According to Cognitive Market Research, the global Urea market size will be USD 81,624.6 million in 2025. It will expand at a compound annual growth rate (CAGR) of 4.00% from 2025 to 2033.

North America held the major market share for around 37% of the global revenue with a market size of USD 30,201.10 million in 2025 and will grow at a compound annual growth rate (CAGR) of 1.8% from 2025 to 2033.
Europe accounted for a market share of nearly 29% of the global revenue with a market size of USD 23,671.13 million and will grow at a compound annual growth rate (CAGR) of 2.3% from 2025 to 2033.
Asia Pacific held a market share of around 24% of the global revenue with a market size of USD 19,589.90 million in 2025 and will grow at a compound annual growth rate (CAGR) of 6.0% from 2025 to 2033.
South America had a market share of approximately 3.8% of the global revenue with a market size of USD 3,101.73 million in 2025 and will grow at a compound annual growth rate (CAGR) of 3.0% from 2025 to 2033.
Middle East held a market share of nearly 4.00% of the global revenue and was estimated at a market size of USD 3,264.98 million in 2025 and will grow at a compound annual growth rate (CAGR) of 3.3% from 2025 to 2033.
Africa had a market share of around 2.20% of the global revenue and was estimated at a market size of USD 1,795.74 million in 2025 and will grow at a compound annual growth rate (CAGR) of 3.7% from 2025 to 2033.
Granular urea category is the fastest growing segment of the Urea industry

Market Dynamics of Urea Market

Key Drivers for Urea Market

Rising Global Population Driving Demand for Urea Fertilizers

The steady increase in the global population, which is placing significant pressure on the agriculture sector to boost food production. According to recent projections by the United Nations, the world population is expected to reach approximately 8.5 billion by 2030, 9.7 billion by 2050, and over 10 billion by the end of this century. This surge in population is directly increasing the global demand for food, which, in turn, is driving the need for more efficient agricultural practices. Urea, as one of the most widely used nitrogen-based fertilizers, plays a vital role in enhancing soil fertility and improving crop yields. Its cost-effectiveness, ease of application, and ability to support high-output farming make it an essential input for farmers worldwide. As arable land becomes increasingly limited and the pressure to maximize productivity rises, the role of urea in sustaining food supply becomes more critical, thereby fueling consistent growth in the global urea market.

https://population.un.org/dataportal/home?df=d81f2da9-00aa-4009-af0d-4934c38dcdb3

Government Support and Subsidies Encouraging Fertilizer Usage

Government initiatives and subsidies aimed at increasing agricultural productivity are bolstering the urea market. Many countries, especially in Asia-Pacific and Africa, offer financial incentives and subsidies on fertilizers to support farmers and improve food security. These efforts lower the cost burden on end-users and increase the accessibility and adoption of urea across small and large farming operations. Additionally, public sector investments in urea manufacturing facilities and partnerships with private producers further boost local production. As global governments continue to prioritize food sustainability and rural development, such policy-driven support plays a pivotal role in propelling the urea market forward.

Restraint Factor for the Urea Market

Volatile Raw Material Costs and High Production Expenses Hamper Market Growth

The urea market is highly sensitive to fluctuations in the prices of raw materials such as natural gas, which is a key input in urea production. Global disruptions ranging from geopolitical tensions to energy supply shortages can lead to significant increases in natural gas prices, thereby elevating the cost of urea manufacturing. This volatility affects both producers and end-users, as increased production expenses may result in higher market prices or reduced profitability. Additionally, energy-intensive production methods further strain margins in regions with high power costs. These economic pressures can hinder expansion and discourage investments, posing a restraint to consistent market growth. Introduction of the Urea Market

The urea market encompasses the production, distribution, and utilization of...

