Nitrogenous Fertilizer Market Is Encouraged to Reach USD 111.2 billion by 2033 at a CAGR of 5.7%

Introduction

The global nitrogenous fertilizer market is poised for significant growth, with its size expected to reach approximately USD 111.2 billion by 2032, up from USD 63.9 billion in 2023, reflecting a compound annual growth rate (CAGR) of 5.7% during the forecast period from 2023 to 2032. This growth is primarily driven by the increasing global demand for food, which necessitates higher agricultural productivity. As the world population continues to rise, farmers are increasingly reliant on nitrogenous fertilizers to boost crop yields and enhance the nutritional value of agricultural products. Urea, which contains 46% nitrogen, remains the most widely used nitrogenous fertilizer, particularly in major agricultural producers like China and India.

However, the market faces significant challenges, including environmental concerns related to the overuse of fertilizers, which can lead to soil degradation and water pollution. Additionally, fluctuating raw material prices and regulatory pressures aimed at reducing greenhouse gas emissions pose further obstacles to market growth. Recent developments in the industry include a shift towards more sustainable and eco-friendly fertilizer options, such as slow-release formulations that minimize environmental impact while maintaining crop efficiency.

Innovations in fertilizer technology, aimed at improving nutrient efficiency and reducing environmental harm, are expected to play a crucial role in the market’s expansion over the coming decade. The balance between meeting global food demands and addressing environmental challenges will be a key factor shaping the future of the nitrogenous fertilizer market.

Kynoch Fertilizer has focused on strengthening its position in the African market through strategic partnerships and acquisitions. Recently, the company has been investing in upgrading its production facilities to increase the efficiency and sustainability of its fertilizer products. These investments are part of Kynoch’s broader strategy to meet the growing demand for nitrogenous fertilizers in the region, driven by rising agricultural needs.

Sorfert, one of Algeria’s largest nitrogenous fertilizer producers, recently expanded its production capacity to meet increasing global demand. The company, a joint venture between Algeria’s Sonatrach and Egypt’s Orascom Construction Industries, aims to enhance its export capabilities, particularly to European and African markets. The expansion is expected to significantly boost Sorfert’s output, making it a key player in the global nitrogenous fertilizer market.

Bunge Ltd., a major player in the agricultural sector, has been actively involved in mergers and acquisitions to strengthen its position in the fertilizer market. The company recently announced a strategic acquisition aimed at enhancing its product portfolio and expanding its market reach. This acquisition is expected to complement Bunge’s existing fertilizer operations and provide it with a stronger foothold in key agricultural markets.

Nutrien Ltd., one of the largest producers of potash and nitrogen fertilizers, has been focusing on innovation and sustainability. The company recently launched a new line of enhanced-efficiency fertilizers designed to improve nutrient uptake by plants and reduce environmental impact. Nutrien has also been investing in digital agriculture platforms, which allow farmers to optimize fertilizer use, thereby improving crop yields and sustainability. In 2023, Nutrien announced a significant increase in capital expenditure to expand its nitrogen production capacity, reflecting the growing global demand for nitrogenous fertilizers.

Key Takeaways

Market Growth Projection: The nitrogenous fertilizer market is expected to grow significantly, reaching approximately USD 111.2 billion by 2033, up from USD 63.9 billion in 2023. This growth is driven by the increasing demand for fertilizers in agriculture to boost crop yields, with the market anticipated to expand at a CAGR of 5.7% during the forecast period.
Product Dynamics: Urea, containing 46% nitrogen, dominated the market in 2023, accounting for 34% of the revenue. Ammonia, although making up 17.2% of total revenue, remains crucial due to its resistance to leaching loss and high nitrogen content.
Application Insights: The cereal and grains segment led the market in 2023, holding a 46% revenue share, driven by the need for high care and increased yields in these crops. The oilseeds and pulses segment is expected to grow at a CAGR of 6.2% during the forecast period, focusing on improving seed germination and achieving denser crops.
Regional Analysis: The Asia-Pacific (APAC) region dominated the market with a 64.2% share in 2023, supported by large cultivation areas, favorable climates, and a significant rural population. China, as the largest consumer, plays a key role in ensuring food safety and increasing crop yields.

