Nitrogenous Fertilizer Market Size, Share & Industry Analysis, By Type (Urea, Calcium Ammonium Nitrate, UAN, Ammonium Sulphate, and Other Nitrogenous Fertilizers), By Crop Type (Cereals, Pulses & Oilseeds, Fruits & Vegetables, and Turf & Ornamentals), and Regional Forecast, 2019-2032

The global nitrogenous fertilizer market size was valued at USD 113.70 billion in 2018 and is projected to reach USD 148.57 billion by 2032, exhibiting a CAGR of 1.90% during the forecast period based on our analysis in the existing report. North America dominated the nitrogenous fertilizers market with a market share of 18.63% in 2018.

The use of controlled and slow-release nitrogen fertilizers is a more effective solution to solve the issue of low nutrient use efficiency of fertilizers and reduce the impact of fertilizers on the environment. Specialty fertilizers are used to promote high-quality crop yield and to produce a crop with the low amount of highly-efficient crop nutrient compositions. As nitrogen fertilizers are crucial for the growth and development of several crop varieties, they are widely being used in combination with various specialty fertilizers such as micronutrient fertilizers and others. The increasing cultivation of the high-value crop is projected to further fuel the market growth of nitrogenous specialty fertilizers.

LATEST TRENDS

Increasing Utilization of Urea-Ammonium Nitrate (UAN) in Liquid Fertilizers

Urea-ammonium nitrate, a prominent type of nitrogenous crop-growth enhancer, is gaining rapid popularity among liquid fertilizer manufacturers due to its high compatibility with pesticides, herbicides, growth regulators, and other nutrients. The use of liquid fertilizers enables a farmer to reduce costs by applying several crop production and protection products simultaneously rather than making several separate applications. Urea-ammonium nitrate solutions are extensively used as a source of nitrogen for plants owing to their smooth and uniform application than non-liquid forms of nitrogenous fertilizers. The chemical properties of urea-ammonium nitrate make it compatible with many other nutrients and agricultural chemicals and are often mixed with solutions containing phosphorus, potassium, and other essential plant nutrients.

MARKET DRIVERS

Growing Population and Increasing Demand for Crop Production Triggers the Utility of Nitrogenous Fertilizers in the Global Marketplace

Increasing population and growing demand to supply nutritious, safe, and affordable food to the burgeoning population is expected to drive the global market for nitrogenous fertilizer. The use of optimum nitrogen fertilizers is anticipated to unlock the high yielding potential of the crop. Shrinking farmland and increasing area under precision farming, such as drip and sprinkler irrigation, is expected to act as a growth-enhancing factor for this market.

The maintenance and restoration of soil nutrients, such as nitrogen is essential for increasing crop yield and crop growth. The nitrogen used in commercial fertilizers is particularly soluble for easy uptake and assimilation by the plant.

Furthermore, nitrogen fertilization using the green manure technique is aimed at improving soil fertility quality by incorporation of nitrogen into the soil of any field, while the cultivated plant is still at the green vegetable stage. The proper nitrogen fertilizer management is critical for growing healthy plants, good yield, and profitable farm business.

Extensive Research, Development and Investment Activities by Major Companies to Develop more Efficient Nitrogenous Fertilizers and Digital Farming Driving the Market Growth

The utilization of nitrogenous fertilizers is growing abundantly across the globe owing to its benefits associated with crop growth, but the adverse effect of nitrogenous fertilizers on the environment cannot be neglected. The companies operating in the nitrogen fertilizer global nitrogenous fertilizer market are focused on research and development of new product launches, which are more efficient and have the least environmental impacts. For instance, in December 2018, Corteva Agriscience, Agricultural Division of DuPont de Nemours, Inc., launched a new above-ground nitrogen stabilizer PinnitMax. The product can prevent the volatilization of urea and UAN applications and ensure the nitrogen gets into the root zone for ideal crop uptake.

Moreover, the prominent players are focused on strengthening business through digital marketing. For instance, in March 2019, Yara International ASA launched Yaralix, a tool for precision farming, which allows them to measure crop Nitrogen requirements using smartphones. With Yaralix, Yara International ASA aims to make precision farming accessible to farmers based in different regions across the globe. This application launch was a part of the company’s investment in digital farming.

MARKET RESTRAINT

Potential Environmental Impact and Human Health Concerns Can Negatively Impact the Market Growth

The most commonly used nitrogenous fertilizers in the high rainfall are expected to be leached into the groundwater and washed into waterways, resulting in severe environmental and economic damage. To overcome these problems, the Government of Western Australia suggested some recommendations such as nitrogenous fertilizers should not be applied near streams or drains; it should be applied when the pasture is actively growing and can use the fertilizers and avoid excessive use of the nitrogenous fertilizers in winter. These solutions are anticipated to reduce the impact of the overuse of nitrogen fertilizers.

SEGMENTATION

By Type Analysis

Urea is Dominating in the Global Marketplace – Ammonium Nitrate/UAN is expected to witness Fastest Growth Owing to its Lower Environmental Impact Than Urea-based Products

Urea fertilizer's unique properties are projected to continue to drive the demand for the product in the global plant nutrition industry. Urea is readily soluble in water and it is one of the least expensive fertilizers among other nitrogenous fertilizers. China and India are the largest producers and consumers of urea in the world. Crops cultivated in China and India such as sugarcane, wheat, rice and others, respond effectively to the urea application.

The demand for nitrate based fertilizers is expected to grow at a speedy pace during the forecast years. The increasing demand for ammonium nitrate/UAN is accredited to the fast absorption features of the nitrate compounds by crops, with slight loss of nutrients as compared to other nitrogen fertilizers. The high demand for ammonium nitrate and UAN from North America and Europe is projected to leverage the market positively. Nitrate-based fertilizers are an efficient and reliable source available for nitrogen. Furthermore, these products have a significant low environmental impact than urea-based products through better control of leaching, a lower life cycle carbon footprint, and lower volatilization.

