Nitrogenous Fertilizers Market

Global Nitrogenous Fertilizers Market Forecast

• The Nitrogenous Fertilizers Market is valued at USD 153.9 Bn in 2026 and is projected to reach USD 232.9 Bn,  growing at a CAGR of 6% by 2033.
• Increasing nutrient depletion in agricultural soils due to intensive farming practices is identified as the key reason for the rising demand for nitrogenous fertilizers.

Nitrogenous Fertilizers Insights

• Urea continues to dominate the market due to its high nitrogen concentration and cost-efficiency, making it the preferred choice for cereal and grain cultivation in Asia and Africa where maximizing yield is critical.
• Liquid nitrogenous fertilizers are gaining traction as they align well with fertigation systems, especially in high-value fruit and vegetable farming, enabling precise nutrient delivery and improved crop health.
• Ammonium sulfate demand is rising in oilseeds and pulses cultivation, particularly in sulfur-deficient soils, as it provides both nitrogen and sulfur needed for protein synthesis and crop growth.
• Dry-form fertilizers remain widely used across smallholder farms in regions like South Asia due to ease of storage, transport, and broadcast application, supported by extensive public distribution systems.
• North America's push for sustainable corn farming is driving adoption of controlled-release and stabilized nitrogen fertilizers, addressing nutrient runoff concerns while maintaining yield and soil health.

A Look Back and a Look Forward - Comparative Analysis

Between 2019 and 2024, the nitrogenous fertilizers market experienced fluctuating demand due to global supply chain disruptions, rising natural gas prices, and COVID-19’s impact on agricultural trade. However, government subsidies, especially in Asia, and the need to boost food security sustained strong usage of urea and ammonium-based fertilizers across key cereal-growing regions.

From 2025 onward, the market is expected to witness transformation driven by precision agriculture, environmental regulations, and adoption of enhanced-efficiency fertilizers. Innovations in green ammonia, controlled-release formulations, and site-specific nutrient application are likely to reshape product portfolios. Growing emphasis on sustainable farming practices and digital integration will further redefine competitive strategies and regional consumption patterns.

Key Growth Determinants

Rising global cereal and grain production is boosting the demand for urea-based nitrogenous fertilizers due to their high nitrogen content and cost-effectiveness

Global cereal and grain production continues to surge, directly boosting demand for urea-based nitrogen fertilizers. Cereals alone consume nearly 50% of total global fertilizer use—led by maize, wheat, and rice—highlighting their central role in driving nitrogen demand. As cereal output increases across Asia, Africa, and Latin America, farmers consistently prefer urea due to its high nitrogen content and affordability, making it the most widely applied nitrogenous fertilizer.

The trend is reinforced by recent market developments. For instance, QatarEnergy has announced a major expansion in urea production capacity to over 12.4 million tonnes annually to meet rising global food demand. In India, urea consumption rose to approximately 38.8 million tonnes in 2024–25, supported by government subsidies and the push for higher grain yields. These examples highlight how expanding cereal and grain production is driving long-term growth in the nitrogenous fertilizers market.

Key Growth Barriers

Stringent environmental regulations on nitrate leaching and ammonia volatilization are limiting the widespread usage of ammonium nitrate in several developed countries

Environmental regulations targeting nitrate leaching are increasingly limiting ammonium nitrate usage. The European Union’s Nitrates Directive, for instance, designates large agricultural zones as vulnerable, enforcing strict limits on the timing and quantity of nitrogen fertilizer applications to prevent groundwater nitrate contamination. These restrictions are making it difficult for farmers to rely on ammonium nitrate, prompting a shift toward more regulated and complex nutrient management systems.

Likewise, concerns around ammonia volatilization are leading to tighter regulatory controls on ammonium-based fertilizers. Surface-applied ammonium nitrate can result in nitrogen losses of up to 30% due to volatilization, contributing to air quality degradation and reduced fertilizer efficiency. As a result, many farmers and fertilizer producers are transitioning toward stabilized or alternative nitrogen products, reducing the widespread use of conventional ammonium nitrate in developed markets.

