Global Granular Urea Market 2024–2033

Reports Description

Global Granular Urea Market was valued at USD 44.8 Billion in 2023 and is expected to reach USD 64.6 Billion by 2032, at a CAGR of 5.1% during the forecast period 2023 - 2032.

Granular urea is a solid form of nitrogen fertilizer made up of tiny, spherical pellets or granules. It is created by the chemical reaction between ammonia and carbon dioxide which contains high levels of nitrogen, making it a key supplier of nutrients for plants for agricultural purposes.

Granular Urea Market Growth Factors

High demand for nitrogen-based fertilizer

Granular urea is a highly concentrated nitrogen fertilizer, making it an effective nitrogen source for crops. This nitrogen is required for plant development, the production of proteins, and total yield increase.

Granular urea has various advantages over other nitrogen fertilizers, including ease of handling, shipping, and application. Its homogeneous granules enable equal distribution and minimize nutrient loss, hence improving crop absorption efficiency.

Moreover, increasing world population and food demand necessitate improved agricultural output, driving farmers to implement modern fertilization procedures such as granular urea treatment.

Furthermore, government assistance, supportive policies about agriculture, and technical improvements are driving the expansion of the granular urea market as farmers attempt to maximize the yields of crops and profitability in the face of escalating agricultural problems.

For instance, according to the International Fertilizer Association, fertilizer usage globally is predicted to recover by 4% in 2023, reaching 192.5 million metric tons. In 2020, a record amount of fertilizer (200.2 MMT) was utilized.

According to IFA, global ammonia output is expected to fall by 1% to 182.2 million metric tons in 2022. Fertilizer consumption decreased between 2020 and 2022 mostly due to lower fertilizer affordability. The nitrogen fertilizer output is estimated at 109 MMT. Global consumption is predicted to expand until 2030, yet at a slower 1.42% from 2021 to 2030.

Huge demand in carbamide from the industrial sector

The industrial sector places a high demand on granular urea, owing to its widespread usage as a raw ingredient in the synthesis of carbamide. Carbamide, often known as urea, is an important component in the production of many industrial goods, such as plastic bottles, resins, adhesives, glues and fertilizers.

Carbamide is used extensively in industries such as chemicals, farming, and manufacturing because of its nitrogen concentration, which is an essential nutrient for plant development and a fundamental element in chemical synthesis processes.

Furthermore, the transition to more sustainable and effective agricultural techniques increases the need for granular urea, which provides benefits such as consistent fertilizer release and decreased nitrogen losses, which make it a popular choice among farmers and industrial users.

For instance, the government has taken steps to reduce the diversion of approximately one million tons of agriculture grade urea to industrial applications each year, resulting in a subsidy diversion of Rs 6,000 crore.

According to a Ministry of chemical substances and Fertilizers official, there is an annual requirement of approximately 1.3 - 1.4 million tons of technical-grade urea for industrial use, compared to domestic generation of around 150,000 tons. The manufacturing sector imports barely 200,000 tons, compared to the needed quantity of more than one million tons.

Granular Urea Market: Restraints

Fluctuating prices of raw material

Granular urea manufacture relies substantially on inputs that include natural gas or other nitrogen supplies and energy for the Haber-Bosch method, which transforms nitrogen into urea. When costs for these raw materials change, it immediately influences manufacturing costs, resulting in uncertainty for producers.

Furthermore, unpredictable raw material costs might have an impact on granular urea's competitiveness with other nitrogen fertilizers. If the cost of making granular urea rises dramatically in comparison with other nitrogen fertilizers, farmers might turn to cheaper options, reducing the need for granular urea.

Moreover, shifting raw material costs may interfere with supply chains and control of inventory, making it difficult for producers and sellers to plan the manufacturing process and satisfy market demand adequately.

Granular Urea Market: Opportunities

Innovations in manufacturing processes

Manufacturing process innovation is critical to developing the granular urea market because it improves efficiency in production, quality of the product, and sustainability.

Advanced methods that include fluidized bed granulation, prilling towers, and molten granulation allow producers to make granular urea with better physical qualities such as size, shape, and hardness, which meet a wide range of application requirements.

Furthermore, advances in process management systems and automation simplify manufacturing operations, lowering energy usage and decreasing environmental effects.

Moreover, advances in coating and component methods enable the creation of specialty granular urea compositions adapted to specific agricultural requirements, which include increased nutrient efficiency.

In general, ongoing developments in manufacturing techniques enable granular urea manufacturers to fulfil the growing need for superior fertilizers while maximizing energy efficiency and sustainability policies, boosting growth in the global granular urea market.

For instance, the University of Michigan will explore a novel sustainable technique of generating Urea, due to a $1.3 million funding from the W. M. Keck Foundation. This new technology will directly consume carbon dioxide and Nitrate, which is a very widespread wastewater contaminant globally. Indian Scientists have invented a catalyst system for cost-effective hydrogen synthesis with the assistance of electrolysis of urea.