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Statistics

In 2022, Nitrogenous Fertilizers were the world’s 76th most traded product, with a total trade of $60.1B. Between 2021 and 2022 the exports of Nitrogenous Fertilizers grew by 57.7%, from $38.1B to $60.1B. Trade in Nitrogenous Fertilizers represents 0.25% of total world trade.
Around 40 % of the EU-27’s land area is farmed, highlighting the importance of farming for the EU’s natural environment.
Nitrogen-based fertilizers accounted for the vast majority (77.4 %) of the nutrients consumed, with an estimated consumption of 59 kg per hectare across the EU, ranging from 19 kg per hectare in Portugal to 125 kg per hectare in the Netherlands.
The reduction in the use of nitrogen-based fertilizers was generally less than 4 % per annum in most of the remaining Member States.
In contrast, consumption of phosphorous-based fertilizers fell by between 7.4 % and 10.2 % per annum in Ireland, the Benelux countries, and Portugal.
The nitrogen (N) content of fertilizers sold in 2023 was 18% lower than in 2022 at 280,569 tonnes.
Nitrogen content was down 18% at 280,569 tonnes, and phosphorus content fell by 10% to 30,762 tonnes. Lime sales were down by 27% to 1.0 million tonnes in 2023. This compares with lime sales of 1.4 million tonnes in 2022, the highest in the period 2000-2023.
For each year from 2015 to 2023, at least 75% of fertilizer sales took place between January and June, with less than 10% occurring between October and December. In 2023, 50% of fertiliser sales were in April to June while 25% were in January to March.
The nitrogen content of fertilizers sold in Ireland was 407,598 tonnes in 2000. It fell to its lowest level of the period 2000-2023 in 2011 at 295,795 tonnes, while it was highest in 2018 at 408,495 tonnes. In 2023 there were 280,569 tonnes of nitrogen in fertilizers sold in Ireland, a decrease of 18% in 2022.
They were at their lowest in 2009 at 1.2 million tonnes before reaching 1.7 million tonnes again in 2018 and 2021. This was followed by an 18% decrease to 1.4 million tonnes in 2022 and a further 18% reduction to 1.1 million tonnes in 2023.
Lime sales were at their highest of the period 2000-2023 in 2022 at 1.4 million tonnes. This was an increase of 4% in 2021, which in turn had shown an increase of 50% on 2020. In 2023 lime sales fell 27% to 1.0 million tonnes.
Despite numerous efforts, the N-use efficiency (NUE) in agriculture remains around 50%.
accounting for about 60% of N lost into the environment during growing seasons in the forms of ammonia, nitrate, and nitrous oxide, which has a significant negative impact on human health.
In 2019, Nitrogen fertilizer production in China jumped by 3.9% compared to the previous year.
In 2019, Nitrogen fertilizer production in China jumped by 3.9% compared to the previous year.
In 2019 Guinea was number 121 in Phosphate Fertilizer for Agriculture close to 2,556.78 Metric Tons, compared to 148 in 2018.
India used 18.86 million tons and produced 13.72 million tons of nitrogen. Net exports equal –6.45 million tons, making India the largest importer of nitrogen fertilizers.
The United States used 11.67 million tons of nitrogen fertilizer and produced 13.26 million tons. Net exports were –2.46 million tons, indicating that the U.S. was an importer of nitrogen.
Brazil used 4.91 million tons and produced .36 million tons. Net exports of Brazil are –4.84 million tons. Brazil only produces 7% of its nitrogen fertilizer.
The EU now has a stated goal of eliminating natural gas imports from Russia, with Russia supplying 40% of Western Europe’s natural gas needs.
Natural gas prices will increase, making nitrogen production from Europe costly compared to other places in the world. In 2019, the E.U. produced 8.57 million metric tons of nitrogen fertilizer.
Brazil imports almost all of its nitrogen fertilizers, with 21% of those imports coming from Russia.

