Get key insights on Market Research Intellect's Urea Fertilizers Market Report: valued at USD 50.21 billion in 2024, set to grow steadily to USD 63.45 billion by 2033, recording a CAGR of 3.25%.Examine opportunities driven by end-user demand, R&D progress, and competitive strategies.

The Urea Market report segments the industry into Speciality Type (CRF, Liquid Fertilizer, SRF, Water Soluble), Crop Type (Field Crops, Horticultural Crops, Turf & Ornamental), Form (Conventional, Speciality), and Region (Asia-Pacific, Europe, Middle East & Africa, North America, South America). Five years of historical data and five-year forecasts are included.

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 traded flat at 383.25 USD/T on October 2, 2025. Over the past month, Urea's price has fallen 3.58%, but it is still 15.26% higher than a year ago, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. This dataset includes a chart with historical data for Urea.

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.

Key trends to Urea Market

Change to Specialty Controlled/Slow-Release Urea Varieties coated with...

Urea Fertilizers Market Outlook

As of 2023, the global urea fertilizers market size is estimated to be valued at approximately USD 60 billion, with an expected compound annual growth rate (CAGR) of 5.2% from 2024 to 2032. By 2032, the market is projected to reach about USD 95 billion. The growth of the urea fertilizers market is propelled by increasing demand for high-yield crops and the need for sustainable agricultural practices.

The growing global population, expected to reach 9.7 billion by 2050, is a significant driver for the urea fertilizers market. As the population grows, so does the demand for food, necessitating higher agricultural productivity. Urea fertilizers are essential for providing the nitrogen required for plant growth, making them a key component in meeting the food demands of the future. Additionally, the increasing awareness of soil health and sustainable farming practices has led to a rise in the adoption of urea-based fertilizers, as they are known for their efficiency and cost-effectiveness.

Technological advancements in fertilizer production and application techniques are also contributing to the marketÂ’s growth. Innovations such as controlled-release urea fertilizers and precision farming technologies are enhancing the efficiency of nutrient delivery to crops, reducing wastage, and minimizing environmental impact. These advancements are not only boosting crop yields but also aligning with global sustainability goals, thereby driving market growth. Furthermore, the integration of digital tools in farming, such as GPS and IoT-based soil monitoring, is facilitating the optimized use of urea fertilizers, supporting the market expansion.

Government policies and subsidies are playing a crucial role in the growth of the urea fertilizers market. Many countries, particularly in Asia and Africa, are providing financial incentives and support to farmers to encourage the use of fertilizers and improve agricultural productivity. These initiatives are aimed at ensuring food security and boosting the agricultural sectorÂ’s contribution to the economy. Additionally, international organizations are investing in agricultural development projects, further stimulating the demand for urea fertilizers in emerging economies.

The introduction of Urea Amine Nitrate into the market is a significant development in the realm of nitrogen-based fertilizers. This compound offers a balanced nitrogen source that combines the benefits of both urea and ammonium nitrate, providing a more efficient nutrient delivery system for crops. Urea Amine Nitrate is particularly advantageous in regions with diverse climatic conditions, as it enhances nitrogen uptake and reduces the risk of leaching, thereby improving soil health and crop productivity. Its application is gaining traction among farmers who are keen on adopting sustainable farming practices while ensuring high crop yields. The versatility of Urea Amine Nitrate makes it suitable for a wide range of crops, further driving its demand in the agricultural sector.

Regionally, the Asia Pacific dominates the urea fertilizers market, accounting for the largest share in 2023. This dominance is attributed to the extensive agricultural activities and the presence of major agrarian economies such as India and China. The region's significant population and rising food demand are driving the need for enhanced agricultural productivity, thereby increasing the adoption of urea fertilizers. Additionally, favorable government policies and subsidies in countries like India are supporting market growth. North America and Europe are also significant markets, driven by technological advancements and a focus on sustainable farming practices.

Product Type Analysis

The urea fertilizers market by product type includes granular urea, prilled urea, coated urea, and others. Granular urea is one of the most commonly used forms due to its ease of handling and application. Granular urea is favored in large-scale farming operations as it can be easily broadcasted across fields or incorporated into the soil. Its relatively slow release rate compared to prilled urea makes it suitable for various crops, providing a steady supply of nitrogen over time. This type of urea is particularly popular in regions with extensive agricultural lands, such as North America and Europe.

