South Korea Nitrogenous Fertilizers Market Overview, 2031

Key Insights

• South Korea is Asia’s fourth‑largest economy and a major importer of key nitrogenous fertiliser inputs. The country relies on imports for virtually all of its urea, ammonia, and potash requirements. This level of external dependence makes the entire agricultural sector highly vulnerable to global price spikes and any disruption in maritime shipping routes.
• The country’s dependence on the Middle East is acute. According to the Korea International Trade Association, approximately 40% of South Korea’s urea and ammonia the key raw materials for nitrogen fertilisers are shipped through the Strait of Hormuz. 2025 import data show that 43.7% of fertiliser grade urea came from Qatar, Saudi Arabia, Oman, and the UAE alone.
• The closure of the Strait of Hormuz and the sharp rise in natural gas prices are therefore a direct cost shock to Korean agriculture. Global urea prices surged by roughly 80% and ammonia futures in Europe spiked by $130 per tonne in the weeks after the waterway were blocked. Shipping and insurance costs have also increased significantly, adding another layer of pressure.

Market Outlook

• According to the research report, "South Korea Nitrogenous Fertilizer Market Outlook, 2031," published by Bonafide Research, the South Korea Nitrogenous Fertilizer Market is anticipated to grow at more than 10.57% CAGR from 2026 to 2031.
• Physical supply is secure in the near term, but price pressure is building. By mid‑April 2026, the Ministry of Agriculture confirmed that finished fertiliser inventories totalled about 31,000 metric tons, with additional production capacity of around 48,000 tons using existing raw materials. Supplies are expected to remain adequate until the end of August 2026, and the government is monitoring the situation closely.
• Farmer demand has surged due to supply concerns. Inorganic fertiliser sales through Nonghyup increased by 45.4% in the first four months of 2026 compared to the same period in 2025. The ministry attributed this to farmers buying extra quantities in advance of future needs. In response, local cooperatives have begun limiting sales to prevent hoarding.
• Despite the surge in demand, retail fertiliser prices in South Korea have held steady. The price per ton remained at 871,000 won in early May 2026, roughly where it was before the Middle East conflict escalated. However, agricultural heating oil has risen for more than 20 consecutive days, and the international prices of fertiliser raw materials have surged because of the Hormuz closure.

Policies

• A supplementary budget for agriculture was passed in mid‑April 2026, worth 377.5 billion won. It includes expanded subsidies linked to fuel prices, covering heating oil for greenhouses and diesel for machinery. Subsidies for mineral fertiliser costs and supply stabilisation have also been increased. Additional financial support includes 65 billion won in loans for livestock farmers to purchase feed and 50 billion won for feed manufacturers to secure raw materials.
• A separate, broader national supplementary budget of 26.2 trillion won was agreed by the ruling and opposition parties on 10 April 2026. In the agricultural sector, it expands fertiliser subsidies and raises diesel subsidies for agriculture, forestry and fisheries. The budget also includes funding to secure key petrochemical raw materials such as naphtha.
• The "Act on Support for Essential Agricultural Materials in Response to Supply Chain Risks" has passed the National Assembly. The law is intended to provide a framework for securing fertiliser, fuel, and other critical inputs during supply crises, but its measures will take time to implement fully.
• The government has activated a daily monitoring task force. The Ministry of Agriculture, Food and Rural Affairs is holding daily meetings to track supply chains and price trends. Officials have emphasised that preventing panic‑driven demand will be critical and have instructed local cooperatives to sell only the quantities that farmers currently need, based on each farm's sales volume from the same month of the previous year.

Industry News

• South Korea imports virtually all of its urea. According to government data, the country relies entirely on external sources for urea, ammonia, and potash. The Korea International Trade Association estimates that approximately 40% of urea and ammonia imports move through the Strait of Hormuz.
• Early 2026 import data shows strong growth. In February 2026 alone, urea import value reached $35.01 million, a 35.56% year‑on‑year increase. In volume terms, February 2026 imports totalled 79,738 tons, up 26.95% from the same month in 2025. The top five trade partners for urea in January‑February 2026 were China, Saudi Arabia, Qatar, Malaysia, and Vietnam.
• Urea import prices have remained moderate relative to past peaks. The average import price in February 2026 was $439.02 per tonne, compared to a historical peak of $957.25 in January 2022. However, global prices have risen sharply since late February, suggesting future import costs will be significantly higher.

