SULFUR COATED UREA MARKET ANALYSIS

The global Global Sulfur Coated Urea Market is projected to reach around US$ 1,453 Million by the end of 2032, in terms of revenue, growing at a CAGR of 3.32% during the forecast period (2023-2030).

Global Sulfur Coated Urea Market- Impact of Coronavirus (Covid-19) Pandemic

Lockdowns implemented by governments across the globe in order to stop the spread of Covid-19 have severely impacted the global supply chain, which in turn has hindered the global demand of sulfur coated urea during first quarters of 2020. The global sulfur coated urea market is expected to grow at a much lower CAGR for a short term period till 2021 and is expected to stabilize gradually during 2021-2022.

Global Sulfur Coated Urea Market: Growth Drivers

• Growing demand for sustainable agriculture

Global demand for sulfur coated urea is being driven by rising environmental concerns, such as how overuse of chemical fertilisers and pesticides has left the land barren. As a result, many businesses are focusing on sustainability and reducing costs in the agricultural industry.

For instance, according to the Ministry of Commerce, India's agricultural product exports are expected to cross the mark of US$ 50 billion for the financial year FY22. Thus, the use of sulfur coated urea in agriculture will continue to drive the market for sulfur coated urea industry.

• Rising concern over eutrophication due to rising use of fertilizers

 Growing worries over eutrophication as a result of increased fertiliser usage, which leads to water contamination, is anticipated to support market expansion for sulfur-coated urea Sulfur coated urea is effective in reducing the negative effects of fertilizers on aquatic life. Therefore, growing concern over eutrophication is expected to augment the market growth of sulfur coated urea over the forecast period.

Global Sulfur Coated Urea Market: Restraints

Growing environmental concern

Growing environmental concern regarding the production of urea as it leads to air pollution is expected to restrict the market growth of the sulfur coated urea. The urea pollution can lead to the production of toxins called domoic acid by ocean plants and algae. The high cost associated with this fertilizer has limited its use on large scale agricultural production such as the production of commodity crops. This is projected to hinder the market growth of the sulfur coated urea over the forecast period

Market Opportunity

Growing demand for controlled release fertilizers

Growing demand for controlled release fertilizers from gardening, ornamental plants, and other crops, and fruits is expected to foster the market growth of the sulfur coated urea.  An increase in gardeners and cultivators is driving market expansion. Additionally, growing populations of health-conscious customers are driving up global demand for fruits and vegetables, which is anticipated to support the market expansion of sulfur-coated urea over the next several years.

Market Trends

An increasing number of distribution agreements

An increasing number of distribution agreements among major players for expanding their presence in the market and to meet the growing need for controlled released fertilizers is expected to accelerate the market growth. For instance, in June 2019, Pursell Agri-Tech and Plant Products have entered into a supply and distribution agreement for the Eastern Canadian market. This objective of this agreement is to enhance its offering of high quality, controlled-release products for turf and nursery growers.

Global Sulfur Coated Urea Market: Key Developments

• In March 2022, Yara International started growth ventures with Softbank Vision Fund 2 as an investor in leading African agro-marketplace. This will mark the third investment by Yara Growth Ventures in the agriculture marketplace including Agrofy in Latin America and Tarfin in Turkey and Eastern Europe.
• In March 2021, Haifa Group signed an agreement with AgrIOT. According to the agreement with AgriOT, Haifa will invest in AgrIOT for around US$ 2 Mn against nearly 30% of the company and also in global exclusive distribution rights.

Global Sulfur Coated Urea Market: Market Segmentation

Figure 1. Sulfur Coated Urea Market Share (%) in terms of Value, By Region, in 2022

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Asia Pacific region dominated the global sulfur coated urea market in 2022, accounting for a 45% share in terms of value, followed by Europe and North America , respectively.

Global Sulfur Coated Urea Market: By Application

On the basis of application in 2022, the Others segment has accounted for the Highest market share of 31 %in terms of value.

Figure 2. Sulfur Coated Urea Market Share (%) in terms of Value, By Product Type, in 2022

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Global Sulfur Coated Urea Market: Key Companies

Key Companies are Agrium Inc., Israel Chemicals Ltd., Syngenta AG., Yara International ASA, Andersons Inc., Haifa Chemicals Ltd, J. R. Simplot Company, Koch Industries Inc., and Harrell’s LLC.

*Definition: sulfur coated urea is a controlled released fertilizer that is manufactured by coating hot urea with molten sulfur Polyurethane oil or microcrystalline wax. sulfur coated urea is widely used in agriculture for reducing some of the harmful effects of fertilizers including crop burn.