Sulfur coated urea is primarily used in the agriculture industry for reducing the negative effects of fertilizers such as crop burn. They are basically a controlled released of fertilizers that are manufactured by coatings hot urea by using molten sulfur polyurethane oil. These are specialized fertilizers that are coated by using polymers or waxes to release nutrients slowly. They are widely used across professional lawn care and turf, greenhouses, horticulture, golf courses, and nurseries.
The global sulfur coated urea market is projected to surpass US$ 1200 million by the end of 2027, in terms of revenue, growing at CAGR of 3.2% during the forecast period (2020 to 2027).
Drivers
The growing need for agriculture sustainability with minimized input cost and increasing crop yield is expected to augment the market growth of the sulfur coated urea. A growing population is creating demand for food which is also expected to accelerate the market growth of the sulfur coated urea. Moreover, increasing agriculture farmland around the globe has further boosted the market growth of the sulfur coated urea.
Growing concern over eutrophication due to rising use of fertilizers which results in water pollution is projected to foster the market growth of the sulfur coated urea. Sulfur coated urea is effective in reducing the negative effects of the fertilizers on aquatic life. Therefore, growing concern over eutrophication is expected to augment the market growth of the sulfur coated urea over the forecast period.
Regionally, Asia-pacific dominated the global sulfur coated urea market in 2019, reporting 45% market share in terms of revenue, followed by North America and Europe, respectively.
Figure 1. Global Sulfur Coated Urea Market, Revenue Share (%), By Region, 2019
Market Restraints
Growing environmental concern regarding the production of urea as it leads to air pollution is expected to restrict the market growth of the sulfur coated urea. The urea pollution can lead to the production of toxins called domoic acid by ocean plants and algae.
The high cost associated with this fertilizer has limited its use on large scale agricultural production such as the production of commodity crops. This is projected to hinder the market growth of the sulfur coated urea over the forecast period.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2019: | US$ 950 Mn |
| Historical Data for: | 2016 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 3.2% | 2027 Value Projection: | US$ 1200 Mn |
| Geographies covered (27): |
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| Segments covered: |
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| Companies covered: |
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 |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Opportunities
Rapid urbanization coupled with the increasing disposable income of the consumer is projected to offer potential growth opportunities to the market of sulfur coated urea. The growing adoption of advanced and sustainable farming practices among farmers due to rising environmental concerns is further anticipated to augment the market growth of the sulfur coated urea over the forecast timeframe.
Limited availability of arable land is creating demand for quality yield production on the farm which is fueling demand for sulfur coated urea. This is expected to present potential growth opportunities to the market over the forecast period. The scarcity of land for producing food will further create demand for specialized fertilizers such as SCU in order to meet the rising need for food due to a growing population.
Figure 2. Global Sulfur Coated Urea Market – Opportunity Analysis
Market Trends
An increasing number of distribution agreements among major players for expanding their presence in the market and to meet the growing need for controlled released fertilizers is expected to accelerate the market growth. For instance, in June 2019, Pursell Agri-Tech and Plant Products have entered into a supply and distribution agreement for the Eastern Canadian market. This objective of this agreement is to enhance its offering of high quality, controlled-release products for turf and nursery growers.
Figure 3. Global Sulfur Coated Urea Market, Revenue Share (%), By Application, in 2019
On the basis of application, agriculture dominated the global sulfur coated urea market in 2019 with around 29% of market share in terms of revenue, followed by others and golf course, respectively.
Global Sulfur Coated Urea Market - Impact of Coronavirus (Covid-19) Pandemic
Companies across the globe are increasingly asking the employees for working from home, which has led to reduction of commute in the cities and non-essential travel have descended drastically during the pandemic situation. This scenario is expected to continue to reduce the demand of sulfur coated urea services across the globe. For instance, Hertz Global Holdings Inc. faced soaring cancellations and lack of new bookings. The company has been cutting off staff and reduce high capital spending to reserve liquidity.
Logistics are disrupted in various regions of the world which has impacted industries in different sectors such as agriculture, chemical, recreational and others. With the decrease in global demand, the prices of sulfur coated urea products have started to decline across the globe owing to sudden holds put on the buying of these products amidst the coronavirus (Covid-19) Pandemic. This scenarios is expected to hamper the growth rate of the market till the early quarter of 2021.
Competitive Section
Key players are operating in the global 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
Sulphur coated urea is a fertiliser produced by controlled release of hot urea derived from microcrystalline wax and molten sulphur polyurethane oil. The best ratio comprises 25-40% nitrogen with 20% sulphur. Sulphur coated urea is particular fertiliser which is coated with polymer and wither wax for releasing nutrients slowly. It also finds application mainly in agriculture, professional lawn care & turf, golf courses, and nurseries.
Market Dynamics
The global sulphur coated urea market has witnessed significant growth in recent past years, owing to the rising implementation of stringent regulations on usage of conventional fertilisers and rising concerns harmful impacts of fertilizers. This scenario is expected to provide lucrative growth to the global sulphur coated urea market over the forecast period.
Major players in the global sulphur coated urea market are increasing their investment on innovative product launchings, research & development and marketing & promotional activities to capitalize on emerging trends in various end-use industries agriculture, horticulture, and others. This scenario is expected to fuel the market during the forecast period.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective
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