April 24, 2024
Granular Urea Market

The Granular Urea Market is Driven by Increasing Demand from Agriculture

The granular urea market provides effective controlled-release nitrogen fertilizers for agriculture. Granular urea is produced by compacting urea fertilizer into solid pellet or prill form, which allows for precise application of nitrogen to soils and controlled nutrient release over time. This helps maximize crop yields while minimizing nitrogen loss through leaching or volatilization. Advances in granulation technology have enabled the production of coated granular urea formulations that provide further protection from environmental degradation and optimize nitrogen availability for plant uptake.

The global Granular Urea Market is estimated to be valued at US$ 47.18 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the granular urea market is the growing demand for coated and polymer-coated urea fertilizers. Traditional granular urea can face issues such as nitrogen volatilization when exposed to moist soil and rainfall. Coated varieties protect the fertilizer from degradation and allow for a more controlled release of nutrients. Major players are focusing on research and development of advanced coating technologies involving polymers, resins, and sulfur to improve nitrogen use efficiency and fertilizer performance. For instance, products such as ESN® (Environmentally Smart Nitrogen) developed by Nutrien Ltd. provide nitrogen to crops over an extended period and reduce nitrogen loss by half compared to conventional urea. The controlled-release and agronomic advantages of coated granular urea varieties are expected to drive their adoption among farmers.

Porter’s Analysis
Threat of new entrants: Low barriers to entry due to low investment required but established players have strong distribution networks and customer loyalty.

Bargaining power of buyers: Large buyers have strong bargaining power due to the availability of substitutes but benefits of granular urea make switching difficult.

Bargaining power of suppliers: Few global players control the supply of raw materials giving them significant power over prices.

Threat of new substitutes: Limited threat as granular urea has advantages over other substitutes in terms of efficiency and handling.

Competitive rivalry: Intense competition among top players to increase market share through expansion and new product development.

Key Takeaways
The global Granular Urea market is expected to witness high growth. Granular Urea Market Size for 2024 is US$ 47.18 Bn with a CAGR of 13% during the forecast period of 2024 to 2031.

Regional analysis – Asia Pacific dominates the market currently due to high usage in agriculture. China is the largest producer and consumer of granular urea followed by India. Latin America and Middle East & Africa are also promising markets and expected to be the fastest growing regions due to increased crop cultivation.

Key players – Key players operating in the Granular Urea market are Thales Group, Infineon Technologies AG, Ingenico Group, Wirecard, VeriFone, Inc., Giesecke+Devrient GmbH, IDEMIA, Track Innovations LTD., Identiv, Inc., CPI Card Group Inc., Setomatic Systems, Valitor, PAX, PINPAD, Mobeewave, alcineo, and Paycor, Inc. Players are focusing on new product development and expansion in emerging markets to gain higher share.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it