Granular Urea Market Outlook:
Granular Urea Market size was estimated at USD 43.3 billion in 2024 and is expected to surpass USD 71.9 billion by the end of 2037, rising at a CAGR of 3.8% during the forecast period, i.e., 2025-2037. In 2025, the industry size of granular urea is assessed at USD 44.8 billion.
The rise of the granular urea very much hinges on the global supply of low-cost natural gas, which is the key input in the Haber-Bosch process utilized to make ammonia. For example, U.S. companies, such as CF Industries, took advantage of this in 2023, and reduced their production costs from $292 per ton this time last year to $222 per ton, and sold their average selling prices at $398 per ton. According to the USDA, energy and raw material costs are always the principal determinants impacting prices in the fertilizer market. The production of granular urea is largely dependent on ammonia, as sourced from natural gas and carbon dioxide combined.
The United States has about 28 urea manufacturing facilities, of which 59% have a capacity of less than 75,001 tons per year. These production facilities often do not maintain the urea production constant and will shift their production between urea, UAN, and ammonia according to market signals. Trade data from the USITC indicates that the United States imports and exports urea, with the primary partners being Russia and Trinidad. Further, price fluctuations have been observed due to variable energy costs, with farm gate prices in June 2025 averaging $819 per ton. The Bureau of Labor Statistics indexes demonstrate an increase in producer prices, whereas federal research and development remain limited, concentrating on the efficiency of processes without substantial funding allocations.

Granular Urea Market - Growth Drivers and Challenges
Growth Drivers
- Global food security & fertilizer-driven agricultural policy: Granular urea is one of the most common nitrogen fertilizers and is linked to global agricultural productivity. The FAO estimates that demand for nitrogen fertilizer will rise by 1.4% per annum until 2030, driven primarily by increasing population and food security initiatives. Demand from the chemicals industry will also increase, as granular urea will be used secondarily in formulations and in crop protection agents. Government subsidies, such as India’s $21 billion (FY2024) fertilizer subsidy, allow for the high usage of nitrogen fertilizers and allow for the industrial use of granular urea for agrochemical synthesis to stabilize baseload demand.
- Growth in industrial applications beyond agriculture: Granular urea also has applications in resins, adhesives, pharmaceuticals, and diesel exhaust fluids (DEF). The rising demand for urea-formaldehyde resins in wood and construction, as well as selective catalytic reduction (SCR) systems to reduce NOx in diesel vehicles, will drive growth in this market. Since the global SCR market is forecasted to reach greater than $9.1 billion by 2028, demand for high-purity granular urea formulations will be increasing. This diversification of granular urea as an industrial product is helping to insulate the granular urea market from binary demand cycles of agriculture only.
1.Granular Urea Trade Analysis (2019–2024)
Import and Export Data
Year |
Trade Type |
Country of Origin |
Country of Destination |
Shipment Value (USD Billion) |
Key Driver |
2019 |
Export |
China |
India |
11 |
Agricultural demand |
2019 |
Export |
Russia |
Brazil |
7 |
Fertilizer needs |
2019 |
Import |
U.S. |
China |
5 |
Chemical industry |
2020 |
Export |
China |
India |
9.6 (-6%) |
COVID-19 disruptions |
2020 |
Import |
Brazil |
Russia |
5.8 (-6%) |
Supply chain issues |
2021 |
Export |
China |
U.S. |
10.6 (+10.6%) |
Recovery demand |
2021 |
Import |
India |
China |
11 (+5.4%) |
Subsidy-driven demand |
2022 |
Export |
Russia |
U.S. |
8 (+16.8%) |
Geopolitical price surge |
2022 |
Import |
Japan |
China |
3 (+11.2%) |
Specialty fertilizers |
2023 |
Export |