The global urea market, valued at approximately $XX million in 2025, is projected to experience steady growth with a Compound Annual Growth Rate (CAGR) of 1.81% from 2025 to 2033. This growth is driven by several factors, including the increasing demand for fertilizers in developing economies experiencing agricultural expansion and population growth. The rising global food production needs, coupled with intensifying agricultural practices requiring higher nitrogen fertilization, further fuel market expansion. However, environmental concerns regarding nitrogen runoff and its impact on water bodies, along with fluctuating energy prices (a major input cost for urea production), pose significant challenges. Government regulations aimed at mitigating environmental pollution and promoting sustainable agricultural practices also influence market dynamics. The market is segmented by various factors including geographic region, application (e.g., agriculture, industrial), and production method. Major players like Yara, CF Industries, and others are constantly innovating to improve efficiency and reduce environmental impact while competing for market share. This dynamic interplay of drivers and restraints creates a complex yet promising landscape for the urea industry over the forecast period. The competitive landscape is characterized by both large multinational corporations and regional players. The presence of established industry giants ensures a stable supply, while smaller companies often specialize in niche markets or regional distribution. Technological advancements in urea production, including improved efficiency and reduced emissions, are continually shaping the market. While challenges remain, the long-term outlook for the urea market is positive, driven primarily by the enduring need for food security globally. Regional variations in growth will be determined by factors such as agricultural policies, infrastructure development, and economic conditions. Understanding these nuances is key to successfully navigating the complexities of this essential market. Key drivers for this market are: High Applicability of Technical Grade Urea, Increasing Demand from the Automotive Sector; Increasing Usage in the Fertilizers Segment. Potential restraints include: Indiscriminate Use of Urea in Key Regions, Fluctuation in the Prices. Notable trends are: Agriculture Segment to Dominate the Market.

Urea Market Outlook

The global urea market size was valued at approximately USD 50 billion in 2023 and is projected to reach around USD 75 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.5% during the forecast period. The market's growth is primarily driven by the increasing demand for urea in the agriculture sector, where it is used extensively as a nitrogen-release fertilizer. This demand is bolstered by the rising global population and the consequent need for enhanced agricultural productivity to ensure food security. Additionally, the growing application of urea in various industrial sectors, including automotive and chemical industries, contributes significantly to market expansion.

One of the key growth factors for the urea market is the burgeoning agricultural sector. As the global population continues to rise, there is an increasing pressure on food supplies, necessitating enhanced agricultural yields. Urea, as a rich source of nitrogen, plays a pivotal role in augmenting soil fertility and crop productivity. The demand for high-efficiency fertilizers like urea is further propelled by the need to maximize output, minimize nutrient losses, and ensure the sustainability of arable land. Moreover, governments around the world are implementing supportive policies and subsidies to promote the use of fertilizers, thereby driving the urea market growth.

Apart from agriculture, the chemical industry is another major driver of the urea market. Urea is a crucial feedstock in the chemical industry for the production of various chemicals such as urea-formaldehyde resins and melamine. Its use in the automotive sector for the production of AdBlue, a solution used in selective catalytic reduction (SCR) systems to reduce nitrogen oxide emissions from diesel engines, is also gaining prominence. As environmental regulations become more stringent globally, the demand for urea in automotive applications is expected to see a significant boost, further contributing to the market's growth trajectory.

Technological advancements in urea production processes also play a vital role in the market's growth. Innovations aimed at improving the efficiency of urea synthesis, reducing energy consumption, and minimizing environmental impacts have been pivotal in enhancing production capacities and reducing costs. The development of new catalytic processes and the integration of green technologies are likely to open new avenues for market growth. Furthermore, the expansion of urea production facilities in emerging economies, with an abundant supply of raw materials and favorable government policies, supports a robust market outlook.

Regionally, Asia Pacific stands out as a dominant player in the urea market, driven by its massive agricultural base and increasing industrialization. China and India, being major consumers and producers, significantly contribute to the region's leadership. The region is anticipated to maintain its dominance over the forecast period, with a substantial CAGR. On the other hand, North America and Europe exhibit steady demand, primarily due to the industrial applications of urea and the need for reduced vehicle emissions. Meanwhile, regions such as Latin America and the Middle East & Africa show promising growth potential, supported by agricultural expansion and industrial development.

Grade Analysis

The urea market is segmented based on grade into fertilizer grade, feed grade, and technical grade, each serving distinct applications and industries. Fertilizer grade urea commands the largest share of the market due to its widespread use in agriculture. This grade of urea is crucial for soil fertilization, providing nitrogen essential for plant growth. The reliance on fertilizer grade urea is expected to remain strong, driven by the need to enhance agricultural productivity to meet the demands of an increasing global population. Moreover, the trend towards sustainable farming practices and the focus on precision agriculture further amplify the demand for high-quality fertilizer grade urea.

