Polymer-Coated Urea Market - Strategic Insights and Forecasts (2026-2031)

The Global Polymer-Coated Urea market is forecast to grow at a CAGR of 5.9%, reaching USD 3.2 billion in 2031 from USD 2.4 billion in 2026.

Polymer-coated urea (PCU) is a nitrogen (N) fertilizer that, when added to the soil, uses temperature-controlled diffusion to regulate N release, match plant demand, and mitigate environmental losses. This is the newest and technically sophisticated technology used in horticultural plant production, and it consists of soluble nutrients coated with polymer. The increasing demand for urea agriculture will improve crop production. Such increasing uses of urea are anticipated to drive the market for polymer-coated urea in the projected period.

Furthermore, PCU provides a controlled-release method that corresponds with the nutritional requirements of cereals and grains, major food crops worldwide. This method reduces nutritional losses from leaching and volatilization—two frequent problems in the production of cereals and grains. Higher yields are the outcome of better crop performance, less adverse environmental effects, and more effective fertilizer usage.

Polymer-Coated Urea Market Drivers:

• The growing prominence of specialty fertilizers in agriculture is anticipated to propel the polymer-coated urea market.

The increasing population and the rising awareness towards the requirement of specific fertilizers for different crops and increasing awareness among farmers about which product to use for the optimal plant produce is driving the polymer-coated urea market. Direct application of urea can be harmful to some plants, such as soybeans; hence, polymer-coated urea proves to be very beneficial in such applications, and the demand for the same is anticipated to increase for such reasons.

Furthermore, the urea subsidy scheme is also expected to help grow the market. For instance, according to the Government of India, CCEA approved the continuation of the urea subsidy scheme that will committee for India rupees 3,68,676.7 subsidy for urea for 3 years from 2022-23 to 2024-25. Hence, with the subsidies in urea, there is expected to be increased production for polymer-based urea in the coming years.

According to the Government of India, indigenous urea production is increasing in the country; in 2014-15, it was 225 LMT, which increased to 250 LMT in 2021-22 and now has reached 284 LMT in 2023. Hence, with the increasing production of urea, there is anticipated to be a boosted production of polymer-based urea as it is an evolved version that is helping the plants to take all the possible advantages of urea. Therefore, the market for polymer-based urea is expected to grow significantly in the projected period.

Polymer-Coated Urea Market Geographical Outlook

• The USA is predicted to witness steady growth in the marketplace. 

Polymer-coated urea is a urea-encapsulated granule that regulates Nitrogen release in plants when added to moist soil via temperature-controlled diffusion. Such fertilizers hold great potential for crop production, especially tomato, and they are also finding applicability in professional turfs and garden lawns. The booming demand for processed tomatoes in the USA has bolstered the overall production output, which is anticipated to drive the use of polymer-coated urea. For instance, according to the USDA’s “Vegetable and Pulses Outlook” report issued in April 2023, tomato production in the country stood at 2,156 million pounds, which is a 1% increase over 2021’s production figure.

Additionally, the US golf industry is growing owing to the growing number of golf participants both on & off the course. For instance, according to the National Golf Foundation, in 2022, 41.1 million Americans aged 6 years above played, whereas the strength of people aged 18 to 34 reached 6.2 million for on-course and 5.8 million for off-source. Such growing participation has bolstered the demand for more golf courses in the United States, which is expected to drive the demand and usage of polymer-coated urea in such applications.

Polymer-Coated Urea Market Players and Products:

Polymer-Coated Urea Market Key Developments:

• September 2023- Sollio Agriculture inaugurated a new controlled-release fertilizer production plant, CRF Agritech, in St. Thomas, Ontario. Launched in 2021, the plant is the only one in Canada capable of manufacturing controlled-release custom fertilizer formulations using Pursell's unique coating technology. With a $25 million investment, the 25,800 square-foot manufacturing facility produces PurYield and other next-generation controlled-release fertilizers for farmers in Eastern Canada and the Northeastern United States. The factory can generate over 100,000 tons of fertilizer annually when operating at full capacity.

• September 2022- The federal government approved polymer-coated urea for reimbursement from the On-Farm Climate Action Fund (OFCAF) for its enhanced efficiency fertilizer products.

Market Segmentation:

The polymer-coated urea market is segmented and analyzed as below:

• By Crop Type

  • Grains and Cereals

  • Pusles and Oilseeds

  • Commerical Crops

  • Fruits and Vegetables

  • Turf and Ornamentals

• By Type

  • Biodegradable

  • Non-Biodegradable

• By Application 

  • Agriculture

  • Golf-Courses

  • Lawn and Turf

  • Others

• By Geography

  • North America

    • USA

    • Canada

    • Mexico

  • South America

    • Brazil

    • Argentina

    • Others

  • Europe

    • Germany

    • United Kingdom

    • France

    • Spain

    • Others

  • Middle East and Africa

    • Saudi Arabia

    • UAE

    • Israel

    • Others

  • Asia Pacific

    • India

    • South Korea

    • Thailand

    • Indonesia

    • Others