Global Nitro Compound Fertilizers Market - 2023-2030

Overview

Global Nitro Compound Fertilizers Market reached US$ 14.12 billion in 2022 and is expected to reach US$ 19.75 billion by 2030, growing with a CAGR of 4.3% during the forecast period 2023-2030.

The need for food is increasing as the world's population expands. According to The United Nations, an international organization The world's population is expected to increase by nearly 2 billion persons in the next 30 years, from the current 8 billion to 9.7 billion in 2050, and would peak at nearly 10.4 billion in the mid-2080s. Hence, there is a greater demand for increasing food production. Fertilizers with nitro compounds can increase agricultural yields and guarantee food security.

Nitro compound fertilizers offer precise control over nutrient release, enabling better nutrient management. When farmers become more aware of the advantages of nitro compound fertilizers, they are likely to shift from traditional fertilizers to nitro compound fertilizers to achieve better yields. Hence, the increasing awareness about the benefits of nitro compound fertilizers over traditional fertilizers is a key trend for nitro compound fertilizer market growth

Food crops hold a significant share of the nitro compound fertilizers market due to the rising demand for food crops globally. Asia-Pacific held a significant share of the nitro compound fertilizers market due to its large agricultural sector and govt support for adopting advanced agricultural products. In May 2023, in India, the Union Cabinet approved a Rs 1.08 lakh crore for the fertilizer subsidy for the 2023-24 Kharif season, to ensure the availability of fertilizers to farmers at subsidized, affordable, and reasonable prices.

Dynamics

Growing Demand for Food due to the Increasing Global Population

Globally the population is growing which also leads to increasing demand for food. According to the U.S. Department of Agriculture, by 2050, it is anticipated that the demand for food will have increased by 70 to 100% due to population growth and higher earnings. The United Nations estimates that production in developing nations will required to double to satisfy this need. Nitro compound fertilizers are rich in nitrogen and offer vital nutrients that support strong plant growth and higher agricultural harvests.

Nito compound fertilizers can increase crop yields by providing the nitrogen required for photosynthesis and protein. Nitro-based fertilizers help to make better use of available agricultural land by enhancing the productivity of crops. This means that more food can be produced on existing farmland.

Government Initiatives to Promote the Use of Fertilizers to Increase Agricultural Productivity

Many governments provide subsidies or financial incentives to farmers to encourage the use of fertilizers. In December 2022, in India, To give farmers a financial incentive to buy fertilizer, the government introduced the Fertiliser Subsidy Scheme. To assist farmers by lowering fertilizer costs, the central government developed this scheme. These subsidies can make fertilizers more affordable for farmers, thereby increasing their adoption, including nitrocompound fertilizers.

governments often promote the modernization of their agricultural sectors. This includes the adoption of advanced agricultural practices and inputs like fertilizers. Nitro compound fertilizers are seen as a way to improve efficiency and productivity in farming. Hence. The government subsidy help farmers to adopt advanced agricultural product including nitro compound fertilizer which drives its market growth

Environmental Concerns

Environmental problems include nitrogen runoff, water pollution, and greenhouse gas emissions linked to nitrogen-based fertilizers, including nitro compound fertilizers. Due to their high nitrogen content, surplus nitrogen enters groundwater and surface waters, causing pollution of the water.

Nitrogen runoff can harm aquatic ecosystems and raise health concerns for those dependent on contaminated water sources. Furthermore, nitrogen runoff can foster harmful algal blooms in lakes, rivers, and coastal areas, depleting oxygen levels, damaging aquatic life, and disrupting ecosystems. Hence the awareness of these environmental concerns for using nitro compound fertilizer is limiting its adoption and restraining its market growth globally.

Segment Analysis

The global nitro compound fertilizers market is segmented based on type, crop, distribution channel, application and region.

Rising Production and Consumption of Food Crops

The majority of the world's population gets their nourishment from food crops like grains (such rice, wheat, and maize). According to FAO, globally the production of primary crops grew from 2000 to 2020 by 52%, reaching 9.3 billion tonnes. Half of the world's primary agricultural production was made up of 4 crops in 2020 which include wheat, maize, rice, and sugarcane. To meet the demand and enhance agricultural yields, nitro-compound fertilizers become essential. They are crucial in addressing the rising global need for food production.

