Granular Urea Market Share

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

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

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.