Nitrogenous Fertilizers Market

The Global Nitrogenous Fertilizer Market was valued at USD 113.70 billion in 2023 and is expected to reach USD 140.51 billion by 2030, with a CAGR of 2.73% during the forecast period.

To address the issue of low nutrient use efficiency and minimize the environmental impact of fertilizers, the use of controlled and slow-release nitrogen fertilizers has emerged as a more effective solution. Specialty fertilizers play a crucial role in promoting high-quality crop yields by providing highly-efficient nutrient compositions in a targeted manner. Nitrogen fertilizers, being essential for the growth and development of various crops, are commonly used in combination with other specialty fertilizers like micronutrient fertilizers. The growing cultivation of high-value crops is expected to drive the market growth of nitrogenous specialty fertilizers.

LATEST TRENDS

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

Urea-ammonium nitrate (UAN), a popular type of nitrogenous fertilizer, is gaining rapid popularity among liquid fertilizer manufacturers due to its high compatibility with various agricultural products such as pesticides, herbicides, growth regulators, and other nutrients. Liquid fertilizers offer the advantage of cost reduction by allowing simultaneous application of multiple crop production and protection products in a single application. UAN solutions, known for their smooth and uniform application, are extensively used as a nitrogen source for plants, offering benefits over non-liquid nitrogen fertilizers. The chemical properties of UAN make it compatible with other nutrients and agricultural chemicals, often leading to its incorporation in solutions containing phosphorus, potassium, and other essential plant nutrients.

MARKET DRIVERS

The growing global population and increasing demand for crop production are driving the utility of nitrogenous fertilizers in the market. Meeting the demand for nutritious, safe, and affordable food for the expanding population requires the use of optimal nitrogen fertilizers to unlock the high yielding potential of crops. The adoption of precision farming techniques, such as drip and sprinkler irrigation, along with the shrinking farmland, further supports the growth of the nitrogenous fertilizer market.

Maintaining and restoring soil nutrients, particularly nitrogen, is crucial for enhancing crop yield and growth. Commercial nitrogen fertilizers are designed to be highly soluble for easy uptake and assimilation by plants.

Additionally, the use of nitrogen fertilization through green manure techniques aims to improve soil fertility by incorporating nitrogen into the soil while the crop is in the green vegetable stage. Proper management of nitrogen fertilizers is essential for promoting healthy plant growth, achieving high yields, and ensuring profitability in farming operations.

Extensive research, development, and investment activities by major companies are driving market growth by focusing on the development of more efficient nitrogenous fertilizers and digital farming technologies. As the demand for nitrogenous fertilizers continues to increase, companies are striving to launch products that are not only more efficient but also have minimal environmental impacts. For example, in December 2022, Corteva Agriscience, the Agricultural Division of DuPont de Nemours, Inc., introduced a new above-ground nitrogen stabilizer called PinnitMax. This product helps prevent the volatilization of urea and UAN applications, ensuring that nitrogen reaches the root zone for optimal crop uptake.

Furthermore, leading players in the industry are actively focusing on strengthening their businesses through digital marketing strategies. For example, in March 2019, Yara International ASA introduced Yaralix, a precision farming tool that enables farmers to measure crop nitrogen requirements using smartphones. By launching Yaralix, Yara International ASA aims to make precision farming more accessible to farmers worldwide. This application launch is part of the company's investment in digital farming initiatives.

MARKET RESTRAINT

The potential environmental impact and concerns related to human health can negatively affect the growth of the market. The excessive use of commonly used nitrogenous fertilizers in regions with high rainfall can result in leaching into groundwater and runoff into waterways, leading to significant environmental and economic damage. To address these issues, the Government of Western Australia has proposed recommendations, such as avoiding the application of nitrogenous fertilizers near streams or drains, applying them when the pasture is actively growing and can effectively utilize the fertilizers, and reducing excessive use of nitrogenous fertilizers during winter. These solutions are expected to mitigate the impact of nitrogen fertilizer overuse.

SEGMENTATION

By Type

• Urea
• Calcium Ammonium Nitrate
• Ammonium Nitrate/UAN
• Ammonium Sulfate
• Other Nitrogenous Fertilizers

By Crop Type

• Cereals
• Pulses and Oilseeds
• Fruits and Vegetables
• Turf and Ornamentals
• Others

By Type Analysis

Urea's dominant position in the global market is expected to persist, driven by its unique properties and cost-effectiveness compared to other nitrogenous fertilizers. It has high solubility in water and is widely used in countries like China and India for crops such as sugarcane, wheat, and rice.

