Sulfur coated urea is a fertilizer product consisting of urea granules coated with a thin layer of elemental sulfur. It releases nutrients slowly and uniformly to provide nutrients to the soil and plants for an extended period. This helps improve agricultural productivity by optimizing nutrient release and absorption. The global sulfur coated urea market is estimated to be valued at US$ 1,453 Mn in 2023 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity of improving agricultural productivity is estimated to drive the growth of the sulfur coated urea market. Sulfur coated urea releases nutrients at a controlled and sustained rate, perfectly matching plant needs. This improves nutrient uptake and use efficiency. By optimizing nutrient availability, sulfur coated urea helps boost crop yields and quality. It also reduces leaching and volatilization losses compared to conventional fertilizers. The controlled-release characteristics thus help maximize agricultural output while minimizing environmental footprint. This is important for meeting the growing global food demand in a sustainable way. The ability of sulfur coated urea to enhance productivity is attracting more farmers, thereby supporting market expansion over the forecast period.
Porter’s Analysis:
Threat of new entrants: The threat is moderate as the sulfur coated urea market requires large production facilities and distribution networks. However, there are low switching costs for customers.
Bargaining power of buyers: The bargaining power of buyers is high as sulfur coated urea has substitutes such as conventional urea. Buyers can switch to substitutes if prices increase.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key raw materials such as urea and sulfur have few suppliers globally.
Threat of new substitutes: The threat is moderate as other forms of fertilizers like conventional urea and nitrogen fertilizers are substitutes for sulfur coated urea.
Competitive rivalry: The competitive rivalry is high due to the presence of many global players offering similar products.
SWOT Analysis:
Strengths: Sulfur coated urea has a slow and controlled release of nutrients. It reduces leaching and improves nutrient use efficiency.
Weaknesses: High production costs involved compared to conventional fertilizers. Requires special storage and handling.
Opportunities: Increasing global food demand provides growth opportunities. Shift towards encouraging sustainable farming practices will boost demand.
Threats: Stringent regulations regarding the use of fertilizers can hamper growth. Volatility in raw material prices increases production costs.
Key Takeaways:
The Sulfur Coated Urea market is expected to witness stable growth during the forecast period. Factors driving the growth include increasing global population and demand for food. The global sulfur coated urea market is dominated by North America and Europe.
Regional analysis: The Asia Pacific region is expected to grow at the fastest rate during the forecast period due to the increasing population, rising per capita income and expanding agricultural activities in countries like India and China. Sulfur coated urea consumption is also shifting rapidly in developing nations.
Key players: Key players operating in the 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.
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