Nitrogenous Fertilizers Market Opportunities

Expansion of precision agriculture technologies is creating opportunities for liquid-form nitrogenous fertilizers that allow controlled, crop-specific nutrient delivery

The expansion of precision agriculture technologies is creating significant opportunities for liquid-form nitrogenous fertilizers by enabling accurate, crop-specific nutrient application. Liquid fertilizers such as UAN (urea ammonium nitrate) integrate seamlessly with modern systems like variable-rate applicators, fertigation setups, and sensor-based tools, allowing farmers to deliver nutrients based on real-time soil and crop conditions for maximum efficiency and productivity.

Leading agribusinesses are capitalizing on this trend by investing in advanced liquid fertilizer solutions tailored to precision farming needs. Companies like Nutrien and Yara have expanded their liquid fertilizer offerings in regions with strong adoption of digital agriculture. As farming practices shift toward sustainability and resource optimization, liquid nitrogenous fertilizers market are becoming a key enabler of precision farming, driving their growing relevance in the global market.

Segment-wise Overview

• The liquid nitrogenous fertilizer segment is gaining momentum due to its compatibility with fertigation systems in high-value horticulture crops like fruits and vegetables

Liquid-form nitrogenous fertilizers, particularly urea ammonium nitrate solutions, are gaining significant momentum due to their compatibility with fertigation systems used in horticulture. Approximately 39% of liquid fertilizer applications globally are facilitated through fertigation, especially in high-value fruit and vegetable crops. This approach enables precise nutrient delivery to plant roots, enhancing nutrient use efficiency and improving both yield and quality.

Major agribusinesses are expanding their liquid fertilizer portfolios to serve the growing horticulture market. Companies like Nutrien and Yara are targeting greenhouse growers and drip-irrigated orchards with tailored liquid nitrogen products. As advanced irrigation systems gain popularity and farmers aim to reduce nutrient losses, liquid nitrogenous fertilizers are becoming the preferred choice; positioning this segment as a major driver of nitrogenous fertilizers market growth.

• Urea remains the dominant product due to its high nitrogen content, with innovations in stabilized and coated formulations driving sustained usage

Urea remains the dominant nitrogen fertilizer due to its high nitrogen content, approximately 46%, and its cost-effectiveness for farmers worldwide. Its versatility and ease of storage and application make it particularly suitable for staple crops such as corn, wheat, and rice. Urea accounts for more than half of global nitrogen fertilizer usage, reaffirming its essential role in modern agriculture.

Recent innovations in stabilized and coated urea products are reinforcing its market leadership. For example, enhanced efficiency formulations like sulfur-coated and polymer-coated urea are helping reduce nitrogen loss through volatilization and leaching. These products not only increase nutrient use efficiency but also support environmental compliance, making urea an increasingly attractive choice amid growing focus on sustainable farming practices.

Regional Analysis

• In North America, increasing adoption of controlled-release urea fertilizers is addressing concerns of nutrient runoff and improving nitrogen-use efficiency in corn cultivation

Adoption of controlled-release urea fertilizers (CRU) is gaining momentum in North America’s corn belt, addressing nutrient runoff and enhancing nitrogen-use efficiency. Field studies indicate that CRU can boost corn yields by 9–11% and improve nitrogen-use efficiency by around 11%, while reducing nitrogen losses by up to 30% compared to conventional urea applications.

Agribusinesses like Nutrien, Yara, and ICL are expanding offerings of polymer-coated urea and customized nitrogen blends to meet growing sustainability demands. Trials have shown that CRU allows farmers to maintain yields with up to 30% less nitrogen input, reducing application frequency and environmental impact. This shift is placing North America at the forefront of innovation in precision nutrient management.

