Granular Urea Market Size was estimated at 13.95 (USD Billion) in 2022. The Granular Urea Market Industry is expected to grow from 14.4(USD Billion) in 2023 to 19.1 (USD Billion) by 2032. The Granular Urea Market CAGR (growth rate) is expected to be around 3.19% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Granular Urea Market Trends Highlighted
The market for granular urea is expected to expand in the future as a result of such factors as increased use of fertilizer, especially in the agricultural sector, coupled with the growing world population and, more so, urbanization. The two foremost emerging economies are the Asia-Pacific and Latin America, which contain large agricultural populations and are in the process of experiencing an urban revolution. The need for precision farming technology and effective use of fertilizers, which is also leading to the use of granular urea, is also extending the market.
Strategic Planning & Strategies of Granular Urea serves in the discovery of new technologies such as controlled-release fertilizers and precision agricultural, which will allow the efficient application of urea. Further, a specific crop and a region in a blend of fertilizers can improve the yield and also the inputs used.
Recent developments within granular urea market include environmental concerns including shift to organic and bio-based fertilizers, and new product designs for efficient packaging to minimize wastage. Many factors such as the emphasizing of environmental standards and realization of the adverse effects of overuse fertilizer are driving the market and promising the environmentally friendly and high efficient granular urea products.
Increasing Demand for Nitrogen-Based Fertilizers
With the population of the world increasing and the constant push for farming and food production, the demand for nitrogenous fertilizers has risen. Urea is a concentrated nitrogenous fertilizer in the form of granules, which is applied in the production of soil conditioners that help improve crop productivity and yields. Influenced by the growing population across the globe, the granular urea market industry is anticipated to grow at a moderate rate due to market demand. Also, the rise in knowledge among farmers about the advantages of granular urea, like slow-release nitrogen base fertilizer, which contains a high nitrogen percentage, helps in driving the granular urea market over the forecast period.
Expansion of the Bioplastics Industry
Granular urea is also used as a raw material in the production of bioplastics. Bioplastics are biodegradable and environmentally friendly alternatives to traditional plastics, and their demand is growing rapidly due to increasing environmental concerns. The expansion of the bioplastics industry is expected to create new opportunities for granular urea manufacturers, as it provides an additional market for their products, thereby contributing to the growth of the Granular Urea Market Industry.
Government Initiatives and Subsidies
Governments worldwide are implementing various initiatives and subsidy programs to promote the use of fertilizers in agriculture. These initiatives are aimed at increasing crop yields and ensuring food security. The availability of subsidies and incentives for farmers who use granular urea is expected to stimulate demand for this fertilizer, further driving the growth of the Granular Urea Market Industry.
Granular Urea Market Form Insights
The Granular Urea Market segmentation by form primarily comprises Prilled Urea and Granular Urea. Granular Urea holds a dominant share in the market owing to its superior physical properties. Granular Urea is characterized by its larger particle size and enhanced durability, making it less susceptible to caking and dust formation during transportation and storage. This form of Urea is preferred in large-scale agricultural operations due to its ease of handling and application. Additionally, Granular Urea exhibits higher nutrient content, leading to improved crop yields and reduced application rates.As a result, the demand for Granular Urea is anticipated to remain robust in the foreseeable future. According to market data, the Prilled Urea segment is projected to experience steady growth over the forecast period. Prilled Urea is typically smaller in size and has a higher surface area compared to Granular Urea. This form of Urea is commonly used in foliar applications and fertigation systems. The increasing adoption of fertigation techniques in precision farming is expected to drive the demand for Prilled Urea in the coming years. The Granular Urea Market is expected to witness significant growth in the coming years, driven by the rising demand for fertilizers in the agricultural sector.This growth is primarily attributed to the increasing need for food production to meet the demands of a growing population. Furthermore, government initiatives and subsidies aimed at promoting sustainable agriculture practices are expected to further augment the market growth.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Granular Urea Market Grade Insights
The Granular Urea Market is segmented by grade into Standard Grade and High Grade. The High Grade segment held the largest share of the market in 2023, and is expected to continue to do so through 2032. The growth of this segment is attributed to the increasing demand for high-quality urea for use in fertilizers and other industrial applications. The Standard Grade segment is also expected to grow over the forecast period due to the increasing use of urea in agriculture and other industries.
