Nitrogenous Fertilizer Market Size, Share & Trends Analysis Report By Product (Urea, Methylene Urea, Ammonium Nitrate, Ammonium Sulphate, Ammonia, Calcium Ammonium Nitrate, Others), By Application (Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global nitrogenous fertilizer market was valued at USD 63.83 billion in 2023. It is expected to reach USD 105.39 billion in 2032, growing at a CAGR of 5.73% over the forecast period (2024-32). The expansion of agricultural land to meet the growing demand for food and biofuel production necessitates the use of fertilizers to improve soil fertility and productivity. Nitrogenous fertilizers are widely used to replenish nitrogen levels in soils, supporting the cultivation of crops on newly developed or underutilized land.

An inorganic nitrous substance, known as nitrogenous fertiliser, is most commonly used to boost crop growth and quality. Photosynthesis necessitates the presence of nitrogen, which is a key building block of protoplasm. Ammonium nitrate, ammonium sulphate, calcium ammonium nitrate, urea, and other compounds are mixed with animal manure to make these fertilisers, which are then applied to the soil. A small amount of this can help promote flower distinction, speed up shoot development, produce healthy flower buds, and improve fruit quality. Nitrogenous fertiliser sales are expected to soar as farmers gain a better grasp of soil profile and nutritional balance.

Growing farmer understanding of soil nutrition is another factor expected to boost growth in the worldwide nitrogenous fertilisers industry. The market is expected to develop throughout the forecast period due to rising food demand caused by a rapidly expanding population and shrinking arable land. As a result, there has been a rise in the number of people who choose organic food that is grown without the use of synthetic chemicals or biofertilizers. It's a result of a growing sense of responsibility for the environment, food safety, and other issues, as well as an increase in disposable wealth. The nitrogenous fertiliser market is expected to be affected as a result.

Market Dynamics

Market drivers

Increasing population and crop production demand

Global need for nitrogenous fertilizer is predicted to rise as the world's population continues to expand. The crop's great yielding potential is expected to be unlocked with the usage of optimum nitrogen fertilizers. This market is predicted to rise as a result of shrinking farmland and increased precision farming, like drip and sprinkler irrigation.

In order to increase crop output and growth, maintaining and restoring soil nutrients, including nitrogen, is critical. Commercial fertilizers contain nitrogen that is highly soluble, making it easy for plants to absorb and assimilate.

As a result, nitrogen fertilizer utilizing the green manure approach aims to improve soil fertility by incorporating nitrogen into the ground of any field, whereas the cultivated plant is still in its vegetative state. Healthy plants, strong yields, and a successful farm operation all depend on efficient nitrogen fertilizer management.

Digital farming and extensive r&d and investment are propelling the market forward

Due to the benefits connected with crop development, nitrogenous fertilizer use is increasing over the world, however the environmental impact of nitrogenous fertilizers cannot be ignored. R&D for new product launches that are more sustainable and efficient is the primary focus of nitrogen fertilizer industry participants. Corteva Agriscience, the Agriculture Division of DuPont de Nemours, Inc., introduced PinnitMax in December 2018 as an above-ground nitrogen stabilizer. The product can keep urea and UAN treatments from evaporating and guarantee that the nitrogen is delivered to the root zone for optimal crop uptake.

In addition, important players are focusing on digital marketing as a way to grow their businesses. By using smartphones to evaluate crop nitrogen requirements, precision farming tool Yaralix was launched by the Norwegian company Yara International in March 2019. Yara International ASA has launched Yaralix in an effort to make precision agriculture more accessible to farmers around the world. Investing in digital farming led to this application's release.

Market restraints

The market is hampered by adverse effects on the environment or human health

The leaching of nitrogenous fertilizers into groundwater and streams is projected to cause serious economic as well as environmental disruption due to the high rainfall in this area. The Government of Western Australia suggested some recommendations, including that, the nitrogenous fertilizers should never be implemented near streams or drainages; it should be implemented when the pasture is actively growing and can use the fertilizers; and it should avoid excessive use of the nitrogenous fertilizers in the winter, to overcome these issues. Nitrogen fertilizer misuse is expected to be reduced as a result of these methods. This is going to hamper the market.

Market key future opportunities

Development of commercial agriculture to create lucrative opportunities

Crops are grown for profit, either domestically or internationally, when they are grown commercially. As a result of commercial farming, agriculture has undergone a progressive change and reformation. Growth in commercial farming has been spurred by a combination of factors, including an expanding global population, greater technology, and improved infrastructure. An increasing usage of technology and high-quality fertilizers like nitrogen-based fertilizers is a result of the agricultural industry's advancements. Thus, the rise of commercial agriculture is presenting number of opportunities to imply the growing demands for nitrogenous fertilizers.

For example, the agriculture business has embraced coated urea, increased demand for N, P, and K fertilizers, and the usage of yeast-coated fertilizer to boost soil fertility. At present, the vast majority of farming activities make use of high-tech technology and equipment. These include soil sensors as well as drones used in large-scale farming, plus vertical farming, which harvests crops without using sunlight or soil, is projected to make significant progress.

