Nitrogenous Fertilizer Market Size, Share, and Trends 2024 to 2033

Nitrogenous Fertilizer Market Size to Reach USD 99.60 Bn by 2032

The global nitrogenous fertilizer market size was estimated at USD 60.86 billion in 2022 and it is expected to hit around USD 99.60 billion by 2032 with a registered CAGR of 5.10% from 2023 to 2032. U.S. nitrogenous fertilizer market size was valued at USD 10,760.5 million in 2022.

Region-wise, Asia Pacific was the market leader in the global nitrogenous fertilizers market that captured a market share of around 62% in 2022. The presence of numerous economies that are highly dependent on agriculture is a major reason behind the burgeoning demand for the nitrogenous fertilizers. The presence of huge agricultural lands along with the majority of the population engaged in agricultural activities has boosted the growth of the Asia Pacific nitrogenous fertilizer market. Asia Pacific has the world’s largest population and the various government initiatives to boost the agricultural yields and improve the condition of the farmers has led to the adoption of various policies under which the farmers were given easy loans at minimal or no interest rates and various other subsidies. Various countries like China, India, Myanmar, Philippines, and Indonesia are some of the major agriproducts manufacturers. Therefore, the demand for the nitrogenous fertilizers is primarily driven by these economies in the Asia Pacific region. Moreover, the rising initiatives by the local companies to educate and aware the farmers regarding the accurate and proper use of fertilizers is another major factor that is fueling the volume of yields and driving the demand for the nitrogenous fertilizers across Asia Pacific region.

Europe captured the second place in the global nitrogenous fertilizer market and is expected to grow at a significant CAGR of 5.4% during the forecast period. The rising focus of the European nations towards improving agriculture and the upgradation of the nitrate plants in Europe has significantly driven the growth of the Europe nitrogenous fertilizer market. However, the growing demand for the organic food across Europe is expected to be a major restraint that may hamper the growth of the nitrogenous fertilizer market in Europe.

Growth Factors

The rising popularity of the commercial agriculture is a primary driver of the global nitrogenous fertilizer market. With the rising population, the demand for the food products is increasing rapidly across the globe. The nitrogenous fertilizers help to provider necessary nutrition to the crops and improve yields, which is boosting the demand for the nitrogenous fertilizers across the globe. The rising applications of the nitrogenous fertilizers across various agricultural products such as cereals, cottons, fruits, and vegetables are fostering the market growth significantly. There is a seasonal demand for the nitrogenous crops as there are many seasonal crops. The production levels of the crops are majorly affected by the climate, which drives the supply and demand for the nitrogenous fertilizers depending on the season.

The nitrogenous fertilizers are adopted to boost yields and the majority of the crops that are cultivated across the globe utilizes fertilizers. The nitrogenous fertilizers are extensively available in the form of ammonium sulfate, calcium ammonium nitrate, urea, and ammonia. These variations of the nitrogenous fertilizers help in the faster growth of the plants by offering essential nutrient and nitrogen to the plants. The key raw materials used for manufacturing nitrogenous fertilizers include nitrogen and hydrogen. Nitrogen plays and important role in photosynthesis that allows the plants to produce food from sunlight.

The growing demand for the nitrogenous fertilizers from the emerging economies is expected to boost the growth of the nitrogenous fertilizer market in the forthcoming years. The rising awareness among the farmers regarding the accurate use of chemicals and fertilizers in agricultural fields is significantly driving the growth of the nitrogenous fertilizer market. Furthermore, the domestic and local companies of nitrogenous fertilizers are providing services regarding the nutrients requirements and technology to the farmers, which plays a crucial role in increasing the sales of the nitrogenous fertilizers across the globe.

The rapid urbanization and rapid industrialization of the regions across the globe is shrinking the agricultural lands. Therefore, it has now become necessary for the agricultural industry to produce higher yields from the lower available agricultural lands. Hence, the demand for the nitrogenous fertilizers is rising significantly across the globe to ensure higher crop yields that may fulfill the food requirements of the global population. Moreover, the various government subsidies offered to the farmers in the developing economies like India is expected to have a positive and significant impact on the market growth during the forecast period.

Report Scope of the Nitrogenous Fertilizer Market

Product Insights

Based on the product, the urea segment garnered a revenue share of around 40% and dominated the global nitrogenous fertilizer market in 2022. This growth is attributed to the extensively usage and rising popularity of urea. The high nitrogen content and low cost of urea are the major factors that has significantly boosted the growth of the urea segment across the globe. Urea has around 46 % of nitrogen content and is applied to the bare soil. Extensive usage of urea may harm the growth of the seeds and hence, proper knowledge regarding the use of urea is necessary.

Ammonia segment captured a revenue share of 22% in 2022 and was the second largest segment in the market. The higher leaching loss resistance and higher solubility are the crucial features of ammonia that has spurred the demand for ammonia among the farmers across the globe. Ammonia can either be applied directly to the soil surface or it can be mixed with other fertilizers and used to get desired results. Ammonia is said to be the foundation of the nitrogen in the global fertilizer industry.

Crop Type Insights

Based on the crop type, the cereals and grains segment dominated the market, accounting for around 45% of the market share in 2022. Cereals and grains are the most cultivated and the most consumed crops across the globe. It requires utmost care for generating higher yields and increase profitability of the farmers. Therefore, the demand for the nitrogenous fertilizers is higher for the cultivation of cereals and grains. Urea, ammonium nitrate, and anhydrous ammonia are some of the most preferred fertilizers used in yielding the cereals and grains.

The oilseed and pulses segment accounted for second largest market share and is expected to grow at a CAGR of around 4.8% from 2023 to 2032. The growing needs for enhancing the germination of seeds and ensuring the adequate growth of the pulse canopies is anticipated to augment the demand for the nitrogenous fertilizers during the forecast period.

Key Market Developments

• In June 2018, Yara International ASA acquired the urea business of TATA Chemicals in India. This acquisition aimed at strengthening Yara’s position in the Indian market. The plant acquired by Yara International had a manufacturing capacity of 1.2 million tons of urea and 0.7 million tons of ammonia, annually.

Some of the prominent players in the global nitrogenous fertilizer market include:

• Yara International ASA
• Bunge Ltd.
• OCI Nitrogen
• Kynoch Fertilizer
• Omnia Holdings Limited
• Sorfert
• Triomf SA
• ICL Fertilizers
• Eurochem Group
• Nutrien Ltd.
• CF Industries Holdings Inc.

Segments Covered in the Report

By Product

• Urea
• Calcium Ammonium Nitrate
• Methylene Urea
• Ammonia
• Ammonium Sulfate
• Ammonium Nitrate
• Others

By Crop Type

• Oilseeds and pulses
• Fruits and vegetables
• Cereals and grains
• Others

By Form

• Liquid
• Dry
• Others (Granular and Pelleted)

By Mode of Application

• Soil
• Foliar
• Fertigation
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa