Sulphur Coated Urea Market To Achieve USD 2.8 Bn by 2033

Updated · Dec 24, 2024

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Table of Contents

Introduction
Key Takeaways
Sulphur-Coated Urea Statistics
Emerging Trends
Use Cases
Major Challenges
Market Growth Opportunities
Key Players Analysis
Conclusion

Introduction

The global Sulphur Coated Urea (SCU) Market is expected to experience steady growth over the next decade, driven by increasing demand for efficient and sustainable fertilizers in agriculture. The market size is projected to reach approximately USD 2.8 Billion by 2033, up from USD 2.1 Billion in 2023, reflecting a compound annual growth rate (CAGR) of 2.9% from 2024 to 2033.

Sulfur-coated Urea is gaining popularity due to its ability to provide controlled-release fertilization, reducing the frequency of application and enhancing crop yield while minimizing environmental impact. The growing adoption of SCU, especially in regions with extensive agricultural activity such as North America, Asia-Pacific, and Latin America, is expected to fuel market growth.

Key growth factors include increasing concerns about soil health, the need for more efficient fertilizers to meet the growing global food demand, and rising awareness about the environmental benefits of SCU compared to traditional urea fertilizers. Market opportunities also lie in the growing preference for sustainable agricultural practices, government support for eco-friendly farming technologies, and the rise in the number of partnerships and collaborations among SCU manufacturers and agricultural producers.

As the agricultural sector expands, driven by both population growth and the adoption of advanced farming techniques, the sulphur-coated urea market is poised for significant expansion, with ongoing innovations in coating technologies further enhancing product performance. The market’s popularity is also rising due to its compatibility with various crops, including cereals, fruits, and vegetables, which broadens its application scope, contributing to its future growth.

Moreover, the market is expected to benefit from innovations in coating technology, which improve the efficiency and release patterns of sulphur-coated urea, making it more effective for a wider range of crops and soils. With an increasing emphasis on reducing the carbon footprint of farming practices, SCU presents a sustainable alternative to conventional fertilizers, further enhancing its popularity among environmentally-conscious growers.

Additionally, the market is likely to see growth in emerging economies where agricultural productivity needs to be boosted to meet rising food demand. In this context, the SCU market presents a unique opportunity for manufacturers to expand their product offerings, capitalize on the increasing focus on sustainable agriculture, and explore untapped markets in regions like Africa and Southeast Asia.

Key Takeaways

The Global Sulphur Coated Urea Market is expected to be worth around USD 2.8 Billion by 2033, up from USD 2.1 Billion in 2023, and grow at a CAGR of 2.9% from 2024 to 2033.
Wax Sulphur Coated Urea dominates the market with a 48.1% share by product type.
Conventional Sulfur Coated Urea holds a significant 67.4% share in the product category.
Agriculture remains the largest application sector, accounting for 69.1% of SCU usage.
Offline retail channels lead distribution with a substantial 78.1% market share.
The Asia-Pacific sulphur-coated urea market holds 38.2%, valued at USD 0.8 billion.

Sulphur-Coated Urea Statistics

Enhanced Crop Yields with Sulphur Urea

Prilled urea coated with 4-5% sulphur increased wheat grain yield by 9.58-11.21% compared to uncoated prilled urea.
Nitrogen uptake increased by 19.06-23.94% and sulphur uptake by 21.76-29.29% in wheat when using 4-5% sulphur-coated urea versus uncoated prilled urea.
The agronomic efficiency of nitrogen from sulphur-coated urea was 21.8 kg of paddy per kg of N applied, compared to 15.9 kg for prilled urea in irrigated rice fields in eastern India.
Using sulphur-coated urea reduced nitrogen fertilizer requirements by 25-45% compared to prilled urea to achieve the same paddy yield increase.
In 40% of field experiments, the response to sulphur-coated urea was statistically greater than the response to prilled urea for irrigated rice.

