Granular urea is an important nitrogen fertilizer used across the agriculture sector owing to its high nutritional content and availability. Granular urea contains 46% nitrogen, which is readily available to plants and helps boost crop growth and yields substantially. It has become one of the most widely used nitrogen fertilizers globally due to its low cost and stable nitrogen content. The agriculture sector has been witnessing significant growth over the years to meet the rising global food demand. This, along with government incentives and subsidies, has increased the application of granular urea fertilizers for various crops such as cereals, grains, fruits & vegetables.
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 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
The rising application in the agriculture sector presents a major growth opportunity for the granular urea market. Population expansion has increased global food demand exponentially. To meet this demand, agricultural production needs to be boosted significantly, which will require higher fertilizer application. Granular urea is one of the most effective nitrogen fertilizers for boosting crop yields. With conducive government policies and subsidy programs in major agriculturally focused countries, granular urea application is expected to rise substantially. This growing demand from the agriculture sector will drive the market over the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the granular urea market is low due to presence of large established players and high capital requirements. However, new players can enter with innovative technology.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of substitute products. Buyers can switch to alternative nitrogen fertilizers if pricing is not competitive.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials for granular urea production such as natural gas are available from few large suppliers globally.
Threat of new substitutes: The threat of substitutes is high as crop farmers and agriculture industry have alternative nitrogen fertilizer options available.
Competitive rivalry: The competitive rivalry in the market is high owing to presence of global producers aiming to strengthen their market position.
SWOT Analysis
Strength: Granular urea offers highest nitrogen content among N fertilizers. It has uniform distribution and is easily spreadable for even application on fields.
Weakness: Granular urea is vulnerable to weather conditions and surface application leads to nitrogen losses. Its misuse can harm soil quality over long term use.
Opportunity: Rising population is increasing demand for food which will drive usage of granular urea for improved crop yield. Emerging economies offer growth prospects.
Threats: Volatility in raw material prices poses risks. Stringent environment regulations can restrict misuse affecting market.
Key Takeaways
Granular Urea Market Size was valued at US$ 47.18 Bn in 2024 and is anticipated to grow at a CAGR of 13% during the forecast period. Rising population has increased demand for food which is supporting the consumption of granular urea as nitrogen fertilizer for high crop yields.
Regional analysis for granular urea market is dominated by Asia Pacific region led by India and China. Majority of the world's urea production and consumption is accounted by these two countries. Favorable government policies and initiatives to promote fertilizer usage is fueling market growth. North America and Europe are other prominent regional markets growing at steady pace.
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. Major players are focusing on capacity expansion plans, new product launches and mergers & acquisitions for strengthening their market position and cater growing demand globally.
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