Ammonium sulfate is expected to witness growth at the slowest pace owing to its less nitrogen contain (21%) and accessibility of other nitrogenous fertilizers that are more concentrated and economical to handle and transport. Ammonium sulfate is utilized extensively where both nitrogen and sulfur are required.   

By Crop Type Analysis

The Utilization of Nitrogen Fertilizers in Cereals Production is Projected to Remain High

The growing world population is driving the demand for crops, especially cereals, as they are consumed as a staples across various parts of the world. To feed the rapidly proliferating global population the demand for nitrogenous fertilizers across cereals production is expected to rise at a steady pace. The substantial use of nitrogen fertilizer for the cereal crop growth and improved yield is expected to drive the utilization of nitrogenous fertilizers in this segment. The application of nitrogen-based fertilizers in fruits and vegetables segment is expected to grow at the fastest pace. In the upcoming years, rising demand for high-value crops such as fruits and vegetables due to their high nutrition profile is expected to aid the need for crop growth-promoting nitrogenous fertilizers for the production of these crops.

REGIONAL ANALYSIS

Asia Pacific Nitrogenous Fertilizer Market is Expected to Hold the Largest Market Share, Owing to the Expanding Agriculture Sector Across the Region

Asian countries such as India, China, and others have a large area accessible for crop cultivation, substantially high rural population, and favorable climate conditions for crop growth. These factors are anticipated to boost the utilization of nitrogenous fertilizers in the region. Furthermore, the adoption of innovative marketing approaches by key players of the region  and the launch of programs to educate farmers about the benefits of using nitrogen fertilizers to stimulate crop growth is expected to help in expanding the market size within the region.

The increasing demand for nitrogenous fertilizers in India is attributed to growing awareness about the significance of nitrogenous fertilizers in crop production among farmers. Additionally, the presence of encouraging policies and subsidy offerings associated with the fertilizer industry of the country is expected to support the nitrogen fertilizer market in the country. For instance, in July 2019, India increased fertilizer subsidy allocation from US$ 9.79 billion in 2018-19 to US$ 11.17 billion in 2019-20 and allocated US$ 7.49 billion towards urea subsidy and 3.68 billion for nutrient-based subsidies. The supportive programs of government bodies are projected to increase the use of urea along with other nutrient-based fertilizers in this region. 

North America holds the second position in the global market. The rising awareness and adoption of effective crop nutrition products by farmers or growers within the region is predicted to aid the growth of the North America nitrogenous fertilizer market. The presence of market players such as Nutrien Ltd., Yara International ASA, and others is anticipated to positively influence the growth of the market within the region. South America is the fastest-growing region with immense growth potential for this market. The high production of sugarcane, corn, and wheat in South America and Latin America, especially in Brazil is anticipated to leverage in this region positively. Moreover, rising innovation and advancements in crop production and farming techniques is anticipated to further fuel the growth of nitrogen fertilizer across South America.

KEY INDUSTRY PLAYERS

Fragmented Industry Structure in Global Nitrogenous Fertilizer Market

The market is fragmented due to the presence of several international and domestic players in the global market. The nitrogenous fertilizer manufacturers are intensively capitalizing on reinforcing the distribution network, implementation of cost reduction techniques, and placement of varied nitrogenous fertilizer products in the global marketplace for nitrogen fertilizer manufacturing. Dominant market players in the industry such as Nutrien Ltd., EuroChem Group AG, and others are relying on collaboration strategies and product development to gain the leading position in the global market. Moreover, prominent companies are focused on acquisitions and mergers to strengthen their market position. For instance, in 2017, the Agrium and PothshCrop came together to combine their talent and best practices to build a new company Nutrien Ltd. that is stronger and better equipped to create value for all their stakeholders.

LIST OF KEY COMPANIES PROFILED:

• Yara International ASA


• Nutrien Ltd.


• EuroChem Group AG.


• CF Industries Holdings Inc.


• PJSC Togliattiazot


• Koch Fertilizers, LLC


• OCI Nitrogen


• Sinofert Holdings Limited


• Coromandel International Ltd.


• URALCHEM Holding Plc.

KEY INDUSTRY DEVELOPMENTS:

• In April 2021, Koch Fertilizer, LLC., one of the world’s major manufacturers and marketers of fertilizers, launch an initiative to drive transformation with autonomous drones at Koch Fertilizer’s largest production facility.

• In March 2021, Koch Fertilizer, LLC., invested approximately $150 million at its Enid, Oklahoma, nitrogen production facility. This investment will increase urea production and enhance the reliability of existing production units and will be able to supply up to 1.8 million tons of ammonia products annually.


• In November 2020, Koch Fertilizer, LLC., anticipated investing approximately $140 million at its Fort Dodge, Iowa plant to renovate existing production processes. The investment is likely to increase ammonia production capacity by 85,000 tons yearly. The investment will further increase reliability as well as environmental and safety performance. 

Report Coverage 

There has been a considerable increase in the sales of advanced nitrogenous fertilizers in recent years. The swiftly declining arable land and growing population across the world are indicating an increased demand for crop health and growth-promoting products such as nitrogenous fertilizers. Furthermore, advancements in agricultural technologies and the production of cost-effective nitrogenous fertilizers for the agriculture industry will support the growth of the nitrogen fertilizer market in the future years.

The nitrogenous fertilizer market report provides qualitative and quantitative insights into this market. It also offers a detailed analysis of the market size and growth rate for all possible segments in the market. 

Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key nitrogen fertilizer industry trends.

Report Scope & Segmentation