The demand for nitrate-based fertilizers, particularly ammonium nitrate/UAN, is projected to experience rapid growth. This is attributed to the efficient absorption of nitrate compounds by crops with minimal nutrient loss, making them favorable compared to other nitrogen fertilizers. The North American and European markets are major contributors to the increased demand for ammonium nitrate and UAN. These fertilizers offer effective nitrogen supply while also exhibiting lower environmental impact than urea-based products, thanks to better leaching control, lower carbon footprint throughout their life cycle, and reduced volatilization.

On the other hand, ammonium sulfate is expected to witness slower growth due to its lower nitrogen content (21%) and the availability of other nitrogenous fertilizers that are more concentrated and cost-effective for handling and transportation. Ammonium sulfate finds extensive use in situations 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 increasing global population has led to a growing demand for cereal crops, which are staple food items in many parts of the world. This surge in demand is expected to drive the need for nitrogenous fertilizers in cereal production. Nitrogen fertilizers play a vital role in enhancing crop growth and improving yields in the cereal segment. Additionally, the application of nitrogen-based fertilizers in the fruits and vegetables segment is projected to experience the fastest growth. The rising demand for high-value crops like fruits and vegetables, known for their nutritional benefits, will drive the use of nitrogenous fertilizers in their production.

REGIONAL ANALYSIS

The Asia Pacific region is anticipated to hold the largest market share in the nitrogenous fertilizer market, driven by the expanding agriculture sector. Countries such as India and China have vast areas available for crop cultivation, a significant rural population, and favorable climatic conditions, all contributing to the increased utilization of nitrogenous fertilizers in the region. Key players in the region are adopting innovative marketing approaches and launching educational programs to promote the benefits of nitrogen fertilizers among farmers, further driving market growth.

In India, the growing awareness about the importance of nitrogenous fertilizers in crop production, along with favorable policies and subsidy offerings by the government, is expected to support the nitrogen fertilizer market. The government has allocated a significant budget for fertilizer subsidies, including urea subsidies, which will contribute to increased usage of urea and other nutrient-based fertilizers in the country.

North America holds the second position in the global market, with the adoption of effective crop nutrition products by farmers and growers driving market growth. The presence of key players like Nutrien Ltd. and Yara International ASA also positively influences the market in this region. South America, particularly Brazil, is the fastest-growing region with significant growth potential. The high production of crops like sugarcane, corn, and wheat in South America, coupled with advancements in crop production and farming techniques, will further fuel the growth of nitrogen fertilizers in the region.

KEY INDUSTRY PLAYERS

The global nitrogenous fertilizer market is characterized by a fragmented industry structure, with the presence of numerous international and domestic players. Manufacturers are focused on strengthening their distribution networks, implementing cost reduction techniques, and offering a variety of nitrogenous fertilizer products to gain a competitive edge. Key players such as Nutrien Ltd. and EuroChem Group AG are adopting collaboration strategies and product development to establish a leading position in the market. Additionally, acquisitions and mergers are common strategies employed by prominent companies to enhance their market position. For example, the merger of Agrium and PotashCorp resulted in the formation of Nutrien Ltd., a stronger company dedicated to creating value for 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., a leading global fertilizer manufacturer and marketer, initiated a transformative project utilizing autonomous drones at its largest production facility. The aim of this initiative is to drive innovation and efficiency in operations.

In March 2021, Koch Fertilizer, LLC., made a substantial investment of approximately $150 million in its Enid, Oklahoma nitrogen production facility. This investment is intended to boost urea production, improve the reliability of existing production units, and enable the facility to supply up to 1.8 million tons of ammonia products annually.

In November 2020, Koch Fertilizer, LLC., announced plans to invest around $140 million in its Fort Dodge, Iowa plant for the renovation of existing production processes. This investment is expected to increase ammonia production capacity by 85,000 tons per year, enhancing reliability, environmental sustainability, and safety measures.

REPORT COVERAGE

The sales of advanced nitrogenous fertilizers have witnessed significant growth in recent years. The shrinking availability of arable land coupled with a growing global population has generated a higher demand for products that promote crop health and growth, such as nitrogenous fertilizers. Additionally, advancements in agricultural technologies and the production of cost-effective nitrogenous fertilizers for the agriculture industry are expected to drive the growth of the nitrogen fertilizer market in the coming years.

The nitrogenous fertilizer market report provides both qualitative and quantitative insights into the market. It presents a detailed analysis of the market size and growth rate for all potential segments in the market, offering comprehensive coverage of the industry.

Furthermore, the report offers a comprehensive analysis of the market dynamics and competitive landscape. It provides detailed insights into various key aspects, including an overview of related markets, recent industry developments such as mergers and acquisitions, the regulatory landscape in important countries, and significant trends shaping the nitrogen fertilizer industry.