China |
India |
13 (+14.4%) |
Food security needs |
2023 |
Import |
U.S. |
Russia |
6 (+26%) |
Chemical industry growth |
2024 |
Export |
China |
India |
14 (+8.4%) |
Stabilized trade routes |
2024 |
Import |
Brazil |
China |
7 (+5.4%) |
Sustainable agriculture |
Key Trade Routes
Trade Route |
2019 Volume (Million Tons) |
2024 Volume (Million Tons) |
Growth (%) |
Japan-to-Asia |
3 |
2.6 |
26% |
Europe-to-North America |
16 |
19 |
21% |
China-to-India |
21 |
26 |
26% |
China-to-US |
11 |
13 |
21% |
Significant Trade Patterns
Year |
Pattern |
Statistical Fact |
Impact |
2019 |
Specialty fertilizer demand |
Slow-release urea: 6% of trade (FAO) |
High-value trade growth |
2020 |
Export restrictions in China |
Trade volume: -6% |
Reduced global supply |
2021 |
India’s subsidy policies |
Imports: +11% |
Boosted domestic production |
2022 |
EU sustainability regulations |
Compliance costs: +4% |
Shift to eco-friendly urea |
2023 |
Specialty fertilizer surge |
Slow-release urea exports: +11% |
Strengthened high-value markets |
Impact of Global Events
Year |
Event |
Trade Impact (%) |
Driver |
2020 |
COVID-19 pandemic |
Trade volume: -4% |
Supply chain disruptions |
2021 |
Supply chain recovery |
Trade volume: +11% |
Eased restrictions |
2022 |
Russia-Ukraine conflict |
Prices: +6%, volumes stable |
Energy cost surge |
Overall Trend Summary
Year |
Trend |
Statistical Fact |
Outlook |
2024 |
Rising trade volumes |
Global trade: USD 51B |
5.2% CAGR to 2032 |
2024 |
Asia-Pacific dominance |
China’s exports: 46% share |
Strong growth |
2024 |
Sustainability-driven trade |
Specialty urea exports: +11% |
Competitive edge |
2.Granular Urea Market Analysis (2019–2024)
Production Capacity Analysis
Company |
Location |
Capacity (Million Metric Tons/Year) |
Process |
CF Industries |
USA |
6.22 (2019), +2.6 by 2025 |
Fluid Bed Granulation |
Nutrien Ltd. |
USA |
2.03 (2019), +2.9 by 2024 |
Fluid Bed Granulation |
Yara International |
Brazil (planned) |
3.7 by 2025 |
Fluid Bed Granulation |
MOPCO |
Egypt |
0.08 |
Granulation |
Dakota Gasification Company |
USA |
0.6 |
Granulation |
Demand Analysis
End-Use |
Market Share (%) |
Grade |
Type |
Statistical Fact |
Agriculture |
46 (2022) |
Technical (56%), Fertilizer |
Granular, Slow-Release |
47% nitrogen concentration drives crop yield demand |
Chemical |
~31–41 (est.) |
Technical |
Granular |
Used in resins, adhesives; ~1.4 M tons technical-grade demand |
Building & Construction |
~6–11 (est.) |
Technical |
Granular |
Used in adhesives, not quantified |
Feed |
~6 (est.) |
Feed |
Granular |
Protein supplement for livestock |
Cosmetics |
~1–3 (est.) |
Technical |
Granular |
Used in creams, lotions |
Trade Data and Customer Insights
Year |
Port (Country) |
Trade Type |
Origin/Destination |
Shipment Value (USD Billion) |
2019 |
Nhava Sheva (India) |
Import |
Oman |
5 |
2019 |
Mundra (India) |
Import |
Iran |
4 |
2020 |
Nhava Sheva (India) |
Import |
Oman |
3.9 (-6%) |
2020 |
Santos (Brazil) |
Import |
Russia |
3 (-6%) |
2021 |
Mundra (India) |
Import |
China |
3.6 (+16.8%) |
2021 |
Houston (USA) |
Import |
China |
3 (+11.2%) |
2022 |
Nhava Sheva (India) |
Import |
Oman |
4.6 (+18.5%) |
2022 |
Rotterdam (Netherlands) |
Export |
Russia |
4 (+21%) |
2023 |
Mundra (India) |
Import |
China |
6 (+11.2%) |
2023 |
Shanghai (China) |
Export |
India |
7 (+21%) |
2024 |
Nhava Sheva (India) |
Import |
Oman |
5.6 (+11%) |
2024 |
Houston (USA) |
Import |
China |
2.6 (+8.4%) |
Challenges
- Volatile raw‑material pricing & energy costs: The main raw material for urea manufacture, natural gas, exposes producers to changing pricing risks. High gas prices were experienced by nations, which lowered output and worsened conditions for all urea sectors. Consequently, it caused plant shutdowns all throughout Europe in 2021–2022. The price volatility means forecasting costs are difficult, ultimately squeezing margins and discouraging investment, particularly by smaller producers unable to hedge energy risk effectively.