• Europe is witnessing growing demand for calcium ammonium nitrate as a safer alternative to ammonium nitrate, driven by sustainability goals and regulatory compliance

Europe is witnessing rising demand for calcium ammonium nitrate (CAN) as a safer and more environmentally responsible alternative to ammonium nitrate. Stringent EU regulations on explosive precursors and nitrate leaching have made CAN more favorable for farmers. In countries like Germany and France, CAN is preferred due to its lower environmental risk and better compatibility with sustainable agriculture practices.

The European Green Deal and Farm to Fork Strategy are pushing for reduced emissions and improved soil health, further encouraging the adoption of CAN. Major producers such as Yara and EuroChem have increased investments in stabilized CAN formulations to align with EU policy objectives. As farmers seek products that balance productivity with compliance, CAN continues to gain ground across European farmlands, driving regional nitrogenous fertilizers market growth.

• Rapid expansion of rice and wheat farming in countries like India and China continues to drive strong demand for dry granular urea and ammonium sulfate fertilizers

The Asia Pacific region’s demand for nitrogenous fertilizers is strongly fueled by expanding rice and wheat cultivation, particularly in China and India. For instance, China cultivated over 23 million hectares of wheat and nearly 30 million hectares of rice in recent years, requiring sustained nitrogen inputs like ammonium sulfate. Ammonium sulfate is widely used for its sulfur-nitrogen dual benefits, crucial for soil health and crop protein content.

India’s rice production crossed 130 million metric tons recently, driving the use of dry granular fertilizers compatible with traditional flood irrigation. Ammonium sulfate plays a key role in acidic and sulfur-deficient soils common in Eastern India and Southern China. With governments supporting nutrient-balanced fertilization and higher yield targets, the strong reliance on ammonium sulfate and other granular forms is expected to maintain Asia Pacific's leadership in nitrogenous fertilizer consumption.

Fairfield’s Competitive Landscape Analysis

The competitive landscape of the nitrogenous fertilizers market is marked by strategic expansion, product innovation, and supply chain integration. Key players are focusing on backward integration into ammonia production, development of stabilized and controlled-release formulations, and investment in green ammonia to align with climate targets. These moves are reshaping traditional value chains and increasing competitiveness across regions.

Companies are also leveraging digital agriculture platforms and precision farming partnerships to create bundled offerings that improve fertilizer use efficiency and customer retention. Recent investments in low-emission technologies and partnerships for sustainable nitrogen production are intensifying the race to lead in environmentally compliant solutions. This shift toward differentiated, high-performance nitrogen products is driving consolidation and innovation across the global market.

Key Companies

• The Mosaic Company
• Yara International ASA
• Nutrien Ltd.
• OCI Nitrogen
• Koch Industries
• Eurochem Group
• Cargill
• CF Industries Holdings Inc.
• ICL Fertilizers
• Bunge Ltd.
• PJSC Togliattiazot
• Triomf SA
• Omnia Holdings Limited
• Sorfert
• Coromandel International Ltd.

An Expert’s Eye

• Rising global food demand is reinforcing the importance of nitrogenous fertilizers, with urea and ammonium-based variants remaining essential for maximizing yield in staple crops like rice and wheat.
• Environmental regulations are pushing the industry toward enhanced efficiency products such as coated and stabilized fertilizers that reduce nitrogen loss, volatilization, and leaching into water bodies.
• Integration of precision agriculture technologies is enabling optimized nutrient application, creating future demand for liquid and specialty nitrogen fertilizers tailored to crop-specific and soil-specific needs.
• Volatility in natural gas prices poses a risk to profitability, prompting producers to diversify sourcing and invest in green ammonia technologies.

Global Nitrogenous Fertilizers Market Segmentation-

By Product Type

• Urea
• Ammonium Nitrate
• Ammonium Sulfate
• Calcium Ammonium Nitrate (CAN)
• Anhydrous Ammonia
• Others (Urea Ammonium Nitrate, etc.)

By Form

• Dry Solid
• Liquid

By Crop Type

• Cereals & Grains
• Oilseeds & Pulses
• Fruits & Vegetables
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa