PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1747758
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1747758
Global Granular Urea Market to Reach US$50.3 Billion by 2030
The global market for Granular Urea estimated at US$41.7 Billion in the year 2024, is expected to reach US$50.3 Billion by 2030, growing at a CAGR of 3.2% over the analysis period 2024-2030. Fertilizer Grade Granular Urea, one of the segments analyzed in the report, is expected to record a 3.5% CAGR and reach US$29.9 Billion by the end of the analysis period. Growth in the Feed Grade Granular Urea segment is estimated at 2.3% CAGR over the analysis period.
The U.S. Market is Estimated at US$11.4 Billion While China is Forecast to Grow at 6.1% CAGR
The Granular Urea market in the U.S. is estimated at US$11.4 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$10.0 Billion by the year 2030 trailing a CAGR of 6.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.2% and 2.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.8% CAGR.
Global Granular Urea Market - Key Trends & Drivers Summarized
Why Does Granular Urea Continue to Dominate Global Nitrogen Fertilizer Usage?
Granular urea remains the most widely used nitrogen fertilizer worldwide due to its high nitrogen content (46%), ease of handling, and cost-effectiveness across a range of crop and soil types. Unlike prilled urea, granular urea consists of larger, harder particles that offer better resistance to caking, superior storage stability, and slower dissolution rates. These physical properties make granular urea especially suitable for use in large-scale mechanized farming, particularly in humid and tropical regions where moisture management is critical. It is favored for broadcast applications, direct soil blending, and slow-release formulations, which are essential for improving nitrogen-use efficiency and minimizing environmental losses.
The demand for granular urea is closely tied to the intensification of agriculture and the global push for higher crop yields to meet growing food demand. Regions with intensive cereal cultivation, such as South Asia, Latin America, and parts of Africa, rely heavily on urea for its economic value and consistent performance. Its adaptability for use in various climatic zones and compatibility with both traditional and precision application technologies further strengthens its dominance. As fertilizer application becomes more science-based and region-specific, granular urea continues to be a key component in integrated nutrient management systems aimed at optimizing both productivity and environmental sustainability.
How Are Manufacturing and Trade Dynamics Shaping the Global Market?
Global production and distribution of granular urea are deeply influenced by energy prices, natural gas availability, and geopolitical trade routes, given that urea is synthesized from ammonia and carbon dioxide. Major producers such as China, India, Russia, and the Middle East export significant volumes of granular urea, creating a complex and interdependent trade ecosystem. Fertilizer production hubs in countries like Saudi Arabia and Qatar, which benefit from abundant and low-cost natural gas, are emerging as dominant suppliers in the international market. At the same time, countries dependent on imports-such as Brazil, the U.S., and parts of Sub-Saharan Africa-are particularly sensitive to freight costs, tariff changes, and supply disruptions.
In recent years, rising natural gas prices and periodic export restrictions (e.g., from China) have disrupted global urea supply chains, triggering price volatility and prompting importing nations to diversify sources or invest in domestic production capacity. Trade liberalization efforts, regional free trade agreements, and strategic stockpiling by governments are reshaping procurement strategies. In addition, logistical advancements such as improved bulk handling, port infrastructure, and packaging innovations are enhancing the cross-border movement of granular urea. These trends are reinforcing its availability and supporting global market expansion despite ongoing challenges in energy sourcing and climate-related policy shifts.
What Technological and Regulatory Trends Are Influencing Market Evolution?
The granular urea market is being increasingly shaped by environmental regulations and the push for more sustainable agricultural inputs. As nitrogen leaching and ammonia volatilization contribute to water pollution and greenhouse gas emissions, regulatory agencies and environmental groups are pressuring fertilizer producers and users to adopt more efficient practices. This has led to rising demand for enhanced efficiency fertilizers (EEFs)-including coated, stabilized, or slow-release urea-which use additives or surface treatments to control nitrogen release rates and reduce losses. Granular urea is particularly well-suited for these modifications due to its surface area and structural integrity.
Technological advancements in urea coating formulations, such as sulfur-coated and polymer-coated variants, are creating value-added product segments that offer better crop response while complying with tightening nitrogen-use regulations. Simultaneously, digital agriculture tools, including GPS-guided spreaders and variable-rate application systems, are enabling more precise and efficient use of granular urea in the field. These innovations are helping to address environmental concerns without sacrificing yield potential. Furthermore, carbon footprint tracking and life-cycle assessment (LCA) metrics are increasingly being used by institutional buyers and governments to evaluate the sustainability of urea production and application, driving greater transparency and differentiation in the market.
What Is Driving Growth in the Global Granular Urea Market Across Regions and Sectors?
The growth in the granular urea market is driven by several factors closely aligned with agricultural intensification, global food security goals, and evolving crop nutrition strategies. One of the foremost drivers is the rising demand for high-efficiency nitrogen fertilizers in cereal, sugarcane, cotton, and oilseed cultivation, particularly in emerging markets with growing populations and limited arable land. Increasing mechanization and precision agriculture in large farms-particularly in Brazil, India, the U.S., and parts of Africa-are favoring the adoption of granular urea over other nitrogen sources due to its ease of application and compatibility with spreading equipment.
Government subsidies, fertilizer promotion schemes, and public-private partnerships in agriculture are supporting urea distribution and access, especially in countries like India and several African nations. Moreover, the expansion of blending facilities and nutrient balancing programs is boosting the use of granular urea in customized fertilizer blends tailored to specific soil and crop conditions. In the industrial sector, granular urea also finds applications in chemical manufacturing and resin production, contributing to non-agricultural demand. Finally, the shift toward climate-smart agriculture and environmentally regulated fertilization practices is increasing the appeal of value-added granular urea formulations, positioning the market for sustained, multifaceted growth.
SCOPE OF STUDY:
The report analyzes the Granular Urea market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Product Type (Fertilizer Grade, Feed Grade, Technical Grade); End-Use (Agriculture, Chemical, Building & Construction, Other End-Uses)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Select Competitors (Total 36 Featured) -
TARIFF IMPACT FACTOR
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APRIL 2025: NEGOTIATION PHASE
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