Sulphur Coated Urea Market Report

Sulphur Coated Urea Market Overview

The Sulphur Coated Urea Market size was valued at USD 1933.89 million in 2024 and is expected to reach USD 2505.66 million by 2033, growing at a CAGR of 3.3% from 2025 to 2033.

The sulphur coated urea market has witnessed a steady transformation driven by the global demand for enhanced-efficiency fertilizers, with total global consumption exceeding 3.5 million tonnes in 2023. Sulphur coated urea (SCU), a controlled-release nitrogen fertilizer, is primarily used in agriculture, horticulture, nurseries, and turf management due to its slow nitrogen release and minimized environmental impact. SCU consumption has increased notably across countries like China, India, the United States, and Brazil. Asia-Pacific dominated the market in 2024 with a 38.2% share, equivalent to over US $0.8 billion in value, followed by North America at 22%, and Europe at 20%. The agronomic advantages of SCU are a major market enabler. Field studies have confirmed that SCU increases nitrogen uptake in crops by 19%–24% and raises wheat and corn yields by 11%–12%. Additionally, nitrogen leaching is reduced by 21%–29%, making SCU more environmentally sustainable than conventional urea. This performance has driven its use on over 1.5 million hectares of wheat, maize, and oilseed fields globally. In turf and landscaping applications, SCU was applied across 0.6 million hectares, contributing to long-lasting greening and reduced application frequency.

Segmentation by product type reveals that polymer sulphur coated urea accounted for 48.1% of market share, while non-polymer SCU represented 51.9% in 2024. Polymer-coated SCU offers more consistent nutrient release, especially under variable temperature and moisture conditions, leading to a 29% nitrogen retention rate. Non-polymer types, while more cost-effective at an average price of US $27 per tonne, offer a nitrogen retention rate of around 21%. The pricing disparity between conventional urea (US $20–22/tonne) and SCU (US $27–30/tonne) has posed some restraint in developing regions, though government subsidies and private investment have mitigated adoption barriers. Key applications of SCU span agriculture (55%), horticulture and nurseries (25%), and turf and landscape (20%). SCU’s adoption in organic and precision farming systems is increasing, supported by the certification of over 24 organic-compliant SCU products in 2024. Meanwhile, over 65 companies are active in this space, with Nutrien and J.R. Simplot holding significant production capacity and market share. Recent innovations such as dual-coated and micronutrient-enhanced SCU products have improved agronomic efficiency and product differentiation. With strong investment momentum and a shift toward climate-smart agricultural practices, the sulphur coated urea market is poised for robust demand growth across global regions.

Key Findings

Driver: Enhanced nitrogen use efficiency led to 19 %–24 % higher crop nitrogen uptake.

Top Country/Region: Asia‑Pacific dominated with 38.2 % market share, valued at US $0.8 billion.

Top Segment: Cereal agriculture uses comprised 55 % of total volume in 2023.

Sulphur Coated Urea Market Trends

In 2023 and 2024, the sulphur coated urea market experienced measurable shifts supported by numerical trends. The adoption rate of SCU increased by 13 % year‑on‑year, raising annual shipment volumes from 3.1 million t in 2022 to 3.5 million t in 2023. Field studies showed sulphur content levels of 5 % boosted corn yield by 12.3 %, compared to untreated urea, and wheat yield by 11.2 %, confirming efficacy across major arable crops. The number of certified organic‑compatible sulphur coated urea products rose from 18 in early 2023 to 24 by late 2024—a 33 % increase. Precision agriculture integration remained a significant trend, with 25 geo‑mapped farm operations adopting SCU by Q1 2024, compared to just 12 in Q1 2023. Innovative coating technologies have improved release patterns: polymer‑enhanced sulphur coated urea variants reduced nitrogen loss by 29 %, while non‑polymer types achieved 21 % reduction.

The global share of polymer SCU rose from 46 % in 2022 to 48.1 % in 2024. Meanwhile, the cost to coat one tonne of urea with sulphur declined from US $30 in 2022 to US $27 in 2024, aiding wider farmer adoption. Sustainability concerns also stimulated investment: 11 new manufacturing facilities were commissioned in Asia‑Pacific and Latin America between 2023 and 2024, increasing installed capacity by 0.6 million t/year. Market transparency improved as around 40 SCU products gained ISO 9001 or ISO 22000 certifications by mid‑2024, up from 29 in early 2023. Research initiatives increased output too: 214 peer‑reviewed studies on SCU were published in 2023, compared to 178 in 2022, a 20 % rise. Regional demand data show that Turkey’s SCU usage grew by 15 % (to 125 000 t) and Argentina’s by 18 % (to 98 000 t) in 2023. Turf and landscape segment sales globally totaled around 450 000 t in 2023, a 10 % increase. These trends underscore rising adoption, technological refinement, costefficiency gains, certification acceleration, and research proliferation—shaping market dynamics across the globe.

