Nitrogenous Fertilizer Market Growth & Trends
The global nitrogenous fertilizer market size is estimated to reach USD 82.0 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 5.2% from 2021 to 2028. Growth can be attributed to the growing awareness about maintaining nutritional balance in soil among farmers. An increase in the global population has resulted in a rise in the annual crop yield, which has boosted the agriculture sector across the globe.
Nitrogen and hydrogen are the key raw materials used to manufacture nitrogenous fertilizers. Nitrogen is the primary nutrient in fertilizers, and it is required in large quantities by plants. Hydrogen is an important component of ammonia, which is a key ingredient in most fertilizers. Almost all commercial-scale ammonia incorporates hydrogen and nitrogen. Availability of raw material impacts nitrogenous fertilizer prices and production.
Key manufacturers are investing heavily in R&D activities to launch new products and broaden their product portfolios. Multinational companies are expanding their product reach to a broader customer base by establishing retail outlets at strategic locations across various countries to aid farming communities in the localities.
Asia Pacific is expected to register significant growth in the coming years owing to the presence of a large number of agrarian economies like India, China, Indonesia, and others in the region. India and China are expected to lead the market over the forecast period.
Nitrogenous Fertilizer Market Report Highlights
- In 2020, urea merged as the dominant product segment by contributing around 47.0% of revenue share. This is attributed to its affordable cost compared to its other counterparts
- Ammonium sulfate was the second-largest product segment and is projected to witness a CAGR of 4.1% by 2028, owing to its high solubility and wide agricultural applications.
- The cereals and grains segment dominated the market in terms of both revenue and volume, due to the growing demand for food crops such as wheat, maize, rice, barley, and oats
- As of 2020, Asia Pacific was the largest regional market owing to the advancements in farming methods along with the presence of large agricultural lands in the region
- In January 2021, ICL group acquired Fertilaqua, a specialty plant nutrition company for USD 122 million. This initiative was aimed to increase the sales of organic fertilizers of ICL by utilizing a strong market presence and distribution capabilities