Efficient Nitrogen Use with Sulphur Coating

A 5% sulphur coating on urea supplied 50% of the sulphur needs of a wheat crop.
Sulphur-coated urea enhanced nitrogen recovery efficiency by 60% compared to uncoated urea in wheat cultivation.
The Indian Council of Agricultural Research (ICAR) found that using sulphur-coated urea leads to a 25% reduction in overall urea consumption.
In a two-year field study, 5% sulphur-coated urea recorded the highest sulphur concentration in wheat grain and straw compared to lower coating percentages.
The recovery efficiency of nitrogen increased from 31.6% with uncoated prilled urea to 51.6% with 5% sulphur-coated urea, an increase of 63.3%.

Sustainable Solutions with Sulphur Coated Urea

In irrigated paddy fields, grain yield increases from 50 kg N/ha application were 25-60% higher with sulphur-coated urea compared to prilled urea.
A study on maize showed that urea cocrystals with calcium sulphate (a form of sulphur-coated urea) recorded the highest dry matter yields of 8.43 and 11.41 t/ha in two consecutive growing seasons.
The mechanical hardness of double-coated urea (with phosphate rock and sodium thiosulfate) was 27.8% higher than ordinary urea (1.38 vs 1.08 kg).

Emerging Trends

Technological Advancements in Coating Materials: New developments in coating technologies are making Sulphur Coated Urea more effective. Improved coatings ensure a more consistent and controlled nutrient release, enhancing crop yields and reducing environmental impact, which is driving greater adoption in the agricultural sector.
Increasing Demand for Sustainable Fertilizers: As farmers seek more sustainable practices, sulphur-coated urea is gaining popularity due to its eco-friendly attributes. It reduces nitrogen loss to the environment and provides more efficient fertilization, contributing to the overall sustainability of agricultural operations.
Expansion in Emerging Markets: With rapid agricultural growth in emerging economies, particularly in Asia-Pacific and Africa, there is a rising demand for controlled-release fertilizers like SCU. These markets offer significant opportunities for manufacturers to expand their product offerings and tap into growing agricultural sectors.
Government Support and Regulations: Governments worldwide are increasingly focusing on sustainable agriculture practices. Policies promoting the use of controlled-release fertilizers like sulphur-coated urea, along with incentives and subsidies, are encouraging farmers to shift toward more efficient and eco-friendly fertilization options.
Rising Awareness of Soil Health: There is a growing awareness among farmers about the importance of maintaining soil health. SCU, with its controlled release properties, reduces soil acidification and helps maintain nutrient balance, making it an attractive choice for long-term soil health management.

Use Cases

Agricultural Crop Fertilization: Sulphur-coated Urea is widely used in agriculture to improve crop yields by providing a slow, controlled release of nitrogen. This allows for better nutrient uptake, reduces leaching, and enhances overall crop productivity, especially in fields requiring long-term fertilization management.
Ornamental Plants and Lawns: SCU is used in the landscaping industry for fertilizing ornamental plants and lawns. Its slow-release properties ensure that these plants receive a steady supply of nutrients over time, promoting healthy growth without the risk of over-fertilizing or burning the plants.
High-Value Crops: For high-value crops such as fruits, vegetables, and flowers, sulphur-coated urea provides controlled nutrient release that optimizes growth and maximizes yield quality. This results in improved crop appearance and better marketability, while reducing the environmental impact of excess nitrogen.
Soil Health Improvement: SCU helps in maintaining soil fertility by minimizing nutrient runoff and enhancing nutrient retention in the soil. This is especially beneficial in regions with poor soil quality or heavy rainfall, where traditional fertilizers might be washed away, leading to nutrient loss.
Greenhouse and Hydroponic Farming: In controlled agricultural environments like greenhouses and hydroponic systems, SCU is used to provide a constant nutrient supply. The controlled release helps avoid nutrient imbalances and promotes healthier, more sustainable plant growth in confined spaces.
Soil Erosion Control: In areas prone to soil erosion, sulphur-coated urea helps to stabilize the soil by improving its nutrient content and structure. This supports vegetation growth, which in turn reduces the risk of erosion and improves land productivity over time.

