The Granular Urea Market, estimated at USD 45.07 Bn in 2025, is expected to exhibit a CAGR of 4.9% and reach USD 63.00 Bn by 2032.
The industry is witnessing significant growth driven by increasing demand for advanced, reliable, and cost-effective solutions across key application areas. Rapid technological developments, shifting market dynamics, and heightened focus on quality and efficiency are shaping the competitive landscape. Furthermore, sustainability initiatives, regulatory support, and ongoing investments in research and innovation are expected to open new avenues for market players.
However, excessive usage of urea leads to adverse implications on soil, crop quality and the ecosystem. Use of urea enhances mining of soil nutrients, which leads to deterioration of soil fertility. Such soils may require more fertilizers over time to produce optimum yields. Excessive use of urea also causes groundwater pollution. These factors are encouraging farmers to adopt environment friendly farming process such as organic farming, which in turn is expected to hamper the market growth of granular urea over the forecast period.
Drivers:
Rise in Production of Biofuel and Biodiesel
The production of biofuels, such as ethanol and biodiesel, is on the rise due to environmental concerns and the need to reduce reliance on fossil fuels. Granular urea is used in the production of biofuels as a nitrogen source for feedstock crops such as corn and sugarcane. The expanding biofuel industry creates a parallel demand for granular urea.
Restraints:
The environmental impact of nitrogen fertilizers
The environmental impact of nitrogen fertilizers, including granular urea, is a growing concern. Excessive or improper use of nitrogen fertilizers can lead to nutrient runoff, water pollution, and greenhouse gas emissions. Increasing environmental regulations and sustainability requirements may impose restrictions on fertilizer use, potentially limiting the growth of the granular urea market.
Key Trends and Analysis of the Global Granular Urea Market:
- Among product type, fertilizer grade is expected to be the fastest growing segment in the global granular urea market during the forecast period. The fertilizer grade granular urea demand is expected to be fueled by increasing fertilizer demand from agriculture sector, globally, owing to increasing the production of crops. For instance, In 2025 according to the Food and Agriculture Organization of the United Nations, the global fertilizer demand in 2016 was pegged at 185,063 kilo tons, which is expected to reach at 200,919 tons by 2025.
- Development of new production technologies by players operating in the global granular urea market is expected to drive demand for granular urea over the forecast period. For instance, in 2025 Royal Dutch Shell PLC in partnership with Uhde Fertilizer Technologies (UFT), subsidiary of ThyssenKrupp Industrial Solutions, developed a new process to incorporate sulfur into urea fertilizers. The new process will allow manufacturers to manufacture granulated sulfur containing urea using Shell’s sulfur-enhanced urea technology with UFT’s fluid bed granulation process. The Shell’s sulfur-enhanced urea technology allows to form micron-sized particles of sulfur evenly throughout urea, forming a homogenous emulsion. The microscopic size of sulfur promotes oxidation of sulfur within the crop season.
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Key Takeaways of the Market:
- Asia Pacific is expected to be the fastest growing region in the global granular urea market over the forecast period. This is attributed to increasing demand for food grain, which has led to increasing crop production, increasing awareness among farmers, and need for better land use efficiency are expected to drive market growth of granular urea in the region. For instance, In 2025 according to the Organization for Economic Co-operation and Development (OECD) Agriculture Statistics, China’s rice production in 2025 was pegged at 4.842 tons/hectare, which increased to 4.919 tons/hectare in 2025.
- Key players operating in the global granular urea market are focusing on new product launches, in order to strengthen their position in the market. For instance, in 2025, Gubretas (a Turkey-based fertilizer company) launched Nitropower33, a nitrogenous fertilizer in granular form containing urea and ammonia nitrogen. The new product can be used as a source of nitrogen for cereals, fruits, vegetables, industrial plants, and legumes.
- 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.
Competitive Section:
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.
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