July 17, 2024

Increasing agricultural production to fuel the sulfur coated urea market growth

The global sulfur coated urea Market is estimated to be valued at US$ 1,453 Mn or millions in 2023 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Sulfur coated urea is a fertilizer product that slowly releases both nitrogen and sulfur over time. It consists of prilled or granular urea coated with a thin layer of elemental sulfur. The sulfur coating allows urea to dissolve slowly in soil, reducing nitrogen volatilization losses and ensuring a steady supply of nitrogen to plants. In comparison with other nitrogen fertilizers, sulfur coated urea provides longer lasting nitrogen feeding to crops, higher nutrient uptake efficiency, and decreased application costs by requiring fewer applications. It is widely used for applications in crops like cereals, grains, fruits & vegetables and several other agricultural crops.

Market key trends:
One of the key trends in the sulfur coated urea market is the shift towards multi-nutrient fertilizers from single nutrient fertilizers. Farmers are increasingly adopting fertilizers that provide multiple nutrients like nitrogen, phosphorus and potassium in balanced proportions for optimum crop growth. In comparison with application of multiple single-nutrient fertilizers, multi-nutrient fertilizers require fewer applications and help minimize costs. As sulfur coated urea slowly releases both nitrogen and sulfur, it fits well into this growing trend of multi-nutrient fertilization. This factor is expected to boost the demand for sulfur coated urea globally over the forecast period.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the sulfur coated urea market is relatively low due to presence of established manufacturers with strong distribution channels and requirement of high capital to enter the market.
Bargaining power of buyers: The bargaining power of buyers is moderate as a large number of buyers are present in the market for sulfur coated urea and buyers can switch to substitute products if pricing is high.
Bargaining power of suppliers: The bargaining power of suppliers is moderate owing to presence of numerous suppliers in the market for raw materials required for sulfur coated urea production. However suppliers have less bargaining power due to availability of substitutes.
Threat of new substitutes: The threat of new substitutes is low as sulfur coated urea has qualities like slow release of nitrogen, less mobility in soil and high nitrogen use efficiency which are not easily replaceable.
Competitive rivalry: The competitive rivalry among existing players in the sulfur coated urea market is high owing to the presence of few large players globally.

Key Takeaways
The global sulfur coated urea market is expected to witness high growth, exhibiting CAGR of 3.3% over the forecast period, due to increasing demand for efficient fertilizers from agriculture sector. The market size for 2023 is US$ 1,453 Mn.

Regional analysis: The sulfur coated urea market in Asia Pacific is expected to record fastest growth during the forecast period owing to rising fertilizer consumption for meeting the food demand of enormous population in countries like China and India.North America is expected to dominate the global market during the forecast period owing to large production of corn and wheat requiring high fertilizer usage in countries like US.

Key players operating in the sulfur coated urea market 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. Agrium Inc. and Yara International ASA are estimated to be the largest suppliers of sulfur coated urea globally.