Growing Consumption of urea-based nitrogenous fertilizers will help to boost the global nitrogen fertilizer market in the forecasted time period. Nitrogen Fertilizer is one of the most common kinds of fertilizers created out of nitrogen (N) chemical combinations. It is considered as an organic fertilizer, the plant nutrient must contain 5% minimum of nitrogen. Urea is the most extensively used nitrogenous fertilizer around the world, mainly because of the high nitrogen content (46%). However, excessive uses of these nitrogen fertilizers might degrade soil fertility, in turn, it will stagnate the demand for these fertilizers.
According to AMA, the market for Nitrogen Fertilizer is expected to register a CAGR of 3.13% during the forecast period to 2026. This growth is primarily driven by Growing Need for Increased Crop Yield Across the Globe and Increasing Adoption of Nitrogen Fertilizers across the Developing Countries.
Globally, a noticeable market trend is evident Robust Growth and Applications of Urea which is one of the Most Commonly Used Nitrogen Fertilizer
. The Fertilizers & Agricultural Chemicals sector in the Asia Pacific region has been increasing at a sustainable rate and further growth is expected to be witnessed over the forecast period, owing to the robust investments and expansion in production facilities in the region. Major Vendors, such as Coromandel International (India), Yara International ASA (Norway), CF Industries Holdings, Inc. (United States), Agrium (Canada), Bunge Limited (United States), CVR Partners LP (United States), Koch Industries, Inc. (United States), Sinofert Holdings Limited (China), EuroChem Group AG (Switzerland) and Potash Corporation (Canada) etc have either set up their manufacturing facilities or are planning to start new provision in the dominated region in the upcoming years.
According to the International Fertilizer Association (IFA), the demand for urea across the globe is expected to increase at 1.6% per annum, to reach 188 million metric ton, by 2022, while the supply (effective capacity) may reach 197 million metric ton. Over the course of the forecast period, the regional demand for urea is projected to increase in all regions, except Europe, with Latin America, South Asia, and Southeast Asia being the largest contributors.
According to the Indian Government's Department of Fertilizers, there are 30 urea units in the country out of which 27 urea units use Natural Gas (using either domestic gas/LNG or both) and remaining three urea units use Naphtha as feedstock. The MRP of urea is statutorily fixed by the Government of India and it is around 5000 rs. per MT (exclusive of the Central/State Taxes), which includes Rs. 180/MT as dealer margin for private traders/PSUs & Rs. 200/MT for Co-operatives and Rs. 50/MT to retailers for acknowledging the receipt and reporting the stock in mFMS (iFMS) as an additional incentive.
- Growing Need for Increased Crop Yield Across the Globe
- Increasing Adoption of Nitrogen Fertilizers across the Developing Countries
- Robust Growth and Applications of Urea which is one of the Most Commonly Used Nitrogen Fertilizer
- Growing R&D in Minimizing the Side Effects of Nitrogen Fertilizers
- Excessive Fertilizer Use Minimises the Crop Yield
- Availability of Numerous Fertilizer Substitutes
Increasing Production of Corn and Sugar Cane from Asian and African Agricultural Land and Growing Need for Increased Soil Fertility due to Increasing Population
Volatile Raw Material Prices and Lack of Awareness from Underdeveloped Regions and Stringent Manufacturing Regulations and Standards
AMA Research follow a focused and realistic research framework that provides the ability to study the crucial market dynamics in several regions across the world. Moreover, an in-depth assessment is mostly conducted by our analysts on geographical regions to provide clients and businesses the opportunity to dominate in niche markets and expand in emerging markets across the globe. This market research study also showcase the spontaneously changing Vendors landscape impacting the growth of the market. Furthermore, our market researchers extensively analyse the products and services offered by multiple players competing to increase their market share and presence.
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Against this Challenging Backdrop, Nitrogen Fertilizer Study Sheds Light on
The Nitrogen Fertilizer Market status quo and key characteristics. To end this, Analyst at AMA organize and took survey of the Nitrogen Fertilizer industry Vendors. The resultant snapshot serves as a basis for understanding why and how the industry can be expected to change.
Where Nitrogen Fertilizer industry is heading and what are the top priorities. Insights are drawn from financial analysis, the survey and interviews with key executives and industry experts.
How every company in this diverse set of Vendors can best navigate the emerging competition landscape and follow a strategy that helps them position to hold value they currently claim, or capture the new addressable opportunity.