Prilled urea, on the other hand, is known for its faster solubility and is often used in regions where rapid ni

The global gas-based urea fertilizer market exhibits robust growth, driven by escalating global food demand and the increasing adoption of intensive farming practices. Considering a plausible market size of $50 billion in 2025 and a Compound Annual Growth Rate (CAGR) of 5%, the market is projected to reach approximately $70 billion by 2033. This expansion is fueled by several key drivers, including rising crop yields, government initiatives promoting agricultural productivity, and the expanding global population. However, the market faces challenges such as fluctuating natural gas prices, environmental concerns related to nitrogen emissions, and potential disruptions in supply chains.
Segmentation within the market is significant, with key players like QAFCO, CF Industries, and Yara competing intensely. Regional variations in market penetration exist, with North America and Asia expected to dominate due to substantial agricultural activities and established fertilizer production facilities. The study period of 2019-2033 provides a comprehensive view of market evolution, encompassing historical performance (2019-2024) and future projections (2025-2033), using 2025 as the base year. Strategic investments in advanced fertilizer technologies, focused on efficiency and sustainability, are expected to further shape the market's trajectory. This includes the development of more efficient fertilizer application techniques and the exploration of alternative nitrogen sources to reduce environmental impact. The competitive landscape will continue to see mergers, acquisitions, and innovations that drive cost optimization and market consolidation.

Urea Nitrogen Fertilizer Market Outlook

The global urea nitrogen fertilizer market size was valued at $70 billion in 2023 and is projected to reach $100 billion by 2032, reflecting a CAGR of 4.0% during the forecast period. This growth is fueled by the increasing demand for high-efficiency fertilizers to meet the food requirements of a growing global population, along with advancements in agricultural technologies. Additionally, supportive government policies and the need for sustainable farming practices are major growth drivers in this market.

The primary growth factor for the urea nitrogen fertilizer market is the escalating global food demand driven by population growth. With the world population projected to reach 9.7 billion by 2050, the agricultural sector faces immense pressure to enhance crop yields efficiently. Urea nitrogen fertilizers, known for their high nitrogen content, play a critical role in boosting agricultural productivity. Innovations in fertilizer formulations and application techniques have further amplified their effectiveness, making them a preferred choice among farmers.

Secondly, the adoption of modern agricultural practices has significantly bolstered the market. Precision farming techniques, coupled with the increasing use of advanced machinery, have optimized fertilizer usage, thereby reducing waste and enhancing crop growth. The integration of Internet of Things (IoT) in agriculture has also enabled real-time monitoring of soil and crop health, ensuring the precise application of urea nitrogen fertilizers. These technological advancements have not only improved the efficiency of fertilizers but have also helped in minimizing their environmental impact.

Another crucial growth factor is the support from governments and international organizations aimed at promoting sustainable agricultural practices. Various subsidy schemes and financial incentives provided by governments for the purchase of fertilizers have positively impacted market growth. Furthermore, numerous initiatives focusing on soil health and nutrient management have propelled the adoption of urea nitrogen fertilizers. Organizations like the Food and Agriculture Organization (FAO) and the World Bank are actively working with countries to improve agricultural productivity through sustainable means, thereby contributing to market expansion.

In terms of the regional outlook, the Asia Pacific region dominates the urea nitrogen fertilizer market, accounting for the largest share due to the extensive agricultural activities in countries like China and India. These countries are major consumers of urea nitrogen fertilizers, driven by their large agrarian economies and the need to ensure food security for their massive populations. North America and Europe also represent significant markets, with a substantial adoption of advanced agricultural practices and a high emphasis on sustainable farming. The Middle East & Africa and Latin America are emerging markets, showing promising growth potential due to increasing agricultural investments and improving economic conditions.

Product Type Analysis

The urea nitrogen fertilizer market by product type is segmented into granular urea, prilled urea, coated urea, and others. Granular urea holds a significant share in the market due to its widespread use in agriculture. It is preferred for its ease of handling and application, along with its ability to provide a steady release of nitrogen to crops. Additionally, granular urea is suitable for various soil types and climatic conditions, making it a versatile choice for farmers globally.

Granular Urea, a popular form of nitrogen fertilizer, is particularly favored in agriculture due to its ease of application and consistent nutrient release. This type of urea is known for its granular form, which allows for even distribution across fields, ensuring that crops receive a steady supply of nitrogen. The granules are designed to dissolve slowly, providing a sustained release of nutrients that align with the growth cycles of various crops. This characteristic makes granular urea a preferred choice among farmers who aim to optimize crop yields while minimizing nutrient loss and environmental impact. Its adaptability to different soil types and climatic conditions further enhances its appeal in diverse agricultural settings.

