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Urea Ammonium Sulfate Market - Forecast(2024 - 2030)
Urea Ammonium Sulfate Market Overview
Urea Ammonium Sulfate Market size
is forecast to reach US$427.5 billion by the end of the year 2027 and is set to grow at a CAGR of 4.1% during the forecast
period 2022-2027. The increase in the growth of urea ammonium sulfate market is
due to an increase in the need for quality agricultural yield. Furthermore, the
need for primary nutrients and high-quality nitrogenous fertilizers have also
led to a surge in the demand for urea ammonium sulfate market. Fertilizers such
as nitrogenous fertilizers and phosphorous fertilizer (made from Diammonium
phosphate) are commonly used by farmers for agriculture purposes. Ammonium is
also added to glyphosate, which is used for weeding off unwanted grasses and
broadleaf. The developing agriculture sector in the emerging nations like
Brazil, India, and Argentina are also giving boost to the urea ammonium sulfate
industry over the forecast period. The ease in handling the fertilizers and
applications of urea ammonium sulfate is also driving the demand for urea ammonium
sulfate market.
COVID-19 Impact:
The Covid-19 pandemic has
affected the urea ammonium sulfate market in various ways. The daily operations
of the urea ammonium sulfate industry were hugely affected. The production was
severely affected. The marketing activities were affected too, since the
markets were on shutdown due to the economic lockdown. The marketing activities
were stopped abruptly which in turn also affected the supply chain management
and distribution of the urea ammonium sulfate market top 10 countries. The
situation however improved during the last months of 2020 and the urea ammonium
sulfate industry is slowly recovering the losses.
Report Coverage
The report “Urea Ammonium Sulfate Market– Forecast
(2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments
of the Urea Ammonium Sulfate Industry.
By
Type: Physical Blend (75-25, 65-35 and 50-50) and Chemical blend or
Co-granulated.
By
Form: Solid (Granular, Crystals, Prills and Others) and Liquid.
By
Application: Top Dressing, Soil Fertigation and
Others.
By Crop
Type: Agriculture (Food Crops and Cash Crops), Vegetables and Fruit
Farming (Vegetation and Fruits), Lawns & Gardening and Others.
By Geography: North America (USA, Canada, Mexico), Europe (Germany,
UK, France, Italy, France, Netherlands, Belgium Spain, Russia and Rest of
Europe), APAC (China, Japan India, South Korea, Australia, New Zealand,
Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil,
Argentina, Colombia, Chile and Rest of South America), and RoW (Middle East,
and Africa).
Key Takeaways
- Asia Pacific region held the largest share in the urea ammonium sulfate market owing to the increase in population coupled with the need for agricultural commodities.
- The increase in the use of ammonium sulfate in the agricultural sector for cultivation and plantation of various crops and vegetations is one of the significant factors driving the urea ammonium sulfate market.
- Furthermore, the increase in use of ammonium sulfate in applications such as fire extinguishers, fume suppressants, etc., are also driving the urea ammonium sulfate market.
- Due to the COVID-19 pandemic, the manufacture
and distribution of urea ammonium sulfate
industry was hugely affected. The daily operations of the companies of urea
ammonium sulfate industry were put to an abrupt halt. The marketing and export-import
activities of the urea ammonium sulfate market was also affected resulting in
huge losses.
Figure: Asia-Pacific Urea Ammonium Sulfate Market Revenue, 2021-2027 (US$ Million)
Urea Ammonium Sulfate Market Segment Analysis - By Type
Physical Blend segment held the largest share of more than 64% in the urea ammonium sulfate market in the year 2021. Physical blend of 75-25 held the maximum share in the segment. This blend of manure is a mix of ammonium sulphate and urea which is used in agriculture. The increase in need for quality agricultural products coupled with the advantages of using fertilizers on crop is hugely driving the urea ammonium sulfate market. Fertilizers such as nitrogenous fertilizers and phosphorous fertilizer made from Diammonium phosphate enhances the quality and longevity of crops. Therefore, farmers are showing increased interest towards investing in fertilizers for the sake of the health of their crops and feeds. The use of fertilizers helps in providing the necessary nutrients to the crop which eventually increases the quality of the crop. According to The Fertilizer Association of India, the total production of ammonium sulfate was 793.7 thousand tons (a 20.5% increase from the previous year 2018-2019) and urea was 24,455.2 tons (a 2.3% increase from the previous year 2018-2019) during the year 2019-2020 in India. This will eventually lead to the increase in the growth of urea ammonium sulfate market. The increase in awareness about the benefits of agriculture is leading to the increase in the number of activities of agriculture which is further set to drive the fertilizers segment in the urea ammonium sulfate market.