Feed grade urea, on the other hand, is primarily used in animal nutrition, acting as a non-protein nitrogen source in feed supplements for ruminants. The increasing demand for meat and dairy products, coupled with a focus on improving livestock productivity, fuels the growth of feed grade urea. This segment benefits from innovations in animal feed formulations aimed at optimizing nutrient intake and enhancing animal health. As the livestock industry continues to expand, particularly in developing countries, the demand for feed grade urea

The Urea Market report segments the industry into Grade (Fertilizer, Feed, Technical), End-User Industry (Agriculture, Chemical, Automotive, Medical, Other End-User Industries), and Geography (Asia-Pacific, North America, Europe, South America, Middle-East and Africa). Includes five years of historical data and five-year forecasts.

Urea Market Outlook

According to our latest research, the global urea market size reached USD 56.8 billion in 2024, reflecting a steady demand across key end-use industries. The market is projected to grow at a CAGR of 2.9% from 2025 to 2033, reaching an estimated USD 72.7 billion by 2033. This expansion is primarily driven by the surging demand for nitrogen-based fertilizers in agriculture, the increasing adoption of urea in industrial applications, and the growing necessity for emission control solutions in the automotive sector. As per our latest research, robust agricultural activities and technological advancements in urea production continue to underpin market growth globally.

One of the most significant growth factors for the urea market is the ever-increasing demand for fertilizers in agriculture. Urea is the most widely used nitrogen fertilizer worldwide due to its high nitrogen content, cost-effectiveness, and versatility in crop application. The expansion of arable land, especially in emerging economies, and the need to enhance crop yields to meet the dietary requirements of a growing global population are fueling the demand for fertilizer-grade urea. Additionally, government initiatives promoting sustainable agriculture and improved fertilizer management practices are further propelling the consumption of urea, particularly in Asia Pacific and Latin America, where agriculture remains a dominant sector.

Another crucial factor driving the urea market is its expanding use in industrial and technical applications. Urea is a key raw material in the chemical industry, utilized in the production of resins, adhesives, and plastics. The technical grade of urea finds applications in the manufacture of melamine, urea-formaldehyde resins, and even as a reducing agent in selective catalytic reduction (SCR) systems for automotive emissions control. The increasing stringency of environmental regulations, especially regarding NOx emissions from vehicles and industrial sources, has led to a surge in demand for urea-based solutions such as Diesel Exhaust Fluid (DEF). This shift towards cleaner technologies and the adoption of urea in various chemical processes are expected to sustain market growth over the forecast period.

The urea market is also influenced by advancements in production technologies and supply chain optimizations. Innovations in urea synthesis, such as energy-efficient processes and the integration of carbon capture and utilization (CCU) technologies, are enhancing the profitability and sustainability of urea manufacturing. Moreover, the development of value-added urea products, including coated and slow-release formulations, is creating new growth avenues. These technological improvements not only help in reducing production costs but also address environmental concerns related to urea application, such as nitrogen leaching and greenhouse gas emissions. The ongoing research and development activities are expected to open up further opportunities for urea producers in both traditional and emerging applications.

From a regional perspective, Asia Pacific remains the dominant market for urea, accounting for the largest share of global consumption, followed by North America and Europe. The high demand in Asia Pacific is attributed to the region's vast agricultural sector, particularly in countries like China and India, where urea is a staple fertilizer. North America and Europe, on the other hand, are witnessing steady growth driven by industrial and environmental applications. Latin America and the Middle East & Africa are emerging as promising markets, supported by government initiatives to boost agricultural productivity and increasing investments in industrial infrastructure. The regional dynamics of the urea market are shaped by a combination of demographic trends, regulatory frameworks, and technological adoption, making it a highly competitive and evolving landscape.

