Nitrogenous Fertilizer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Nitrogenous Fertilizer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global nitrogenous fertilizer market is projected to witness a CAGR of 4.2% during the forecast period (2021-2026). COVID-19 has affected all the processes that connected all the processes and connected farm production to final consumers. Farmers have faced a shortage of agricultural inputs, like fertilizer, seed, and pesticides. China is one of the major fertilizer producers and exporters in the world. The lockdown in China had a huge impact on International Fertilizer Trade. When lockdown began in China, the impact is severe in terms of production cuts due to labor shortage and transportation problems, which have resulted in stockpiling up. Prices are at an all-time low, and inventories are high, with demand uncertain in producing nations. The nitrogenous fertilizer market is expected to gain growth, owing to the rising food demand, the increasing population, and the government funding for the usage of advanced techniques and fertilizer for high productivity to meet the rising demand. Technology progress, worldwide, which works with modern environmental issues, attracts attention to agriculture and makes the domain of fertilizers technology the cornerstone for market development. Europe and North America are likely to witness steady growth over the forecast period due to market saturation, while South America and Africa are predicted to exhibit high growth in the coming years, owing to the huge cultivation of rice, corn, and sugarcane in these regions. As an impact, the nitrogen fertilizer prices declined by 8.5% in May 2020, as lower input costs and weak seasonal demand outweighed the gradual easing of supply bottlenecks. The disruptions in supply had a negative impact on the international trade of the market.

Key Market TrendsIncreasing Demand for Fertilizers

Urea is the most widely used nitrogenous fertilizer, globally, primarily because of the high nitrogen content (46%). China and India are the largest producers and consumers of urea in the world. The major exporters of urea are countries rich in natural gas, especially those in the GCC region. According to the International Fertilizer Association (IFA), the global demand for urea is expected to increase at 1.6% per annum, to reach 188.0 million metric ton, by 2022, while the supply (effective capacity) may reach 197.0 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.

Asia Pacific Dominates the Nitrogenous Fertilizer Market

The Asia Pacific region holds the largest share among all regions in the nitrogenous fertilizer market, accounting for 60.0% of the total global nitrogenous fertilizer usage. China and India share the largest consumption share in the Asia Pacific fertilizer market, with China alone accounting for more than 50.0% of the consumption in the region. In 2018, rice production in Asia used the highest quantity of nitrogenous fertilizer, accounting for 35.0% of the total consumption. Oil palm, the second-largest consumer of nitrogenous fertilizer, accounted for 17.0% of the total fertilizer consumption. Rice and oil palm production growths are expected to remain robust, driven by population and economic growth in the region.

Competitive Landscape

The nitrogenous fertilizer market is fragmented and has a significant presence of various small and large manufacturers. The top three companies have just about 15% of the nitrogenous fertilizer production capacity. However, there has been a little consolidation of the market over the past five years, especially in Europe and North America. The fragmented nature of the market is due to the wide availability of raw materials required for the manufacture of nitrogenous fertilizers.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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