Granular Urea Market Application Insights
Application Segment Insights and Overview The granular urea market segmentation by application comprises fertilizers, feed additives, and others. The fertilizers segment held the largest share of the market in 2023 and is projected to continue its dominance throughout the forecast period. This dominance can be attributed to the widespread use of granular urea as a nitrogen fertilizer in agricultural practices. Urea's high nitrogen content makes it an effective nutrient source for crops, promoting plant growth and yield. The feed additives segment is expected to witness significant growth during the forecast period.Granular urea is used as a source of non-protein nitrogen (NPN) in animal feed, particularly for ruminants like cattle and sheep. NPN supplements help improve feed efficiency and reduce the cost of animal production. The "others" segment includes applications such as water treatment, industrial chemicals, and pharmaceuticals. In water treatment, granular urea is used as a dechlorinating agent and a source of nitrogen for biological processes. In the chemical industry, it is used in the production of plastics, resins, and adhesives. In pharmaceuticals, granular urea is used as an excipient in tablet formulations.
Granular Urea Market End-Use Industry Insights
The Granular Urea Market is segmented into Agriculture, Construction, Chemical, and Others based on End-Use Industry. The Agriculture segment is the largest in the Granular Urea Market, accounting for over 70% of the market share in 2023. This is due to the high demand for granular urea as a fertilizer in the agriculture industry. The Construction segment is the second largest, accounting for around 15% of the market share. Granular urea is used as a raw material in the manufacturing of cement and other construction materials. The Chemical segment is the third largest, accounting for around 10% of the market share.Granular urea is used in the production of various chemicals, such as plastics and fertilizers. The Others segment includes other end-use industries, such as textiles, pharmaceuticals, and food processing, which account for around 5% of the market share.
Granular Urea Market Distribution Channel Insights
The distribution channel segment plays a crucial role in the Granular Urea Market, influencing market growth and revenue generation. Direct sales involve selling granular urea directly to end-users, bypassing intermediaries. This channel offers better control over pricing, product quality, and customer relationships. Retail sales encompass the distribution of granular urea through retail stores, reaching consumers directly. Online sales, driven by the growth of e-commerce, provide convenience and a wider product selection to customers. In 2024, the Granular Urea Market is projected to reach a valuation of USD 14.8 billion, with direct sales accounting for a significant share.Retail sales are anticipated to witness substantial growth, driven by increasing demand from agricultural and industrial sectors. Online sales are gaining traction, offering competitive pricing and ease of purchase. These distribution channels collectively contribute to the overall market segmentation and data, providing insights into industry dynamics and market statistics.
Granular Urea Market Regional Insights
Regionally, the market is segmented into North America, Europe, APAC, South America, and MEA. North America is the dominant regional market for granular urea, accounting for a significant share of the market revenue. The region's agricultural sector is a major consumer of granular urea, which is used as a nitrogen fertilizer to enhance crop yields. The United States is the largest market for granular urea in North America, followed by Canada and Mexico. Europe is another key regional market for granular urea. The region has a well-established agricultural sector, and granular urea is widely used as a fertilizer in countries such as France, Germany, and the United Kingdom.The growing demand for organic farming in Europe is driving the market for granular urea, as it is considered a natural and environmentally friendly fertilizer. APAC is the fastest-growing regional market for granular urea. The region's rapidly growing population and increasing agricultural production are driving the demand for fertilizers, including granular urea. China is the largest market for granular urea in APAC, followed by India and Southeast Asia. The increasing adoption of precision farming techniques in APAC is also expected to contribute to the growth of the granular urea market in the region.South America is a significant regional market for granular urea. The region's agricultural sector is heavily dependent on fertilizers, and granular urea is widely used in countries such as Brazil, Argentina, and Colombia. The growing demand for soybeans and other crops in South America is driving the market for granular urea in the region. MEA is a relatively small regional market for granular urea. However, the region's growing population and increasing agricultural production are expected to drive the demand for fertilizers, including granular urea.Saudi Arabia is the largest market for granular urea in MEA, followed by Egypt and Morocco. The increasing investment in agricultural infrastructure in MEA is also expected to contribute to the growth of the granular urea market in the region.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Granular Urea Market Key Players And Competitive Insights
Major players in the Granular Urea Market industry are focusing on developing innovative products and expanding their presence. Leading Granular Urea Market players are investing heavily in research and development to improve their product quality and meet the evolving demands of the market. Companies are also engaging in strategic partnerships and acquisitions to enhance their market share and expand their product portfolio. The Granular Urea Market is expected to witness significant development in the coming years, driven by increasing demand from various end-use industries and government initiatives to promote sustainable agriculture practices. The competitive landscape of the Granular Urea Market is characterized by a mix of established players and emerging companies, with each player striving to gain a competitive edge through product differentiation, innovation, and strategic partnerships.Yara is a leading producer of nitrogen fertilizers, including granular urea. The company has a strong presence in markets, with operations in over 60 countries. Yara focuses on providing innovative and sustainable solutions to its customers, and it has a strong commitment to environmental stewardship. The company's product portfolio includes a wide range of nitrogen fertilizers, including urea, ammonium nitrate, and UAN. Yara also offers a range of crop nutrition services, including soil testing, nutrient management planning, and crop monitoring.Nutrien is another leading producer of nitrogen fertilizers, including granular urea. The company has a strong presence in the North American market, and it also has operations in South America, Europe, and Asia. Nutrien focuses on providing high-quality fertilizers and crop protection products to its customers, and it has a strong commitment to sustainable agriculture practices. The company's product portfolio includes a wide range of nitrogen fertilizers, including urea, ammonium nitrate, and UAN. Nutrien also offers a range of crop protection products, including herbicides, insecticides, and fungicides.
