Urea Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033

The Urea market is expected to reach US$ 96.00 billion by 2033 from US$ 63.39 billion in 2024, with a CAGR of 4.72% from 2025 to 2033. The market is expanding as a result of industry players working together and the construction of new urea producing facilities. Increased need for nitrogen-based fertilizers in agriculture, rising food demand that demands higher crop yields, continuous improvements in urea manufacturing technology, continuously rising product uses across sectors, and supportive government regulations are other factors propelling the market.

Urea Industry Overview

Carbamide is a colorless organic chemical molecule that is urea (NH2)2CO. It has a pKa near 0 and is very soluble in water. Over 90% of urea produced worldwide is utilized as a fertilizer that releases nitrogen. Of all the solid nitrogenous fertilizers that are commonly used, urea has the largest nitrogen concentration (46.7%). As a result, its transportation costs per unit of nitrogen nutrients are the lowest. According to the World Bank, the total value of the agriculture, forestry, and fishing industries accounted for USD 4.17 trillion in 2021, compared to USD 3.72 trillion in the previous year.

The manufacture and distribution of urea, a nitrogen-rich substance that is frequently used as fertilizer, are the main activities of the urea industry, a crucial sector of the worldwide chemical and agricultural industries. Since nitrogen is a vital component for plant growth, urea plays a significant part in increasing agricultural yields. The need for fertilizers like urea is fueled by the growing need for food production brought on by the world's population growth. The urea industry has grown steadily as a result, especially in developing nations where agriculture is a major economic driver. Since natural gas is a key raw ingredient in the synthesis of urea, urea manufacturing is mostly focused in areas with substantial natural gas deposits.

Urea is used in agriculture as well as in the chemical, plastic, and pharmaceutical industries, which propels market expansion. Price changes for basic materials like natural gas also have an impact on the urea market and can affect manufacturing costs. The sector is also being shaped by sustainability issues and environmental restrictions, as there is a growing need for more eco-friendly and efficient production techniques. Although the greatest user is still the agriculture sector, the market is becoming more complex and offering more opportunities since urea applications are expanding into sectors like the automotive industry (as a component of selective catalytic reduction systems for decreasing emissions).

Growth Drivers for the Urea Market

Important Developments in the Technology of Urea Production

Developments in urea production technology have greatly increased market expansion. Urea manufacture is becoming more feasible and sustainable thanks to innovations including cost-effective techniques, environmentally friendly technologies, and more effective production processes. These developments not only lower manufacturing costs but also enhance urea's quality and consistency, increasing its appeal for use in industrial and agricultural settings and propelling the urea market's expansion. In July 2024, for example, Linggu Chemical Co. Ltd. selected NEXTCHEM, a division of MAIRE, to improve the energy efficiency of a 3,100 metric tons per day urea facility in China through its subsidiary Stamicarbon. The required process design and license will be provided by NEXTCHEM. By improving feedstock and steam use, the project will use their Advanced MP Flash Design technology, which is a component of the EVOLVE EnergyTM line and aims to lower the plant's energy consumption by up to 20%.

Support and Policies of the Government

The urea market is growing as a result of supportive government policies and subsidies for agricultural inputs. Around the world, governments are putting policies into place to guarantee food security and increase agricultural productivity. Fertilizer subsidies, such as those for urea, lower the cost of fertilizers for farmers and promote their widespread usage. Regulations that encourage the use of nitrogen fertilizers in different areas also increase demand for the commodity as farmers work to preserve soil fertility and increase crop yields.

For example, industry projections state that by the end of 2025, India intends to cease importing urea. The government is promoting alternative fertilizers such nano liquid urea and reopening closed urea factories as part of a two-pronged strategy. With a target of 325 lakh tonnes per year, domestic production capacity has grown to 310 lakh tonnes. The government's programs include attempts to replace traditional urea with nano liquid alternatives and significant subsidies to guarantee farmers can buy fertilizers.