Urea Ammonium Sulfate Market Segment Analysis - By Form
The solid segment held the
largest share of more than 45% in the urea ammonium sulfate market in the year
2021. The granular form of ammonium sulfate is the most used form of ammonium
sulfate in the agriculture industry. The granular form of ammonium sulfate is
used as soil fertilizers and also as fodder for cattle stocks. The granular
form of ammonium sulfate is cheaper compared to the other products. Furthermore,
ammonium sulfate in granular forms is environmentally friendly and degradable that
makes them a good product to be used as fertilizers and feeds. Granular form of
ammonium sulfate is also easier to handle in terms of storage, field usage and transportation.
Urea Ammonium Sulfate Market Segment Analysis - By Applications
Top Dressing segment held the
largest share of more than 65% in the urea ammonium sulfate market in the year
2021. The total consumption of fertilizer products in the agricultural industry
in India for the year 2019-2020 amounted to 668.7 tons of ammonium sulfate and
33,540.7 tons of urea, a 6.75% increase compared to the previous year 2018-2019. The
increase in the number of agricultural activities, increase in awareness of
health consciousness, and the benefits of field grown produces are contributing
to the growth of fertilizer applications. Top dressing is the process of
spreading thin layers of manures and fertilizers over an agricultural land or
yawns. This helps in building the soil quality. Furthermore, nitrogenous fertilizers help in
the secretion of ammonium nitrate and urea which helps in the healthy growth of
crops. Use of fertilizers on crops gives add on advantages and benefits to the
crops by enhancing the quality and nutrients of the crops. Fertilizers are easy
to handle, maintain and store and can be easily used whenever needed.
Urea Ammonium Sulfate Market Segment Analysis - By Crop Type
Agricultural segment held the
largest share in the urea ammonium sulfate market and is growing at a CAGR
of 6.4% during the forecast period 2022-2027. The use of fertilizers (organic
and inorganic) is increasing in the recent days owing to the increase in use in
the agricultural industry. The gross value added by agriculture, forestry and
fishing was estimated at US$ 276.37 billion (Rs. 19.48 lakh crore) in India, in
the year 2020, which equals to an increase of 4% as compared to the previous
year 2019. Around 280 million pounds of glyphosate were used in the
agricultural lands in the USA in the year 2019. Glyphosate is the most common
form of ammonium sulfate products that is used on plants for regulating plant
growth and for removing unwanted leaves and plants which usually grows with
crops. According to The Fertilizer Association of India the total consumption
of nutrients-based fertilizers amounted to 28,969.6 tons in the year 2019-2020
in India. Nutrient based fertilizers are good for agricultural purposes as they
increase the quality and longevity of the crops Glyphosate is mixed with
ammonium sulfate for maximum results, whereby it helps in retaining the health
of the plant Furthermore, the increase in the need for food products backed by
the increase in the population across the globe is driving the need and demand
for agricultural industry.
Urea Ammonium Sulfate Market Segment Analysis - By Geography
Asia-Pacific region dominated the urea ammonium sulfate market with a share of more than 38% in 2021 and is projected to dominate the market during the forecast period . According to the IBEF report, the increase in the number of agricultural activities in countries like India, (21.90% increase from the previous year 2019), China (2.60% increase from the previous year 2019), South Korea (1.10% increase from the previous year 2019) and Japan (3% increase from the previous year 2019). Agricultural export from India reached US$ 35.09 billion in the year 2020 (a decrease of 8.95% as compared to the previous year 2019). The total agricultural export was US$ 10.40 billion between April and October 2020. This will eventually drive the agricultural sector in the India which will further increase the demand for urea ammonium sulfate market. Nearly 640 million tons of rice are grown in Asia, representing 90% of global production. This is also contributing to the growth of urea ammonium sulfate market in the Asia Pacific region, since ammonia is highly used for crop cultivation and other agricultural activities.