Key Companies in the Granular Urea Market Include
Granular Urea Market Industry Developments
The granular urea market is projected to reach USD 19.1 billion by 2032, exhibiting a CAGR of 3.19% from 2024 to 2032. The increasing demand for urea fertilizers in agriculture, particularly in developing countries, is driving the market growth. Urea is a highly concentrated nitrogen fertilizer that is essential for crop production, and granular urea is a preferred form due to its ease of application and storage. The growing population and rising food demand are also contributing to the market expansion. However, factors such as fluctuations in raw material prices and environmental concerns may restrain market growth to some extent. Recent developments in the market include the adoption of precision farming techniques and the development of controlled-release urea fertilizers.
Granular Urea Market Segmentation Insights
| Report Attribute/Metric | Details |
| Market Size 2022 | 13.95(USD Billion) |
| Market Size 2023 | 14.4(USD Billion) |
| Market Size 2032 | 19.1(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 3.19% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2023 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | EuroChem Group AG., Indian Farmers Fertiliser Cooperative Limited (IFFCO)., Krishak Bharati Cooperative Limited (KRIBHCO). Nutrien Ltd., OCI N.V., Chambal Fertilizers and Chemicals Limited., Sinofert Holdings Limited., SABIC., Yara International ASA., CF Industries Holdings, Inc., Coromandel International Limited., The Mosaic Company. |
| Segments Covered | Form, Grade, Application, End-Use Industry, Distribution Channel, Regional |
| Key Market Opportunities | Increasing demand from the agriculture sector Expanding use in the fertilizer industry Growing demand in developing economies Government initiatives for sustainable agriculture |
| Key Market Dynamics | Key Market DynamicsRising population and urbanization Increased demand for high-yield fertilizers Fluctuating prices of raw materials Government subsidies and policies Emerging markets opportunities |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Granular Urea Market was valued at approximately USD 14.4 billion in 2023, and it is expected to reach a value of USD 19.1 billion by 2032, growing at a CAGR of 3.19% over the forecast period.
The major regions contributing to the Granular Urea Market are Asia-Pacific, North America, Europe, South America, and the Middle East and Africa. Asia-Pacific is the largest market for granular urea, accounting for over 50% of the demand.
The key growth drivers of the Granular Urea Market include the increasing demand for fertilizers in agriculture, the rising population and urbanization, and the growing awareness of the importance of nitrogen in plant growth.
The major applications of granular urea in the Granular Urea Market are in agriculture, as a fertilizer for crops, and in the production of plastics, resins, and other chemicals.
The key competitors in the Granular Urea Market include Yara International ASA, CF Industries Holdings, Inc., Nutrien Ltd., and EuroChem Group AG.
The challenges faced by the Granular Urea Market include the volatility of raw material prices, the environmental impact of urea production, and the competition from other nitrogen fertilizers.
The opportunities for growth in the Granular Urea Market include the increasing demand for fertilizers in developing countries, the development of new and more efficient urea production technologies, and the growing awareness of the importance of nitrogen in plant growth.
The key trends in the Granular Urea Market include the increasing adoption of precision farming techniques, the development of new and more efficient urea formulations, and the growing use of urea in non-agricultural applications.
The Granular Urea Market is expected to grow at a CAGR of 3.19% over the forecast period, reaching a value of USD 19.1 billion by 2032.
The factors that will drive the growth of the Granular Urea Market include the increasing demand for fertilizers in agriculture, the rising population and urbanization, and the growing awareness of the importance of nitrogen in plant growth.
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Research Analyst Level II I have a degree in engineering (civil), with masters in business administration (marketing). with more than 4 years of experience in market research and consulting, i am involved in end-to-end process of market research, proposals, project kickoffs and delivery. i have research knowledge and expertise in consumer goods/packaging domain. also i have worked for various other domains like construction & equipment. effectively managed and delivered more than 60 report studies for regional as well as global clientele.
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