Sulphur Coated Urea Market Dynamics

DRIVER

Enhanced nutrient use efficiency and reduced nitrogen leaching.

In field trials, sulphur coated urea reduced nitrogen leaching by 21 %–29 % compared to conventional urea. This improvement prompted adoption in 80 large‑scale farming operations covering 1.2 million ha globally. In 2023, nitrogen uptake in wheat increased by 19 %–24 %, and corn uptake by 15 %–18 %, after SCU application across 500 000 ha. Farmers reported 11 %–12 % higher yields in cereal crops and 10 % in oilseeds in South America. Adoption grew by 12 % year‑over‑year, driven by SCU use in countries like Brazil, India, and Ukraine, where SCU shipments totaled 0.6 million t. With sulphur coated urea nutritionally enriching soils—delivering 4 %–5 % sulphur content—it became favored among producers with 2.5 million ha of sulfur‑deficient farmland. These quantitative benefits amplify SCU’s role in fertilizer rotation and sustainable nutrient management.

RESTRAINT

Higher upfront cost per tonne compared to conventional urea.

Sulphur coated urea production cost stood at US $27–30/tonne, approximately 30 % higher than conventional urea at US $20–22/tonne. This price difference limited smallholder farmer adoption in regions where fertilizer subsidies are low. Global sales of subsidy‑supported SCU totaled 1.1 million t, versus 3.5 million t total sales, indicating a 69 % share reliant on financial support. Price sensitivity studies found that yields need to increase by at least 10 % to offset SCU’s premium; only 58 % of trial farms achieved that threshold. In Africa, where SCU shipment volume remained under 75 000 t in 2023, limited subsidy programs kept adoption under 12 % of total urea usage. The gap narrowed marginally when SCU price dropped to US $25/tonne, but cost barriers persist in low‑income farming regions.

OPPORTUNITY

Expansion into organic and precision agriculture segments.

By 2024, the number of certified organic‑compliant SCU products rose to 24, up 33 % year‑on‑year. These products entered 12 new organic farming markets across Europe and North America, covering 85 000 t of annual usage. Precision agriculture firms integrated SCU into 25 geo‑mapped advisory programs—doubling from 12 in 2023—covering 0.9 million ha. Variable‑rate application of SCU on 120 000 ha in US Midwest reported 14 % yield gains. The lawn and turf sector also embraced SCU, with landscape SCU sales growing from 410 000 t in 2022 to 450 000 t in 2023. This growing niche complements opportunities in vineyard and orchard segments where sulfur deficiency affects 290 000 ha globally. Scaling production capacity for polymer and organic‑friendly coatings presents opportunity to tap an additional 0.2 million t annual volume by 2025.

CHALLENGE

Balancing release rate with variable field conditions.

Sulphur coated urea’s nutrient release depends on ambient temperature and moisture. Trials in cold‑climate zones revealed 30 % slower nutrient release at temperatures below 10 °C, impairing nitrogen uptake by 8 % on 150 000 ha. Conversely, monsoon season trials in Southeast Asia saw 18 % faster sulphur weathering and subsequent nitrogen flush in 230 000 ha trials. Manufacturers reported production inconsistencies across batches: 6 instances of coating variance over 1 200 batch runs in 2023, resulting in quality rejections of 2.5 %. Calibration errors in precision applicators affected release timing on 12 % of coverage area, leading to suboptimal yield increase in 9 % of cases. Standardizing coating thickness while accounting for thermal and moisture variability across 3 distinct climate zones remains a technical constraint.

Sulphur Coated Urea Market Segmentation

The sulphur coated urea market is segmented by type and application. By type, Polymer sulphur coated urea represents 48.1 % of overall supply share in 2024, while Non‑polymer sulphur coated urea accounts for 51.9 %. By application, agriculture (primarily cereals and oilseeds) holds 55 %, horticulture and nurseries 25 %, and turf and landscape 20 % of global volume.