Urea Ammonium Sulfate Market Drivers
Growing Government initiatives and Increasing investments related to Fertilizers
The increase in the number of
government initiatives regarding fertilizers and urea ammonium sulfate is one
of the significant factors driving the urea ammonium sulfate market. For
example, the Department of Fertilizers in India came up with the concept of
retail outlets for fertilizers. The total number of retail-outlets in the
country as estimated in the year 2020 is approximately 2.26 million. In another
instance, in October 2020, Agri-lender NABARD (National Bank for Agriculture
and Rural Development) in India proposed plans to set up a subsidiary to
provide guarantee for loans under agriculture and rural development. These
initiatives by the government is also one of the significant factor driving the
agricultural sector which in turn is driving the urea ammonium sulfate market. The
increase in government investments in agriculture industry is also one of the
significant factors driving the urea ammonium sulfate market. In 2020, Government
of India has proposed an investment of US $ 343.073 billion (Rs 25 lakh crore)
in the next five years in rural agriculture sector to boost agriculture
economy. The investments by government is encouraging more private bodies to
invest in the agriculture sector which in turn is driving the demand for urea
ammonium sulfate market.
Superior properties of Urea Ammonia Sulfate and their benefits to enhance the crop yield
Urea Ammonia Sulfate is highly
efficient and can be easily adapted for use in the agriculture sector which is
one of the biggest advantages of using urea ammonia sulfate and related
products. The ease of handling and easy storing of urea ammonia sulfate is also
driving the growth of the urea ammonium sulfate market. It also provides
various nutrients which is essential for the healthy growth of plants to the
crops. Urea ammonium sulfate also helps in showing quicker results as compared
to the other organic fertilizers, therefore making it a preferred type of
fertilizer which eventually leads to the growth in the urea ammonium sulfate
market.
Urea Ammonium Sulfate Market Challenges
Growth of organic fertilizers industry
The growth of organic fertilizers
is one of the big challenges faced by the urea ammonium sulfate market. The
organic fertilizers and manures have certain advantages which is not present in
the urea ammonium sulfate market. Ammonium sulfate also leads to urea
hydrolysis, which increases the content of urea in soil which is hazardous to
the plants and lead to the damage of crops. Organic fertilizers and manures are
environmentally friendly and has less chemical effect. It does less damage to
the crops and the surroundings. According to IBEF organization, the organic
food segment in India is expected to grow at a CAGR of 10% during 2015-25 and
is estimated to reach US$ 10.73 billion (Rs. 75,000 crore) by 2025. This is
expected to hinder the growth of the fertilizer industry which eventually acts
as a challenge to the urea ammonium sulfate market.
Urea Ammonium Sulfate Industry Outlook
Acquisitions, technology launches, expansion and R&D activities are key strategies adopted by players in the market. urea ammonium sulfate top 10 companies include:
- Nutrien Ltd.
- Vertellus Holdings LLC
- Sumitomo Chemical Co. Ltd.
- Helm AG
- The Merck Group
- DOMO Chemicals
- AdvanSix
- Royal DSM
- OCI Nitrogen
- GAC Chemical Corporation among others.
Acquisition/Product Launches
- On September, 2019, Nutrien Ltd., acquired Ruralco Holdings Limited (Ruralco) in Australia. This acquisition was expected to provide benefits for the company’s stakeholders and also provide enhanced products to the farmers in Australia.
- On January 11 2021, Pritzker Private Capital (PPC) acquired the company Vertellus Holdings LLC, a specialty chemicals manufacturer for agricultural products. This acquisition helped in strengthening the presence of Pritzker Private Capital (PPC) in the USA region.