Specialty Urea Market - Forecast(2024 - 2030)

Specialty Urea Market Overview:

Specialty Urea Market size is estimated to reach $2.79 billion by 2030, growing at a CAGR of 3.2% during the forecast period 2023-2030. Specialty urea finds applications beyond agriculture in various industrial sectors. It is used as a raw material or intermediate in the production of resins, adhesives, plastics, and other chemical compounds. The versatility of urea makes it valuable in industries such as automotive, construction, textiles, and pharmaceuticals., which is driving the demand for Specialty Urea Market.

Additionally, farmers must increase crop yields to feed the world's growing population, which requires more fertilizers. According to Food and Agriculture Organization estimates for 2022, the world needs to produce 60% more food to feed a global population of 9.3 billion or more by 2050. Specialty crop producers are responding to this demand by adopting advanced fertilizer technologies like Sulphur Coated Urea to optimize crop production, improve quality, and meet consumer expectations.

Market Snapshot:

Specialty Urea Market- Report Coverage:

The “Specialty Urea Market Report - Forecast (2023-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Specialty Urea Market.

COVID-19 / Ukraine Crisis - Impact Analysis: 

The effects of the Covid-19 pandemic, which is ravaging the world, are already sending markets into a tailspin. Since the beginning, the specialty urea industry has been impacted, mostly in China, which is the largest producer and user of phosphates, sulfur, and sulphuric acid. In the future, however, Brazil and India made headlines due to their fertilizer-related issues. The COVID-19 outbreak has had little impact on the market for specialty fertilizers, largely because of logistical challenges. As of May 2020, most businesses are running smoothly throughout several locations because to government relaxation measures. However, certain South Asian countries still experience delays in the import of fertilizers from other countries as a result of protracted lockdowns. Businesses could lose money if a delivery is delayed further, especially during the planting season when they already have insufficient inventory to last a few months.

The invasion of Ukraine by Russia in 2022 caused global disruptions in the markets for crucial food crops, specialty urea, and fertilizers, endangering global food security. In the international agricultural market, Ukraine is a major producer of agricultural goods. The nation is renowned for producing and exporting a wide range of agricultural products, such as wheat, corn, and fertilizers like urea. The supply and distribution of specialized urea could potentially be affected by an invasion by Russia or any other significant disturbance to agricultural productivity and trade in the area. While high worldwide food prices have decreased as the war enters its second year, high local price levels still exist in many low- and middle-income countries. Here, we examine the performance of the worldwide fertilizer markets, including the specialty urea market, as well as the anticipated future impacts on agricultural productivity and food security.

Key Takeaways:

Fastest Growth of South America Region

Geographically, in the global Specialty Urea market share, South America is analyzed to grow with the highest CAGR of 5.2% during the forecast period 2023-2030. Agriculture in South American countries has always been represented by small and medium-sized family farms that own their own land and financial resources. However, recent decades have seen a tendency toward farm consolidation and the establishment of substantial corporate farming systems in countries like Argentina and Brazil.

Control Released Fertilizer (CNF) Segment to Register the Fastest Growth

In the Specialty Urea Market Analysis, the Control Released Fertilizer (CNF) segment is estimated to grow with the highest CAGR of 3% during the forecast period 2023-2030. Control release urea is the largest product type of the global specialty urea market due to the increasing demand for polymer-coated, sulphur-coated, polymer sulphur coated in agricultural and non-agricultural applications. There is a growing market demand for specialty crops due to changing consumer preferences, increased interest in healthy and sustainable food choices, and the development of niche markets.

Agriculture Sector is the Fastest Growing Segment in the Market

According to the Specialty Urea Market forecast, increasing demand for high-quality crops, environmental concerns, and need for improved nutrient use efficiency (NUE) is driving the demand for specialty urea in agriculture industry.

Agriculture is the largest end-use industry of the specialty urea market and contributes approximately 55% of the specialty urea consumption, with a volume of 1,178.9 kilotons in 2022. Conventional versions are inefficient and frequently harm the environment. Fortunately, more environmentally friendly products, such as controlled-release fertilizers, are available and becoming increasingly intelligent.

Growing Demand for Specialty Urea in Agriculture sector.

As the global population grows, there is an increasing demand for food to feed the expanding population. Along with population growth, there is a shift in dietary patterns, with rising demand for protein-rich foods. This leads to increased agricultural production and, subsequently, higher demand for fertilizers, including specialty urea, to enhance crop yields and meet the nutritional needs of crops.

According to UN projections, the next milestone of 8 billion population will occur in 2023 and could reach 9.8 billion by 2050. The demand for food is rising dramatically along with the global population growth. There is a great deal of demand in the agriculture industry to increase productivity and efficiency as a result of the rise in food consumption. In order to overcome this difficulty, specialty urea has become a significant participant in the agricultural industry. It is a specific kind of urea fertilizer designed to increase NUE in plants. Specialty urea makes sure that nutrients are supplied to plants for a long time and are tailored to the crop's particular requirements at different growth stages by delivering a controlled and slow-release nitrogen supply.

Superior performance properties of Specialty Urea.

Specialty urea is typically manufactured with high purity levels, ensuring minimal impurities and contaminants. This purity is essential for applications where precise chemical composition is required, such as in pharmaceuticals, cosmetics, and certain industrial processes. Specialty urea exhibits excellent water solubility, allowing it to be easily dissolved in aqueous solutions. This property is important for applications like diesel exhaust fluid (DEF), where urea needs to be readily mixed with water to form a solution that can be injected into exhaust streams.

Specialty urea is generally stable under normal conditions, ensuring long shelf life and ease of handling. Stability is crucial for various applications, including storage, transportation, and formulation of end products. It is valued for its high nitrogen content, typically around 46%. This makes it a concentrated source of nitrogen for use as a fertilizer in agriculture. Specialty urea may have nitrogen content variations depending on the specific application or formulation requirements. In the cosmetic and pharmaceutical industries, specialty urea is valued for its moisturizing properties. It has the ability to attract and retain moisture, helping to improve skin hydration and enhance the efficacy of skincare products.

The high cost of specialty urea acts as a major market challenge.

Urea prices in the United States are rising as a result of high Ammonia costs and low Phosphate stockpiles. Seasonal hurricanes disrupted production in the United States, further limiting market supply and raising prices. Because natural gas is a primary component of the majority of nitrogen-based fertilizers, rising natural gas prices have a direct impact on fertilizer prices, including urea. Phosphate rock prices are also at historic highs, supporting the market's overall upward trend.

According to the Government of India, the country aims to eliminate urea imports by 2025 as it expands its domestic production capacity through the commissioning of new plants. India, the leading urea importer, imports roughly 30% of its annual urea consumption of 35 million tons. India now imports urea from several countries, including Oman, Qatar, Saudi Arabia, and the United Arab Emirates. These challenges are set to hinder the Specialty Urea market growth in the future.

Specialty Urea Market Share (%) By Region, 2022

Key Market Players:

Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the Specialty Urea Market. The top 10 companies in this industry are listed below:

1. Kingenta (Kingenta)
2. ICL (ICL)
3. Nu-trien (Nutrien's ESN®)
4. Hanfeng (Woolong) (Hanfeng)
5. Hafia (Haifa UP™)
6. JNC Corporation (Chisso) (JNC)
7. PT Hanampi (Hanampi)
8. Turf Care Supply LLC (GrowStar)
9. Lebanon Seaboard (Country Club, Lebanon Pro, Lebanon Specialty)
10. Compoexpert (Enforce®, Floranid®, Basfoliar®)

Scope of Report:

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