Segment Analysis

South Korea Nitrogenous Fertilizer Market By Product Type
• South Korea has minimal domestic urea production and relies heavily on imports from Southeast Asia and the Middle East. Annual consumption is estimated at 1.8-2.6 million tons, while domestic production is limited to 0.1-0.3 million tons from 1-2 industrial gas-linked facilities. Import volumes typically range between 1.6-2.4 million tons annually, routed mainly through major ports such as Ulsan, Incheon, and Yeosu.
• Ammonium nitrate in South Korea is primarily used for industrial explosives and chemical applications, with very limited agricultural usage due to strict safety regulations. Annual production is estimated at 0.6-1.0 million tons, supported by 3-5 industrial chemical plants integrated with downstream explosives manufacturing. Imports range from 0.2-0.5 million tons annually, while exports remain minimal at 50,000-120,000 tons. Manufacturing capacity is estimated at 0.8-1.2 million tons per year, with ammonia feedstock consumption of 0.3-0.6 million tons annually.
• Ammonium sulfate is moderately important in South Korea due to sulfur-demanding crops and acidic soil correction needs in horticulture. Annual production is estimated at 0.9-1.4 million tons, supported by 4-7 production facilities, including by-product recovery from caprolactam and chemical industries. Imports contribute an additional 0.5-0.9 million tons annually, while exports remain low at 50,000-100,000 tons.
South Korea Nitrogenous Fertilizer Market By Form • Solid nitrogen fertilizers dominate South Korea’s agricultural fertilizer logistics, but rely heavily on import driven supply chains. Annual product movement is estimated at 2.0-2.9 million tons, supported by approximately 180-320 storage and warehouse facilities across key agricultural and port-linked regions such as Incheon, Ulsan, Busan, and Gunsan.
• Liquid nitrogen fertilizers are used primarily in greenhouse agriculture, horticulture, and precision farming systems. Annual movement volume is estimated at 0.5-1.0 million tons, supported by approximately 60-120 liquid storage facilities and 8-15 dedicated liquid fertilizer terminals. Total liquid storage tank capacity is estimated at 0.3-0.7 million tons, with typical tank sizes ranging from 500 to 8,000 tons per site. South Korea operates approximately 150-300 liquid fertilizer distribution centers, handling 15,000-35,000 tanker truck shipments annually.

South Korea Nitrogenous Fertilizer Market By Crop Type • Oilseeds and pulses in South Korea include soybeans, red beans, sesame, and peanuts, typically cultivated on small fragmented farms. Total cultivated area is estimated at 120,000-180,000 hectares, with harvested area close to 110,000-170,000 hectares annually. Production volume is relatively limited at 250,000-450,000 tons, supported by approximately 250,000-400,000 smallholder farms engaged in mixed cropping systems.
• Cereals and grains are a core agricultural category in South Korea, dominated by rice, barley, maize, and minor grains. Total cultivated area is estimated at 600,000-750,000 hectares, with harvested area of 580,000-720,000 hectares, largely concentrated in Jeolla, Chungcheong, and Gyeongsang provinces. Annual production volume ranges from 4.5-6.5 million tons, supported by approximately 700,000-900,000 farms, most of which are small-scale rice producers.
• Fruits and vegetables are high-value, intensive cultivation systems in South Korea, including apples, pears, grapes, strawberries, peppers, cabbage, onions, garlic, and leafy vegetables. Total cultivated area is estimated at 220,000-320,000 hectares, with harvested area of 250,000-380,000 hectares due to multiple cropping cycles in greenhouse systems. Annual production volume ranges from 6-10 million tons, supported by approximately 500,000-700,000 farms, many engaged in greenhouse horticulture.

South Korea Nitrogenous Fertilizer Market By Application
• Soil application remains the primary nitrogen delivery method in South Korea, especially for rice paddies and field crops like barley and maize. Annual fertilizer application volume through soil methods is estimated at 1.4-2.2 million tons, covering approximately 650,000-850,000 hectares of agricultural land. Around 600,000-800,000 agricultural holdings rely on soil based fertilization, reflecting the dominance of smallholder rice farming systems.
• Foliar fertilization is widely used in South Korea’s horticulture sector, including apples, pears, grapes, strawberries, peppers, and leafy vegetables. Annual foliar fertilizer application volume is estimated at 0.2-0.5 million tons, covering approximately 180,000-300,000 hectares of high-value crop land. Around 250,000-400,000 farms utilize foliar nutrient programs, especially in greenhouse intensive regions.
• Fertigation is increasingly important in South Korea’s greenhouse horticulture and high tech agriculture systems, especially for strawberries, tomatoes, peppers, and floriculture. Irrigated area using fertigation systems is estimated at 120,000-220,000 hectares, supported by approximately 80,000-160,000 fertigation installations, including drip irrigation and automated nutrient dosing systems.


Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects covered in this report
•Nitrogenous Fertilizers Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By product Type
• Urea
• Ammonium Nitrate
• Ammonium Sulfate
• Calcium Ammonium Nitrate (CAN)
• Others(UAN (Urea Ammonium Nitrate Solutions), Ammonia (Anhydrous Ammonia), Methylene Urea)

By Form
• Solid (Granular / Prilled)
• Liquid
• Gas (Anhydrous Ammonia)

By Crop Type
• Oilseeds and Pulses
• Cereals and Grains
• Fruits and Vegetables
• Others

By Application
• Soil
• Foliar
• Fertigation
• Others