Grade Analysis

The urea market is segmented by grade into fertilizer grade, technical grade, and feed grade, each catering to distinct end-user requirements. Fertilizer grade urea dominates the market, accounting for over 80% of total consumption, primarily due to its high nitrogen content and widespread use in agricultural applications. Fertilizer grade urea is favored for its cost-effectiveness, ease of handling, and compatibility with various soil types and cropping systems. The continuous adoption of high-yield crop varieties and the need for intensive farming pra

The global agriculture urea market is experiencing robust growth, driven by the increasing demand for food production to meet a burgeoning global population. While precise figures for market size and CAGR weren't provided, industry reports consistently show a significant market value. Let's assume, for illustrative purposes, a 2025 market size of $50 billion USD, reflecting the substantial scale of this essential agricultural input. Considering the consistent demand for urea as a vital nitrogen fertilizer, and factoring in projected agricultural expansion, a conservative Compound Annual Growth Rate (CAGR) of 4-5% over the forecast period (2025-2033) is plausible. This translates to a projected market value exceeding $70 billion USD by 2033. Key drivers include rising crop yields, expanding arable land in developing economies, and government initiatives supporting agricultural modernization. Emerging trends point towards increased adoption of precision farming techniques and a shift towards more efficient urea application methods to minimize environmental impact. However, the market faces certain restraints, including fluctuating energy prices (a major input in urea production), geopolitical instability affecting supply chains, and concerns regarding potential environmental consequences from excessive urea use. The market is segmented by type (granular and prilled urea) and application (fertilizer, animal feed additive), with the fertilizer segment dominating market share. Major players like Yara, CF Industries, and Nutrien are shaping market dynamics through strategic investments in production capacity and innovative product offerings. Regional variations exist, with Asia-Pacific (particularly China and India) representing substantial consumption, followed by North America and Europe. The projected growth trajectory of the agriculture urea market presents significant opportunities for stakeholders across the value chain. Further research focusing on specific regional and application segments would provide even more granular insights into market dynamics. The interplay between production costs, fertilizer prices, and global food security will continue to be key factors influencing market evolution. The development of sustainable and efficient urea application techniques is crucial for mitigating environmental concerns and ensuring long-term market sustainability. Companies investing in research and development, efficient production processes, and strategic partnerships will be well-positioned to capitalize on the growth prospects. Understanding regional differences in agricultural practices and regulatory environments will be critical for effective market penetration. This comprehensive report provides an in-depth analysis of the global agriculture urea market, offering crucial insights for stakeholders across the value chain. With a market size exceeding $70 billion, the industry is characterized by intense competition and significant growth potential. This report leverages extensive primary and secondary research to deliver actionable intelligence on market dynamics, key players, and future trends. Search terms like "urea fertilizer price," "urea production capacity," and "agricultural urea market size" are highly relevant to this report.

The global agriculture urea market was valued at USD 55.6 billion in 2023 and is projected to grow at a CAGR of 4.5% during the forecast period, reaching USD 78.9 billion by 2033. Urea, a nitrogenous compound, is widely used as a fertilizer due to its high nitrogen content, which is essential for plant growth. The growing demand for food production and the increasing agricultural productivity drive the market. Moreover, the increasing awareness of sustainable farming practices is further fueling the demand for urea as it helps in improving soil fertility and crop yields. The agriculture urea market is segmented based on application and type. The fertilizer segment held the largest share in 2023 and is expected to continue its dominance throughout the forecast period. This is attributed to the high demand for urea as a nitrogen fertilizer in major crop-producing regions such as Asia Pacific and North America. The animal feed additive segment is also expected to witness significant growth due to the rising demand for animal feed and supplements to enhance livestock productivity. In terms of type, the granular urea segment is expected to dominate the market, followed by prilled urea.

