Global Polymer Coated Urea Market - 2023-2030

Overview

Global Polymer Coated Urea Market reached US$ 1035.1 million in 2022 and is expected to reach US$ 1662.2 million by 2030, growing with a CAGR of 6.1% during the forecast period 2023-2030.

The global population's growth and changing dietary habits put pressure on agriculture to produce more with limited resources. Polymer-coated urea's ability to improve nutrient use efficiency and reduce fertilizer wastage played a role in meeting this demand. The adoption of PCU was more pronounced in high-value crops such as fruits, vegetables and specialty crops. These crops often require precise nutrient management to achieve optimal yields and quality, making PCU an attractive option.

With concerns about environmental degradation and the need to optimize resource utilization, there was a growing emphasis on sustainable agricultural practices. Polymer-coated urea like polyurea-coated urea, displayed 0.3% urea release within 24 hours, whereas polyethylene-based coating material showed 3% release in 2 days. Polymer-coated urea's ability to reduce nitrogen loss through leaching and volatilization made it attractive to farmers seeking environmentally friendly fertilizer options.

Market Dynamics

Rising Awareness About the Benefits of Polymer Coated Urea

Slow-release fertilizers, like polymer-coated urea, are designed to release nutrients gradually over a prolonged period. This controlled release helps to improve nutrient use efficiency by decreasing nutrient losses due to leaching, volatilization and runoff. Farmers and agricultural professionals are increasingly recognizing the importance of using fertilizers that offer improved nutrient efficiency.

Slow-release fertilizers like polymer-coated urea can provide a sustained supply of nutrients to crops throughout their growth cycle. This steady nutrient availability can positively impact crop yield and quality. As farmers strive to improve productivity and achieve higher yields, they are turning to slow-release fertilizers to support their goals. In August 2022, Sollio Cooperative Group and Pursell Agri-Tech collaborated to build and operate a new $20 million plant for the production of controlled-release fertilizers. These fertilizers are coated with polymer which gradually release nutrients into the soil.

Increasing Demand for Food due to the Growing Population

As per FAO, world food production needs to increase by 70% to feed the world population in 2050. As the global population continuously grows, the demand for food has been increasing. This growing demand results in pressure on agricultural systems to produce larger amounts of crops and enhance their quality. One way to fulfill this demand is through the use of fertilizers, which offer essential nutrients to plants, helping them grow faster and healthier.

To fulfill these challenges, polymer-coated urea fertilizers have been developed and gained popularity. These coated fertilizers include urea granules coated with a thin polymer layer. This coating creates a semi-permeable barrier that regulates the discharge of nitrogen from the granules to the soil. The release rate can be controlled based on factors like temperature, soil moisture and microbial activity. As a result, the nutrients are released steadily, enhancing the plant's growth and lowering nutrient losses to the environment.

Limited Awareness Among Farmers about the Benefits of Polymer Coated Urea Fertilizers

Farmers have been using conventional fertilizers for years. Switching to a new advanced type of fertilizer requires awareness and understanding of the benefits it offers. Familiarity with traditional practices can create resistance to change, hindering the adoption of PCU. Without adequate knowledge, Farmers may be hesitant to adopt these fertilizers and stick to traditional urea or other fertilizers they are more familiar with.

The upfront cost of PCU is higher than that of conventional urea. Though the long-term benefits of PCU, such as reduced fertilizer usage and improved crop yields, often outweigh the initial investment, farmers who are not aware of these advantages may be deterred by the perceived higher costs.

COVID-19 Impact Analysis

The pandemic disrupted supply chains worldwide, affecting the production and distribution of various goods, including fertilizers. Delays in the transportation of raw materials and finished products could have led to short-term supply constraints for polymer-coated urea.

The pandemic affected the agricultural sector differently in various regions. In many places, due to lockdowns and restrictions on movement, agricultural activities faced challenges with labor shortages, logistics and market disruptions. These affected agricultural activities cause lesser demand for advanced agricultural products including polymer-coated urea.

Segment Analysis

The global polymer-coated urea market is segmented based on type, crop, distribution channel, application, end-user and region.

Rising Demand For Polymer Coated Urea in Cereals and Grains Production

Cereals and grains are staple food crops and are widely consumed around the world. Polymer-coated urea's controlled-release mechanism is particularly advantageous for cereals and grains. These crops have different growth stages and nutrient requirements throughout their lifecycle. PCU's ability to release nitrogen gradually aligns with the changing needs of cereals and grains, leading to more efficient nutrient utilization and improved crop performance.

Polymer-coated urea's controlled-release technology minimizes nutrient losses, such as leaching and volatilization, which are common challenges in cereal and grain production. The enhanced nutrient use efficiency of polymer-coated urea ensures that a higher proportion of the applied nitrogen is taken up by the crops, leading to improved yields and reduced environmental impact. For instance, Polymer-coated urea increases maize yield and plant N uptake by 23% and 48%, respectively, compared with urea in the low-lying silt loam soils of Missouri, USA.

Geographical Analysis

Rising Demand for Fertilizers in Europe

According to data from the industry association Fertilizers Europe, Russia and Belarus provide as much as 60% of the EU's fertilizer supply. However, since the start of the Russia-Ukraine war, European production of chemical fertilizers has been hard hit by the high gas prices European countries have seen. As a result, in August 2022, Yara implemented curtailments which will take total European ammonia capacity utilization to around 35%. With this, Yara will have curtailed an annual capacity equivalent of 3.1 million tonnes of ammonia and 4.0 million tonnes of finished products (1.8 million tonnes of urea, 1.9 million tonnes of nitrates and 0.3 million tonnes NPK) across its production system in Europe.

The region has a substantial agricultural sector that needs efficient and sustainable fertilization in these intensive farming systems driving the demand for advanced fertilizers like polymer-coated urea. In September 2022, ICL, launched biodegradable coated fertilizer technology, Eqo.x. This solution is achieved through a coating, which helps farmers in maximizing agricultural crop performance, by reducing nutrient loss and increasing nutrient use efficiency up to 80%. Eqo.x release technology was specifically designed to meet future European fertilizer standards set to go into effect in 2026.

Competitive Landscape

The major global players include: Nutrien Ltd., J.R. Simplot Company, Koch Agronomic Service, ICL Specialty Fertilizers, Haifa Group, Compo Expert, DeltaChem GmbH, Ekompany International, Pursell Agritech, Knox Fertilizer Company Inc.

Why Purchase the Report?

• To visualize the global polymer-coated urea market segmentation based on type, crop, distribution channel, application, end-user 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 polymer-coated urea 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 polymer-coated urea market report would provide approximately 77 tables, 79 figures and 181 Pages.

Target Audience 2023

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