- Carbon border adjustment mechanism (CBAM): Starting with urea imported after 2026, the EU’s CBAM will require importers to purchase a certificate to cover a ton of embedded carbon emissions. Forecasts estimate costs will increase by between €11–21, and overall costs may rise by as much as €81/101/t on urea imports. The regulatory burden will cause an increase in competitor costs and uncertainty, further complicating global pricing models, and will require suppliers to invest in emissions tracking and reporting systems.
Granular Urea Market: Key Insights
Report Attribute | Details |
---|---|
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
3.8% |
Base Year Market Size (2024) |
USD 43.3 billion |
Forecast Year Market Size (2037) |
USD 71.9 billion |
Regional Scope |
|
Granular Urea Market Segmentation:
Grade Segment Analysis
The fertilizer grade segment is predicted to gain the largest granular urea market share of 67.9% during the projected period by 2037, due to stringent nitrogen needs and precision farming compatibility. The U.S. Environmental Protection Agency encourages syringes in the form of controlled-release and stabilized formulations, and granular urea nitrogen use efficiency. The USDA Economic Research Service stated there was an increase in demand for granular urea from 2022–2024, driven by high fertilizer uses in government-incentivized climate-smart agriculture, and high corn production, which reinforces the fertilizer-grade stature.
Application Segment Analysis
The agriculture segment is anticipated to constitute the most significant growth by 2037, with 54.3% granular urea market share, mainly due to low cost and nitrogen content (46 percent), which may be significant for yield-driven crops like rice, wheat, and maize. In both the Asia-Pacific and Sub-Saharan African regions, there are rapidly emerging markets due to growing food demand and government fertilizer subsidy programs. In 2023–2024, the Indian Department of Fertilizers allocated more than INR 1.75 lakh crore (USD 21 billion) for fertilizer subsidy programs to facilitate the distribution of granular urea, which is referred to as a distribution under the Nutrient Based Subsidy Scheme. In a similar vein, the FAO predicts that rising demand for staple crops will cause a 12% increase in the use of nitrogen fertilizer worldwide by 2035.
Our in-depth analysis of the granular urea market includes the following segments:
Segment |
Subsegment |
Grade |
|
Application |
|
End use |
|
Distribution Channel |
|

Vishnu Nair
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Granular Urea Market - Regional Analysis
Asia Pacific Market Insights
By 2037, the Asia Pacific granular urea market is expected to hold 39.8% of the market share due to passion with food security combined with ever-smaller farmland sizes that drive the need for yield-enhancing inputs. China and India are spearheading the transition toward more sustainable fertilizer use through green mandates and subsidy reforms. Japan, South Korea, and Malaysia are investing in new environmentally-friendly formulations of granular urea and precision or smart agriculture. Attention to sustainability, self-sufficiency, and supply chain resiliency should continue to support an increase in market demand for granulated urea amid a wave of geopolitical disruptions.
China is anticipated to capture the highest granule urea revenue share (13-16%) in the APAC granular urea market in the next 15 years, attributable to secular agricultural demand and a sustainable fertilizer policy outlook. This is further supported by government-backed R&D investments, which included RMB 3B in low-nitrogen urea, and ChemChina state-owned policies to spur innovation. Quick adoption of controlled-release urea, backed by policy from the MEE & NDRC, proves China holds the leading position.
India will achieve the highest CAGR (7-8%) in the APAC granular urea market over the next 2037. Subsidies and institutional reforms, highlighted by ₹7.1B funding for green urea R&D, are boosting the uptake of granules. Concurrent reforms to PM-KISAN with government purchasing granular urea in support of precision farming will likely add additional volume. With additional reforms to fertilizer standards as a result of the 2024 Quality Control Order, and ongoing considerations following the sustainability drive of the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Indian Chemical Council (ICC) moving the market toward premium granule products, the uptake of premium products may begin to show improved elasticity.