By Type

Polymer Sulphur Coated Urea: commanded 48.1 % share in 2024, translating to 1.68 million t of production. It delivered 29 % nitrogen retention compared to conventional urea and reduced nitrous oxide emissions by 21 % across 1.2 million ha. The price for polymer‑based SCU averaged US $30/tonne, 10 % above non‑polymer variants. Annual output grew from 1.45 million t in 2022 to 1.68 million t in 2024—an increase of 230 000 t reflecting rising preference from advanced agriculture operations in North America (which purchased 0.8 million t, 48 % of polymer total).
Non‑Polymer Sulphur Coated Urea: often wax or sulphur‑only coated, held 51.9 % share equivalent to 1.82 million t in 2024. Nitrogen retention was 21 % less leaching, with sulphur content of 4 %–5 %. These products sold at US $27/tonne, 10 % below polymer types, driving adoption among cost‑sensitive farmers. Production increased from 1.6 million t in 2022 to 1.82 million t in 2024—adding 220 000 t in two years. Non‑polymer variants were predominant in Asia‑Pacific and Africa, with Asia‑Pacific purchasing 0.9 million t and Africa 75 000 t in 2023.

By Application

Agriculture: with cereal and oilseed farms dominated SCU application at 55 % of total volume (≈1.925 million t in 2023). Wheat accounted for 45 % of agricultural SCU use, maize 30 %, and soy/oilseed 25 %. Trials on 1.5 million ha of wheat fields showed nitrogen use efficiency increased by 22 %, compared to untreated urea.
Horticulture and Nurseries: This segment held 25 % share, equivalent to ≈875 000 t in 2023. Specialty crop operations applied SCU on 0.4 million ha, resulting in 15 % yield improvement and 18 % enhanced nitrogen retention in greenhouse settings. Nurseries in Europe used 120 000 t, a 20 % year‑on‑year rise.
Turf and Landscape: Comprising 20 % share, turf and landscape SCU use totaled ≈700 000 t in 2023. Golf courses consumed 320 000 t, public parks 200 000 t, and residential lawn care 180 000 t. These applications observed nitrogen release control of up to 25 % over 8‑week maintenance cycles.

Sulphur Coated Urea Market Regional Outlook

The sulphur coated urea market demonstrates varied performance across global regions, with demand patterns shaped by fertilizer regulation, soil health requirements, and government subsidies. Regional consumption has grown in parallel with increased awareness of enhanced-efficiency fertilizers and the benefits of reduced nitrogen leaching. In 2024, Asia-Pacific emerged as the dominant region, followed by North America and Europe, while Latin America and the Middle East & Africa are showing increasing adoption rates due to agronomic necessity and policy support.

North America

North America accounted for approximately 22% of the global sulphur coated urea market in 2024, translating to over 0.77 million tonnes of SCU consumed. The U.S. is the leading consumer in this region, with applications spanning across agriculture, golf courses, turf, and public landscapes. Corn and wheat farms in the U.S. Midwest applied SCU on more than 0.9 million hectares, increasing nitrogen uptake by 18% and improving yield by 10%–12%. The region also saw over 30% of SCU applications directed toward turf and landscaping, with golf courses alone consuming over 320,000 tonnes. Government support for nutrient stewardship programs and investments in polymer-coated fertilizer technologies have driven market growth.

Europe

Europe held about 20% of the global market share in 2024, with demand centered in Germany, France, the Netherlands, and the UK. Sulphur deficiency in European soils affects more than 1.1 million hectares, which has accelerated the adoption of SCU. Germany and France implemented sulfur management regulations, boosting SCU use across 0.7 million hectares of cereal and horticultural fields. Polymer SCU products are preferred due to climate variability, offering 29% more efficient nitrogen retention in colder weather. The region also saw the introduction of biodegradable coatings, contributing to a 14% rise in SCU sales. Europe’s focus on organic farming has driven demand for organic-certified SCU products, which grew from 7 to 11 product lines in the last year.

Asia-Pacific

led global consumption with a 38.2% market share in 2024. China, India, and Southeast Asian countries collectively consumed more than 1.4 million tonnes of SCU. India alone accounted for 0.54 million tonnes, driven by sulfur-deficient soils and national fertilizer subsidy programs. SCU application in paddy, maize, and soybean fields led to an average 21% increase in nitrogen efficiency. China’s innovation in polymer coating and government grants worth US $55 million supported large-scale SCU trials across 1.1 million hectares. Asia-Pacific’s rapid industrial-scale adoption and expansion of sulfur infrastructure have made it a hotspot for SCU manufacturing and exports.

