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Global Nitrogenous Fertilizer Market size was valued at around 63.91 billion in 2023 and is expected to reach a value of USD 105.25 billion by 2032, at a CAGR of 5.7% over the forecast period (2024–2032).
The global nitrogenous fertilizer market is significant in maintaining agricultural productivity through the provision of crops with essential nutrients, mainly nitrogen, that is vital for the growth of plants. Nitrogenous fertilizers are used in large quantities in modern agriculture to boost crop production, fertility of the soil, and world food security for the expanding population. These fertilizers bring nitrogen in many different forms such as ammonia, urea, ammonium nitrate, and ammonium sulphate that are used by plants for the stimulation of healthy growth as well as production of high-quality yields. Applications of nitrogenous fertilizers are triggered by greater demand for fertile agriculture and larger agricultural produce, especially in countries where the resources of fertile lands are low, and demands are growing on these resources.
Its use is driven by several factors, such as the growth in the population of the world, urbanization, and diets tilting towards more nitrogen-demanding crops such as wheat, rice, and maize. Higher technology developments in the production of fertilizers as well as adopting precision farming methods have also driven the application of nitrogenous fertilizers. Such technologies enhance the efficiency of fertilizer application, reducing wastage and environmental effects, such as erosion of the soil and pollution of water. Additionally, growing concerns about sustainable agriculture and the production of green fertilizers have made the producers think beyond the box and develop more efficient products with less environmental footprints.
These notwithstanding, the nitrogenous fertilizer business is faced with challenges such as volatile raw material prices, rigorous environmental policies, and concerns over the environmental implications of the overuse of fertilizers, e.g., greenhouse gases and water bodies' eutrophication. To this end, stakeholders in the industry have been investing more in research and development towards the development of controlled-release and slow-release nitrogen fertilizers and alternatives like bio-based fertilizers. These efforts are aimed at aligning agricultural productivity needs with environmental sustainability.
The market is also affected significantly by government policies subsidizing or regulating fertilizer use and subsidization. Most countries have governments that subsidize farmers to promote their usage, improve food security, and sustain the livelihood of farmers.
Regulation of nitrogen pollution has led to the use of best management practices and the creation of nutrient stewardship programs.
The market scope is segmented because of by Product, by Application.
Based on the Product of the market is segmented into Urea, Methylene Urea, Ammonium Nitrate, Ammonium Sulphate, Ammonia, Calcium Ammonium Nitrate, Others.
Urea is the segment that dominated the global nitrogenous fertilizer industry. Urea is the most favoured due to its high nitrogen content, cheapness, and versatility in agricultural application. It contains roughly 46% nitrogen, the highest among the nitrogenous fertilizers, hence making it efficient in nutrient delivery and cost of transport and storage compared to other products. Its ease of application, versatility in different soils, and applicability to a range of crops even boosts its use among farmers worldwide.
Urea is highly water-soluble as well, and therefore it can be applied both through soil application and foliar spray. It is applied in the form of granular or pilled urea, and this provides excellent freedom in handling. Moreover, urea production is primarily from ammonia and carbon dioxide, which is comparatively easier and less expensive compared to other nitrogenous fertilizers, contributing further to its leadership in the market.
Another fundamental factor driving urea's dominance is its widespread availability and government backing in many countries in the form of subsidies to promote its use. This is particularly evident in developing economies where demand for cheap inputs in agriculture is great to maintain rising food production needs.
However, environmental concerns with respect to urea, such as ammonia volatilization and nitrous oxide emission, are concerns the market is addressing with products like coated or slow-release urea. Despite these concerns, urea remains the most prevalent product segment due to its high nitrogen concentration, cost competitiveness, and versatility to fit many different farming practices.
Based on the Application of the market is segmented into Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables, Others.
Cereals & Grains dominate the application segments of the global nitrogenous fertilizer market. This is primarily because there is a huge demand for staple foods such as rice, wheat, and maize across the globe, which are the primary source of food for a growing population. Cereals and grains are cultivated on a large scale across the world, particularly in populous regions where these crops are the main staple food. To meet the ever-increasing demand for food, farmers concentrate on the production of cereals and grains, which require a substantial amount of nitrogen for optimal growth and yield.
