Urea Market

The Urea Market is valued at USD 110.1 Bn in 2026 and is projected to reach USD 132.7 Bn, growing at a CAGR of 3% by 2033.

Rocekting Use of Fertilizers Directly Fosters Growth of Urea Market Worldwide

The expansion of global urea market is attributable to the global increase in the appeal of commercial agriculture. The necessity to adequately feed various food crops to boost output has increased the need for nitrogenous fertilizers in the agricultural sector. Vegetables, fruits, cotton, and cereals are important agricultural commodities used by these fertilizers. Variations in the climate significantly impact the ability of crops to produce, which alters the supply and demand of crops according to the seasons. Using fertilizers is an essential component of agricultural practice for promoting crop development. Fertilizers are used in the cultivation of a huge range of crops worldwide. Additionally, growing use of urea in the automotive sector also contributes to urea market expansion. In this industry, urea is widely used to reduce nitrogen oxide emissions from diesel vehicles. To eliminate nitrogen oxide from the diesel exhaust, automotive urea, also known as diesel exhaust fluid (DEF), is pumped into the exhaust systems and fuel tanks of trucks, buses, cars, and sports utility vehicles (SUVs). Another significant growth-promoting aspect is the accessibility of high-quality technical-grade urea, which is widely used in medical medicines, dyes, disinfectants, cosmetics, and yeast production.

Another liquid type of urea, known as nano urea, is created by utilizing nanotechnology to improve crop growth by replacing appropriate nitrogen needs. Nano urea use in typical areas enhances soil health, the environment, and farmer profitability. The urea market is expanding in terms of revenue since it may also be used as a stabilizer, intensifier, inhibitor, and as component of insecticides. On July 17, 2021, TS stated that it would introduce nano (liquid) urea to cut expenses and ensure environmental sustainability. With the fact that this liquid urea is 80% more efficient, the market's need for urea as a sustainable fertilizer is anticipated to rise.

Urea Market: COVID-19 Impact

The latest coronavirus outbreak in China has had the biggest effect on the country's fertilizer industry, hurting the import and export of fertilizers and raw materials. In 2020, COVID-19 also hurt the market. The urea-based selective catalytic reduction (Urea SCR) method is used in automobiles to effectively remove nitrogen oxide (NOx) from exhaust streams from diesel engines. A decrease in urea-based catalysts was caused by the temporary closure of vehicle production facilities. Potential industrial uses, including resin synthesis, the manufacture of fuel additives, and the production of chemicals, are significantly impacted by production irregularities. Furthermore, the growth of the urea business was constrained by a lack of laborers and raw materials. With the rising demand from the chemical and automotive industries, the market growth post-pandemic was on the rise.

Growth of Agriculture Sector is Casting a Direct Impact on Urea Market Growth

The global urea market is expanding due to the expanding agricultural sector. Most markets, including North America, Brazil, and India, use urea and its derivatives extensively as fertilizers. The rising demand for N-fertilizers drives the market's rising demand for the product. As a result, the urea market is expanding due to the growing fertilizer market and nitrogen use. With the rising product consumption in these nations, developing nations like South Asia and Latin America are expected to have a higher demand for the product than other regions. Concerning nitrogen, urea is the source of these nutrients in agrochemicals, fertilizers, and insecticides. Revenue growth for the urea market is driven by increasing demand for agrochemicals, dairy farming, horticulture, commercial planting, and crop shifting.

Growing Demand for Industrial Applications Continues to Fuel Urea Market Growth

The demand for urea has significantly increased in recent years due to its many industrial uses. It has the power to trap different chemical compounds because of its propensity to form hydrogen bonds that enable it to construct interpenetrating helices. This quality makes it the perfect product for mixture separation and use in producing lubricating oils and aviation fuels. It can also be used to separate paraffin. In addition, urea is an essential feedstock in creating polymers, adhesives, and resins, among other products. As a result, the urea market is strongly supported by expanding the markets for these other products. As regulations regulating the use of nitrogen oxide in diesel engines change, the substance is also being used more frequently in autos, boosting the demand for urea. Moreover, urea is widely used to make urea-formaldehyde resins, melamine, diesel exhaust fluids, and animal feed, and the demand for these products is rising, in turn bolstering the performance of urea market.

Growing Interest in Organic Farming to Hamper Urea Market Growth

The demand for urea in fertilizers for mass production in agriculture is constrained by growing consumer preference for eating organic fruits and vegetables. The biological fertilizers and ecological pest controls used in organic farming are made from plant and animal waste. It is a man-made, synthetic fertilizer that is not allowed in organic farming and is utilized for commercial purposes. Additionally, overusing fertilizer has a negative impact on early plant growth in the soil, seed germination, and seedling growth in commercial farming. Extra urea can cause fertilizers to burn by drawing water from plant roots. When plants produce ammonia, which is inefficient and harmful to the environment, urea limits the number of nitrogenous chemicals produced. Manufacturing fertilizers with urea results in the generation of greenhouse gases like CO₂ that contribute to climate change.

Technical Grade Urea Will Dominate Urea Market Owing to Widening Adoption

A moderate revenue growth rate is anticipated for the technical-grade urea segment during the projected period. In the biofuel business, this grade of urea is employed in the fermentation process. It is also used to reduce nitrogen oxide emissions to the air from stationary and mobile sources, which is anticipated to increase demand for it in the technology sector. Many products, including glue, medications, colors, cleaners, cosmetics, and yeast production, use technical-grade urea. The technical grade urea must contain at least 46% nitrogen by weight (on a dry basis). The technical grade urea is also utilized in adhesives, plywood, animal feed, urea-formaldehyde resins, and cloud seeding agents, which sustains the growth of urea market. Additionally, urea is frequently used as a base ingredient in creams, and as demand for cosmetics rises, so will the need for technical-grade urea.

Nitrogenous Fertilizer Dominant in Urea Market with Growing Demand for Arable Land

With the rising food consumption, the growing population, and government support for using cutting-edge methods and fertilizers for high productivity to satisfy the expanding need, the segment for nitrogenous fertilizers in glbal urea market is anticipated to develop. Global technology advancements that address contemporary environmental concerns draw attention to agriculture and establish the field of fertilizers technology as the cornerstone for industry expansion. Europe and North America are expected to develop slowly over the projection period because of market saturation. However, South America, and Africa are expected to grow rapidly due to these regions' extensive rice, corn, and sugarcane agriculture. Additionally, the lack of arable land brought on by increasing urbanization and industrialization is increasing the need for these fertilizers to boost productivity.

Asia Pacific to Acquire a Significant Share in Urea Market Banking on Higher Production in the Region

The Asia Pacific urea market accounted for the biggest revenue share. India produces one-third of the world's urea, which is used widely in fertilizers and other products throughout the APAC region. Prime Minister Narendra Modi officially opened the fertilizer factory in Gorakhpur on December 9, 2021. The facility is projected to improve urea production in India and represent the nation as a self-sufficient unit for meeting domestic requirements. With a global shortage, China intends to increase urea manufacturing as a necessary raw material to lower vehicle emissions domestically and plans to export to Australia, and other nations.

One of the biggest producers of urea-formaldehyde resin worldwide is China. The construction industry uses urea-formaldehyde resins as adhesives to join plywood, particleboard, and other wood products. With its many uses in chemical products like AdBlue and diesel exhaust fluid, which lower nitrous oxide emissions from diesel engines to comply with international norms, urea use is rising. Urea market here is anticipated to increase steadily during the projected period due to all of these factors.

North America’s urea market is anticipated to have moderate revenue growth during the projection period. Only one nation in North America, the United States, contributed over 20% of the world's urea production. The US produced about 6.13 million tonnes in 2019, expanding at an average yearly rate of 11.18%. Sufficient supply from Canada also reduces the demand for urea from the US. The product's demand is expanding faster in North America than in the global urea market. The region's expanding economy can also be blamed for the rising demand. The region is projected to benefit from the large output of sugarcane, corn, and wheat in North America, particularly in Brazil. Furthermore, it is projected that growing innovation and improvements in farming practices and crop productivity would further support the rise of nitrogen fertilizer throughout North America.

Global Urea Market: Competitive Landscape

In June 2021, the purchase of the Zuarinagar facility in Goa, owned by Zuari Agro Chemicals Ltd by Paradeep Phosphates Ltd, was authorized by the Competition Commission of India (CCI). The agreement would result in PPL acquiring the business of creating and producing urea and non-urea fertilizer products, which is now handled by ZACL at its facility in Zuarinagar, Goa. As a result, the acquisition will strengthen Paradeep Phosphates Ltd's Urea business. In June 2021, IFFCO (Indian Farmers Fertilizer Cooperative Ltd) began commercializing nano urea liquid. The manufacturer employs the company's unique technology developed at its Nano Biotechnology Research Center in Gujarat. Furthermore, an annual production capacity of 14 crore bottles is being installed in Phase-I, which will be enhanced to an additional 18 crore bottles in Phase II by 2023.

Few of the players in the urea market include:

• Yara International ASA
• CF Industries Holdings, Inc.
• Nutrien Ltd.
• OCP Group
• EuroChem Group AG
• SABIC (Saudi Basic Industries Corporation)
• Indorama Ventures Public Co., Ltd.
• PetroChina Company Limited
• China National Chemical Corporation (ChemChina)
• Mosaic Company
• Tata Chemicals Ltd.
• OCI N.V.
• Green Plains Inc.
• Melamine Chemicals (various regional producers)
• Shandong Lianheng Chemical Co., Ltd. 

The Global Urea Market is Segmented as Below:

By Grade    
• Fertilizer
• Feed
• Industrial

By Application
• Agriculture
• Animal Feed
• Chemical Synthesis
• Others

By Region
• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa