Global Polymer Coated Urea Market is Segmented By Type (Biodegradable, Non-biodegradable), By Crop (Grains & Cereals, Pulses & Oilseeds, Commercial Crops, Fruits & Vegetables, Turf & Ornamentals), By Distribution Channel (E-Commerce, Specialty Stores, Hypermarket/Supermarket, Others), By Application (Agriculture, Golf Courses, Lawn & Turf, Others), By End-User (Residential, Commercial), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023 - 2030
Polymer Coated Urea Market Size
Global Polymer Coated Urea Market reached USD 1035.1 million in 2022 and is expected to reach USD 1662.2 million by 2030, growing with a CAGR of 6.1% during the forecast period 2023-2030. The focus on sustainable agriculture practices acts as a key trend for driving polymer-coated urea market growth.
Polymer-coated urea is a type of controlled-release fertilizer, designed to release nutrients slowly over time. The increasing awareness of the benefits of controlled-release fertilizers in terms of nutrient efficiency reduced environmental impact and better crop yield could have driven the demand for polymer-coated urea. In August 2022, Sollio Cooperative Group and Pursell Agri-Tech collaborated to build and operate a new $20 million plant for the production of controlled-release fertilizers. These fertilizers are coated with polymer which gradually release nutrients into the soil.
High-value crops, such as fruits, vegetables and specialty crops, often require precise nutrient management. Polymer-coated urea's controlled-release properties can be particularly advantageous for these crops, leading to increased adoption in the horticulture sector. Hence, the increasing adoption of high-value crops and horticulture is driving the polymer-coated urea market growth.
Polymer Coated Urea Market Scope
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Metrics |
Details |
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CAGR |
6.1% |
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Size Available for Years |
2021-2030 |
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Forecast Period |
2023-2030 |
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Data Availability |
Value (US$) |
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Segments Covered |
Type, Crop, Distribution Channel, Application, End-User, and Region |
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Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle East & Africa |
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Fastest Growing Region |
Asia Pacific |
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Largest Region |
North America |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Polymer Coated Urea Market Dynamics
Increasing Demand for Food Due to the Growing Population and Decreasing Arable Land
According to the Food and Agriculture Organization (FAO), by 2050 farmers will need to produce 60 percent more food to feed a world population of 9.3 billion. To meet the increasing food demand, farmers must achieve higher agricultural productivity. This agricultural productivity demands a higher amount of fertilizers. Polymer-coated urea offers an efficient way to supply nutrients to crops gradually, ensuring nutrient availability which enhanced productivity.
The availability of arable land is diminishing due to urbanization, soil degradation and environmental factors. With limited land resources, farmers must maximize productivity from existing cultivated areas. Polymer-coated urea offers an efficient way to supply nutrients to crops gradually, ensuring nutrient availability for an extended period. This controlled-release property is particularly beneficial when arable land is scarce, as it optimizes nutrient utilization and minimizes wastage.
Government Initiatives and Subsidies
Governments may offer financial incentives to encourage farmers to adopt various fertilizers in agricultural fields to enhance productivity. For instance, in India, The Cabinet Committee on Economic Affairs (CCEA) approved a bouquet of fertilizer schemes, including the Prime Minister's PRANAM scheme, urea scheme and organic manure scheme, to boost the well-being of farmers with a total allocation of 3.70 trillion rupees. By reducing the cost of acquiring such fertilizers, these incentives make them more affordable and attractive to farmers, which, in turn, boosts their adoption.
Many governments recognize the importance of sustainable agriculture practices for environmental conservation and long-term food security. Controlled-release fertilizers, such as polymer-coated urea, are considered more environmentally friendly due to reduced nutrient leaching and runoff. To align with sustainable agriculture goals, governments may encourage or mandate the use of such fertilizers through policies and initiatives, which drive market growth.
