Growth Drivers

• Globally Increasing demand for cereal equivalent (CE) - For instance, a modest surplus is expected to be generated by the production of cereal equivalent food in 2030 and 2050, while the demand for cereal equivalent food is projected to be approximately 10,090 million tons in 2030 and 14,880 million tons in 2050. Economic growth and food demand are closely related to population growth. Food will be in greater demand in the future owing to the large global population. Farmers are indulged in producing cereals, vegetables, fruits, and other food items in various intensive farming techniques which are anticipated to propel the demand for chemical fertilizers over the forecast period.
• Rising Urbanization Around The World - Rising income levels, as well as an increase in agriculture demand across the nation, contribute to the increase in agricultural products' demand. In today's world, 56% of the population - 4.44.4 billion people resides in urban areas. It is expected that the urban population will double by 2050, with nearly 7 out of 10 people living in cities then. 
• Increasing Consumption Of Nitrogenous Fertilizers - Approximately 18.9 million metric tons of nitrogenous fertilizer were consumed in India in 2020, according to data. Nitrogenous fertilizers were heavily consumed by the country over the years.
• Rapid Expansion Of Agriculture Sector Across The World- For instance, in 2020, the U.S. agriculture, food, and related services industry contributed nearly USD 1 trillion to the Gross Domestic Product (GDP) of the country, which is about 5% of the country's economic output. US agriculture contributed USD 134 billion to this amount, or 0.6%.
• Rapidly Growing Chemical Industry – For instance, chemical demand is expected to increase by 8% each year by 2025. By 2025, India's chemical industry will contribute USD 290 billion to its gross domestic product.

Challenges

• Increase In The Use Of Bio-Fertilizers
• Rising Environmental And Soil Concerns
• Presence Of Product Alternative

The global chemical fertilizers market is segmented and analyzed for demand and supply by product type into complex fertilizers, DAP, MOP, urea, SSP, and others. Among these segments, the urea segment is anticipated to capture the largest market size in the global chemical fertilizers market owing to the increasing consumption of urea in the agriculture sector. For instance, approximately 290 LMT of urea are consumed each year, accounting for 54 to 61% of India's chemical fertilizer consumption. The agricultural sector makes extensive use of urea as a fertilizer and as an additive to animal feed. The main purpose of urea fertilizer is to provide nitrogen to plants to enable them to grow green leaves and look lush. In addition, urea aids the process of photosynthesis in plants