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Sulfur Market Latest Industry Size, Share, Emerging Trends, Future Demands, Revenue and Forecasts Research Report, Fortune Business Insights
The global sulfur market size reached USD 5.40 billion in 2020. The market size is expected to rise from USD 5.61 billion in 2021 to USD 6.98 billion in 2028 at a CAGR of 3.2% during 2021-2028. Growth is attributable to the increasing demand for fertilizers, a key area of application for the product and its derivatives. Fortune Business Insights presents this information in its report titled “Sulfur Market, 2021-2028."

Sulfur is one of the most important raw materials in the chemical sector. It is primarily used as a derivative in the form of sulfuric acid (H2SO4) in numerous chemical and industrial processes. The substance is essential in the production of phosphate fertilizers. Rubber processing, medical, and cosmetics are other notable areas of applications. It holds high importance across the globe, owing to its relevance to industrial economies and relative ease of transportation. It is produced during tar sand recovery, petroleum refining, natural oil & gas processing, coking, and metallurgical processes.

COVID-19 Impact:

Trade Restrictions amid Pandemic to Hamper Market Growth

Impact of COVID-19 on refinery output has directly affected liquid sulfur supply. Supply was further impacted by factors such as plant turnarounds, shift toward sweeter crude, and continuous depletion of output from German natural gas resources. Amid rising COVID-19 cases, Chinese buyers halted the product import, thereby affecting demand significantly. In May 2021, China purchased just over 500,000 tons, a 16% drop since May 2020 and the lowest level of import since May 2004. Import activity in India was also affected by strict containment measures. Slowdown of fertilizer demand in emerging economies, such as India and China, led to reduced product production between 2020 and 2021.

Drivers & Restraints:

Growing Fertilizer Consumption to Augment Global Market Growth

Rising fertilizer demand is driving the sulfur market growth. Agricultural fertilizer production utilizes about 54% of all recovered sulfur generated worldwide. Need to boost global food production to feed the ever-growing world population will surge the product demand in the forthcoming years. As per the World Fertilizer Outlook, demand for phosphorus (P2O5) fertilizer consumption in 2020 reached around 47,402 thousand tons, which is anticipated to reach 49,096 thousand tons in 2022. Similar trends in the near future will augment the global market growth.

On the contrary, adverse risks and various health concerns related to the product are expected to hamper its demand.

Regional Insights:

Asia Pacific dominated the sulfur market share in 2020 with an annual valuation of USD 1.83 billion. The regional demand is influenced by the surging fertilizer consumption across China, India, Japan, and Kazakhstan. The World Fertilizer Magazine reports that fertilizer consumption in India surpassed 61.4 million tons in 2020. Growing population and rising food demand will propel the regional growth.

The Middle East & Africa holds a significant share of the market, owing to the large manufacturing base in the Gulf nations. Sulfur being a major by-product of oil refineries, high number of oil refining and gas processing firms will amplify the regional demand.

Meanwhile, North America will record notable growth through 2028 led by increased consumption from pharmaceutical, chemical, and metal extraction applications.

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