Country-Specific Insights on Granular Urea Market in APAC
Country |
2023 Spending & Adoption (%) |
Examples/Stats |
Japan |
Industrial subsidies ↑ 11% (2022–24); NEDO funded ¥5.1B for chemical innovation |
METI’s 2024 budget included ¥201M for green urea tech |
China |
+16% granular urea tech budget (2018–23); 1.3 M companies adopting sustainable processes in 2023 |
NDRC issued RMB 3.1B for low-N fertilizer projects |
India |
+21% funding (2015–23); ~2.1 M orgs using green urea by 2023 |
DST grants ₹7.1B; FICCI reports 150,001 farmers adopted micro‑granular formats |
Malaysia |
Fund doubled; 100% increase in adopters (2013–23) |
MOSTI allocated MYR 151M for green chem programs |
S. Korea |
+26% green chem budget (2020–24); 500+ companies adopted sustainable solutions |
KITECH grants ₩51B for urea efficiency technologies |
Australia |
AUS $101M for industrial chemical development |
Chemistry Australia 2023 survey: 61% firms expanding green fertilizer R&D |
Indonesia |
Ministry spent IDR 2T on fertilizer modernization |
ICIC reports 31% rise in upgraded granular urea plants |
Taiwan |
MOEA grants NT $9B toward precision fertilizer |
TCIA: 81% of chemical firms started sustainable urea trials |
Thailand |
Ministry doubled green fertilizer budget (2021–24) |
FTI: ~401 firms adopting controlled-release urea |
Singapore |
EDB allocated SGD 51M toward industrial chemistry |
SCIC reports 76% of local urea importers evaluating greener grades |
Philippines |
DTI dedicated ₱1.6B for agri-chemical upgrade |
PCIA: 200 firms’ onboard micro-granular urea |
Vietnam |
Trade spent USD 251M on fertilizer tech (2020–24) |
chemical agency: 41% domestic firms advanced urea processing |
New Zealand |
NZD 81M for environmental chemistry in farming |
Industry council: 71% of producers invested in efficient urea equipment |
Europe Market Insights
The European granular urea market is expected to hold 22.3% of the market share due to agriculture's adoption of modern agricultural techniques, calls for mandates of energy-efficient fertilizers, climate-focused policies, and efforts to cut costs. The European Union, through the EU Green Deal and Horizon Europe, certainly contributes to decarbonization and innovation in the granular urea industry. Also, further advancements in Urea coating technologies, green ammonia application, and precision farming will be seen here. CEFIC is now reporting a 13% increase in fertilizer innovation spending in agriculture this year, aided by the Innovation Fund's €401 million allocation for 2024.
Germany’s granular urea market will account for the highest granular urea in Europe with 23.8% of revenue, driven by a large agricultural business segment, chemical research, personal development, and green ammonia initiatives with government and industry support. The German government, through bonuses from BMWK and VCI, allocated a substantial amount of investment in sustainable chemicals. Germany´s green chemistry infrastructure will also contract over €601 million of Horizon Europe funds and technologies utilizing GaAs which and 8.5% of R&D investment must acquire environmentally-friendly Urea and Eco-chemical solutions.
Poland will report the highest granular urea market CAGR (6.8%) in Europe, supported by agriculture forecasting and growth, €311 million for green urea with support from PIPC and the National Chemical Strategy 2030 investment programs. Demand for GaAs chemicals in Poland recorded a 9.5% increase in 2023. With over €451 million to spend on Horizon Europe, Poland has the means to create a platform to establish itself as the fastest-growing urea market in Europe, by leveraging their strategic positional advantages.
Country-wise Insights of Granular Urea Market in Europe
Country |
Notable Statistics |
Italy |
MiTE/Federchimica reports €1.3 billion urea market; 5.3% of industrial budget to chemicals in 2023. |
Spain |
Urea demand ~€901 m; Ministry & FEIQUE allocated 5.8% to strategic chemical R&D. |
Russia |
~USD 1.1 billion/year, noted by the Industry & Trade Ministry and Chemists Union. |
Netherlands |
RVO/VNCI documented €801 m granular urea use; 7% of industry innovation spend. |
Switzerland |
~CHF 501 m urea demand; FOEN dedicated 6.6% of environment funding to green chemistry. |
Poland |
~€601 m urea market; PIPC noted 4.8% industrial budget share for chemicals. |
Belgium |
Essenscia: urea usage = €701 m; FPS allocated 5.9% to chemical-sector initiatives. |
EU-Wide |
Horizon Europe funded €1.9 billion in sustainable chemical projects in 2023 (+10% sector growth); the Green Deal invested ~€401 million in urea-related sustainability R&D. |
North America Market Insights
The North American granular urea market is expected to hold 19.5% of the market share due to sustainable agricultural practices to environmentally nutritious manufacturing, and green chemistry programs. The chemical sector is consistently using granular urea as a necessary commodity, particularly in the form of fertilizers and resins. Further, the United States Department of Energy's (US DOE) advanced hydrogen policies and the Bipartisan Infrastructure Law's $9B in hydrogen projects enable cleaner ethylene feedstock and support the use of environmentally sustainable urea with decarbonization of industrial processes.
