PUBLISHER: The Business Research Company | PRODUCT CODE: 1678161
PUBLISHER: The Business Research Company | PRODUCT CODE: 1678161
Nitrogen fertilizers are chemical fertilizers derived from sewage, animal waste, and nitrogenous materials, utilized to promote the growth of plants.
The primary types of nitrogen fertilizers include urea, calcium ammonium nitrate (CAN), ammonium nitrate, ammonium sulfate, ammonia, and various other nitrogenous fertilizers. Ammonium nitrate, a white, crystalline, water-soluble powder (NH4NO3), is produced by reacting nitric acid with vaporous ammonia. It is primarily employed in explosives, fertilizers, freezing mixtures, and the production of nitrous oxide. Nitrogen fertilizers are available in liquid, dry, and other forms, and application methods include soil, foliar, fertigation, and others. These fertilizers find applications in cereals and grains, oilseeds and pulses, fruits and vegetables, as well as other agricultural uses.
The nitrogen fertilizer market research report is one of a series of new reports from The Business Research Company that provides nitrogen fertilizer market statistics, including nitrogen fertilizer industry global market size, regional shares, competitors with a nitrogen fertilizer market share, detailed nitrogen fertilizer market segments, market trends and opportunities, and any further data you may need to thrive in the nitrogen fertilizer industry. This nitrogen fertilizer market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The nitrogen fertilizer market size has grown strongly in recent years. It will grow from $102.24 billion in 2024 to $109.9 billion in 2025 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to population growth and food demand, advancements in agricultural practices, government subsidies and policies, climate and weather conditions, global trade and supply chain dynamics.
The nitrogen fertilizer market size is expected to see strong growth in the next few years. It will grow to $142.17 billion in 2029 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to environmental regulations and sustainability initiatives, growing concerns about food security, bio-based nitrogen fertilizers, climate change adaptation strategies, soil health awareness. Major trends in the forecast period include research and development in fertilizer technology, digital agriculture platforms, precision agriculture technologies, technological innovations in fertilizer production, rising demand for urea-based fertilizers.
Globally, governments are making substantial investments to uplift the agricultural sector, thereby fostering an increased demand for fertilizers. As an illustration, the Indian government has announced additional fixed costs of $6.77 (Rs 500) for urea factories older than 30 years but still in production, with 30 urea factories receiving fixed costs at a rate of $4.74 (Rs 350) per metric ton. Considering that India imports over 50 lakh tons of urea, valued at more than a billion dollars annually, this initiative aims to enhance domestic urea production and reduce reliance on imports. Such initiatives in various countries are anticipated to support and boost the agricultural sector, consequently driving growth in the fertilizer market.
The rising crop losses are expected to drive the growth of the nitrogen fertilizer market in the future. Crop losses refer to the decrease in the quantity or quality of agricultural crops resulting from various factors, such as natural disasters, pests, diseases, adverse weather conditions, and other unfavorable events. Increasing crop losses highlight the importance of nitrogen fertilizers, as nitrogen is a crucial nutrient for plant growth and helps enhance crop yields. For example, in February 2024, the Climate Adaptation Platform, a New Zealand-based initiative focused on providing resources and information for climate adaptation, reported that wheat harvests in 2023 reached 14 million tons. However, yields of other cereals declined compared to 2022, with barley decreasing by 5.7%, oats by 18%, and oilseed rape by 11%, indicating a significant drop in production across multiple crops. As a result, the growing crop losses are fueling the growth of the nitrogen fertilizer market.
The increasing expansion of agricultural activities is anticipated to drive the growth of the nitrogen fertilizers market in the future. This expansion is fueled by factors such as a growing population, food security concerns, and the adoption of climate-smart agriculture. Nitrogen fertilizers play a crucial role in promoting healthy crop growth and enhancing yields, enabling farmers to cultivate more land and produce larger quantities of food to satisfy the rising global demand. For example, in May 2023, the National Bank of Agricultural and Rural Development, based in India, reported that the estimated real agricultural Gross Value Added (GVA) for FY2023 was approximately ₹22.3 lakh crore ($265 billion), indicating a growth rate of 4% compared to 3.5% in FY2022. Therefore, the increasing expansion of agricultural activities is set to drive the nitrogen fertilizers market.
Leading companies in the nitrogen fertilizer sector are adopting a strategic partnership approach to establish a significant market presence, producing and distributing various nitrogen-based fertilizers for agricultural and industrial applications. Strategic partnerships involve one or more business contracts between commercial entities. For example, in June 2022, Yara International ASA, a Norway-based nitrogen fertilizer producer, formed a partnership with the Japan Bank for International Cooperation, a Japanese public financial institution. This collaboration focuses on developing and implementing projects aimed at decarbonizing the nitrogen fertilizer industry. The initiatives include the development and production of low-carbon nitrogen fertilizers, as well as projects to enhance the efficiency of nitrogen fertilizer production and usage.
In September 2024, Koch Ag & Energy Solutions, a U.S.-based fertilizer company, acquired OCI Global's fertilizer plant for $3.6 billion. This acquisition is intended to enhance Koch's position in the nitrogen fertilizer market and complement its existing operations, which include multiple production facilities across the U.S. and Canada. OCI Global, headquartered in the Netherlands, is a fertilizer company that operates globally, focusing on nitrogen fertilizers.
Major companies operating in the nitrogen fertilizer market include Koch Industries Inc., BASF SE, Bunge Limited, Dow Chemical Company, Saudi Basic Industries Corporation, Nutrien Inc., Potash Corp., Yara International ASA, Sumitomo Chemical Co. Ltd., Sinofert Holdings Limited, The Mosaic Co., DuPont de Nemours Inc., Sinochem Group Co. Ltd., CF Industries Holdings Inc., Sociedad Quimica y Minera de Chile, EuroChem Group AG, Israel Chemicals Ltd., OCI NV, Uralkali PJSC, Wilbur-Ellis Company LLC, Indian Farmers Fertiliser Cooperative Limited, TogliattiAzot JSC, CVR Partners LP, Haifa Group Ltd., Terra Nitrogen Company LP, Agrium Inc., Coromandel International Ltd.
Asia-Pacific was the largest region in the nitrogen fertilizer market in 2024. North America was the second-largest region in the global nitrogen fertilizer market. The regions covered in the nitrogen fertilizer market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the nitrogen fertilizer market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The nitrogen fertilizer market consists of the sales of nitrogen fertilizers in forms such as anhydrous ammonia, urea, and urea-ammonium nitrate (UAN) solutions. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Nitrogen Fertilizer Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on nitrogen fertilizer market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for nitrogen fertilizer ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The nitrogen fertilizer market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.