Emerging Trends

Shift Towards Sustainable and Eco-Friendly Fertilizers: There is a growing emphasis on the development of eco-friendly nitrogenous fertilizers that minimize environmental impact. Innovations in slow-release and controlled-release fertilizers are becoming more prevalent, as they help reduce nitrogen loss through leaching and volatilization, thus enhancing nutrient efficiency and reducing environmental pollution. This trend is driven by increasing regulatory pressures and a global push towards sustainable agricultural practices.
Adoption of Advanced Agricultural Technologies: The integration of precision agriculture technologies is transforming the nitrogenous fertilizer market. Farmers are increasingly using data-driven tools and sensors to optimize fertilizer application, ensuring that crops receive the right amount of nutrients at the right time. This not only improves crop yields but also reduces waste and environmental impact. The adoption of smart farming techniques is expected to grow, further boosting the efficiency and effectiveness of nitrogenous fertilizers.
Increasing Demand for Enhanced-Efficiency Fertilizers (EEF): Enhanced-Efficiency Fertilizers (EEFs) are gaining traction in the market as they improve nitrogen use efficiency (NUE) and reduce the environmental footprint of farming. EEFs, including nitrification inhibitors and urease inhibitors, are designed to slow down the conversion of nitrogen in the soil, making it available to plants over a longer period. This trend is particularly strong in regions with stringent environmental regulations, such as Europe and North America.
Rising Importance of Organic Nitrogen Sources: While synthetic nitrogenous fertilizers continue to dominate the market, there is a growing interest in organic nitrogen sources such as compost, manure, and bio-based fertilizers. Organic fertilizers are increasingly being used in combination with synthetic options to enhance soil health and reduce the environmental impact of farming. This trend is supported by the rising consumer demand for organic and sustainably produced food.
Regional Shifts in Fertilizer Production and Consumption: The Asia-Pacific region, particularly China and India, remains the largest consumer and producer of nitrogenous fertilizers. However, there is a noticeable shift in production towards regions like Africa and Latin America, where agricultural development is rapidly increasing. These regions are investing in fertilizer production facilities to reduce dependency on imports and meet the growing demand for food production.
Impact of Climate Change on Fertilizer Use: Climate change is increasingly influencing fertilizer use patterns. As weather conditions become more unpredictable, farmers are adjusting their fertilizer practices to ensure crop resilience. This includes using nitrogenous fertilizers that can adapt to varying soil and climate conditions, as well as those that can mitigate the impact of climate stress on crops.

Use Case

Enhancing Crop Yields in Cereals and Grains: Nitrogenous fertilizers play a critical role in boosting the yields of cereals and grains, which are staple foods for a large portion of the global population. In 2023, the cereals and grains segment accounted for 46% of the total revenue in the nitrogenous fertilizer market. Crops like wheat, rice, and maize are heavily dependent on nitrogen for their growth. Farmers use fertilizers like urea, ammonium nitrate, and anhydrous ammonia to ensure these crops receive adequate nitrogen, which is essential for protein synthesis and overall plant growth. This use case is particularly significant in regions like Asia-Pacific, where rice and wheat are major food sources.
Supporting Oilseed and Pulse Production: The oilseeds and pulses segment is another important area where nitrogenous fertilizers are extensively used. This segment is projected to grow at a CAGR of 6.2% over the forecast period, driven by the need to enhance seed germination and achieve denser crop canopies. Crops such as soybeans, peanuts, and lentils benefit from the application of nitrogenous fertilizers, which improve the nitrogen content in the soil, leading to better crop yields and higher nutritional value. This use case is crucial in countries like India and Brazil, where pulses are a significant source of protein.
Improving Soil Health in Horticulture: In horticulture, nitrogenous fertilizers are used to improve the growth of fruits, vegetables, and ornamental plants. These fertilizers provide essential nutrients that promote the development of foliage, flowering, and fruiting. For example, calcium nitrate, a type of nitrogenous fertilizer, is commonly used in the production of fruits like apples and tomatoes to enhance their size and quality. The global market for horticultural products continues to grow, and nitrogenous fertilizers are a key component in meeting this demand.
Supporting Sustainable Agriculture with Slow-release Fertilizers: The development of slow-release nitrogenous fertilizers is an emerging trend that supports sustainable agriculture. These fertilizers release nitrogen gradually, reducing the risk of leaching and volatilization, which are common environmental issues associated with traditional fertilizers. This use case is particularly relevant in regions with strict environmental regulations, such as Europe and North America. Slow-release fertilizers help farmers maintain soil health while ensuring that crops receive a consistent supply of nitrogen over time.
Enhancing Crop Resilience to Climate Change: As climate change continues to impact agricultural practices, nitrogenous fertilizers are being used to enhance crop resilience to varying environmental conditions. In regions experiencing extreme weather patterns, such as droughts or excessive rainfall, nitrogenous fertilizers help crops maintain their growth and yield potential. For example, in Africa, where climate variability is a major challenge, the use of nitrogenous fertilizers is crucial for ensuring food security and supporting the livelihoods of smallholder farmers.

