The Granular Urea Market is estimated to be valued at US$ 40.95 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Granular urea is one of the most widely used nitrogen fertilizers across the globe. It contains 46% nitrogen and is easily soluble in water which makes it easily absorbable by plants. It is used to boost crop yield by increasing the nitrogen content in soil. Granular urea helps increase protein content in grains, stimulates plant growth, and improves the quality and quantity of agricultural produces like wheat, rice, corn, and vegetables.

Market Dynamics:
The growing global population and rising food demand are major drivers propelling the granular urea market growth. As per UN estimates, the global population is expected to reach around 8.5 billion by 2030 and 9.7 billion by 2050 putting strain on global food production. To meet this demand, agricultural outputs need to be increased substantially, which is driving the consumption of nitrogen-rich fertilizers like granular urea. Another key driver is the increasing adoption of precision farming and protected agriculture practices among farmers. Application of granular urea in the right amounts helps increase fertilizer use efficiency and boosts crop yields.
Segment Analysis

The global granular urea market is dominated by the fertilizer segment. Granular urea is extensively used as nitrogen fertilizer for crops due to its high nitrogen content of 46 percent. It provides readily available nitrogen to plants and promotes faster growth. Being water soluble, granular urea dissolves easily in soil and is absorbed by plant roots. This ability makes it highly preferred over other nitrogen fertilizers.

PEST Analysis

Political: The government policies supporting the agriculture sector positively impact the granular urea market. Subsidies on fertilizers increase their adoption among farmers.
Economic: Rising farm incomes and growing demand for food crops are the key drivers of the market. Higher crop yields boosted by granular urea translates to economic benefits.
Social: With the global population expected to reach 9 billion by 2050, demand for food is projected to rise substantially. This underscores the need for sustainable and higher farm outputs through fertilizer use.
Technological: Advances in granule coating technology help control the urea release rate as per the crop requirement. This ensures nutrients are not washed away and are available to plants for a longer period.

Key Takeaways

The global Granular Urea Market Size is expected to witness high growth, exhibiting CAGR of 4.9% over the forecast period, due to increasing consumption of nitrogen fertilizers to boost agricultural production to meet the rising food demand. The market size for 2023 is estimated at US$ 40.95 Mn.

Regionally, Asia Pacific dominates the global granular urea market and is expected to maintain its lead throughout the forecast period. Countries like China, India, Indonesia, Thailand, and Vietnam are major consumers due to their large agriculture sectors.

Key players operating in the granular urea market are CF Industries Holdings, Inc., Yara International ASA, Saudi Arabian Fertilizer Company, Nutrien Ltd., Ostchem Holding, EuroChem Group, Bunge Limited, CVR Partners LP, Luxi Chemical Group Co.,Ltd., and Coromandel International Ltd. These players are focusing on production capacity expansions to cater to the growing demand.

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