February 21, 2024

Sulfur Coated Urea Market is driven by Increasing Adoption in Agriculture and Turf Industry

Sulfur coated urea is widely used in agriculture and turf applications as a controlled-release nitrogen fertilizer. It allows for prolonged and controlled release of nitrogen over time, which leads to higher nitrogen use efficiency and reduces nitrogen loss through leaching or volatility. The product provides nitrogen to plants over an extended period, which matches the growth pattern of most turfgrasses and agricultural crops. This eliminates the need for multiple applications and reduces labor costs. Sulfur coated urea promotes healthy plant growth and increases yield levels. It has gained acceptance as a viable substitute for conventional nitrogen fertilizers. The global agricultural sector is expanding rapidly to feed the rising global population. This is increasing the demand for high-quality fertilizers to boost crop yields.

The global Sulfur Coated Urea Market is estimated to be valued at US$ 1,453 Mn 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 key trends:
One of the major market trends is increasing adoption of specialty fertilizers. Sulfur coated urea is considered a specialty fertilizer as it releases nutrients in a controlled manner. Farmers and turfgrass managers are increasingly opting for these types of specialty fertilizers as they help optimize fertilizer usage and increase efficiency. Specialty fertilizers reduce risks of nutrient losses and also improve plant health, which boosts crop yields. Their use is growing significantly among large-scale commercial agriculture and turfgrass operations. This growing demand for specialty fertilizers such as sulfur coated urea is expected to drive the market growth over the forecast period.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is low owing to the presence of dominant key players who control majority of the global market share and have established distribution channels with farmers. Barrier to entry the market is high capital cost.
Bargaining power of buyers: The buyers have moderate bargaining power as they can choose from various substitutes like conventional urea and MOP. However, sulfur coated urea provides better value with deep placement and controlled release benefits.
Bargaining power of suppliers: Suppliers have moderate bargaining power as raw materials suppliers are limited and integrated players control materials and manufacturing. Key players source raw materials on long term contracts.
Threat of new substitutes: Threat of substitutes is moderate as products like polymer coated ureas, NBPT coated ureas provides similar soil nutrient benefits. However, sulfur coated urea has proven performance and reliable deep placement technology.
Competitive rivalry: Intense as major players compete on pricing, distribution reach and brand positioning.

Key Takeaways
The global sulfur coated urea market is expected to witness high growth over the forecast period. The Asia Pacific region currently dominates the global market and is expected to maintain its lead position over the forecast period. China, India, and other Southeast Asian countries collectively account for the largest share of the regional market owing to the large agricultural industry in these countries.

Regional analysis: Asia Pacific region is the largest and fastest growing market for sulfur coated urea globally. This is attributed to factors such as increasing population, rising demand for food grains, focus on boosting agricultural yields and initiatives promoting adoption of controlled release fertilizers. China accounts for around 40-45% of global sulfur coated urea demand and India also represents a high growth potential market in Asia region.

Key players: 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., Harrell’s LLC. These players compete based on capabilities like production capacity, distribution network, product line extensions, and brand positioning especially in domestic markets of Asia and North America.