Nitrogenous Fertilizers Market

Market Definition

Nitrogenous fertilizers are essential agricultural inputs that supply nitrogen, a vital nutrient for plant growth. These fertilizers play a critical role in modern agriculture by enhancing crop yields and addressing the growing global demand for food. 

Common types include urea, ammonium nitrate, and anhydrous ammonia, which are used extensively for cultivating cereals, oilseeds, and other staple crops. They are crucial for improving food security in regions with limited arable land.

Nitrogenous Fertilizers Market Overview

Global nitrogenous fertilizers market size was USD 64.37 billion in 2023, which is estimated to be valued at USD 67.45 billion in 2024 and reach USD 96.19 billion by 2031, growing at a CAGR of 5.20% from 2024 to 2031. 

The growth of the market is driven by the increasing demand for food due to population growth, particularly in emerging economies. Rising agricultural activities and the adoption of high-yield crops have fueled fertilizer usage to enhance soil fertility and crop productivity. 

Government subsidies and favorable agricultural policies, coupled with advancements in controlled-release fertilizers and precision farming techniques, are further propelling market growth by improving efficiency and reducing environmental impact.

Major companies operating in the nitrogenous fertilizers market are Yara, CF Industries Holdings, Inc., Nutrien, SABIC, EuroChem Group, Coromandel International Limited, OCI, The Mosaic Company, BASF, Haifa Negev technologies LTD, IFFCO, ADM, Bunge, Kynoch Fertilizer, Omnia Specialities Pty, and others.

Governments worldwide are implementing subsidy programs and incentives to make nitrogenous fertilizers more accessible and affordable to farmers, particularly in developing countries. 

For instane, India’s Direct Benefit Transfer (DBT) for fertilizers ensures that farmers receive subsidies directly, enabling them to purchase urea and other nitrogen fertilizers at reduced prices. 

In Africa, initiatives such as the Alliance for a Green Revolution in Africa (AGRA) promote the use of nitrogen fertilizer to boost agricultural productivity and reduce dependency on imports. These programs support small-scale farmers and fuel the growth of the market by increasing overall fertilizer consumption.

• In June 2023, the Indian Ministry of Chemicals and Fertilizers announced that the Cabinet Committee on Economic Affairs (CCEA) approved the continuation of the Urea Subsidy Scheme to ensure farmers maintain access to urea at the same price of approximately USD 2.92 per 45 kg bag. As part of this initiative, the government has allocated a total of USD 44.6 billion for urea subsidies over three years (2022-23 to 2024-25). To mitigate the impact of rising fertilizer prices, the Government of India has significantly increased the fertilizer subsidy, from USD 8.83 billion in 2014-15 to USD 30.8 billion in 2022-23.

Key Highlights:

1. The nitrogenous fertilizers industry size was recorded at USD 64.37 billion in 2023.
2. The market is projected to grow at a CAGR of 5.20% from 2024 to 2031.
3. Asia Pacific held a share of 49.78% in 2023, valued at USD 32.05 billion and is anticipated to grow at a CAGR of 5.97% over the forecast period.
4. The cereals and grains segment garnered USD 30.11 billion in revenue in 2023.
5. The methylene urea segment is expected to reach USD 43.99 billion by 2031.
6. The solid segment secured the largest revenue share of 70.22% in 2023.
7. The fertigation segment is poised to grow at a CAGR of 7.99% through the projection period.

Market Driver

"Rising Global Population and Food Security Concerns"

The rapidly growing global population has created immense pressure on the agricultural sector to ensure food security. The United Nations (UN) projects that the global population will reach approximately 9.7 billion by 2050, resulting in a 70% increase in food demand. 

Nitrogenous fertilizers are crucial for increasing crop yields, as nitrogen is a key nutrient required for plant growth. Countries in regions such as Asia-Pacific and Sub-Saharan Africa are particularly reliant on nitrogen fertilizers to improve agricultural productivity and address malnutrition concerns. 

Additionally, the growing demand for staples such as wheat, rice, and maize, which are nitrogen-intensive crops is boosting the growth of the nitrogenous fertilizers market.

• According to the October 2024 International Food Security Assessment (IFSA) by the USDA’s Economic Research Service (ERS), global food demand is expected to grow at an annual rate of 2.8% over the next decade. In low- and middle-income countries, food demand is anticipated to rise from 800.2 million metric tons in 2024 to 1,050.9 million metric tons by 2034.

Market Challenge

"Rising Environmental Concerns and Sustainability Issues"

A significant challenge hindering the growth of the nitrogenous fertilizers market is the environmental impact of production and usage. The excessive use of nitrogen fertilizers can lead to soil degradation, water pollution, and the release of greenhouse gases, which contribute to climate change. 

To address this challenge, companies are increasingly focusing on developing sustainable alternatives, such as slow-release and controlled-release fertilizers, to reduce nutrient leaching and improve efficiency. 

Additionally, manufacturers are investing in eco-friendly production processes, adopting precision farming techniques, and promoting the use of organic fertilizers to minimize environmental harm while maintaining crop yields.

Market Trend

"Advancements in Fertilizer Production Technologies"

Technological advancements in the production of nitrogenous fertilizers have made them more efficient and environmentally friendly, propelling the expansion of the nitrogenous fertilizers market. 

The development of controlled-release fertilizers (CRFs) and enhanced-efficiency fertilizers (EEFs) reduces nitrogen loss due to leaching and volatilization, ensuring better nutrient availability to crops. Companies such as Yara International, Nutrien, and CF Industries are investing in innovative technologies to produce fertilizers with lower carbon footprints. 

For instance, Yara's "green ammonia" project aims to produce nitrogen fertilizers using renewable energy, aligning with global sustainability goals while addressing environmental concerns associated with traditional fertilizer manufacturing.

• In August 2024, Nousbo introduced an eco-friendly Controlled Release Fertilizer (CRF) featuring biodegradable resin coatings and filed for a domestic patent. This innovative technology overcomes the limitations of conventional biodegradable coated fertilizers, which require specific conditions to decompose. The newly developed CRF is versatile, suitable for diverse fertilization methods, including side-dressing and row application, enhancing its usability and efficiency.

Nitrogenous Fertilizers Market Report Snapshot

Market Segmentation:

• By Crop Type (Cereals and Grains, Fruits and Vegetables, Oilseeds and Pulses, Oilseeds, and Others): The cereals and grains segment earned USD 30.11 billion in 2023 due to the high global demand for staple crops such as wheat, rice, and maize, which require significant nitrogen inputs to enhance yield and meet food security needs.
• By Product (Methylene Urea, Urea, Ammonium Nitrate, Calcium Ammonium Nitrate (CAN), Ammonia, Ammonium Sulfate, and Others): The methylene urea segment held a share of 47.67% in 2023, attributed to its controlled-release properties, which enhance nutrient efficiency, reduce leaching losses, and support sustainable agricultural practices.
• By Form (Solid and Liquid): The solid segment is projected to reach USD 61.96 billion by 2031, fueled by its cost-effectiveness, ease of storage and transportation, and suitability for various soil types and crop applications.
• By mode of application (Soil, Foilar, Fertigation, and Others): The fertigation segment is set to grow at a CAGR of 7.99% through the forecast period, mainly propelled by its ability to deliver nutrients directly to the root zone with high precision, improving nutrient efficiency, reducing wastage, and supporting sustainable agricultural practices.

Nitrogenous Fertilizers Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

The Asia Pacific nitrogenous fertilizers market accounted for a share of around 49.78% in 2023, valued at USD 32.05 billion. The Asia Pacific region is experiencing significant population growth, particularly in countries such as India and China, creating a strong demand for food. 

This has highlighted an urgent need to enhance agricultural productivity, which is fostering the adoption of nitrogenous fertilizers to boost crop yields and meet the region's growing food requirements. Moreover, Governments in the region are promoting the use of nitrogenous fertilizers through subsidies and support programs.

• In January 2025, the Indian government approved a financial assistance package for DAP fertilizer manufacturers and introduced a revised crop insurance scheme for farmers.

Additionally, Asia Pacific is a major producer and exporter of staple crops such as rice and wheat, which require large quantities of nitrogen-based fertilizers for optimal growth. The region’s prominence in the global agricultural sector further solidifies its position as a key consumer of nitrogenous fertilizers.