Major Challenges

High Production Costs: The manufacturing process of Sulphur Coated Urea involves specialized techniques and materials, making it more expensive to produce compared to traditional urea fertilizers. This can limit its affordability, especially for small-scale farmers in developing regions who might not be able to invest in costlier fertilizers.
Limited Availability of Raw Materials: The production of Sulphur Coated Urea depends on the availability of high-quality urea and sulfur. Any fluctuation in the availability or price of these raw materials can impact the supply and cost of SCU, affecting the overall market dynamics.
Slow Adoption in Some Regions: Despite its benefits, the adoption of sulphur-coated urea is slow in certain regions, primarily due to a lack of awareness, traditional farming practices, and resistance to changing established fertilizer methods. Farmers may also be hesitant due to perceived higher costs or unfamiliarity with controlled-release fertilizers.
Risk of Coating Breakage: In some cases, the sulfur coating can break or degrade unevenly, leading to inconsistent nutrient release. This can reduce the effectiveness of the fertilizer, negatively impacting crop yield and making it difficult for farmers to rely on the product in certain environments.
Regulatory Hurdles: Sulphur-coated Urea is subject to various agricultural regulations in different countries. These regulations can be complex and vary significantly, which may delay market entry for manufacturers and increase compliance costs, especially when expanding into international markets with differing standards.
Environmental Impact Concerns: While SCU is considered more eco-friendly than traditional urea, there are still concerns about its production process, particularly the sulfur coating’s impact on the environment. Improper disposal or excessive application can still lead to environmental challenges such as soil acidity.

Market Growth Opportunities

Expanding Demand for Sustainable Farming: As the agricultural industry shifts towards sustainable practices, sulphur-coated urea offers a green solution by reducing nitrogen loss and minimizing environmental impact. This creates a significant market growth opportunity, especially in regions where eco-friendly farming is becoming a priority.
Rising Agricultural Demand in Emerging Markets: In emerging economies like India, China, and parts of Africa, increasing agricultural productivity to meet food demands presents a growth opportunity for SCU. These regions are adopting modern fertilizers, and SCU’s efficient nutrient release makes it an ideal choice for high-yield farming.
Technological Innovations in Fertilizer Coatings: Ongoing advancements in coating technologies are improving the effectiveness of Sulphur Coated Urea. This allows for the development of fertilizers tailored to different crop types and soil conditions, enhancing its appeal to a broader range of farmers and opening doors to new markets.
Government Incentives and Subsidies: Governments worldwide are increasingly providing incentives for sustainable agricultural practices, including the use of controlled-release fertilizers like SCU. Such policies can lead to greater adoption of SCU by farmers, creating opportunities for manufacturers to expand their reach and sales.
Growth in Organic and High-Value Crops: The demand for SCU is increasing in the cultivation of organic and high-value crops, which require precise and efficient fertilization. This opens up new growth opportunities, particularly in the premium market segment where crop quality and yield optimization are crucial.

