South Korea Ammonia Market Overview, 2030

The ammonia market in South Korea is anticipated to undergo significant changes by 2030, propelled by the nation's industrial advancement, energy transition initiatives, and sustainability commitments. South Korea, recognized for its technological prowess and manufacturing strength, is progressively embracing ammonia not only for its traditional applications but also as a crucial player in its hydrogen economy roadmap. With the government heavily investing in green energy and aiming to achieve carbon neutrality by the middle of the century, ammonia has emerged as a key vector for hydrogen storage and transportation, as well as a clean fuel alternative, especially for sectors that are challenging to decarbonize like shipping and heavy industries. Furthermore, the country’s strategic geographical position as a global trade hub bolsters the development of a robust ammonia import and production infrastructure to serve both domestic consumption and re-export opportunities. Increasing partnerships with Middle Eastern and Australian suppliers for low-carbon ammonia, along with domestic pilot projects focusing on green and blue ammonia, are expected to redefine the competitive landscape. South Korea's proactive approach in investing in renewable energy, fuel cell technologies, and advanced chemical engineering is setting the foundation for a dynamic ammonia market that could evolve from conventional fertilizer and chemical uses to becoming a cornerstone of the nation's clean energy strategy.

According to the research report South Korea Ammonia Market Overview, 2030, published by Bonafide Research, the South Korea Ammonia Market is expected to reach a market size of more than USD 2.83 Billion by 2030. South Korea's ammonia market is projected to reach approximately 2,500 thousand tonnes by 2034, driven by key sectors such as agriculture, textiles, pharmaceuticals, explosives, and refrigeration. The primary driver is the agricultural sector, which accounts for about 50% of ammonia consumption, primarily for fertilizer production. Other significant drivers include industrial applications in textiles and pharmaceuticals, as well as the energy sector's interest in ammonia co-firing for emission reduction. Recent developments include collaborations like the one between CF Industries and Lotte Chemical, aiming to produce green ammonia using carbon capture and storage (CCS) technologies. This initiative reflects South Korea's commitment to sustainable ammonia production. Major players in the South Korean ammonia market include Namhae Chemical, Acro Group, CF Industries, EuroChem Group, Indian Farmers Fertiliser Co-operative Limited (IFFCO), Jinmei Group, Nutrien, Parsian Oil and Gas Development Group Co., PetroChina Group, Qatar Fertilizer Co (QAFCO), TogliattiAzot, Yangmei Group, Yihua Group, and others. These companies offer a range of ammonia products, catering to various industrial needs, from fertilizers to energy applications. Opportunities in the market lie in expanding green ammonia production, leveraging renewable energy sources to reduce carbon emissions. This aligns with global trends towards sustainable industrial practices. Compliance with international standards and certifications is crucial, addressing environmental concerns and ensuring product quality. These measures help mitigate the risks associated with ammonia's hazardous nature and support sustainable industry practices. The latest market trends include increased interest in ammonia co-firing for power generation, as countries like South Korea explore alternative energy sources to reduce emissions. This trend reflects a shift towards more sustainable energy practices in the region.

Agriculture, while still important, is becoming less dominant as South Korea advances toward high-tech, resource-efficient farming methods that optimize fertilizer usage. The demand for ammonia-based fertilizers persists, particularly in the cultivation of staple crops such as rice and vegetables, but newer precision agriculture technologies are moderating growth in this segment. The chemical manufacturing sector stands out as a major and growing consumer of ammonia, driven by the expansion of industries such as petrochemicals, textiles, and electronics, where ammonia derivatives are essential. The food and beverage sector is also witnessing increased ammonia utilization, especially in industrial refrigeration processes crucial for preserving perishable goods and ensuring the quality and safety of both domestic and export food products. Wastewater treatment, fueled by stricter regulatory requirements and public health concerns, continues to drive significant demand for ammonia in various purification and nitrogen removal processes. Meanwhile, sectors categorized under others, including mining, metallurgy, construction, and power generation, are finding innovative uses for ammonia, particularly in reducing carbon emissions and improving energy efficiency. The power generation sector's exploration of ammonia co-firing technologies is particularly notable, as it highlights the dual role of ammonia as both a chemical feedstock and a clean energy carrier in South Korea’s future energy mix.

Anhydrous ammonia, with its high nitrogen content and cost efficiency, remains a staple for large-scale agricultural operations and chemical manufacturing activities. Its direct use in fertilizer production and its role as a precursor for other nitrogen-based chemicals ensure its continued dominance in heavy-duty applications. However, the safety risks associated with handling and transporting anhydrous ammonia are leading to a gradual increase in the demand for aqueous ammonia, particularly in urban industrial contexts where regulatory and safety considerations are paramount. Aqueous ammonia, being a diluted solution, is favored for its relative ease of handling and application, especially in wastewater treatment facilities, food processing plants, and municipal utilities. As South Korea continues to urbanize and industrialize, the demand for aqueous ammonia is expected to grow steadily, driven by both environmental compliance and operational safety imperatives. Moreover, the parallel use of both chemical forms underscores the versatility of ammonia as a market commodity, adapting to diverse operational requirements across sectors. This dual demand dynamic positions South Korea’s ammonia market for continued expansion, especially as technological innovations improve the storage, transport, and application efficiency of both anhydrous and aqueous forms, catering to the evolving needs of a high-tech, environmentally conscious economy.

The production method segmentation of the South Korean ammonia market reveals a strategic pivot towards sustainability, although traditional methods still dominate the landscape. Grey and brown ammonia, produced primarily through steam methane reforming, have historically underpinned the market due to their cost advantages and established production infrastructure. However, mounting environmental pressures and South Korea’s commitment to achieving carbon neutrality are accelerating investments in blue and green ammonia technologies. Blue ammonia, involving carbon capture and storage, is increasingly seen as a transitional technology that can leverage existing production assets while significantly reducing carbon emissions. Several pilot projects and industrial collaborations are already underway to scale up blue ammonia production capabilities. Green ammonia, produced via electrolysis powered by renewable energy sources such as offshore wind and solar, represents the long-term vision for the ammonia sector. The country’s ambitious plans to expand its renewable energy capacity align closely with the development of green ammonia, which is critical for realizing a hydrogen-based economy. Although turquoise ammonia, produced through methane pyrolysis, remains at an early development stage, it is attracting growing research interest due to its potential to produce solid carbon as a valuable byproduct. As South Korea moves toward a cleaner energy future, the ammonia market is expected to undergo a profound transformation, with production methods increasingly dictated by sustainability considerations, technological innovation, and the country's strategic goal of becoming a global leader in the green energy transition.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Ammonia Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Production Method
• Grey/Brown
• Blue
• Green
• Turquoise

By End-Use Industry
• Agriculture
• Chemical Manufacturing
• Food & Beverage
• Wastewater Treatment
• Others (Mining & Metallurgy, Construction, Power Generation, etc..)

By Chemical Form
• Anhydrous Ammonia
• Aqueous Ammonia

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.