Growing Interest in Fertilizers Based on Nitrogen

The growing need for nitrogen-based fertilizers in agriculture is the primary factor propelling the worldwide urea market. Industry forecasts predict that global fertilizer usage will rebound by 4% in 2023 to reach 192.5 million metric tons (mmt), up from a low in prior years due to high pricing. Additionally, it forecasts a 5% rise in 2024, with 109 mmt of nitrogen fertilizer production and 108 mmt of demand worldwide. An important source of nitrogen for plant growth and increased agricultural output is urea. Urea is being used more in farming operations as a result of the growing demand for improved food production brought on by the world's population growth. This is thus improving the outlook for the urea industry globally.

For example, according to FAO estimates, total food production has to rise by almost 70% in order to feed the world's 9.1 billion people by 2050. To meet this demand, production in developing nations would have to almost treble. In areas with heavy agricultural activities, where increasing crop yield is essential, this demand is especially high.

Challenges in the Urea Market

Fluctuating Raw Material Prices

Natural gas, a vital ingredient in the manufacturing process, is a major factor in the synthesis of urea. The cost of producing urea is therefore directly impacted by changes in the price of natural gas. Urea production costs rise in tandem with natural gas prices, potentially resulting in lower profit margins for producers and higher prices for consumers. Because of the market uncertainty caused by this price volatility, manufacturers find it challenging to maintain steady pricing and profitability. Additionally, increased urea costs may make fertilizers more expensive, especially in poor nations, which could lower demand for urea-based fertilizers and hinder agricultural output. For the urea sector, controlling this reliance on varying natural gas prices continues to be a major concern.

Shift towards Organic Fertilizers

The urea business faces a dilemma as the demand for organic fertilizers rises as a result of the increased acceptance of organic farming and sustainable agricultural methods. Because of their eco-friendliness and ability to improve soil health, organic fertilizers - which come from natural sources like compost, manure, or plant-based materials - are preferred by farmers who care about the environment. The need for synthetic urea-based fertilizers may decline as a result of the move to organic fertilizers, particularly in countries where sustainability is valued highly. Furthermore, organic fertilizers are thought to be a safer option because they have fewer adverse effects on the environment, including water contamination or nitrogen runoff. The urea business may encounter more competition from these sustainable, alternative products as customer preferences shift and more areas embrace organic farming regulations.

Urea Market Overview by Regions

By countries, the global Urea market is divided into United States, Canada, France, Germany, Italy, Spain, United Kingdom, Belgium, Netherlands, Turkey, China, Japan, India, Australia, South Korea, Thailand, Malaysia, Indonesia, New Zealand, Brazil, Mexico, Argentina, South Africa, Saudi Arabia and UAE.

United States Urea Market

Primarily utilized as a nitrogen fertilizer for crops, urea is a vital component of the chemical and agricultural sectors in the United States. The market's growth has been aided by the rising need for food production brought on by population expansion and the need to boost crop yields. In agriculture, urea is used extensively, especially in the production of wheat, corn, and soybeans. However, there are issues facing the market, like the price volatility of natural gas, which affects the cost of production. Furthermore, a move toward organic fertilizers is being promoted by the growing demand for sustainable agriculture and organic farming, which could lessen the need for synthetic urea. Environmental laws and the growing focus on sustainable farming methods also have an impact on the urea market in the United States.

United Kingdom Urea Market

A vital component of the agricultural industry in the United Kingdom, urea is frequently utilized as a nitrogen fertilizer to increase crop yields. The demand for urea is stable as the UK concentrates on boosting agricultural output and food security, especially for staple crops like wheat and barley. A growing interest in organic farming, which is lowering dependency on synthetic fertilizers, and rising natural gas prices, which impact production costs, are some of the market's obstacles. Stricter rules designed to lessen soil erosion and nitrogen runoff are also putting additional pressure on the sector to embrace more ecologically friendly and sustainable techniques. Alternative fertilizers are expected to grow increasingly popular in the UK urea market as sustainability gains importance.

