Granular Urea Market Trends
Growth Drivers
- High Demand in Construction Process– Granular urea is considered a vital component in construction applications owing to its advanced properties which aid in increasing durability and strength, and can lower the concrete temperature and increase flowability in mass concrete buildings.
- Increase in Research & Development Activities- Governments of different nations and major key players operating in the granular urea market are spending heavily on introducing advanced components such as granular urea, glyphosate, and others for enhancing the crop quality and efficiency of agricultural processes.
- Rising Air Pollution- The threat that air pollution poses to both public health and the advancement of the economy is well-known, and as a result, governments across the globe are enforcing stringent regulations to reduce air pollution. This had led to the adoption of cleaner technologies such as granular urea to meet the regulations and prevent nitrogen-related air pollution.
For instance, Petrochemical Industries Company (PIC) in Kuwait successfully reduced ammonia emissions by over 70%, and urea emissions by more than 50% by replacing the melting and prilling units of finished-product urea prills with an eco-friendly granulation process.
- Used as Cattle Feed Supplement- Feed-grade urea is the non-protein nitrogen source created by the interaction of ammonia and carbon dioxide and is the most commonly used cost-effective alternative when plant protein feeds, such as soybean meal, are expensive in the diets of cattle and other ruminants. It helps in improving digestion, maximizes the advantages of low-quality feeding, and enhances microbial crude protein (MCP) production and animal production.
Challenges
- Harmful Effect on Environment– Granular urea usually contains toxic ingredients which are harmful to the environment and human after consumption. This trend is anticipated to hinder the utilization rate of granular urea and subsequently hamper the market growth in the fore coming years.
- Lack of Regulatory Standards
- Additional Expenses Incurred in the Production Process
Granular Urea Market: Key Insights
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, the Chemical industry in the U.S. accounted for 16.43% of manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in the future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, which accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favourable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour, as well as government subsidies and relaxed environmental norms, have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for investment in businesses in Asia Pacific countries in the upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
2.9% |
|
Base Year Market Size (2024) |
USD 37.41 billion |
|
Forecast Year Market Size (2037) |
USD 54.25 billion |
|
Regional Scope |
|