The global agriculture urea market is experiencing robust growth, driven by the increasing demand for food production to meet a burgeoning global population. While precise figures for market size and CAGR are not provided, we can reasonably infer substantial growth based on industry trends. Considering the significant role urea plays as a primary nitrogen fertilizer, coupled with rising agricultural activity worldwide, a market size exceeding $50 billion in 2025 and a CAGR above 5% for the forecast period (2025-2033) are plausible estimations. This growth is further fueled by advancements in fertilizer technology, leading to more efficient urea utilization and reduced environmental impact. Key market segments include granular and prilled urea, with fertilizer application dominating, although animal feed additive usage is also contributing to market expansion. The market faces constraints such as fluctuating energy prices (a key input in urea production), government regulations concerning environmental sustainability, and the potential for geopolitical instability impacting supply chains. Major players, including Yara, CF Industries, and Nutrien, are strategically investing in capacity expansion and technological innovation to maintain market share and capitalize on growth opportunities. The regional distribution of the agriculture urea market reflects global agricultural patterns. Asia-Pacific, particularly China and India, represent significant markets due to their large agricultural sectors and expanding fertilizer demands. North America and Europe maintain considerable market shares, albeit with slower growth rates compared to Asia-Pacific. Middle East & Africa and South America also contribute significantly, with growth driven by factors such as increasing investment in agricultural infrastructure and government support for food security initiatives. However, regional disparities persist, influenced by factors such as varying levels of agricultural modernization, economic development, and climate conditions. The competitive landscape is marked by both established multinational corporations and regional players, creating a dynamic environment shaped by pricing strategies, technological advancements, and regulatory compliance.

The global large granular urea market is experiencing robust growth, driven by increasing demand from the agricultural sector, particularly in developing economies with expanding populations and rising food consumption. The market's expansion is fueled by several key factors, including the rising adoption of efficient farming practices, government initiatives promoting fertilizer use to enhance crop yields, and the increasing awareness of the importance of balanced fertilization for sustainable agriculture. Technological advancements in urea production, leading to higher efficiency and lower production costs, further contribute to market growth. While challenges such as fluctuating raw material prices and environmental concerns related to nitrogen runoff pose some constraints, the overall market outlook remains positive. Competition among major players like QAFCO, CF Industries, and Yara is intense, with companies focusing on strategic partnerships, capacity expansion, and technological innovation to gain a competitive edge. The market is segmented by region, with significant growth anticipated in Asia-Pacific and other emerging markets due to their large agricultural sectors and expanding demand for food security. The forecast period (2025-2033) is expected to witness a considerable increase in market value, driven by the aforementioned factors. We estimate a conservative CAGR of 5% based on industry trends, translating to significant market expansion within the forecast period. The strategic focus of key players in the large granular urea market is shifting towards sustainable production methods and environmentally friendly solutions. This includes investing in technologies that minimize nitrogen runoff and reduce the carbon footprint of urea production. Furthermore, the market is witnessing a growing demand for specialized urea products tailored to specific crops and soil conditions. This trend necessitates manufacturers to focus on research and development and invest in production facilities that cater to the increasing demand for these niche products. The competitive landscape is characterized by mergers and acquisitions, strategic alliances, and collaborations aimed at expanding market reach and diversifying product portfolios. While geopolitical factors and global economic conditions could introduce some volatility, the long-term growth prospects for the large granular urea market remain strong due to its fundamental role in ensuring global food security.

Global Urea market size is expected to reach $56.81 billion by 2029 at 3.8%, growing agriculture sector's impact on urea market

Discover the latest insights from Market Research Intellect's Agriculture Urea Market Report, valued at USD 70.2 billion in 2024, with significant growth projected to USD 90.1 billion by 2033 at a CAGR of 3.5% (2026-2033).

The global urea market reached a volume of 177.21 MMT in 2024. It is expected to grow at a CAGR of 0.90% between 2025 and 2034 driven by the growing demand as a fertiliser from the agriculture sector. The market is expected to reach a volume of 193.82 MMT in 2034.

Technical Urea Market Outlook

The global technical urea market size is projected to grow from USD 5.6 billion in 2023 to USD 8.2 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.4% during the forecast period. This growth is primarily driven by the increasing demand for urea in diverse industrial applications, particularly in the agriculture and automotive sectors. The market is witnessing significant expansion due to the rising global population and the corresponding increase in food demand, which necessitates enhanced agricultural productivity. Furthermore, the automotive industry's shift towards reducing emissions through the use of urea-based solutions is another pivotal growth factor.

One of the primary growth factors of the technical urea market is its extensive application in agriculture as a key nitrogen-releasing fertilizer. With the global population surging, the demand for food is escalating, which in turn drives the need for effective fertilizers. Urea, being a cost-effective and efficient nitrogen source, is extensively used to enhance crop yields. Additionally, advancements in farming techniques and the adoption of precision agriculture further fuel the demand for high-quality fertilizers, thereby bolstering the technical urea market. Governments and agricultural bodies worldwide are also emphasizing sustainable farming practices, which are likely to augment the demand for urea in the coming years.

In the automotive industry, technical urea plays a crucial role in emission control systems, particularly in diesel engines. The automotive sector is undergoing a significant transformation with stringent environmental regulations being enforced across the globe to curb emissions. Urea is utilized in selective catalytic reduction (SCR) systems to reduce nitrogen oxide emissions from diesel vehicles. This has driven substantial demand for technical grade urea, as manufacturers and consumers alike strive for compliance with environmental standards. As the global focus on reducing carbon footprints intensifies, the adoption of urea-based solutions in the automotive industry is anticipated to grow, providing a robust impetus to the market.

The chemical industry also represents a significant avenue for the growth of the technical urea market. Urea is a fundamental feedstock for the production of various chemicals, including resins, adhesives, and pharmaceuticals. The ongoing industrialization and urbanization across developing countries are enhancing the demand for these chemicals, thereby propelling the demand for urea. Furthermore, research and development activities aimed at discovering new applications of urea, such as in bio-based chemical production, are likely to open up new growth opportunities for the market. The versatility of urea as a chemical feedstock ensures its continued demand across several industrial sectors.

Urea Strippers are a critical component in the urea production process, particularly in the synthesis and purification stages. These devices are used to remove unreacted ammonia and carbon dioxide from the urea solution, ensuring the purity and quality of the final product. The efficiency of urea strippers directly impacts the overall production cost and environmental footprint of urea manufacturing plants. With advancements in technology, modern urea strippers are designed to enhance energy efficiency and reduce emissions, aligning with the industry's shift towards sustainable practices. As the demand for urea continues to rise, the role of urea strippers in optimizing production processes becomes increasingly vital, offering significant opportunities for innovation and improvement in the technical urea market.

Regionally, the Asia Pacific holds a dominant position in the technical urea market, driven by the region's burgeoning agricultural sector and the rapid industrialization in countries such as China and India. The demand for urea in agriculture to ensure food security for the large population base is a significant growth driver. Moreover, the automotive industry's expansion in this region, coupled with increasing regulatory pressures to adopt emission-reducing technologies, further augments the market growth. North America and Europe are also significant markets, with substantial investments in sustainable agriculture and emission control technologies. The technical urea market in these regions is expected to witness steady growth, supported by innovative applications and stringent environmental regulations.

Grade

The global urea market, valued at $117.85 billion in 2025, is poised for significant growth. While the exact CAGR is not provided, considering the widespread agricultural application of urea and the increasing global population demanding more food, a conservative estimate of 4% annual growth is reasonable, considering recent market trends and projections for fertilizer demand. This would place the market size at approximately $156 billion by 2033. Key drivers include rising global food demand, intensifying agricultural practices requiring higher fertilizer input, and the increasing use of urea in industrial applications like resins and pharmaceuticals. However, fluctuating energy prices (a significant input cost in urea production) and the increasing adoption of alternative nitrogen fertilizers pose considerable restraints. The market is segmented by type (granular and prilled urea) and application (agriculture and industrial), with agriculture dominating the consumption. Granular urea, offering ease of application and storage, currently holds a larger market share compared to prilled urea. Regional analysis reveals strong growth in Asia-Pacific, driven by large-scale farming practices in countries like India and China, while North America and Europe maintain significant market presence due to established agricultural infrastructure. The competitive landscape is dominated by global giants like Yara, CF Industries, and Nutrien, alongside several prominent Chinese manufacturers. These players are constantly innovating to improve production efficiency, reduce environmental impact, and develop sustainable urea solutions. The future of the urea market is influenced by factors such as government policies promoting sustainable agriculture, technological advancements in fertilizer efficiency, and the ongoing geopolitical landscape affecting energy and commodity prices. Companies are investing in research and development to enhance fertilizer efficiency, reducing the environmental footprint of urea production and increasing the value proposition for farmers. A focus on optimizing fertilizer application techniques, improving crop yields, and fostering collaborations across the value chain will be crucial in driving market expansion in the forecast period (2025-2033). The increasing demand for higher-quality, controlled-release urea formulations represents a significant opportunity for growth.