Higher Cost Compared to Conventional Urea
Farmers are often price-sensitive and seek cost-effective solutions to maximize their profits. Conventional urea is typically more affordable than polymer-coated urea because the manufacturing process for the latter involves additional coating technology. For instance, according to Regents of the University of Minnesota, polymer-coated urea is 44% N by weight and costs $1,040 per ton while urea is 46% N by weight and costs $885/ton. As a result, some farmers might choose conventional urea over polymer-coated urea to keep their fertilizer expenses lower.
While polymer-coated urea offers long-term benefits in terms of nutrient release and reduced frequency of applications, the initial investment cost can deter some farmers. The desire for immediate returns on investment might make farmers hesitant to switch to higher-cost fertilizers.
Polymer Coated Urea Market Segmentation Analysis
The global polymer-coated urea market is segmented based on type, crop, distribution channel, application, end-user and region.
Rising Demand for Polymer Coated Urea in Cereal and Grains due to its Nutrient Demand
Cereal and grain crops, such as wheat, corn, rice and barley, have high nutrient demands during their growth stages. Polymer-coated urea's slow-release properties provide a steady supply of nitrogen over an extended period, matching the crop's nutrient uptake requirements throughout its lifecycle. Since cereals and grains are typically grown in extensive fields, they are more susceptible to nutrient losses through leaching and volatilization. Polymer-coated urea helps reduce nutrient losses by releasing nutrients gradually, leading to improved nutrient use efficiency and reduced environmental impact.
Controlled-release fertilizers like polymer-coated urea can enhance crop yields by ensuring a consistent supply of nutrients to the plants. This steady nutrient release supports uniform plant growth and development, contributing to higher yields For instance, Polymer-coated urea increases maize yield and plant N uptake by 23% and 48%, respectively, compared with urea in the low-lying silt loam soils of Missouri, USA
Global Polymer Coated Urea Market Geographical Share
North America’s Growing Adoption of Various Advanced Agricultural Products
North American farmers are generally early adopters of innovative agricultural technologies and practices. They are more likely to embrace controlled-release fertilizers like polymer-coated urea due to their awareness of the benefits, such as increased nutrient efficiency, reduced environmental impact and improved crop yields. Eirich Machines supplied material preparation systems to a new fertilizer coating plant in Canada. The new plant became operational in August 2022
There is a growing emphasis on sustainable agriculture and environmental conservation in North America. Controlled-release fertilizers, including polymer-coated urea, align with these concerns, as they minimize nutrient leaching and runoff, helping to protect water quality and ecosystems. Farmers who prioritize environmental sustainability are more likely to opt for such fertilizers.
Polymer Coated Urea Market Companies
The major global players include Nutrien Ltd., J.R. Simplot Company, Koch Agronomic Service, ICL Specialty Fertilizers, Haifa Group, Compo Expert, DeltaChem GmbH, Ekompany International, Pursell Agritech, Knox Fertilizer Company Inc.
COVID-19 Impact Analysis
The pandemic led to disruptions in transportation, logistics and labor availability impacting the supply chain of raw materials, production and distribution of polymer-coated urea. Reduced production capacities and delays in shipment affected market availability and prices.
Some regions experienced challenges in agricultural practices due to labor shortages or restrictions on gatherings. These challenging agricultural activities have influenced the demand for fertilizers, including polymer-coated urea
Key Developments
- In September 2022, The On-Farm Climate Action Fund (OFCAF) of the federal government included polymer-coated urea on its list of increased-efficiency fertilizer products that are eligible for reimbursement.
- In June 2022, To meet the rising demand for fertilizers from the agriculture industry, Nutrien Ltd. announced an expansion of its fertilizer manufacturing capacity.
- In May 2022, With Marion Ag Service, Inc., Harrell's LLC entered into a collaboration for the formulation, mixing, packaging and distribution of the controlled-release POLYON brand and in the Pacific Northwest, fertilizer.
Why Purchase the Report?
- To visualize the global polymer-coated urea market segmentation based on type, crop, distribution channel, application, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of polymer-coated urea market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global polymer-coated urea market report would provide approximately 77 tables, 79 figures and 181 Pages.
Target Audience 2023
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
