Granular Urea Market size is estimated to be valued at USD 45.07 Bn in 2025 and is expected to reach USD 63.00 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of4.9% from 2025 to 2032.
The Granular Urea Market demand is driven by rising global demand for high-efficiency nitrogen fertilizers to boost crop yields amid expanding agricultural activities. Increasing adoption of precision farming techniques and government subsidies for sustainable agriculture further propel market expansion. For instance, India’s 2025 fertilizer subsidy reforms have accelerated granular urea distribution, enhancing affordability.
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Global Fertilizer Supply Chain Disruptions |
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Primarily utilized in agriculture as a nitrogen-based fertilizer, granular urea is now slowly beginning to find applications outside its conventional use. These areas are largely unexploited, and therefore, offer great opportunities for market players seeking diversification.
Perhaps the most promising new application of granular urea is as a nonpolluting de-icing agent. Unlike conventional chloride-based salts, which have corrosive properties towards infrastructure and surrounding nature, granular urea is much less corrosive and biodegradable. Its usage is, however, quite limited at this point; but some cold-weather airports and municipalities have started using it during trials. For example, Helsinki-Vantaa Airport in Finland and Denver International Airport in the United States have researched using granular urea to enhance environmental protections and cut back corrosion of metals on airplanes, runway maintenance, and protective measures for the environment.
Apart from de-icing, the use of granular urea in the manufacturing of biodegradable polymers is particularly gaining traction. Leading chemical companies like DSM, BASF, and Covestro are looking into formulations of urea-based packaging, adhesives, coatings, and bioplastics to sustain them. This is part of the increasing shift towards circular materials as well as bio-compatible substitutes for conventional plastics derived from petrochemicals.
Among Application, in 2025, Agriculture Segment accounted for the largest Granular Urea Market share of 87%, in terms of revenue in the global granular urea market. This is attributed to increasing crop production across the globe, which is expected to drive demand for fertilizers, and this is further expected to drive demand for granular urea over the forecast period. This strong position is driven by the rising need to increase crop production worldwide.
In terms of product type, the fertilizer grade segment is expected to dominate the global granular urea market in 2025, driven by increasing adoption in large-scale agriculture and crop production. Fertilizer-grade urea is highly effective in delivering nitrogen efficiently to crops, improving yield and soil fertility, which makes it a preferred choice among farmers worldwide.
For instance, in major cereal-producing regions such as India and China, precision application of granular urea has enhanced crop productivity by over 20% while reducing nutrient losses. Technological developments in controlled-release formulations and blending with other nutrients are further improving efficiency and sustainability. Companies are investing in advanced granulation plants and distribution networks to ensure year-round availability and cost-effectiveness for end-users.
In 2025, several leading fertilizer manufacturers, including Yara International and Nutrien, announced expansions in production capacity and supply chain optimization to meet growing demand for high-quality granular urea, reflecting its critical role in global food security and agricultural growth.
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Asia Pacific is projected to hold the largest share of 25.3% in the global granular urea market demand by 2025, driven primarily by increasing fertilizer demand from the region’s expanding agriculture sector. Countries like China and India are major contributors, with rising crop production to meet food security needs fueling fertilizer consumption. For example, China’s Ministry of Agriculture reported a significant increase in fertilizer use to support staple crops in 2024.
North America is expected to be the second-largest Granular Urea Market trend, owing to advanced agricultural practices and steady demand for crop enhancement products. The U.S. dominates the region with its strong focus on high-yield farming and government subsidies for fertilizer use. According to the U.S. Department of Agriculture (USDA), fertilizer consumption remained robust in 2024, supported by efforts to boost domestic food production amid global supply uncertainties.
China leads the Asia Pacific granular urea market due to its vast agricultural sector and strong government support for fertilizer use. Policies promoting sustainable farming and food security drive high fertilizer consumption. The government’s focus on modernizing agriculture and increasing crop yields further boosts demand for granular urea, solidifying China’s position as a key market player.
The U.S. dominates the North American granular urea market, supported by its large-scale farming operations and consistent fertilizer demand. Government programs like USDA fertilizer assistance help stabilize supply and encourage fertilizer adoption. Advanced agricultural practices and a focus on high crop productivity further propel the market, making the U.S. a major contributor in the region.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 45.07 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 4.9% | 2032 Value Projection: | USD 63.00 Bn |
| Geographies covered: |
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| Companies covered: |
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. |
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Recently there has been huge demand in carbamide from the industrial sector owing to its wide range of industrial application. It has the ability to trap the different organic compound due to its property forming interpenetrating helices by forming hydrogen bond. This property make suitable product for the separation of the mixture and to be used in the production aviation fuels and lubricating oil. It also used in separation of paraffin.
In June 2021, the commercial manufacture of nano urea liquid was established by the Indian Farmers Fertilizer Cooperative Ltd (IFFCO). The company's unique technology, created at its Gujarat Nano Biotechnology Research Center, is used in production.
The agricultural industry is anticipated to account for the largest portion of the Granular urea market. The agriculture sector has grown significantly in recent years, and it is anticipated that this trend will continue in the years to come. It is mainly because of the rising demand for food and other agricultural products brought on by the expansion of the world's population.
In June 2021, The EuroChem Group committed to invest US$ 1.06 billion in the construction of a new ammonia and urea factory in northwest Russia. Additionally, the facility is anticipated to produce 1.4 million tons of urea annually, with commercial production beginning in 2025.
Major players operating in the global granular urea market include 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.
*Definition: Urea is produced from ammonia and carbon dioxide and is an important chemical in agriculture and chemical industries. Urea is the most commonly used nitrogen fertilizer and cheapest form of nitrogen fertilizer. Urea is white crystalline solid organic compound and is manufactured in granular and prilled form. Granules of urea are manufactured by passing liquid urea through a fluid bed granulation system, which creates a hard and evenly sized granule.
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About Author
Vidyesh Swar is a seasoned Consultant with a diverse background in market research and business consulting. With over 6 years of experience, Vidyesh has established a strong reputation for his proficiency in market estimations, supplier landscape analysis, and market share assessments for tailored research solution. Using his deep industry knowledge and analytical skills, he provides valuable insights and strategic recommendations, enabling clients to make informed decisions and navigate complex business landscapes.
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