• As reported by the International Potash Institute (IPI), rice is the dominant staple food in Asia, accounting for approximately 90% of global production and consumption. China is the largest producer, cultivating one-third of Asia's total rice on 29 million hectares, while India contributes nearly one-quarter of the production on 43 million hectares. Other leading rice producers in the region include Indonesia, Bangladesh, Vietnam, Thailand, Myanmar, the Philippines, and Japan.

Europe nitrogenous fertilizers industry is set to grow at a robust CAGR of 4.81% over the forecast period. The adoption of sustainable farming practices across Europe is fueling the demand for nitrogenous fertilizers. 

Governments and organizations are promoting eco-friendly fertilizers to reduce greenhouse gas emissions and improve soil health, boosting the use of advanced nitrogen-based products. 

Furthermore, the European Union's Common Agricultural Policy (CAP) provides subsidies and support to farmers, supporting the use of nitrogenous fertilizers to enhance crop yields and ensure food security, particularly in regions with intensive farming.

Regulatory Framework Also Plays a Significant Role in Shaping the Market

• The U.S. Environmental Protection Agency (EPA) oversees the regulation of fertilizers under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). Fertilizer products must be registered with the EPA, and manufacturers are required to adhere to labeling requirements that provide information on nutrient content and safe usage. Additionally, the EPA enforces the Clean Water Act, which regulates nutrient runoff from agricultural activities to prevent water pollution.
• The EU Fertilizer Regulation (EC) No 2019/1009, effective from July 16, 2022, governs the production and marketing of fertilizers within the EU. This regulation expands the scope to include mineral and inorganic fertilizers, as well as organic fertilizers, biostimulants, and fertilizers made from recycled materials. It sets standards for product safety, labeling, and environmental impact, aiming to promote sustainable agricultural practices.
• The Chinese government has implemented regulations to control the use of nitrogen fertilizers, including partial withdrawal of subsidies and restrictions on fertilizer exports. In June 2024, China introduced additional restrictions on fertilizer exports, reducing urea exports by 83% compared to the previous year, to stabilize domestic prices and safeguard food security.
• The Indian Ministry of Chemicals and Fertilizers oversees the regulation of fertilizers, including nitrogenous fertilizers. The Cabinet Committee on Economic Affairs (CCEA) approved the continuation of the Urea Subsidy Scheme to ensure constant availability of urea to farmers at a fixed price, with significant financial commitments for urea subsidies over multiple years.
• The South Korean government regulates fertilizers through the Fertilizer Control Act, madating registration and adherence to quality standards. The act aims to prevent the use of harmful substances and promote sustainable agricultural practices.

Competitive Landscape:

The nitrogenous fertilizers industry is characterized by a large number of participants, including both established corporations and rising organizations. Companies are increasingly adopting strategies focused on product innovation to enhance nutrient delivery and sustainability, driving market expansion. 

These initiatives include developing advanced controlled-release fertilizers, nitrogen inhibitors, and bio-based formulations to improve nutrient efficiency and reduce environmental impact. These innovations align with global sustainability goals, regulatory requirements, and farmers’ demand for cost-effective, eco-friendly solutions, further boosting market growth.

• In January 2024, Pursell Agri-Tech collaborated with Yara International to introduce PurMidas, a controlled-release fertilizer tailored for turf. This innovative product offers a perfect 7:1 N to S ratio to support optimal growth, aesthetics, and performance. PurMidas is formulated as a homogeneous granular fertilizer, ensuring consistent nitrogen distribution from various sources, such as urea and ammoniacal, along with sulfate sulfur on each particle to prevent nutrient segregation.

List of Key Companies in Nitrogenous Fertilizers Market:

• Yara
• CF Industries Holdings, Inc.
• Nutrien
• SABIC
• EuroChem Group
• Coromandel International Limited 
• OCI
• The Mosaic Company
• BASF
• Haifa Negev technologies LTD
• IFFCO
• ADM
• Bunge
• Kynoch Fertilizer
• Omnia Specialities Pty

Recent Developments (Partnerships/New Product Launch)

• In September 2023, John Deere and Yara partnered to combine Yara’s agronomic expertisee with John Deere’s precision technology and advanced machinery. This collaboration aims to help farmers boost yields and optimize fertilizer usage.
• In June 2024, Coromandel International Limited launched a nano fertilizer plant at its Kakinada complex in India. This new facility marks Coromandel’s entry into next-generation fertilizers, which hold the potential to revolutionize Indian agriculture.