Regional Analysis

The Global Nitrogenous Fertilizer Market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

In terms of revenue, the Asia Pacific area maintained the biggest proportion, which was greater than 67% in the year 2021. The expansion can be attributed to several factors, including more cultivable land, climate conditions that are more suitable, and an increase in the number of people living in rural areas. As a result of rising consumer demand and a heightened awareness of the importance of maintaining food safety, many international companies that produce nitrogenous fertilizers are relocating their production facilities to countries in Asia.

The amount of the product that is used in China accounts for approximately one-third of the total amount of product that is consumed across the globe. China is the country that uses the product the most. Because they permit a greater rise in both non-grain as well as grain yields, these fertilizers play an important part in China's effort to maintain its level of food security. Some of the most important crops for human use that are grown in the country are barley, rice, soybean, potato, tea, wheat, millet, tomato, cotton, and peanuts.

In terms of revenue, Europe occupied the third place in the regional sector in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 6.35% in the not-too-distant future. The expansion can be ascribed to the substantial amount of land in the region that is used for agricultural purposes and grasslands. Fertilizers based on nitrate are brought into the region from Russia, Egypt, and Algeria; phosphate-based goods, on the other hand, come almost exclusively from Morocco. The majority of NPK compounds come from Norway and Russia, where they are produced.

Segmental Analysis

The Global Nitrogenous Fertilizer Market is divided into different segments according to the Product, Application, and Region (Geography).

By Product, the Global Nitrogenous Fertilizer Market is segmented into Urea, Methylene Urea, Ammonium Nitrate, Ammonium Sulphate, Ammonia, Calcium Ammonium Nitrate, and Others. In 2021, the urea product group had a revenue share of more than 35%. Due to the increased amount of nitrogen and reduced costs of the urea, the nitrogenous fertilizer market has grown significantly. Urea is the most important nitrogenous fertilizer since it contains 46% nitrogen. Urea's fast hydrolysis, which forms ammonium carbonate, can cause significant amounts of ammonia to be volatilized and wasted. Rapid hydrolysis of urea can cause ammonia harm to seedlings if significant volumes of urea are placed close to them. Urea fertilizers must be placed correctly in relation to the seeds, as a result.

In 2021, the ammonia product segment came in second with a revenue share of roughly 20%. Leaching loss resistance and good solubility are cited as factors in this increase. The nitrogen-based fertilizer industry relies heavily on ammonia since it has a higher nitrogen content than any other commercial product. A plant nutrient that can be administered directly to the soil or processed into various forms of nitrogen fertilizer is available.

Ammonium sulphate nitrate, calcium nitrate, and amide fertilizers are also available in the market (diammonium phosphate, calcium cyanamide, etc.). In the calcium nitrate, nitrogen is found in the form of nitrate, which is formed when limestone as well as nitric acid mix. An amide fertilizer dissolves easily in water and decomposes quickly in the soil.

By Application, the Global Nitrogenous Fertilizer Market is segmented into Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables, and Others. There was a 45% revenue share in 2021 for the cereals and grains segment. Farmers and the agriculture industry are benefiting from increased yields and profits from cereals and grains crops, which necessitate the utmost attention. Plants' optimal growth depends on a sufficient supply of nitrogen, thus products like urea, ammonium nitrate, as well as anhydrous ammonia are commonly used to meet this demand.

A projected CAGR of 5.59% is expected to be achieved in terms of revenue by the oilseed & pulses application segment between 2013 and 2017. Increasing the percentage of seeds that germinate and producing dense pulse canopies are two of the reasons for the increase in the plant's population. We cannot live without the proteins, vitamins, plus minerals found in oilseeds and pulses. Oilseed and pulse crops benefit from the use of this product when it is applied correctly to the farms where these crops are cultivated.

There are numerous other uses for decorative and fibre plants as well. Fiber and decorative plants both benefit from the application of nitrogen fertilizers. Using slow-release formulations of the product, over-fertilization of these plants can be avoided, resulting in maximal nitrogen use by plants.

By Region or Geography, the Global Nitrogenous Fertilizer Market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In terms of revenue, the Asia Pacific region accounted for the largest share in 2021, surpassing 67%. Greater cultivable land, a more suitable climate, and a larger rural population are all thought to be contributing factors. Multinational nitrogenous fertilizer manufacturers are expanding their operations in Asia because to rising demand and an increasing focus on food security. In terms of revenue, Europe ranked third in 2021 and is predicted to grow at a CAGR of 6.35% over the next several years. The region's large grassland and farmland areas are to blame for the expansion.

Recent Developments

• April 2024 - Nitricity Inc., a California-based startup that is revolutionizing the manufacturing of climate-smart nitrogen fertilizer, celebrated the start of its most recent field test. The announcement of the first tonnage delivery of Nitricity's locally produced liquid calcium nitrate product marked a significant increase in scale from small deliveries. The announcement was made in collaboration with Elemental Excelerator, Olam Food Ingredients (OFI), and the Madera/Chowchilla Resource Conservation District.
• January 2024 - The ANWIL of the ORLEN Group completed the building of the third nitrogen fertilizer production plant, therefore improving Poland's food security and lowering the import of fertilizers. A 50% rise in fertilizer production capacity and a widening range of Company products helped to make this feasible. In terms of financing as well as production capacity attained, it is the biggest investment project in ANWIL's history as well as the whole area.