Granular urea is a solid fertilizer containing 46% nitrogen that is commonly used for turf and landscape applications, home gardens and agriculture. It is water soluble and dissolves readily in soil to release nitrogen for plant growth. It is widely used as a nitrogen-rich fertilizer for row crops, fruit and vegetables as it improves crop yield and quality. The fertilizer industry relies heavily on granular urea for manufacturing complex fertilizers and fertilizer blends.

The global 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 Dynamics:
One of the key drivers for the granular urea market is its wide applications across the fertilizer industry. Granular urea is a chief raw material used in the production of compound fertilizers and nitrogenous fertilizers. It acts as a carrier of nitrogen in complex fertilizers which boosts their demand from the agricultural sector. According to statistics, over 60% of the global urea demand is met by the fertilizer industry. Additionally, the rising global population and increasing demand for food has propelled the consumption of fertilizers for higher crop yields. This in turn is expected to drive the demand for granular urea over the forecast period.

SWOT Analysis

Strength: Granular urea has high nitrogen content which makes it an excellent nitrogen-rich fertilizer. It is very soluble in water and dissolves rapidly, allowing nitrogen to be readily available for plant uptake. It is stable and easy to handle and transport.

Weakness: Granular urea has the potential to volatilize and release nitrogen as ammonia gas under certain conditions like high pH and moist soil. It needs to be watered into the soil shortly after application to prevent nitrogen losses. Some amount of nitrogen can also leach below the plant's root zone if excessive water is applied.

Opportunity: Increasing global food demand driven by a growing population worldwide presents an opportunity to increase granular urea consumption for higher agricultural productivity. The shift towards organic and sustainable farming also provides scope to promote granular urea as a natural and efficient nitrogen fertilizer.

Threats: Stringent environmental regulations regarding nitrogen run-off can impact the use of granular urea in many regions. Development of alternative nitrogen sources poses competition to granular urea. Volatility in prices of natural gas, a key raw material, can increase granular urea production costs.

Key Takeaways

The global Granular Urea Market is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to reach US$ 40.95 Mn in 2023 from US$ 31.52 Mn in 2020, registering a CAGR of 4.9% during the forecast period.

Regional analysis

Asia Pacific region currently dominates the granular urea market and is expected to maintain its leading position over the next few years. This can be attributed to the large agricultural sector and increasing fertilizer consumption in major countries such as India and China. Favorable government support for usage of fertilizers also aids market growth in the region. North America and Europe are other significant markets comprising major urea importers and growers of corn and wheat.

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. Major players are focusing on capacity expansion and strategic collaborations with distributors to strengthen their market position.

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