Key Players Analysis

Agrium, now part of Nutrien Ltd., is a key player in the global Sulphur Urea market, providing controlled-release fertilizers to enhance crop productivity. They focus on sustainable farming solutions and efficient nutrient delivery systems to support high-yield agriculture.
Andersons specializes in fertilizer manufacturing, including Sulphur Coated Urea, targeting both conventional and organic farming markets. Their products are known for improving crop yields and minimizing nutrient leaching, making them popular in North America.
Everris (now part of ICL Specialty Fertilizers) manufactures sulphur-coated urea among other controlled-release fertilizers, catering to both agricultural and ornamental plant markets. Their products are designed to enhance plant growth and improve nutrient efficiency over extended periods.
Haifa Chemicals is known for producing specialized fertilizers, including Sulphur Coated Urea, with a focus on precision agriculture. Their products are designed to deliver nutrients to crops efficiently, boosting yields while minimizing environmental impact.
Hanfeng Evergreen manufactures sulphur-coated urea as part of its broad portfolio of controlled-release fertilizers, targeting a global customer base in agriculture. They are recognized for their innovative approaches to increasing fertilizer efficiency and reducing environmental footprints.
Harrell’s Dencam Composite produces slow-release fertilizers including Sulphur Coated Urea for the agricultural and turf markets. Their emphasis is on offering fertilizers that provide steady nutrient release, which is crucial for optimizing plant growth and reducing the need for frequent fertilization.
Israel Chemicals (ICL) offers sulphur-coated urea as part of its specialty fertilizers line. The company focuses on enhancing agricultural productivity through nutrient release control, promoting sustainable farming practices, and improving crop yields worldwide.
J.R. Simplot Chemicals is a leading provider of fertilizers, including Sulphur Coated Urea, for agricultural applications. They emphasize efficient nutrient delivery systems that help improve crop performance, particularly in the North American and international agricultural markets.
Koch Industries Inc. manufactures sulphur-coated urea through its subsidiary Koch Fertilizer. They focus on producing efficient fertilizers for the agricultural sector, emphasizing environmental sustainability and improved crop productivity through controlled-release technologies.
Luyue Chemical specializes in the production of Sulphur Coated Urea, serving both domestic and international markets. Their products are designed to provide long-lasting nutrient release, reducing the need for frequent fertilization and enhancing soil health.
Nutrien Ltd., formed from the merger of Agrium and PotashCorp, is one of the largest global suppliers of Sulphur Coated Urea. The company focuses on sustainable farming solutions and precision agriculture, offering fertilizers that improve yield and reduce nutrient waste.
PULCU TARIM is a Turkish company producing sulphur-coated urea, catering to the growing demand for controlled-release fertilizers in the Middle East and Europe. They focus on improving crop yields and minimizing environmental impact through their innovative products.
QAFCO (Qatar Fertiliser Company) produces sulphur-coated urea as part of its broad fertilizer portfolio, targeting international agricultural markets. Their products are designed to enhance nutrient efficiency and boost crop performance, especially in regions with challenging agricultural conditions.
Sun Agro offers a range of controlled-release fertilizers, including Sulphur Coated Urea, with a focus on providing efficient nutrient release for improved agricultural productivity. They target both large-scale farms and smallholders in Asia and Africa.
Syngenta, a leading agricultural technology company, produces sulphur-coated urea to support sustainable farming practices. Their fertilizers are designed to improve crop yields and nutrient management, aligning with the company’s overall focus on innovation and environmental sustainability in agriculture.
The Andersons, Inc. manufactures sulphur-coated urea, offering a variety of slow-release fertilizers to improve soil health and crop productivity. Their products are designed to cater to both large-scale commercial farming operations and smaller agricultural producers.
Turf Care Supply, LLC produces sulphur-coated urea primarily for the lawn care and turf management sectors. Their fertilizers are designed for controlled nutrient release, ensuring healthier turf with reduced environmental impact and less frequent fertilization.
Yara International ASA is a global leader in crop nutrition, including Sulphur Coated Urea. Their products are focused on sustainable agriculture, enhancing nutrient use efficiency, and boosting crop yields. Yara is known for its strong presence in Europe, North America, and emerging markets.

Conclusion

The Sulphur-coated urea (SCU) Market is poised for steady growth driven by increasing demand for efficient and environmentally friendly fertilizers. With its controlled-release properties, SCU not only improves crop yields but also reduces nitrogen loss, making it an attractive solution for sustainable agriculture. The market is expected to expand as more regions, particularly emerging economies, adopt modern farming techniques.

However, challenges such as high production costs and slow adoption in certain areas remain. Nevertheless, the ongoing technological advancements in coating materials and increasing awareness of sustainable farming practices provide significant opportunities for growth. As agricultural demand rises globally and governments implement favorable policies, the SCU market is well-positioned to play a crucial role in shaping the future of fertilizer use in agriculture.