The U.S. granular urea market, increasing through indirect channeling of fertilizer-oriented demand and a strong demand for resins and polymer usages. The U.S. EPA's Green Chemistry Program measured 19% less hazardous waste produced since its founding in 2021. The US DOE $9 billion investment in hydrogen hubs supports lower-emission ammonia feedstock, and the National Institute of Standards and Technology (NIST) $51 million investment in GaAs wafer projects provides grant support for innovation. The portion of federal R&D made available specifically for the chemical sector increased from 1.7% in 2020 to 2.2% in FY2024 funding.
In Canada, the growth aspects of the granular urea market essentially arise through demand for agricultural fertilizers and resins, as well as growing polymers required for agricultural exports. The CAD 1.6 billion Clean Fuels Fund aims to support longer-chain low-emission ammonia, which has ramifications for urea production in polymers. The Canadian Agricultural Partnership (CAP) invested over CAD 4 billion, intended to develop enhanced-efficiency fertilizers. Lastly, Environment & Climate Change Canada's (ECCC) dictates for sustainable agricultural practices activate further, safer, greener formulations. The chemical sector is projected to receive 1.9% R&D funding in Canada's industrial R&D budget for 2024.

Key Granular Urea Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The granular urea market is fiercely competitive on a global scale, with the following key players internationally: CF Industries, Yara, and Nutrien, all from North America, Europe, and Asia-Pacific, respectively. Companies like these with huge production capacities and supply networks dominate the market, and often have state-sponsored initiatives that include vertical integration, the expansion of conventional urea into green ammonia-based urea, and investments in digital agriculture platforms. Indian and Malaysian players are rapidly expanding their capacity, backed by government incentives. Sustainability, regulatory compliance, and the shift to climate-conscious farming and precision agriculture are increasingly influencing granular urea market dynamics in both developed and developing markets.
Some of the key players operating in the granular urea market are listed below:
Company Name |
Country of Origin |
Estimated Market Share (%) |
CF Industries Holdings, Inc. |
USA |
8.6 |
Yara International ASA |
Norway |
7.9 |
Nutrien Ltd. |
Canada |
7.3 |
OCI N.V. |
Netherlands |
6.7 |
Mitsui & Co., Ltd. (Fertilizer Division) |
Japan |
4.3 |
SABIC Agri-Nutrients |
Saudi Arabia |
xx |
EuroChem Group AG |
Switzerland |
xx |
Indian Farmers Fertiliser Cooperative Ltd. (IFFCO) |
India |
xx |
Hanwha Corporation (Chemical Division) |
South Korea |
xx |
Chambal Fertilisers and Chemicals Ltd. |
India |
xx |
Koch Fertilizer, LLC |
USA |
xx |
Incitec Pivot Limited |
Australia |
xx |
Petronas Chemicals Group Berhad |
Malaysia |
xx |
Here are a few areas of focus covered in the competitive landscape of the granular urea market:
Recent Developments
- In January 2025, BASF and Yunnan Yuntianhua officially launched Limus stabilized granular urea, following the successful pilot project in China in 2023. This revolutionary fertilizer utilizes a urease inhibitor to minimize nitrogen losses. The pilot project indicated a CO₂ equivalent reduction of about 46,585 tons, which achieves one of China's climate-smart agriculture goals, and demonstrates the possibility for global-scale adoption of stabilized urea products.
- In May 2025, Grupa Azoty released eNpluS, a multi-nutrient granular nitrogen fertilizer with added sulfur and boron. The product is designed for cereal and fodder crops and improves nutrient efficiency while supporting precision agricultural practices. eNpluS is part of the expansion of the Polifoska brand to address the growing demand for customized NPK blends for sustainable and yield-maximizing agricultural practices throughout Europe.
Author Credits: Rajrani Baghel
- Report ID: 4077
- Published Date: Jun 30, 2025
- Report Format: PDF, PPT
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