India Urea Market

Since urea is the most widely utilized nitrogen fertilizer to increase crop production, the Indian urea market is an essential part of the nation's agricultural sector. India's economy depends heavily on agriculture, therefore there is a continued need for urea, especially for crops like rice, wheat, and sugarcane. The market's expansion is aided by the government's provision of subsidies, which guarantee farmers may purchase urea at reasonable costs. However, issues like the drive toward organic farming and the volatility of natural gas prices, which impact production costs, are impacting the market for synthetic fertilizers. Future urea usage may be impacted by India's emphasis on sustainable agricultural methods, which is causing a slow transition to more economical and ecologically friendly fertilizers.

The Fertilizer Association of India reports that the total amount of fertilizer products produced in 2020-21 was 43.49 million MT, a 1.7% increase over 2019-20. The output of urea, NP/NPK complex fertilizers, and SSP increased by 0.6%, 7.6%, and 15.8%, respectively, over 2019-20, reaching 24.60 million MT, 9.32 million MT, and 4.92 million MT in 2020-21. However, during the same time period, there was a significant 17.1% drop in DAP output, which was 3.77 million MT. Moreover, India ranks among the world's top producers of autos. OICA reports that the nation manufactured 4.4 million automobiles in 2021, a 30% increase over the 3.38 million cars produced during the same time period the previous year.

United Arab Emirates Urea Market

Despite the region's scarcity of fertile land, the urea market in the United Arab Emirates (UAE) is vital to its industrial and agricultural sectors. The main application of urea is in agriculture, particularly in the production of vegetables, date palms, and other high-value crops cultivated in controlled conditions such as greenhouses. The UAE's reliance on urea is a result of government programs meant to boost agricultural productivity and enhance food security. With a sizable manufacturing capability in the area, the nation is also a major producer and exporter of urea. Rising natural gas prices, which affect production costs, and the growing use of sustainable farming methods, which could lessen need on chemical fertilizers, are obstacles, though. The market dynamics are also being impacted by agricultural technology developments and environmental restrictions.

Urea Market Segments

Type - Market breakup by 3 viewpoints:

• Technical Grade
• Fertilizer Grade
• Feed Grade Urea

Application - Market breakup by 4 viewpoints:

• Agriculture
• Chemical Synthesis
• Animal Feed
• Others

Countries - Market breakup by 25 Countries:

North America

• United States
• Canada

Europe

• France
• Germany
• Italy
• Spain
• United Kingdom
• Belgium
• Netherlands
• Turkey

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Thailand
• Malaysia
• Indonesia
• New Zealand

Latin America

• Brazil
• Mexico
• Argentina

Middle East & Africa

• South Africa
• Saudi Arabia
• UAE
• Overview
• Key Persons
• Recent Development & Strategies
• Product Portfolio
• Financial Insights

Company Analysis

• BASF SE
• Petrobras
• SABIC
• Bunge Limited
• Nutrien Ltd.
• Sasol
• CF Industries Holdings, Inc.

Key Questions Answered in Report

1. How big is the Urea industry?
The global Urea market size was valued at US$ 63.39 billion in 2024 and is expected to reach US$ 96.00 billion in 2033.

2. What is the Urea growth rate?
The global Urea market is expected to expand at a compound annual growth rate (CAGR) of 4.72% from 2025 to 2033.

3. Who are the key players in Urea industry?
Some key players operating in the Urea market includes BASF SE, Petrobras, SABIC, Bunge Limited, Nutrien Ltd., Sasol, CF Industries Holdings, Inc.

4. What are the factors driving the Urea industry?
Population increases, the need for more food, government subsidies, improved agricultural techniques, and the growing demand for fertilizers in agriculture are the main factors propelling the urea market's expansion. The market is growing as a result of industrial applications for plastics and chemicals.

5. Which Region held the largest market share in the Urea industry?
North America is expected to hold the largest market share in the industry.

6. What segments are covered in the Urea Market report?
Type, Application and Countries segment are covered in this report.