Food crops often represent staple foods, which are essential for daily sustenance. These crops are critical for food security, and farmers typically prioritize their production. Food crops are not only crucial for feeding the population but also have significant economic value. The larger production makes it a versatile market segment for various fertilizers, including nitro compound fertilizers.

Geographical Penetration

Asia-Pacific's Growing Large Agricultural Sector

Asia-Pacific has vast agricultural lands which increases the usage of fertilizers including nitro compound fertilizer. According to the Department of Agriculture, Fisheries and Forestry report of 2023, Australia had 55% of agricultural land in use which is approximately 427 million hectares in 2020. This agricultural dominance can help adopt nitro compound fertilizers for increasing crop productivity; hence driving its market in the region.

Asia-Pacific is a main producer and consumer of rice, one of the primary food crops worldwide. According to FAO, more than 90% of the world's rice is produced and consumed in Asia-Pacific only. Rice cultivation depends on nitrogen fertilizers for optimal yields, and the region's prominence in rice production further drives the demand for nitrocompound fertilizers.

Competitive Landscape

The major global players include Vietgro, Yara International, Sichuan Ruixiang Agricultural Science and Technology Development Co., Ltd., CF Industries Holdings, Inc., EuroChem Group, Haifa Negev technologies LTD, Guangdong Lardmee Fertilizer Co., Ltd, Kingenta Ecological Engineering Group Co., Ltd, CFIH, Evergrow

COVID-19 Impact Analysis

COVID Impact

The global supply chain disruptions caused by the pandemic affected the availability of raw materials, production processes, and the transportation of fertilizers. This resulted in temporary shortages and supply chain challenges. Lockdowns and restrictions on movement in various countries led to labor shortages, affecting the production and distribution of fertilizers.

The fertilizer market experienced price volatility, influenced by fluctuating currency exchange rates, uncertain demand, and disruptions in the supply chain. Farmers faced uncertainty regarding fertilizer costs. The pandemic led to uncertainties in the agricultural sector, affecting planting decisions and demand for fertilizers. Some farmers delayed or scaled back their planting, impacting fertilizer demand.

Russia- Ukraine War Impact

Both Russia and Ukraine are major producers of nitrogen-based fertilizers. Russia exported 48% of the ammonium nitrate and 11% of the urea. Together, Russia and Ukraine export 28% of fertilizers made of potassium, nitrogen, and phosphorus. Any disruption in their production and distribution due to the conflict can affect the global supply of nitro compound fertilizers.

The war disrupted the supply chain of various agricultural inputs including fertilizer which limits its market growth. The war also disrupted the agricultural sector in these 2 regions which also impacted the fertilizer market including nitro compound fertilizers market.

By Type

• Liquid
• Solid

By Crop

• Food Crops
• Cash Crops
• Horticulture Crops
• Plantation Crops
• Others

By Distribution Channel

• Supermarket/Hypermarket
• Convenience Stores
• E-Commerce
• Others

By Application

• Agriculture
• Horticulture

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In June 2023, Agropolychim, a Bulgarian fertilizer producer announced that it will provide a new range of ammonium nitrate on the local market at the start of July.
• In July 2023, Vanguard Crop Nutrition Inc. announced that it has begun construction on a compound fertilizer manufacturing facility in Maitland, Ont.
• In June 2022, AGROFERT, a.s. has made a binding offer to acquire Borealis' nitrogen business, which includes fertilizer, melamine, and technical nitrogen products. Borealis is a market leader in base chemicals, fertilizers, and the mechanical recycling of plastics. It is also one of the top suppliers of advanced and circular polyolefin solutions in the world. Based on enterprise value, the offer values the company at EUR 810 million.

Why Purchase the Report?

• To visualize the global nitro compound fertilizers market segmentation based on type, crop, distribution channel, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of Nitro Compound Fertilizers market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global nitro compound fertilizers market report would provide approximately 72 tables, 67 figures and 181 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies