Global Urea Fertilizers Market - 2022-2029

Global Urea Fertilizers Market - 2022-2029:

Market Overview

Urea Fertilizers Market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 2.5% during the forecast period (2022-2029).

Urea is an inexpensive form of nitrogen fertilizer with an NPK (nitrogen-phosphorus-potassium). Urea is naturally produced in humans and animals, while synthetic urea is manufactured with anhydrous ammonia. Although urea often offers gardeners the most nitrogen for the lowest price on the market, special steps must be taken when applying urea to the soil to prevent the loss of nitrogen through a chemical reaction.One of the primary reasons driving market expansion is significant growth in the agriculture business around the world. In comparison to the commonly used ammonium nitrate, urea is less expensive and produces a larger crop yield in less time.

Furthermore, urea is now widely used as a fertilizer and an animal feed additive. The growing usage of urea in the automobile industry is fueling market expansion. In the automotive industry, urea is widely used to reduce nitrogen oxide emissions from diesel vehicles. To eliminate nitrogen oxide from diesel exhaust, automotive urea, also known as diesel exhaust fluid (DEF), is pumped into the exhaust systems and tanks of trucks, buses, cars, and sport utility vehicles (SUVs). Thus, owing to the increased demand and growing use of urea fertilizers in agriculture and other industries is propelling the market growth.

Market Dynamics: Increased awareness about the benefits of urea fertilizers among farmers is driving the growth of the market

The growing awareness about the benefits of urea fertilizers in crop protection has led to an increase in its consumption. Urea fertilizers provide farmers with both environmental & economical factors. Urea contains the most amount of nitrogen which helps absorb the water in the soil. For instance, according to urea fertilizer suppliers, urea is used as a nitrogen-release fertilizer in more than 90% of the world’s industrial production. Urea is a very mobile molecule in soils and is a major source of water contamination from agriculture. Plants quickly absorb it, making it the most important source of nitrogen for plant growth and providing great quality crops such as wheat for wheat bran wholesale suppliers. Urea is extremely soluble in water and is utilized in many multi-component solid fertilizer formulations.

Furthermore, the rapid increase in the food processing & food service sectors is enabling the farmers to use urea fertilizers in the farming process to increase the productivity of the crops. Thus, the increased demand and awareness about the benefits of urea fertilizers are driving the growth of the market. For instance, in June 2021, according to the Times of India, the former Chief Minister of Gujrat launched the world’s first nano urea liquid fertilizer developed at IFFCO’s nanotechnology research center. Thus, the increased awareness about the benefits and nutritional value of urea fertilizers ultimately has increased the demand for it. Thus, farmers also incorporating urea fertilizers into farming which increased its consumption and drives market growth.

On the other hand, one of the major factors affecting the growth of the market is the side effects associated with it such as irritation to skin, eyes and respiratory track. These side effects may enable farmers to switch to other fertilizers to avoid the side effects which may impact urea fertilizers market negatively.

Market Segmentation: Gas-based urea fertilizer stands for the highest share in the global urea fertilizer market

In 2021, the gas-based urea fertilizer segment had the highest revenue share of YY percent. Gas-based urea fertilizer have been the most preferred choice of consumers due to the growing demand and increased usage owing to its benefits such as high nutrient content and good absorption of nutrient in the soil. Furthermore, gas-based urea fertilizer is a fertilizer that uses natural gas as the primary input to produce urea. It has several advantages over traditional solid (coal) based urea production. They are more efficient, emit less pollutants, and have a smaller environmental impact which increases its demand in the demand in the market.

In 2021, the agriculture segment had the highest revenue share of YY percent. The growing food processing & food service sectors enable farmers to use urea fertilizers and to increase the productivity of the crops. The growth in the agriculture segment is attributed to increasing use of urea fertilizers in crop cultivation, including rice, maize, soybean and wheat owing to their ability to provide high nitrogen fertilizer doses with less water consumption compared with other conventional methods. Thus, the increased use of urea fertilizers in the agricultural industry increases its demand in the market.

Geographical Penetration: Asia-Pacific is the dominating region during the forecast period

In 2021, Asia-Pacific had the highest revenue share of YY percent. The region has well-developed food, industrial and agricultural sectors which increases the demand for urea fertilizers and adds to the growth of the market. Furthermore, the region has a large agricultural sector which makes it an important market for fertilizer manufacturers. For instance, China, India, Japan, South Korea and Taiwan are some of the major countries in the Asia Pacific that have a strong agricultural production sector. Thus, the consistently growing agriculture industry and increased demand for urea fertilizers due to that is driving the growth of the market in the region.

Competitive Landscape:

The global urea fertilizer market is competitive and comprises players such as QAFCO, EuroChem, Yangmei Chemical, CF Industries, Koch Fertilizer, SABIC, Rui Xing Group, Nutrien, Yara, Shanxi tianze coal-chemical, among others. The urea fertilizer market competitiveness is estimated to increase over the forecast period as the key players focus on various strategies such as agreements and product innovation for various applications.

For instance,

• In February 2022, EuroChem Group AG, acquired the nitrogen business of the Borealis group after having submitted a binding offer. This acquisition will provide EuroChem with five production facilities across Europe as well as full sales and distribution network.

COVID-19 Impact:

Negatively impacted the urea fertilizers market

The COVID-19 pandemic has adversely affected the economies of various countries due to lockdowns, business close, and travel bans. Agriculture is among the major industries that suffered from intense disruptions such as restrictions on the supply chain and the shutdown of warehouse plants.

In addition, the closures/shutdowns of the companies, and factory production, countries have disrupted the whole supply chain. It has negatively impacted manufacturing activities, delivery schedules, and various goods sales. Multiple companies have already announced possible delays in product deliveries and a decline in future sales of their products.

Furthermore, the import-export restrictions imposed by governments in North America, Asia, and Europe are hindering geographical expansion, business collaboration and partnership opportunities. Thus, these factors are hindering the growth of the urea fertilizer market in the agriculture industry.

The global urea fertilizers market report would provide an access to approximately 53 market data tables, 40 figures and 172 pages.