammonium thiosulfate, accelerating the demand.
Market Competition
Companies operating in ammonium thiosulfate market are aiming at strategic collaborations and strategic partnerships with other manufacturers to expand their product manufacturing and address the demand of an expanding patient pool. Key players are also expanding their production capacities by establishing new production units, especially in the USA and Europe.
The key players in this market include:
- Tessenderlo Kerley, Inc.
- Koch Nitrogen International Sarl
- Kugler Co.
- Martin Midstream Partners
Some of the products being launched by the key players are:
- In October 2017, Tessenderlo Group opened a new liquid fertilizer manufacturing facility in East Dubuque, Illinois (USA). This added to the production capacity for Thio-Sul, the company’s ammonium Thiosulfate.
- In May 2021, Koch Fertilizers, LLC started building a 2-million-gallon ammonium thiosulfate (ATS) terminal at its Fort Dodge facility to support growing demand. This terminal will be commissioned and operational by December 2021.
- In the Ukrainian agricultural market, Tessenderlo Kerley has successfully launched their ammonium thiosulfate solution fertilizer, Thio-Sul® in 2022. Important broad-acre crops including potato, rapeseed, corn, as well as wheat benefit from prolonged sulfur nutrition from Thio-Sul®, which also improves the effectiveness of nitrogen nutrition. Tessenderlo Kerley is making sure that the use of Thio-Sul® becomes an essential component of the finest crop nutrition initiatives across Ukraine by collaborating with its key partner Eridon.