Key Players Analysis

Kynoch Fertilizer is a key player in the nitrogenous fertilizer market, focusing on enhancing soil health and crop yields. The company’s Miracle Range of fertilizers is specifically designed to implement the 4R nutrient stewardship principles (Right nutrient source, Right rate, Right time, Right place). These fertilizers contain a mix of macronutrients, secondary nutrients, and micronutrients, with KynoPlus as the main nitrogen source, which improves nitrogen efficiency and minimizes volatilization losses, ultimately leading to higher crop yields and better soil health.

Sorfert is a significant nitrogenous fertilizer producer based in Algeria, operating as a joint venture between Algeria’s Sonatrach and Egypt’s Orascom Construction Industries. The company has recently expanded its production capacity to meet increasing global demand, particularly in Europe and Africa. Sorfert’s enhanced output is expected to solidify its position as a key supplier in the nitrogenous fertilizer market, contributing to the agricultural productivity of these regions.

Bunge Ltd. plays a significant role in the nitrogenous fertilizer sector, particularly in South America, where it focuses on providing fertilizer solutions that support sustainable agriculture. The company is actively involved in the distribution of nitrogenous fertilizers as part of its broader agribusiness operations. Bunge has been working on enhancing its agricultural value chain by integrating advanced technologies and sustainable practices to improve crop yields and soil health. This includes the ongoing shift towards bio inputs and organic matter to reduce reliance on chemical fertilizers.

Nutrien Ltd. is a leading player in the global nitrogenous fertilizer market, focusing on the production and distribution of nitrogen fertilizers, including urea, ammonium nitrate, and anhydrous ammonia. The company has a strong presence in North America and is expanding globally through strategic investments in production capacity and digital agriculture solutions. Nutrien is committed to sustainability, offering enhanced-efficiency fertilizers that improve nitrogen use efficiency and reduce environmental impact, making it a key innovator in the sector.

Yara International is one of the largest producers of nitrogenous fertilizers globally, with a strong focus on innovation and sustainability. The company offers a wide range of nitrogen-based fertilizers designed to meet the specific needs of various crops. Yara has been at the forefront of developing fertilizers that reduce greenhouse gas emissions and improve nitrogen efficiency, contributing to more sustainable agricultural practices. Their efforts include significant investments in digital tools that help farmers optimize fertilizer use, thereby enhancing both crop yields and environmental outcomes.

Omnia Holdings Limited is a key player in the African nitrogenous fertilizer market, known for its integrated approach to fertilizer production, which includes the development of tailored solutions for different soil types and crops. The company emphasizes sustainability and innovation, producing a range of nitrogen-based fertilizers that support the region’s agricultural productivity. Omnia is also investing in research and development to improve the efficiency and environmental impact of its products, catering to the growing demand for sustainable agricultural practices in Africa.

Sasol is a major producer of nitrogenous fertilizers in South Africa, with a focus on supplying high-quality ammonium nitrate and urea to the agricultural sector. The company leverages its expertise in chemical production to offer fertilizers that enhance crop growth and soil health. Sasol is also involved in research initiatives aimed at reducing the environmental impact of fertilizer use, aligning with global trends toward more sustainable agricultural inputs.

Aquasol Nutri specializes in providing water-soluble nitrogenous fertilizers, which are widely used in hydroponics and precision agriculture. The company’s products are designed to deliver nutrients efficiently, ensuring that crops receive the optimal amount of nitrogen for growth. Aquasol Nutri focuses on innovation and sustainability, offering solutions that minimize nutrient runoff and environmental impact while maximizing crop yield.

TriomfSA is a South African company that produces and distributes a variety of nitrogenous fertilizers, including urea and ammonium nitrate. The company focuses on providing cost-effective solutions tailored to the specific needs of local farmers. TriomfSA is committed to supporting sustainable agriculture through the development of fertilizers that improve soil fertility and crop productivity, helping to meet the growing food demands in the region.