Nitrogen is a critical nutrient in grains and cereals because it enhances the chlorophyll yield, which is crucial for photosynthesis. Nitrogen also raises protein yield as well as the quality of the grains, thereby making nitrogenous fertilizers a necessity in their production. Furthermore, the bulk production of cereals and grains in nations like Asia-Pacific, where rice and wheat are fundamental staples, even further boosts demand for nitrogenous fertilizers within this category.
Affordability and widespread utilization of nitrogenous fertilizers like urea also Favor their use on a mass scale in the production of cereals and grains. Government policies and subsidies across different countries help consumption of fertilizer in these crops for ensuring food security. As cereals and grains are major components of global food supply and it is important to get the maximum output out of valuable cultivable land, this segment is the key driver of the nitrogenous fertilizer industry.
By region, Insights into the markets in North America, Europe, Asia-Pacific, Latin America and MEA are provided by the study. The most revenue share in 2023 over 65% was Asia Pacific region. More land available for cultivation, a more favourable climate, and more people residing in rural areas are all drivers for the growth. Major global players in the production of nitrogenous fertilisers are establishing themselves in Asian countries with increasing demand and more focus on food security. China is the largest consumer of the product in the world, using approximately one-third of the world's consumption of the product. Due to the fact that they facilitate an increased growth in both non-grain and grain production, these fertilisers are crucial to maintaining food security in China. Some of the major food crops cultivated in the country include barley, rice, soybeans, potatoes, tea, wheat, millets, tomatoes, cotton, and peanuts. According to revenue, Europe was in the third position in the regional segment during 2021 and is expected to increase at a compound annual growth rate (CAGR) of 6.3% in the near future. The region has a large amount of grassland and agricultural landmass due to which it increased. Phosphate-based fertilizers are predominantly imported from Morocco, while nitrate-based fertilizers are imported from Russia, Egypt, and Algeria. Most of the NPK compounds are imported from Russia and Norway.
In April 2021, one of the world's largest fertiliser manufacturers and distributors, Koch Fertiliser, LLC, has initiated a project to utilize autonomous drones to encourage change at its largest manufacturing facility.
In March 2021, approximately $150 million was spent by Koch Fertiliser, LLC on its nitrogen plant in Enid, Oklahoma. As much as 1.8 million tonnes of ammonia products can be supplied annually through this investment, which will also increase urea production and enhance the reliability of existing production units.
In November 2020, at its Fort Dodge, Iowa plant, Koch Fertiliser, LLC was to invest some $140 million to modernise existing manufacturing processes. The investment is expected to lead to a 85,000 tonnes a year boost in ammonia production capacity. Reliability, safety, and environmental performance will all be improved further through the investment.
The report will cover the qualitative and quantitative data on the Global Nitrogenous Fertilizer Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.
Study Period | 2024-32 |
Base Year | 2023 |
Estimated Forecast Year | 2024-32 |
Growth Rate | CAGR of 5.7% from 2024 to 2032 |
Segmentation | By Product, By Application, By Region |
Unit | USD Billion |
By Product |
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By Application |
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By Region |
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By region, Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study.
The Asia Pacific area accounted for more than 65% of revenue in 2021. The growth is attributed to more people living in rural regions, a more pleasant environment, and more arable land. Asian countries are becoming the preferred location for major global producers of nitrogenous fertilizers due to growing demand and heightened awareness of food security. China is the world's largest user of the commodity, accounting for nearly one-third of global consumption. These fertilizers are crucial to preserving food security in China since they allow for a better development in grain and non-grain yields.
Europe is expected to increase at a CAGR of 6.3% in the near future, placing it third in the geographical group in terms of revenue in 2021. The rise is due to the region's vast grasslands and agricultural landscape. Goods with phosphate bases are mainly imported from Morocco, whereas fertilizers with nitrate bases are imported into the region from Egypt, Algeria, and Russia. Most NPK chemicals are imported from Norway and Russia.
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20 Jun 2022
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