Granular Urea Market is estimated to Witness High Growth Owing to Increased Adoption of Precision Farming Techniques

Granular urea is a nitrogen-based fertilizer that is produced by combining ammonia and carbon dioxide under high pressure and catalyst. It has high nitrogen concentration of 46% and quickly dissolves when added to soil or sprayed on leaves to provide nitrogen to crops. Granular urea improves soil fertility and helps boost crop and pasture production. The global demand for food is rising steadily driven by increasing population which is boosting the adoption of precision farming techniques using agricultural monitoring systems to optimize yield through judicious application of granular urea and other fertilizers.

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.

The Granular Urea Market Growth global population and rising food demand presents significant opportunities for players in the market. Adoption of precision farming techniques using novel sensing and monitoring technologies provides opportunities to optimize granular urea application and reduce production costs.

Technological developments in controlled release formulations and coatings are enabling longer nutrient availability from granular urea. This reduces leaching and run-off losses while improving crop uptake. Advancements in isotopic signature analysis are also helping track nitrogen pathways in soil and evaluate urea fertilizer performance.

Market Drivers

The main driver for the granular urea market is the growing global demand for food. Population is projected to reach around 9.7 billion by 2050 putting pressure on global food supply. Increased cultivation intensity and double cropping has boosted the need for nitrogen-based fertilizers like granular urea to boost yield from existing farmland. Rising farm incomes in developing nations is also supporting fertilizer consumption. The adoption of precision agriculture monitoring technologies allows for optimized granular urea application reducing costs and improving crop productivity.

Current challenges in the Granular Urea Market

The Granular Urea Market News is facing challenges like fluctuating prices of raw materials and growing environmental concerns. Volatility in prices of natural gas, a key feedstock for producing urea, poses risks for manufacturers. Strict regulations around nitrogen fertilizer usage and disposal are also a challenge to ensure minimal impact on the environment. Manufacturers need to invest in R&D to develop more efficient and eco-friendly production processes.

SWOT Analysis

Strength: Granular urea has high nitrogen content and dissolves quickly in soil, making it suitable for many crops. It is widely used in agriculture globally.
Weakness: Frequent price fluctuations can impact demand. Improper storage and handling of urea can lead to nitrogen losses.
Opportunity: Growing world population is increasing demand for food, driving the need for higher agricultural yields through fertilizers. New application areas like turf and lawn care also present opportunities.
Threats: Stringent environmental norms around nitrogen run-off pose compliance challenges. Substitute fertilizers like mono-ammonium phosphate also compete in some markets.

Geographical regions of concentration

North America and Asia Pacific account for over 60% of the global granular urea market value currently, led by high demand from India, China, USA and Brazil. China is the largest producer and consumer due to its large agriculture industry.

Fastest growing region

The Asia Pacific region is expected to witness the fastest growth in the granular urea market during the forecast period. This is attributed to the rising demand for food grains to support the growing population in India and China as well as government initiatives to boost fertilizer consumption to increase farm yields.

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About Author:

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)