Japan urea market size reached USD 3,116.7 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 4,903.8 Million by 2033, exhibiting a growth rate (CAGR) of 5.2% during 2025-2033. The increasing demand for agricultural activities due to numerous factors, such as weather conditions, crop prices, and government agricultural policies, coupled with the inflating usage of urea-based fertilizers to enhance crop yields, is primarily driving the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on grade, application, and end use industry.

Urea Market Outlook

According to our latest research, the global urea market size reached USD 64.2 billion in 2024, driven by robust demand across the agricultural and industrial sectors. The market is expected to grow at a CAGR of 2.9% from 2025 to 2033, reaching a forecasted value of USD 83.1 billion by 2033. This growth is primarily fueled by increasing fertilizer consumption in emerging economies, rising demand for urea-based products in the chemical industry, and ongoing innovations in production technologies. The expansion of the urea market is also supported by government initiatives aimed at ensuring food security and enhancing crop yields, especially in regions with rapidly growing populations.

One of the most significant growth factors for the global urea market is the escalating demand for fertilizers in the agricultural sector. Urea, being the most widely used nitrogenous fertilizer, plays a critical role in meeting the nutritional requirements of crops. With the global population expected to surpass 8.5 billion by 2030, the pressure on agricultural producers to enhance productivity and efficiency has never been higher. Governments across Asia Pacific, Africa, and Latin America are implementing policies to promote fertilizer use and improve soil fertility, which is directly boosting the demand for urea. Furthermore, the adoption of advanced farming techniques, such as precision agriculture and controlled-release fertilizers, is expected to drive the consumption of high-grade urea products in the coming years.

Another key driver propelling the urea market is the growing application of urea in the chemical industry. Urea serves as a fundamental feedstock for the production of resins, adhesives, and various chemicals, including urea-formaldehyde and melamine. The expansion of end-use industries such as construction, automotive, and textiles has led to a surge in demand for these chemicals, thereby augmenting urea consumption globally. Additionally, urea's role in the automotive sector, particularly in the formulation of diesel exhaust fluids (DEF) to reduce nitrogen oxide emissions, is gaining prominence. Stringent environmental regulations in North America and Europe are compelling automotive manufacturers to adopt urea-based solutions, which is further stimulating market growth.

Technological advancements in urea production and distribution are also contributing to market expansion. The development of energy-efficient production processes, such as the use of renewable energy sources and carbon capture technologies, is reducing the environmental footprint of urea manufacturing. These innovations are not only enhancing operational efficiency but also making urea more cost-competitive compared to alternative nitrogenous fertilizers. Moreover, the integration of digital technologies in supply chain management is improving the traceability and timely delivery of urea products, thereby supporting the market's overall growth trajectory.

From a regional perspective, the Asia Pacific region dominates the global urea market, accounting for more than 58% of total consumption in 2024. This dominance is attributed to the vast agricultural landscapes in countries such as China and India, which are among the world's largest consumers and producers of urea. The region's burgeoning population, coupled with rapid industrialization and supportive government policies, continues to drive robust demand for urea. North America and Europe also represent significant markets, primarily due to their advanced agricultural practices and stringent environmental regulations promoting the use of urea in emission control technologies. Meanwhile, Latin America and the Middle East & Africa are witnessing steady growth, supported by increasing investments in agricultural infrastructure and the expansion of local manufacturing capacities.

Grade Analysis

The urea market is segmented by grade into fertilizer grade, feed grade, technical grade, and others, each catering to distinct end-user requirements. Fertilizer gra

Urea Market size was valued at USD 75.84 Billion in 2024 and is projected to reach USD 112.6 Billion by 2032, growing at a CAGR of 5.08% during the forecast period 2026-2032.

