U.S. Ammonium Chloride Market Expansion Driven by Fertilizer Demand

The U.S. ammonium chloride market size was calculated at USD 56.5 million in 2024 and is predicted to attain around USD 271.07 million by 2034, expanding at a CAGR of 5.64% from 2025 to 2034.

Highlights of the U.S. Ammonium Chloride Market

• By grade, the agriculture grade segment held a dominant presence in the U.S. ammonium chloride market in 2024.
• By grade, the food grade segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
• By application, the fertilizer segment accounted for a considerable share of the U.S. ammonium chloride market in 2024.
• By application, the medical/pharmaceutical segment is projected to experience the highest growth rate in the market between 2025 and 2034.

Industry Valuation and Growth Rate Projection

Ammonium chloride is a chemical compound composed of ammonium and chloride ions. It is a colorless crystalline compound. It is used in soldering. It is also used as an electrolyte in the Leclanche cell, a type of primary cell. The U.S. ammonium chloride market growth is driven by increasing demand from the electronics industry, expanding consumer base, and rapid industrialization and urbanization.

The U.S. ammonium chloride market applications include its use as a diuretic for people with edema or Laennec's disease. It is used to make dry batteries and ammonium compounds, as a soldering flux, a pickling agent in zinc coating and tinning, and a fertilizer. Ammonium chloride acts by increasing the renal excretion of chloride.

What are the Trends in the U.S. Ammonium Chloride Market?

The U.S. ammonium chloride market trends are the increasing spending on technology and growing consumer awareness.

• Increasing spending on technology: The benefits of increasing spending on technology include quick communication, reducing costs, improving productivity, innovation in internal processes, allowing future digital growth, reducing waste, improved data security,
• encouraging collaboration, cost savings, better storage, automation increases productivity, increased revenue stream, increase profits, improved security, greater agility, competitive advantage, and improved operational efficiency.
• Growing consumer awareness: When we are cleaning our home with a mixture of water and ammonia, the ammonium chloride helps to break down and dissolve the dirt in our clothes and shower with much ease. The primary use of ammonium chloride is as a source of nitrogen in fertilizers like chloroammonium phosphate.

What are the Restraints in the U.S. Ammonium Chloride Market?

The restraints in the U.S. ammonium chloride market are a stringent regulatory framework and high production costs.

• Stringent regulatory framework: A stringent regulatory framework is essential for chemical handling and use. Safe handling of chemicals ensures the disposal of chemicals and medicines safely, avoids storing chemicals in drinking bottles, adds clear labels to packages of chemicals, stores chemicals where children cannot open them or reach them, and stores chemicals and medicines in a safe way. It ensures that products meet specific safety, health, environmental, and other regulatory requirements before they can be legally sold or distributed in the market.
• High production costs: High production costs of ammonium chloride-based fertilizers are due to production and global supply and demand. It also includes high production price factors like price hikes and inflation, taxation, brand value, other drugs in the portfolio, research & development costs, consumer price sensitivity, market competition, and drug efficacy and market placement.

What Are the Opportunities in the U.S. Ammonium Chloride Market?

Opportunities in the U.S. ammonium chloride market are connected to the development of custom formulas tailored to specific industries.

• Development of customized ammonium chloride formulations: Custom formulation manufacturing offers tailored solutions, optimizing product performance, quality, and uniqueness to meet specific needs. Custom formulation supplements include regulatory compliance, improved marketing opportunities, exclusive product offerings, reduced risk of overstocking, adaptability to market trends, customer loyalty, dosage flexibility, tailored to specific needs, control over ingredient selection, and brand differentiation.

Recent Developments in the U.S. Ammonium Chloride Market

• According to a report published in December 2024, the production of ammonium chloride at its Ludwigshafen site, increasing capacity by 50% and enhancing product quality, was expanded by BASF. In February 2025, low-carbon ammonia to be produced in the UAE’s first methanol plant. The UAE’s first methanol plant will manufacture low-carbon ammonia among other products from 2028.