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.