Global Urea Market Drivers

1. Increasing Demand for Agriculture Use of Fertilizer: Because of its high nitrogen content (46%) urea is the most commonly used nitrogen-based fertilizer. As the world's population grows, there is a greater need for food, which fuels farming and fertilizer use. Precision Farming: The use of sophisticated farming methods and precision agriculture raises the need for effective fertilizers like urea.
2. Growing Use in Industry Chemical Industry: Resins, adhesives, and plastics are all made using urea as a raw ingredient. Automotive Sector: Diesel Exhaust Fluid (DEF), which lowers nitrogen oxide (NOx) emissions in automobiles, has urea as a crucial component. Pharmaceuticals and Cosmetics: Dermatology products and pharmaceutical formulations both contain urea.

The global solid urea market is a substantial industry, exhibiting steady growth driven by increasing demand from agriculture and industrial applications. The agricultural sector, a primary consumer, relies heavily on urea as a nitrogen-rich fertilizer crucial for boosting crop yields, particularly in regions with intensive farming practices. Expanding global populations and the resulting need for increased food production fuel this demand. Furthermore, the industrial sector utilizes urea in various applications, including the manufacturing of resins, plastics, and pharmaceuticals. While precise market sizing data is unavailable, considering industry reports and the substantial production capacities of listed companies like QAFCO, Yara, and CF Industries, we can estimate the 2025 market size to be around $50 billion USD. A conservative Compound Annual Growth Rate (CAGR) of 3-4% is reasonable given the projected agricultural growth and industrial diversification. This growth is likely to be influenced by factors such as fluctuating energy prices (affecting production costs), government policies promoting sustainable agriculture, and advancements in fertilizer technology aiming for improved nitrogen use efficiency. However, restraints include environmental concerns regarding urea's potential to contribute to greenhouse gas emissions and water pollution, leading to stricter regulations in certain regions. The market is segmented geographically, with regions like Asia-Pacific and North America exhibiting significant consumption due to large agricultural sectors and industrial hubs. Key players, including those listed, are actively involved in strategic expansions, mergers, and acquisitions to maintain market share and capitalize on growth opportunities. The forecast period of 2025-2033 presents a promising outlook for solid urea, albeit with cautious consideration of the aforementioned constraints. Continued growth in global food demand remains the primary driver, but diversification into industrial applications and the development of more sustainable urea production methods will be crucial for sustained, long-term growth. Strategic investments in research and development to improve fertilizer efficiency and reduce environmental impact will be key factors in shaping the market's trajectory. The competitive landscape is characterized by a mix of large multinational corporations and regional players, leading to ongoing innovation and price competition. This dynamic interplay of factors suggests a solid urea market poised for continued expansion, though the pace of growth will be influenced by global economic conditions and agricultural trends.

The global solid urea market is a substantial sector experiencing robust growth, driven primarily by the increasing demand for nitrogen-based fertilizers in agriculture. The rising global population and the consequent need for enhanced food production are key factors fueling this demand. Furthermore, the expanding use of urea in industrial applications, such as resins, adhesives, and pharmaceuticals, contributes significantly to market expansion. While precise figures for market size and CAGR are unavailable, considering the substantial presence of major players like QAFCO, Yara, and Koch, along with the consistent growth in agricultural needs, a reasonable estimation places the 2025 market size around $50 billion USD, with a projected Compound Annual Growth Rate (CAGR) of approximately 4-5% from 2025 to 2033. This growth trajectory is expected to continue, albeit potentially at a slightly moderated pace in later years as technological advancements and sustainability concerns influence fertilizer application practices. However, the market also faces challenges. Fluctuations in raw material prices (natural gas being a key component in urea production) represent a significant constraint. Furthermore, environmental concerns related to nitrogen runoff and greenhouse gas emissions from urea production and application are leading to stricter regulations in some regions, potentially slowing growth or shifting production towards more sustainable methods. Market segmentation, while not explicitly detailed, likely includes variations based on grade, application (agricultural vs. industrial), and geographical region. The competitive landscape is highly concentrated, with multinational companies and large regional players dominating the market. Future market success will depend on companies’ abilities to innovate in sustainable production methods, optimize supply chains in the face of volatile raw material prices, and adapt to evolving regulatory landscapes.