Urea Market Report 2025

The urea market size has grown steadily in recent years. It will grow from $48.6 billion in 2024 to $49.72 billion in 2025 at a compound annual growth rate (CAGR) of 2.3%. The growth in the historic period can be attributed to agricultural demand, global population growth, raw material prices, industrial applications, climate conditions.

The urea market size is expected to see steady growth in the next few years. It will grow to $58.3 billion in 2029 at a compound annual growth rate (CAGR) of 4.1%. The growth in the forecast period can be attributed to environmental regulations, global economic trends, climate change impact, market competition, consumer preferences. Major trends in the forecast period include price volatility, shift in agricultural practices, innovation in production, alternative fertilizers, government subsidies.

The expanding agriculture sector is anticipated to drive the growth of the urea market in the future. Agriculture encompasses the art and science of soil cultivation, crop production, and livestock management. Urea is a key type of agricultural fertilizer used to enhance plant growth and boost crop yields, providing an easily accessible source of nitrogen that promotes growth. For example, in February 2024, data from the Department for Environment, Food, and Rural Affairs, a UK-based government agency, indicated that the agricultural sector experienced a 3.4% increase from 2021 to 2022. Therefore, the growing agriculture sector is propelling the growth of the urea market.

The rising demand for urea from diverse end-users, such as the automotive industry, is anticipated to contribute to the growth of the urea market. The automotive industry, involving various organizations engaged in the design, development, manufacture, marketing, sale, and maintenance of motor vehicles, relies on urea, particularly in Selective Catalytic Reduction (SCR) systems. Urea's role in the automotive sector significantly aids in reducing harmful emissions, enhancing air quality, ensuring compliance with regulations, and promoting technological advancements for more environmentally friendly vehicles. As reported by the European Automobile Manufacturers' Association (ACEA) in May 2023, the global production of motor vehicles reached 85.4 million units in 2022, reflecting a 5.7% increase from 2021. Therefore, the growing automotive industry serves as a driving force for the urea market.

Technological advancements represent a prominent trend gaining traction in the urea market, with major players directing their efforts toward the development of innovative products. This includes the creation of slow-release urea products and coated urea products. Slow-release urea products, which release nitrogen over an extended period, reduce the need for frequent applications and enhance the efficiency of nitrogen uptake by plants. In September 2022, ICL Group Ltd., an Israel-based multinational manufacturer, introduced eqo.x, a controlled release fertilizer (CRF) coating for urea. This technology, designed for open-field agriculture, features a quick biodegradation time and helps farmers maximize crop performance while minimizing environmental impact by minimizing nitrogen loss and improving nutrient use efficiency (NUE) by up to 80%.

Major companies in the urea market are adopting a strategic partnership approach to support sustainable and cost-effective agricultural practices. Strategic partnerships involve leveraging each other's strengths and resources for mutual benefits. For example, in September 2023, SABIC Agri-Nutrients Company, a Saudi Arabia-based fertilizer company, partnered with ADM and BiOWiSH Technologies. This collaboration introduced biologically enhanced urea fertilizer with lower greenhouse gas emissions, powered by BiOWiSH technology, promoting sustainability in agriculture. The pilot project covering 50,000 acres in the midwestern United States for the 2023 growing season aims to gather data on emission reductions, aligning with SABIC AN's commitment to carbon neutrality by 2050 and advancing environmentally friendly practices in the urea market.

In April 2022, Casale SA, a Switzerland-based developer of core technologies for ammonia production, acquired Green Granulation Limited. This strategic acquisition enhances Casale SA's portfolio with new technology, strengthens its position in the domestic Chinese market, and allows the company to adopt a comprehensive one-stop-shop strategy for providing customers with the entire N-based fertilizer production cycle - from raw materials to finished goods. Green Granulation Limited, based in the Netherlands, is a provider of fertilizer-related process technology.

Major companies operating in the urea market include Saudi Arabia's Basic Industries Corporation, Qatar Fertilizer Company, EuroChem Group AG, Yara International ASA, Nutrien AG, OCI N.V., Acron Group, CF Industries Holding, China National Petroleum Corporation, Koch Fertilizer LLC, National Fertilizers Limited, BASF SE, Hubei Yihua Chemical Industry Co Ltd., Coromandel International Limited, Indian Farmers Fertilizers Cooperative Limited, Saudi Arabian Fertilizer Company, Notore Chemical Industries PLC, PT Pupuk Kalimantan Timur, BIP Limited, Jiangsu Sanmu Group, URALCHEM JSC, Agrium Inc., PotashCorp, Sinochem Group, Togliattiazot, Indorama Eleme Fertilizer & Chemicals Limited, KuibyshevAzot, Shchekinoazot, Rashtriya Chemicals and Fertilizers Ltd., Sirius Minerals Limited.

Asia-Pacific was the largest region in the urea market in 2024. South America is expected to be the fastest-growing region in the global urea market report during the forecast period. The regions covered in the urea market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the urea market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Urea is a safe and practical substance with a lengthy history, naturally occurring through the metabolic processes of proteins and widely found in mammalian urine.

Urea is available in various grades, including fertilizer grade, feed grade, and technical grade. Technical grade urea refers to urea produced and utilized for industrial applications beyond fertilizer. The technologies employed encompass stamicarbon technology, snamprgetti or saipen technology, and conventional technologies. These applications extend to fertilizer production, urea-formaldehyde (UF) and melamine resins, melamine (cyanurates), animal feed, and other uses across diverse end-user industries. These industries span agriculture, chemicals, automotive, medical, and more.

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The urea market consists of sales of urea in the form of granules, prills and pellets. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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