Granular Urea Market Poised for Significant Growth Driven by Increasing Demand from Agricultural Sector
Granular urea is a solid, porous nitrogen fertilizer prilled or granulated from urea. It provides the second largest amount of nitrogen among nitrogen-containing fertilizers after ammonium nitrate and it has numerous advantages over its peers including slow-release properties and cost-effectiveness. Granular urea is primarily used to enhance agricultural yields as nitrogen is essential for plant growth and an insufficient supply usually results in stunted growth or enzyme deficiencies. Granular urea has a 46% nitrogen content making it a widely used nitrogenous fertilizer across the globe.
The Global Granular Urea Market is estimated to be valued at US$ 42.96 Bn in 2024 and is expected to exhibit a CAGR of 4.9 % over the forecast period 2024 To 2031.
Key Takeaways
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 expanding their global presence by adopting strategies such as partnerships, collaborations, and new product launch.
Growing population and rising food Granular Urea Market Demand has led to an increase in the consumption of agricultural crops. As nitrogen is an essential nutrient, the demand for nitrogen-based fertilizers including granular urea is increasing to enhance crop yields. The expansion of farmlands especially in Asian and Latin American countries is further driving the market growth.
Key players are expanding their production facilities across regions to cater to the growing global demand for granular urea. For instance, many Chinese manufacturers are setting up production plants in Africa and Latin America with strategic partnerships with local players. Expansion into untapped markets will further propel the revenue growth of the granular urea market during the forecast period.
Market Key Trends
One of the key trends gaining traction in the granular urea market is the increasing adoption of precision farming and smart fertilization techniques. Precision farming helps optimizes the usage of inputs including fertilizers through practices like variable-rate technology and soil mapping. Smart fertilizers can deliver nutrients based on soil conditions and minimize waste. This trend is expected to boost the demand for granular urea while supporting sustainable agricultural development.
Porter's Analysis
Threat of new entrants: Low capital requirements and moderate brand recognition make entry somewhat easier.
Bargaining power of buyers: Buyers have moderate bargaining power as there are many suppliers and product differentiation is low.
Bargaining power of suppliers: Suppliers have moderate power due to minimal supplier switching costs and accessibility of resources.
Threat of new substitutes: The substitute threat is low as there are few products that can serve as close substitutes.
Competitive rivalry: Intense as the players compete on price and quality.
Geographical Regions
The Granular Urea Market Regional Analysis in Asia Pacific region holds the largest share of the granular urea market in terms of value due to high demand from major countries including China and India. India is the largest producer as well as consumer of urea globally.
The North America region is expected to witness the fastest growth in the granular urea market during the forecast period. Increased meat consumption is propelling the demand for fertilizers to cultivate crops for animal feed in countries such as the US and Canada. These nations also import substantial quantities of urea from other regions.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)