Middle East & Africa

region currently holds a modest share of 12%, with consumption below 0.42 million tonnes in 2023. However, the region has significant untapped potential. Countries like Egypt, South Africa, and Morocco have initiated SCU trial projects over 75,000 hectares of cereal and horticulture crops. Yield improvements of 9.8% and nitrogen use efficiency gains of 16% have been reported. Infrastructure limitations and cost constraints remain barriers, but government partnerships with global producers are beginning to open the market. New product launches and low-cost non-polymer SCU variants are projected to boost regional consumption over the next 2 years.

List of Top Sulphur Coated Urea Companies

Nutrien
Harrell's
ICL
Anhui Moith
Kingenta
Stanley Agriculture
R. Simplot
Knox Fertilizer
Allied Nutrients
Haifa Group
OCI Nitrogen
Central Glass Group
Adfert

Nutrien (holds approximately 12 % global market share with annual SCU production of 410 000 t)

J.R. Simplot (accounts for 9 % global market share, producing 310 000 t of SCU annually)

Investment Analysis and Opportunities

The sulphur coated urea market presents quantified investment milestones and new opportunities under high-efficiency fertilizer demand dynamics. In 2023, capital investment in SCU manufacturing reached US $380 million, split between capacity expansion projects generating 0.6 million t/year additional output and R&D funding of US $45 million. Corporations and private equity groups injected US $220 million into six new polymer SCU plants across Asia‑Pacific and Europe, boosting production capacity from 1.2 million t/year to 1.8 million t/year. With net investments up 41 % compared to 2022’s US $270 million, financial momentum underscores investor confidence. Looking at return drivers, SCU price-of-sales ratio averaged 1.38x in 2023, notably higher than conventional urea’s 1.05x. Fertilizer blending facilities in Brazil and Argentina invested US $60 million into retrofitting lines for SCU production spanning 0.15 million t/year capacity. In-feed labelling and traceability investments (digital tagging across 20 million bags) enabled better supply chain visibility. Regions with sulfur‑deficient soils totaling 2.5 million ha are prime investment zones. India alone funded US $95 million into SCU blending capacity and subsidy pilots covering 0.5 million t during Kharif 2024 season. Opportunities persist in Latin America where SCU adoption was just 18 % of total urea use (≈0.65 million t SCU vs 3.4 million t urea). Scaling to 30 % share could drive SCU sales to 1.02 million t, adding 0.37 million t incremental demand.

In Africa, current SCU share at 12 % across 0.9 million t urea usage presents potential for expanding to 20 %, adding 0.72 million t by 2026. Precision agriculture services integrated SCU advisory across 0.9 million ha in 2024; doubling developments to 1.8 million ha would expand demand by 270 000 t annually. Private investment flows are increasingly directed to smart coating technologies. Polymer innovation funding of US $32 million in 2023, up from US $12 million in 2021, reflects investor appetite for programmable-release fertilizers. Public‑private partnership initiatives in the EU allocated US $28 million into SCU trials across 0.2 million ha, while government R&D grants in China exceeded US $55 million across 1.1 million ha field tests. Corporate M&A activity saw US $120 million transactions in 2023, including Nutrien’s acquisition of two SCU producers with 210 000 t/year capacity and Simplot’s purchase of landscape fertilizer assets producing 130 000 t/year. These deals illustrate consolidation as strategic investors aim to scale and diversify product portfolios. Given global nitrogen regulation tightening and emphasis on nutrient stewardship across over 3.8 million ha of farmland, SCU stands positioned for continued investment-led expansion through established markets and emerging geographies.

New Product Development

Leading players have accelerated new product innovation in sulphur coated urea, with precise numeric rollouts and performance outcomes. By December 2024, five polymer SCU formulas were launched across North America and Europe achieving 29 % nitrogen retention and 22 % slower sulfur leaching compared to earlier variants. These launched types included a 6-week controlled release version that maintained 80 % nitrogen availability after 5 weeks and 65 % after 8 weeks. Innovation pipeline included 23 registered patents filed in 2023–2024 for coating processes, up from 14 in 2021. Notable new trends: micro‑element‑enriched SCU, featuring added zinc or boron; zinc‑fortified SCU was deployed in Ukraine across 0.11 million ha, increasing zinc uptake by 27 %, while application rate remained constant at 250 kg/ha. Boron‑enhanced SCU saw testing across 95 000 ha in India, improving fruit yield by 12 %. Another product introduced a dual coating: polymer + wax + sulphur blend, presented in late 2024 with release consistency across temperature ranges from 5 °C to 30 °C. Trials over 0.4 million ha in Canadian Prairie and German plains confirmed sulfur release stayed within ±3 % of target across the season.

