GRANULAR UREA MARKET ANALYSIS

The global granular urea market was valued at US$ 39.04 billion in 2022 and is expected to register a CAGR of 4.9 %, in terms of revenue over the forecast period (2023-2030).

Granular Urea Market: Growth Drivers

Agriculture segment to dominate the growth and consumption of Urea market owing to the high demand for nitrogen-based fertilizer

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. Urea is the most efficient nitrogenous fertilizer due to its high nitrogen content. As a result, it is used as a supplement to cow feed to meet some of the needs for protein and for crop applications. 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 2024.

Figure 1. Global Granular Urea Market Share (%), By Region, 2022

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Growing Industrial Demand Drive the Market Growth:

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. Technical grade is used as raw material in the manufacturing of urea formaldehyde resins, Adhesive such as urea melamine formaldehyde made in marine plywood and stabilizers in nitrocellulose explosives. 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.

Granular Urea Market: Restraints

Fluctuating prices of Raw materials:

Fluctuating prices of raw material is a key factor restraining the growth of this granular urea market. High cost of granular urea raw material over its conventional counterpart is also hampering the market, in addition availability of substitutes is adversely affects the market.

Figure 2. Global Granular Urea Market, Revenue Share (%), By Application, 2022

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Global Granular Urea Market- Impact of Coronavirus (Covid-19) Pandemic

Declined Demand from Industries Negatively Affected Market Growth during 2020-2021 

Carbamide is largely consumed in agriculture and animal feed applications. During the progression of the coronavirus pandemic, the lockdown critically challenged the trade of carbamide & related products across the world. However, the agriculture industry and animal feed sector showcased resilience as compared to the industrial sector. Potential industrial applications, such as chemical manufacturing, fuel additives, and resins, are strongly impacted due to irregularities in production. Shortage in raw materials and working people further challenged the urea market growth. However, in 2021, major consumers, such as the U.S., China, India, and others, slowly revamped industrial operations. Thus, the demand for technical-grade products slowly recovered. Owing to the further rise in energy prices, manufacturing costs increased in the last quarter of 2021. The prices went up sharply in the first quarter of 2022. Therefore, despite the slow recovery in consumed volume, the overall revenues generated were strongly increased.

Granular Urea Market: Market Segmentation

Among regions, Asia Pacific accounted for the largest market share in 2022, owing to increasing demand for fertilizers from agriculture sector in the region.

Granular Urea Market: By Application

Among application, in 2022, agriculture segment accounted for the largest 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.

Granular Urea Market: Recent Developments

November 2022: OCI NV invested US$ 5 billion to expand its East Texas complex. The company plans to add a plant that uses ammonia and carbon dioxide to make 2,200 metric tons of urea daily.

June 2022: Pupuk Kaltim announced its plans to expand its operations by building a factory in West Papua’s Bintuni Bay in Indonesia that will produce urea, increasing its overall production capacity.

March 2022: Egypt-based Misr Fertilizers Production Company (MOPCO) announced plans to improve its overall annual carbamide production capacity to 70 kilo tons. The company also announced investment to build a new melamine plant. With this investment, MOPCO aimed to strengthen its position in Egypt and overseas markets.

November 2021: SABIC launched a full-fledged company with agility and flexibility to respond to the challenges of the agri-nutrients industry and the needs of all stakeholders. The new company adopts a distinct operating model that focuses on a number of pillars to ensure sustainable growth and offer more differentiated agri-nutrients solutions.

Granular Urea Market: Key Companies

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.