Granular Urea Market: Segmentation Analysis

Global Granular Urea market is segmented by type, application, and region. Based on type, the market is classified into fertilizer grade, feed grade, and technical grade. Technical grade dominated the market in 2022 with a market share of 55% and is expected to keep its dominance during the forecast period 2024-2032.

Technical grade urea, also known as granular urea, drives the granular urea industry owing to its better quality and suitability for a wide range of applications in the industry. Granular urea is preferred over pelleted urea in industries that include agriculture, petrochemical manufacture, and chemical products since it has a larger particle size, which allows for greater transportation, storage, and utilization efficiency.

Granular urea is recommended in agriculture due to its consistent particle size distribution, which allows for equal spreading and lowers the danger of nitrogen imbalance. Granular urea is also used in the chemical and petrochemical sectors to make ammonia-formaldehyde resins, glues, and nitrogen-based fertilizers.

Moreover, the technical grade of granular ammonia assures more effective purity levels, which makes it appropriate for use in a variety of industrial operations requiring demanding quality standards. This improved quality increases the need for granular urea in the manufacturing industry, which is driving the market ahead.

Based on application, the market is classified into agriculture, chemical, building and construction, and others. The agriculture segment dominated the market in 2022 with a market share of 45% and is expected to keep its dominance during the forecast period 2024-2032. The agriculture industry promotes the granular urea market due to its use as a nitrogen fertilizer in crop production.

Granular urea has various advantages, such as a high ammonium concentration, consistent particle size, and simplicity of application. Granular urea is preferred by farmers over alternative nitrogen fertilizers because of its low cost, precision in nutrient delivery, and lower danger of nitrogen loss owing to volatilization.

Furthermore, granular urea's slow-release qualities enable a consistent supply of nitrogen to crops, supporting optimal development and production. As global food consumption rises in tandem with population expansion, the farming industry's requirement for efficient fertilizers such as granular urea increases.

In addition, advances in agricultural techniques and technology, together with an increasing understanding of organic farming methods, drive a higher need for granular urea in modern farming.

Report Scope

Feature of the Report	Details
Market Size in 2023	USD 44.8 Billion
Projected Market Size in 2032	USD 64.6 Billion
Market Size in 2022	USD 41.5 Billion
CAGR Growth Rate	5.1% CAGR
Base Year	2023
Forecast Period	2024-2033
Key Segment	By Type, Application and Region
Report Coverage	Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope	North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying Options	Request tailored purchasing options to fulfil your requirements for research.

Granular Urea Market: Regional Analysis

By region, Granular Urea market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle East & Africa. The Asia-Pacific dominated the global Granular Urea market in 2022 with a market share of 45% in 2022 and is expected to keep its dominance during the forecast period 2024-2032.

Asia-Pacific's fast-rising population and growing urbanization stimulate consumer interest in agricultural products, particularly urea, a critical nitrogen fertilizer.

In addition, countries with big agricultural sectors, such as India and China, are important users and manufacturers of granular urea, helping to drive market expansion. Finally, favourable governmental actions and subsidies targeted at increasing agricultural output boost demand for urea in the region.

Moreover, the existence of important urea producers and suppliers in Asia-Pacific, along with aggressive pricing tactics, reinforces the area's standing in the worldwide market.

Furthermore, continuous technical improvements and innovations in urea manufacturing techniques, as well as growing awareness of the advantages of granular ammonia over other forms, are driving market expansion in the Asia-Pacific region.

Source: Custom Market Insights analysis.

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Granular Urea Market: Recent Developments

• In March 2023, Yara International revealed a $1 billion investment in a new urea factory in Brazil. The factory is anticipated to be operational by 2025, with a production capacity of 3.6 million metric tons per year.

• In February 2023, Nutrien declared plans to invest USD 1.3 billion in a new urea factory in the United States. The factory is anticipated to be functional by 2024, with a production capacity of 2.8 million metric tons per year.

• In January 2023, CF Industries Holdings announced plans to invest USD 2.3 billion in a new urea factory in the US. The factory is anticipated to be operating by 2025, with an annual capacity of 2.5 million tons.

List of the prominent players in the Granular Urea Market:

• Yara International ASA
• CF Industries Holdings Inc.
• Nutrien Ltd.
• EuroChem Group AG
• SABIC
• OCI N.V.
• Koch Fertilizer LLC
• Borealis AG
• PT Pupuk Indonesia
• Qatar Fertiliser Company
• Petrobras
• Indian Farmers Fertiliser Cooperative Limited
• China National Petroleum Corporation
• JSC Acron
• OCP Group
• The Mosaic Company
• Sinofert Holdings Limited
• Agrium Inc.
• PJSC Uralkali
• Vietnam National Chemical Group
• Others

These key players are adopting various growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The Granular Urea Market is segmented as follows:

By Type

• Fertilizer Grade
• Feed Grade
• Technical Grade

By Application

• Agriculture
• Chemical
• Building and Construction
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America