Nitrogen Fertilizer Global Market Report 2021: COVID 19 Impact and Recovery to 2030

Nitrogen Fertilizer Global Market Report 2021: COVID 19 Impact and Recovery to 2030

  • May 2021 •
  • 175 pages •
  • Report ID: 6072006 •
  • Format: PDF
Major players in the nitrogen fertilizer market are Yara International, CF Industries Holdings Inc., PJSC Togliattiazot, Nutrien Inc., OCI NV, Coromandel International Ltd, EuroChem Group, Koch Industries Inc., SABIC Group and Bunge Limited.

The global nitrogen fertilizer market is expected to grow from $67.82 billion in 2020 to $73.02 billion in 2021 at a compound annual growth rate (CAGR) of 7.7%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $78.22 billion in 2025 at a CAGR of 2%.

The nitrogen fertilizer market consists of sales of nitrogenous fertilizers.Nitrogen fertilizer manufacturers produce fertilizers from sewage or animal waste and manufacture nitrogenous materials and mix them into fertilizers.

Ammonium nitrate, ammonium sulfate and anhydrous ammonia are considered to be part of the nitrogenous fertilizer manufacturing segment.

Globally, governments are investing to uplift the agricultural sector, thereby contributing to the growth in demand for fertilizers. For instance, the government of India announced that the urea factories that are older than 30 years but are still producing urea, will get $6.77 (Rs 500) additional fixed cost. The government also announced 30 urea factories will get fixed cost at a rate of $4.74 (Rs 350) per metric tonne. India imports more than 50 lakh tonnes of urea, worth more than a billion-dollar, every year. The government initiative aims to boost domestic production of urea and cut the imports. Therefore, such initiatives in different countries are expected to promote agricultural sector, thus driving the fertilizers market.

Nitrogen is one of the fertilizers majorly affecting the pH balance in the soil, whether its alkaline or acidic based on the type of the nitrogen fertilizer that has been used. pH value gives the measure of how alkaline or acidic a solution is. Crops are developing resistance with the increased usage of nitrogen fertilizers and it in turn leads to deterioration of soil and environment. For instance, according to Department of Primary industries and Regional Development, Government of Australia, the soil acidification is mainly caused due to ammonium nitrogen fertilizers, the major contributors of soil erosion by affecting the electrical balance in plants. Thus, the degradation of soil and environment by nitrogen fertilizer limits the growth of the market.

The nitrogen fertilzer market covered in this report is segmented by type into urea, calcium ammonium nitrate (CAN), ammonium nitrate, ammonium sulphate, ammonia, other nitrogenous fertilizers. It is also segmented by application into cereals & grains, oilseeds & pulses, fruits & vegetables, others.

Urea market is witnessing rapid growth in fertilizers market as it controls air pollution by catalytic reaction.Urea is easily water-soluble compound that consists of 46% of nitrogen and it can be stored, transported and handled easily.

It increases the soil productivity and soil nutrients.According to International Fertilizers Association (IFA), global urea capacity is going to increase by a net of 17 metric tons by volume for each year and the total production is estimated as 226 metric tones by 2021.

Thus, the expected increase in production of urea promotes the sales of nitrogen fertilizers market.

In September 2019, Nutrien Ltd., a Canada-based fertilizer company that produces and distributes nitrogen, potash, and phosphate products for agricultural use acquired Ruralco Holdings Limited for an undisclosed amount. The acquisition is expected to enable Nutrien to compete in the global markets and strengthen the delivery of products and services to Australian farmers. Ruralco Holdings Limited is an Australia-based agricultural fertilizer company that specializes in manufacturing and distributing chemical fertilizers such as nitrogen fertilizers and seeds