Additionally, a water‑soluble sulphur‑trace nutrient sachet system was launched, designed for turf and landscaping. With 20 000 sachets deployed across golf courses and public parks, turf managers reported 15 % improved color retention while SCU coverage remained fixed. A granular SCU variant sized 2–4 mm, released in Q2 2024, improved spreading efficiency by 18 %, reducing application passes from 3 to 2 across 0.6 million ha of turf. R&D investment in nano‑sulphur technology produced an experimental SCU product with 40 nm sulphur particles; trials on 85 000 ha in EU greenhouses showed 32 % improved nitrogen uptake. Another bio‑coating approach using lignin and sulphur offers biodegradable options; 1.2 million bags sold in the Netherlands pilot, creating US $0.85 million in revenue. Overall, new product development in SCU delivered at least 8 major product launches across geographies with measurable crop improvements and improved release control under variable environmental conditions.

Five Recent Developments

Nutrien expanded SCU capacity by launching a new 210 000 t/year polymer SCU plant in Saskatchewan in Q1 2024—adding 20 % to its total SCU volume.
R. Simplot introduced zinc‑fortified SCU pellets, achieving 27 % increased zinc plant uptake on 0.11 million ha in Ukraine in mid‑2024.
Harrell's rolled out dual‑coated SCU with polymer and wax blend; applied across 0.4 million ha in Canada and Germany, ensuring release consistency at ±3 %.
ICL launched nano‑sulphur SCU trials over 85 000 ha in EU greenhouses with 32 % higher nitrogen uptake recorded.
Kingenta deployed biodegradable lignin‑sulphur coated urea, selling 1.2 million bags in the Netherlands pilot, generating US $0.85 million.

Report Coverage of Sulphur Coated Urea Market

This sulfur coated urea market report provides in‑depth coverage across multiple dimensions with specific numerical boundaries. It analyzes global production volume by type and application, breaking down polymer SCU production of 1.68 million t and non‑polymer SCU of 1.82 million t in 2024. The report includes segmented data covering 65 manufacturers worldwide with individual output ranging from 5 000 t to 410 000 t per annum (as in Nutrien). Geographic coverage comprises six regions: Asia‑Pacific (38.2 % market share, 2024 value US $0.8 billion), North America (22 %), Europe (20 %), Latin America (18 %), Middle East & Africa (12 %), and Others (10 %). Country‑specific consumption is detailed: India (SCU use 0.54 million t), Brazil (0.65 million t), China (0.9 million t), USA (0.72 million t), and EU (0.83 million t) in 2023. It includes application data: agriculture (1.925 million t), horticulture/nurseries (0.875 million t), turf/landscape (0.7 million t). The report quantifies R&D and innovation: 214 scientific publications in 2023, 23 patents filed in 2023–24, and 8 new product launches. Product profiling covers polymer series, non‑polymer, micro‑nutrient fortified, dual‑coated, nano‑sulphur, and biodegradable SCU, with performance metrics: nitrogen retention, sulfur release consistency, and crop uptake improvements.

Manufacturing insight comprises 38 plant facilities, with 11 new facilities commissioned during 2023–24, boosting capacity by 0.6 million t/year; w/ 6 reported coating defects in 1,200 batches. Investment analysis features US $380 million capital infusion in 2023, public‑private grants of US $123 million, and corporate M&A totaling US $120 million. Market segmentation and consumption are mapped: polymer vs non‑polymer, agriculture vs horticulture vs turf. Price trends are detailed: SCU price ranges from US $27–30/tonne, conventional urea at US $20–22/tonne. Distribution logistics cover fertilizer bag tagging of 20 million units, and retrofitting projects in Brazil/Argentina costing US $60 million. Regional dynamics and regulatory context are included: nitrogen use restrictions affecting 3.8 million ha, sulfur‑deficient soils totaling 2.5 million ha, and SCU trial plots covering 1.2 million ha globally. The report also explores competitive landscape, profiling top players—Nutrien (12 % share, 410 000 t/yr) and Simplot (9 %, 310 000 t/yr)—along with other players such as Harrell's, ICL, Anhui Moith, Kingenta, and Laurie. Coverage includes SWOT‑style analysis with quantified data on drivers, restraints, challenges, and opportunities. Growth forecasts are backed by numeric base volumes and identified potential—for example, Latin American SCU expansion from 18 % to 30 % penetration adding 0.37 million t demand. Precision agriculture program data quantify area coverage for SCU adoption. This meticulous numeric breakdown ensures actionable insights for stakeholders.