Nitrogenous Fertilizer Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (Urea, Methylene Urea, Ammonium Nitrate, Ammonium Sulfate, Ammonia, Calcium Ammonium Nitrate, Others), By Application (Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 59.24 Billion
CAGR (2026-2031)	4.65%
Fastest Growing Segment	Urea
Largest Market	Asia Pacific
Market Size (2031)	USD 77.81 Billion

Market Overview

The Global Nitrogenous Fertilizer Market will grow from USD 59.24 Billion in 2025 to USD 77.81 Billion by 2031 at a 4.65% CAGR. Nitrogenous fertilizers are defined as chemical substances containing nitrogen that are applied to soil or plant tissues to stimulate growth and improve crop yield. The primary drivers supporting market growth include the rapidly expanding global population and the subsequent requirement for enhanced food security, which compels farmers to maximize agricultural output on limited arable land. According to the International Fertilizer Association, in 2025, global nitrogen fertilizer capability was projected to reach 171.1 million tonnes. This statistic highlights the sustained investment in supply infrastructure necessary to meet intensified agricultural production targets across major farming regions.

A significant challenge that could impede market expansion is the implementation of stringent environmental regulations aimed at reducing carbon emissions and nutrient runoff. Policymakers are increasingly enforcing mandates to curb the ecological impact of ammonia production and fertilizer application, which increases compliance costs for manufacturers. This regulatory pressure requires substantial capital investment in green technologies and may constrain future production capacity, thereby presenting a formidable obstacle to broader market development.

Key Market Drivers

Rapid population growth driving global food security demands is the primary force propelling the nitrogenous fertilizer market. As the global populace expands, the pressure to maximize output from limited arable land necessitates heavy nitrogen application to boost yields. This trend is visible in rising production targets for staple cereals, which are highly responsive to nutrient inputs and form the caloric baseline for food sufficiency. According to the Food and Agriculture Organization, December 2025, in the 'Cereal Supply and Demand Brief', global cereal production for 2025 was forecast to reach 3,003 million tonnes, highlighting the critical reliance on fertilizers to meet escalating consumption needs. This imperative to prevent food shortages ensures sustained demand for urea and nitrogenous solutions across major agrarian economies.

Government subsidies and favorable agricultural policies significantly lower cost barriers, shielding farmers from volatile input prices. These interventions are particularly crucial in developing nations where affordability dictates usage, prompting governments to allocate substantial funds for nutrient procurement to maintain national food security. For instance, according to the Press Information Bureau, August 2025, in the 'Fertilizer Subsidy and Budgetary Support' release, the Government of India finalized a fertilizer subsidy allocation of INR 1,91,836 crore for the 2024-25 fiscal year. Such financial support helps stabilize market consumption and bolsters industry outlooks by mitigating risks for growers. Reflecting this positive environment, according to Nutrien Ltd, August 2025, in the 'Second Quarter 2025 Results', the company raised its full-year 2025 nitrogen sales volume guidance to between 10.7 and 11.2 million tonnes, signaling strong demand expectations driven by these supportive dynamics.

Download Free Sample Report

Key Market Challenges

The implementation of stringent environmental regulations constitutes a substantial barrier to the expansion of the Global Nitrogenous Fertilizer Market. Governments are increasingly enforcing strict mandates to lower the carbon intensity of ammonia production and mitigate nutrient runoff, which compels manufacturers to fundamentally overhaul their production processes. This regulatory pressure forces companies to divert significant capital expenditures toward compliance measures and the adoption of low-carbon technologies rather than toward the expansion of production capacity. Consequently, the elevated operational costs associated with meeting these green standards reduce profit margins and disincentivize investment in new conventional manufacturing facilities, directly constraining the industry's supply potential.

This constraint on production scalability creates a critical bottleneck when juxtaposed against the rising global demand for nitrogen nutrients. According to the International Fertilizer Association, in 2025, global nitrogen use was projected to reach 116 million tonnes. Meeting this substantial volume requirement becomes increasingly difficult as producers navigate complex permitting processes and higher production costs driven by environmental compliance. Ultimately, these regulations restrict the industry's agility, hampering its ability to efficiently scale output to align with the intensified agricultural requirements necessary for market growth.

Key Market Trends

The development of low-carbon and blue urea variants represents a fundamental shift in production methodologies designed to decouple nitrogen supply from high fossil fuel emissions. Producers are aggressively investing in autothermal reforming and carbon capture technologies to create "blue" nitrogen products that appeal to environmentally conscious supply chains and emerging energy markets. This trend moves beyond mere compliance, aiming to establish premium product tiers that offer reduced carbon intensity for industrial and agricultural end-users. According to CF Industries, February 2025, in the 'Full Year 2024 Net Earnings Report', the company completed a front-end engineering design study for a new low-carbon ammonia production facility with carbon capture capabilities, estimating the project cost at approximately $4.0 billion.

