by The Granular Urea Market is estimated to be valued at US$ 40.95 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Granular urea is a nitrogen-rich organic compound widely used as a fertilizer. It releases nitrogen slowly and provides a long-lasting effect. Granular urea has 46% nitrogen content which makes it an excellent option for crops requiring nitrogen for healthy growth. Additionally, granular urea is water soluble and does not clump, providing uniform distribution of nitrogen in soil.
Market key trends:
The increasing demand for high quality crops has been a major factor driving the use of nitrogen rich fertilizers globally. As granular urea provides a slow and balanced release of nitrogen, it enhances soil fertility and helps boost crop production. Various government initiatives focused on increasing agricultural output have also contributed to the rising consumption of granular urea fertilizers across developing nations over the past few years. Moreover, advantages such as standardized composition, uniform distribution and cost-effectiveness continue to support the adoption of granular urea among farmers.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the granular urea market requires large capital investments for setting up manufacturing plants. Bargaining power of buyers: The bargaining power of buyers is high as granular urea is a commodity product with many established manufacturers. Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials required for manufacturing granular urea such as natural gas are commoditized. Threat of new substitutes: The threat of new substitutes is low as granular urea has no cost-effective substitute for its intended uses. Competitive rivalry: High due to presence of many large manufacturers.
SWOT Analysis
Strengths: Granular urea provides a higher nitrogen content and is easy to handle and transport compared to other nitrogen fertilizers. Weaknesses: Fluctuating raw material prices and stringent environmental regulations increase production costs. Opportunities: Growing demand for high nitrogen content fertilizers from the agriculture industry. Increasing adoption in emerging markets. Threats: Slow agriculture growth during economic downturns. Substitution threat from organic fertilizers.
Key Takeaways
The global Granular Urea Market Size is expected to witness high growth, exhibiting CAGR of 4.9% over the forecast period, due to increasing demand for nitrogen-based fertilizers from the agriculture industry. Asia Pacific dominates the global market and is expected to maintain its lead over the forecast period due to increasing fertilizer consumption in major countries such as China and India.
Regional analysis shows that Asia Pacific is the largest as well as the fastest growing market for granular urea owing to increasing demand from major countries such as China and India. Growing population and increasing demand for food have significantly increased fertilizer consumption in APAC countries.
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.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
