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 a solid nitrogen-based fertilizer that dissolves readily in water. It is one of the most commonly used fertilizers globally to enhance crop yields. It is applied as a top dressing on crops or mixed with soil to increase nitrogen supply to plants. The growing demand for food owing to the rising global population has increased the use of fertilizers for agricultural production.
Market Dynamics:
Rising agricultural production globally is expected to drive the growth of the granular urea market over the forecast period. According to the United Nations Department of Economic and Social Affairs, the world population is projected to reach nearly 10 billion by 2050 with over 68% of people living in urban areas. This increase in population will exponentially rise the demand for food and boost agricultural production. Furthermore, growth in the biofuel industry is also fueling the consumption of granular urea. It is used as feedstock for crops used in biofuel production such as corn and sugarcane. However, overuse of urea-based fertilizers can adversely impact soil health and quality over prolonged use owing to soil acidification. This may hamper the market growth.
SWOT Analysis
Strength: Granular urea has high nitrogen content which helps boost crop yield. It dissolves and releases nutrients quickly which helps meet the immediate nutritional needs of plants. It is widely available and affordable.
Weakness: Granular urea is water soluble which can lead to nitrogen leaching if over-applied or applied before heavy rains. It has to be applied superficially otherwise it may damage young plants.
Opportunity: Increasing global food demand and shrinking arable land is boosting the use of granular urea as fertilizer. Favorable government initiatives to promote fertilizer usage in developing countries also present an opportunity.
Threats: Volatility in natural gas prices which is a raw material for urea production poses a threat. Stringent environment regulations regarding nitrogen run-off can act as a threat.
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 demand for higher crop yields to meet growing global food demand.
Regional analysis
Asia Pacific dominates the global granular urea market and is expected to continue its dominance over the forecast period. This is attributed to large granular urea consumption countries such as China and India present in the region. Furthermore, favorable government initiatives and improving farmer incomes are supporting market growth.
Key players
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.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it