Market Trends of urea Industry
The rising pressure on the agriculture industry to meet the growing demand for food is expected to increase the area under field crop cultivation
- The global agricultural sector is facing many challenges. According to the UN, the world population may exceed 9 billion by 2050. This population growth may overburden the agricultural industry, which is already experiencing an output loss due to a lack of laborers and the shrinkage of agricultural fields caused by rising urbanization. According to the Food and Agriculture Organization, 70% of the global population is expected to live in cities by 2050. Due to the global loss of arable land, farmers now need to utilize more fertilizers to increase crop yields.
- Asia-Pacific is the world's largest producer of agricultural products. Agriculture is critical to the region's economy, as it employs about 20% of the total available workforce. Field crop cultivation dominates the region, accounting for about more than 95% of the total crop area in the region. Rice, wheat, and corn are the major field crops produced in the region, together accounting for about 24.3% of the total crop area in 2022.
- North America ranks as the second-largest arable region globally. Its farms cultivate a diverse range of crops, with a focus on field crops. Notably, corn, cotton, rice, soybean, and wheat are the prominent field crops, as highlighted by the USDA. In 2022, the United States commanded 46.2% of North America's crop cultivation area. However, the country witnessed a significant drop in crop acreage between 2017 and 2019, primarily due to adverse environmental conditions, leading to severe flooding in regions like Texas and Houston.
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Nitrogen is the most widely used primary nutrient fertilizer in field crops, accounting for 45.5% of the total consumption
- Corn/maize, rapeseed/canola, cotton, sorghum, rice, wheat, and soybean are some of the major primary nutrient-consuming crops worldwide. The primary nutrient application rates of these field crops were 230.57 kg/ha, 255.75 kg/ha, 172.70 kg/ha, 158.46 kg/ha, 154.49 kg/ha, 135.35 kg/ha, and 120.97 kg/ha, respectively. Primary nutrient fertilizers are highly crucial for crops because they play an essential role in plant metabolic processes and assist in forming tissues such as cells, cell membranes, and chlorophyll. Phosphorus is essential for growing high-quality crops; potassium activates the enzymes needed for plant growth and development.
- The global average application rate of nitrogen, potassium, and phosphorus in field crops is 164.31 kg/ha. Nitrogen is the most widely used primary nutrient fertilizer in field crops, accounting for an application rate of 224.6 kg/hectare, followed by potassic fertilizers with 150.3 kg/hectare and phosphorus with 117.9 kg/hectare in 2022.
- In 2022, the nitrogen application rate was highest in rapeseed, which was 347.4 kg/hectare. Similarly, the phosphorus application rate was highest in corn, which was 156.3 kg/hectare, and the potassium application rate was highest in canola, which was 248.6 kg/hectare.
- Global field crop cultivation area is increasing, particularly in South America and Asia-Pacific. These are the potential growing markets for fertilizers. Due to their efficiency, specialty fertilizers are widely used in developed regions such as Europe, North America, and other regions with widespread nutrient deficiencies. These factors are anticipated to drive the primary nutrient fertilizers market during 2023-2030.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The growing demand for fruits and vegetables drives the expansion of horticulture crop cultivation
- Asia-Pacific occupies the majority of the irrigation area globally, accounting for 66.8% in 2022
- Tomatoes receive a significant quantity of primary nutrients, with an average rate of 236.06 kg per hectare