Rolfes Agri (Pty) Ltd. is a South African company specializing in the development and production of high-quality agricultural products, including nitrogenous fertilizers. The company focuses on enhancing plant, root, and soil health, offering a range of chemical and organic solutions tailored to various agricultural needs. Rolfes Agri is committed to sustainability, with a significant portion of its product portfolio geared toward organic farming practices. Their expertise in optimizing plant immunity and alleviating stress makes them a key player in both local and international agricultural markets.

OCI Nitrogen is one of the leading producers of nitrogen-based fertilizers in Europe. The company plays a crucial role in the nitrogenous fertilizer market by supplying high-quality products that contribute to sustainable agricultural practices. OCI Nitrogen focuses on innovations that improve nitrogen use efficiency, helping to reduce environmental impact while ensuring that crops receive the essential nutrients needed for optimal growth. Their advanced production techniques and commitment to sustainability have positioned them as a significant player in the global fertilizer industry.

ICL Fertilizers is a leading global player in the nitrogenous fertilizer sector, known for its innovative and sustainable solutions that enhance crop nutrition and productivity. The company has recently focused on developing biodegradable coated urea, which reduces nitrogen loss and environmental impact while improving crop yield. ICL’s commitment to sustainability and precision agriculture positions it as a key contributor to the nitrogenous fertilizer market, particularly in regions that prioritize environmentally friendly farming practices.

Eurochem Group AG is a global leader in the nitrogenous fertilizer market, offering a comprehensive portfolio that includes urea, ammonium nitrate, and other nitrogen-based products. The company is known for its vertically integrated operations, which allow it to control the entire production chain, from mining raw materials to delivering finished fertilizers. Eurochem is actively investing in expanding its production capacity and enhancing its product offerings to meet the growing global demand for sustainable and efficient fertilizers.

CF Industries Holdings Inc. is a leading player in the nitrogenous fertilizer market, focusing on the production and distribution of ammonia, urea, and other nitrogen-based fertilizers. The company operates some of the world’s largest and most efficient nitrogen plants, with significant production capacity in North America. CF Industries is also committed to sustainability, investing in technologies to reduce carbon emissions in fertilizer production.

Koch Fertilizer, LLC is a major producer and supplier of nitrogen fertilizers, including ammonia, urea, and UAN (urea ammonium nitrate) solutions. The company operates multiple production facilities across North America, with a strong focus on efficiency and sustainability. Koch Fertilizer is also investing in new technologies to enhance its production capabilities and reduce its environmental footprint.

Hellagrolip SA is a leading Greek fertilizer company specializing in the production and distribution of high-quality nitrogenous fertilizers. The company plays a pivotal role in the Greek agricultural sector, offering a broad range of products that meet the diverse nutritional needs of modern agriculture. Hellagrolip’s commitment to sustainability and innovation is reflected in its focus on developing environmentally friendly fertilization solutions.

Coromandel International Limited is one of India’s largest and most diversified agri-solutions providers, particularly known for its leadership in the nitrogenous fertilizer market. The company produces a wide range of fertilizers, including urea and ammonium phosphate, which are crucial for enhancing crop yields in India’s extensive agricultural sector.

Haifa Group is a global leader in the specialty fertilizers market, with a strong focus on nitrogenous fertilizers. The company is known for its innovative approach to plant nutrition, offering a wide range of products designed to enhance agricultural productivity. Haifa Group’s recent initiatives include a significant investment of approximately USD 350 million aimed at doubling its production capacity.

Notore Chemical Industries Plc is a prominent player in the nitrogenous fertilizer market, particularly in Africa. The company focuses on the production of urea, ammonia, and NPK fertilizers, which are essential for enhancing crop yields in the region. Notore’s strategic operations are centered around addressing the agricultural needs of Nigeria and other African countries, where there is a high demand for fertilizers to boost food production.

Conclusion

The nitrogenous fertilizer market is on a robust growth trajectory, driven by the increasing global demand for food and the need for enhanced agricultural productivity. With the market expected to reach approximately USD 111.2 billion by 2032, up from USD 63.9 billion in 2023, the sector is expanding at a healthy CAGR of 5.7%. Key factors contributing to this growth include the dominance of urea, advancements in eco-friendly fertilizers, and the rising adoption of precision agriculture technologies. However, the market faces challenges such as environmental concerns and fluctuating raw material prices. Companies like Haifa Group and Notore Chemical Industries are at the forefront of innovation, focusing on sustainable practices and expanding their global reach.

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