Simultaneously, the market is witnessing the rapid integration of nitrogen-fixing biologicals and bio-stimulants as complementary solutions to traditional chemical fertilization. This trend is driven by the need to enhance nutrient use efficiency and soil health, as farmers increasingly adopt microbial products that enable crops to fix atmospheric nitrogen or solubilize existing soil nutrients, thereby reducing dependency on synthetic inputs. These bio-solutions are being scaled rapidly through mainstream adoption rather than niche application. According to The Mosaic Company, February 2025, in the 'Fourth Quarter and Full Year 2024 Results', the adoption of its biological portfolio accelerated significantly, with Mosaic Biosciences products applied to a total of 9 million acres in key markets during the fiscal year.

Segmental Insights

The Urea segment is currently positioning itself as the fastest-growing category within the Global Nitrogenous Fertilizer Market, primarily driven by its superior nitrogen density and economic efficiency. As the most concentrated solid nitrogen source available, urea allows farmers to maximize agricultural yields while minimizing procurement costs. This cost-effectiveness, combined with lower storage and transportation requirements relative to nutrient value, encourages extensive adoption globally. Additionally, reports from the Food and Agriculture Organization indicate a rising reliance on urea to meet intensifying global food production demands, thereby ensuring its sustained market expansion.

Regional Insights

Asia Pacific holds the leading position in the Global Nitrogenous Fertilizer Market primarily due to extensive agricultural operations in key economies such as China and India. The region dominates the sector because of the critical need to ensure food security for a vast population, which necessitates high crop yields for staple grains like rice and wheat. Furthermore, substantial government support through subsidy schemes significantly encourages the adoption of fertilizers. Data from the Food and Agriculture Organization indicates that the region consistently maintains the highest consumption levels to support its intensive cultivation requirements.

Recent Developments

• In July 2024, CF Industries announced a collaboration with POET, the world’s largest producer of biofuels, to pilot the use of low-carbon ammonia fertilizer in corn production. The project focused on tracking and validating the reduction in carbon intensity for corn grown with green ammonia produced at the company’s Donaldsonville complex in Louisiana. This partnership aimed to develop a low-carbon fertilizer supply chain that would ultimately lower the carbon footprint of ethanol production. The initiative highlighted the growing integration of sustainable nitrogen solutions within the broader energy and agriculture sectors.
• In July 2024, Yara International signed a commercial agreement with ATOME to market and distribute green Calcium Ammonium Nitrate (CAN) fertilizer produced in Paraguay. Under the terms of the partnership, the company secured the offtake of the entire production volume from ATOME’s planned Villeta plant, which utilizes renewable energy for operations. This collaboration was established to supply the agricultural market with nitrogen fertilizers that have a significantly lower carbon footprint compared to fossil-fuel-based alternatives. The agreement represented a strategic move to accelerate the adoption of decarbonized crop nutrition solutions globally.
• In June 2024, Nutrien Ltd. announced the launch of a new line of slow-release fertilizers designed to minimize nutrient loss and improve crop yields. This product introduction catered to the increasing demand for sustainable agricultural solutions by offering formulations that enhance nutrient use efficiency. The release of these advanced fertilizers aimed to support farmers in optimizing their input costs while reducing the environmental impact associated with traditional nitrogen application. This development underscored the company's commitment to advancing agricultural technology and meeting global food security needs through innovative crop nutrition products.
• In June 2024, Coromandel International inaugurated a state-of-the-art Nano Fertilizer plant at its Kakinada complex in Andhra Pradesh, India. The new facility was designed to produce advanced nitrogenous products, specifically Nano Urea and Nano DAP, which feature ultra-fine particles for better absorption by crops. With a production capacity of 10 million bottles per year, this launch marked the company's significant expansion into next-generation fertilizers intended to replace conventional granular options. The initiative aimed to boost nutrient efficiency and reduce the environmental footprint of farming practices in the region.

Key Market Players

• Nutrien Ltd.
• Yara International ASA
• Omnia Group Limited
• Eurochem Group AG
• Rolfes Agri (Pty) Ltd.
• CF Industries Holdings, Inc.
• Koch Fertilizer, LLC
• Hellagrolip SA
• Coromandel International Limited
• Notore Chemical Industries Plc

By Product	By Application	By Region
Urea Methylene Urea Ammonium Nitrate Ammonium Sulfate Ammonia Calcium Ammonium Nitrate Others	Cereals & Grains Oilseeds & Pulses Fruits & Vegetables Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Nitrogenous Fertilizer Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Nitrogenous Fertilizer Market, By Product:

• Urea
• Methylene Urea
• Ammonium Nitrate
• Ammonium Sulfate
• Ammonia
• Calcium Ammonium Nitrate
• Others

• Nitrogenous Fertilizer Market, By Application:

• Cereals & Grains
• Oilseeds & Pulses
• Fruits & Vegetables
• Others

• Nitrogenous Fertilizer Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE