The urea market is a crucial segment of the global chemical industry, widely used as a fertilizer and in various industrial applications. In 2024, the market reached a total volume of 177.21 MMT and is projected to experience a steady growth rate. The primary driver behind this growth is the increasing demand for urea-based fertilizers in the agricultural sector, which is essential for enhancing crop yields and supporting food security. Moreover, the market is influenced by advancements in manufacturing technologies, trade policies, and environmental regulations. Additionally, the rising population and increasing food demand are prompting governments and farmers to focus on high-yield crop production, further fueling the demand for urea.

Market Size

As of 2024, the urea market stood at 177.21 MMT. It is forecasted to grow at a CAGR of 0.90% from 2025 to 2034, reaching an estimated volume of 193.82 MMT by 2034. This incremental rise is primarily fueled by the surging demand in agricultural applications, along with an increasing requirement in industrial sectors such as resins and animal feed. Despite the modest CAGR, the market remains a critical component of global agricultural productivity and industrial chemistry. Additionally, government subsidies and incentives for fertilizer production and use are supporting market expansion in key agricultural regions such as Asia-Pacific and Latin America.

Market Trends

Several key trends are shaping the global urea market:

• Sustainable Fertilizer Use: Governments worldwide are encouraging the use of eco-friendly fertilizers, impacting the demand for urea-based solutions.
• Technological Innovations: Advanced manufacturing techniques are improving efficiency and reducing production costs.
• Increasing Industrial Applications: The demand for urea in resins, adhesives, and coatings is expanding its usage beyond agriculture.
• Trade and Supply Chain Shifts: The global trade landscape for urea is evolving with shifting geopolitical influences and changing export-import dynamics.
• Emergence of Digital Agriculture: Precision farming and smart agriculture technologies are driving optimized fertilizer usage, creating new opportunities for urea applications.
• Rising Investments in R&D: Companies are investing in research to develop enhanced urea formulations that improve efficiency and reduce environmental impact.

Market Opportunities and Challenges

Opportunities:

• Expanding Agricultural Demand: With a growing global population, food production needs are rising, increasing urea consumption.
• Development of Enhanced Efficiency Fertilizers (EEF): Innovations in slow-release fertilizers are creating new market opportunities.
• Growth in Emerging Markets: Developing economies with expanding agricultural sectors are becoming key demand drivers.
• Infrastructure Developments: Expansion of fertilizer production plants and distribution networks is aiding market growth.
• Increasing Demand for Industrial Applications: The rising use of urea in various industrial applications, including adhesives and resins, is driving diversification.

Challenges:

• Environmental Concerns: High nitrogen content in urea can contribute to soil degradation and water pollution.
• Fluctuating Raw Material Costs: Variability in natural gas prices directly affects urea production costs.
• Regulatory Constraints: Stricter regulations on nitrogen-based fertilizers could limit market expansion.
• Supply Chain Disruptions: Transportation and logistic challenges can impact the steady supply of urea across regions.

Get a Free Sample Report with Table of Contents

Segmentation

• By Application:
  • Fertiliser
  • Urea Formaldehyde (UF) and Melamine Resins
  • Melamine (Cyanurates)
  • Animal Feed
  • Others
• Breakup by Region
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

Market Growth

The urea market's growth is driven by a combination of rising agricultural demand and industrial applications. The increasing need for high-yield crops has led to greater adoption of nitrogen-based fertilizers, particularly in developing nations. Additionally, the industrial segment, particularly in urea formaldehyde resins and melamine production, is contributing to steady market expansion. Strategic investments in production efficiency and supply chain optimization are further expected to bolster growth. Moreover, government policies promoting sustainable agriculture and reducing greenhouse gas emissions from fertilizers are pushing companies to develop eco-friendly alternatives, further influencing market dynamics.

Market Forecast

Between 2025 and 2034, the global urea market is projected to grow at a CAGR of 0.90%, reaching 193.82 MMT by 2034. The fertilizer segment will continue to dominate the market, with emerging industrial applications gaining traction. Asia-Pacific remains the leading consumer, followed by North America and Europe. Innovations in eco-friendly urea formulations and increasing government subsidies for agricultural inputs will further influence market expansion. Additionally, the increasing mechanization of agriculture and the rise of precision farming technologies will drive the efficiency of urea-based fertilizers, supporting long-term market stability and growth.

Competitor Analysis

The urea market is set to experience steady growth, driven by agricultural demand and industrial applications. As competition intensifies, market players are likely to focus on technological advancements and sustainability to gain a competitive edge. Additionally, collaborations between governments and private companies to improve fertilizer efficiency and reduce environmental impacts are expected to shape the market's future.

The urea market is highly competitive, with key players focusing on capacity expansion, mergers, and technological advancements.

• Yara International ASA – Leading producer of nitrogen-based fertilizers with a strong global presence.
• Indian Farmers Fertilisers Cooperative Limited – A major cooperative supplying urea for Indian agricultural needs.
• PT Pupuk Kalimantan Timur – A dominant urea producer in Indonesia with strong regional influence.
• Qatar Fertilizer Company – A key Gulf-based player known for its large-scale production facilities.
• National Fertilizers Limited – One of India's largest public-sector fertilizer companies.
• EuroChem Group AG – A significant global producer specializing in nitrogen and phosphate fertilizers.
• Saudi Arabian Fertilizer Company – A subsidiary of SABIC, focusing on nitrogen-based fertilizers.
• CF Industries Holdings, Inc. – A leading North American urea and ammonia producer.
• Nutrien Ltd. – A Canadian-based agricultural giant with a diversified fertilizer portfolio.
• Others – Several regional and emerging players contribute to the competitive landscape.