Prilled urea is another major segment, known for its uniform size and ease of application. It is particularly favored

The global gas-based urea fertilizers market is experiencing robust growth, driven by increasing agricultural demand and the crucial role urea plays in boosting crop yields. While precise figures for market size and CAGR weren't provided, a reasonable estimation, considering industry trends and the significant presence of major players like QAFCO, CF Industries, and Yara, points to a substantial market. Let's assume, for illustrative purposes, a 2025 market size of approximately $50 billion USD, with a projected Compound Annual Growth Rate (CAGR) of 4% from 2025 to 2033. This growth is fueled by factors including rising global populations necessitating increased food production, expanding arable land under cultivation in developing nations, and government initiatives promoting agricultural modernization and efficiency. The granular form of urea fertilizer currently dominates the market, but the liquid segment is anticipated to witness faster growth due to its ease of application and reduced environmental impact. Both agricultural and industrial applications contribute significantly to the market’s size, with agricultural use being the primary driver. However, challenges like fluctuating natural gas prices (a key input cost) and environmental concerns related to nitrogen runoff pose potential restraints. The market is geographically diverse, with significant contributions from regions like North America, Asia-Pacific (particularly China and India), and the Middle East & Africa. The competitive landscape is marked by the presence of numerous multinational corporations and regional players. These companies engage in strategic alliances, capacity expansions, and technological advancements to enhance efficiency and meet the growing market demand. The future trajectory of the gas-based urea fertilizers market is promising, with considerable scope for growth, innovation, and increased sustainability. However, effective regulatory measures addressing environmental concerns are crucial for the industry's long-term health. Further research and development focusing on improving fertilizer efficiency and minimizing environmental impacts will play a vital role in shaping the market's future.

Gas Based Urea Fertilizers Market Outlook

The global gas-based urea fertilizers market size is anticipated to grow from USD 55 billion in 2023 to USD 75 billion by 2032, with a compound annual growth rate (CAGR) of approximately 3.5%. This growth is largely driven by increasing global food demand and advancements in agricultural practices that necessitate higher efficiency fertilizers. The market size expansion reflects the growing importance of gas-based urea fertilizers in supporting global agricultural productivity.

One of the primary growth factors for the gas-based urea fertilizers market is the rising global population, which drives the need for enhanced agricultural productivity. With the global population expected to reach nearly 9.7 billion by 2050, there is immense pressure on agricultural systems to produce more food. Urea fertilizers play a crucial role in providing essential nutrients to crops, increasing their yield, and ensuring a stable food supply. The efficiency and cost-effectiveness of gas-based urea fertilizers make them a preferred choice among farmers worldwide.

Another significant factor contributing to the market growth is the increasing adoption of modern agricultural practices. Precision agriculture, which utilizes advanced technologies to optimize field-level management regarding crop farming, heavily relies on efficient fertilizers like urea. The integration of gas-based urea fertilizers with precision farming techniques ensures that crops receive the right amount of nutrients, leading to better yield and reduced wastage. Additionally, government initiatives promoting sustainable farming practices further boost the demand for these fertilizers.

Environmental concerns and the need for sustainable agricultural inputs are also driving the market for gas-based urea fertilizers. As the agricultural sector faces scrutiny for its environmental impact, there is a growing emphasis on using fertilizers that minimize environmental harm. Gas-based urea fertilizers, when used correctly, can reduce nitrogen runoff and lower greenhouse gas emissions compared to other nitrogen sources. This aligns with global sustainability goals and encourages their adoption among environmentally conscious farmers and agribusinesses.

Regionally, the Asia Pacific is expected to dominate the gas-based urea fertilizers market throughout the forecast period. The region's vast agricultural landscape, combined with increasing investments in agricultural infrastructure and technology, drives significant demand for fertilizers. Countries such as China and India, with their large farming communities and growing focus on agricultural productivity, are key contributors to the market's growth in this region. Additionally, government subsidies and support for farmers in these countries further bolster the market.

Product Type Analysis

The gas-based urea fertilizers market can be segmented by product type into granular urea and prilled urea. Granular urea is favored for its ease of handling and application. The granules are relatively larger, which makes them easier to spread uniformly across fields using modern farming equipment. This uniformity in application ensures that crops receive a consistent amount of nutrients, which is critical for optimal growth and yield. Moreover, granular urea is less prone to caking and dust formation, making it a more convenient option for storage and transportation.

Prilled urea, on the other hand, is known for its quick solubility, making it an ideal choice for regions with high rainfall or irrigation systems. The smaller, more uniform prills dissolve rapidly, providing an immediate source of nitrogen to crops. This quick release is particularly beneficial for crops that require a fast uptake of nutrients during critical growth phases. However, prilled urea is more susceptible to caking and dust formation, which can be a drawback in terms of storage and handling.

Both granular and prilled urea have their unique advantages, making them suitable for different agricultural conditions and crop types. The choice between the two often depends on factors such as climate, soil type, and the specific nutrient requirements of the crops being grown. As a result, farmers and agricultural businesses tend to select the product type that best aligns with their operational needs and environmental conditions.

The market for both granular and prilled urea is expected to grow steadily, driven by increasing global food demand and the need for efficient nutrient management

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 global gas-based urea fertilizer market is experiencing robust growth, driven by rising global food demand and the increasing need to enhance crop yields. A consistently expanding global population necessitates higher agricultural output, creating a sustained demand for fertilizers like urea. Gas-based urea production, while energy-intensive, remains a dominant manufacturing method due to its cost-effectiveness and established infrastructure in many regions. Factors like government support for agricultural development, particularly in emerging economies, further fuel market expansion. However, the market faces challenges, including volatile natural gas prices, which directly impact production costs and profitability. Furthermore, stringent environmental regulations concerning greenhouse gas emissions from fertilizer production are placing pressure on manufacturers to adopt more sustainable practices and technologies. These regulatory pressures, coupled with potential fluctuations in agricultural commodity prices, introduce inherent uncertainty into long-term market projections. The competitive landscape is characterized by a mix of large multinational corporations and regional players. Major players such as QAFCO, CF Industries, and Yara hold significant market share, benefiting from economies of scale and established distribution networks. However, the increasing involvement of regional players, particularly in Asia, reflects the regional diversification of production and consumption patterns. Future market growth will likely be influenced by technological advancements in fertilizer production, aiming to enhance efficiency and reduce environmental impact. The exploration of alternative feedstocks and the development of more environmentally friendly production processes will likely play a pivotal role in shaping the industry's future trajectory. Strategic alliances, mergers, and acquisitions are anticipated as companies seek to consolidate their market positions and gain access to new technologies and markets. Long-term growth will depend on the continued balance between meeting the demand for food security and the need for environmentally sustainable agricultural practices.

Urea Fertilizers Market size was valued at USD 50.45 Billion in 2024 and is projected to reach USD 59.23 Billion by 2032, growing at a CAGR of 1.9% during the forecast period 2026 to 2032. The market drivers for the urea fertilizers market can be influenced by various factors. These may include:Increased Agricultural Demand: Growing food demand is driven by population increases worldwide. According to the FAO, global food production needs to increase by 70% by 2050 to feed the population, which is supported by increased use of urea fertilizers.Government Subsidies and Support: Fertilizer production and distribution subsidies are provided by many governments to enhance agricultural productivity. The USDA reports that billions of dollars are allocated annually in the U.S. to support fertilizer subsidies and promote sustainable farming.Rising Crop Intensification: Intensive farming methods are adopted to maximize output on existing agricultural land.

Carbon-Neutral Urea Fertilizer Market Outlook

According to our latest research, the global carbon-neutral urea fertilizer market size reached USD 2.4 billion in 2024, reflecting a robust appetite for sustainable agricultural inputs worldwide. The market is witnessing a significant growth trajectory, expanding at a CAGR of 9.8% from 2025 to 2033. By the end of 2033, the market is projected to attain a value of USD 5.6 billion, driven by stringent environmental regulations, advancements in green ammonia technologies, and an increasing demand for eco-friendly fertilizers. The surging focus on decarbonizing the fertilizer supply chain is a pivotal factor propelling this market forward as per our latest research findings.

One of the primary growth drivers for the carbon-neutral urea fertilizer market is the intensifying global commitment to reduce greenhouse gas emissions from agriculture. Governments and regulatory bodies across both developed and emerging economies are introducing policies that incentivize carbon-neutral and low-emission farming practices. The agricultural sector, being a significant emitter of CO₂ and other greenhouse gases, is under mounting pressure to adopt sustainable solutions. Carbon-neutral urea, manufactured using renewable energy sources and carbon capture technologies, directly addresses these regulatory requirements. Furthermore, carbon credits and green certification schemes are making it financially attractive for farmers and agro-industries to transition to these sustainable fertilizers, thereby fueling market growth.

Another critical factor accelerating the adoption of carbon-neutral urea fertilizers is the rapid technological advancements in production processes. Innovations such as green ammonia synthesis, which utilizes renewable energy (solar, wind, or hydro) to produce ammonia without emitting CO₂, and the integration of carbon capture and storage (CCS) systems, are transforming the fertilizer manufacturing landscape. These technologies not only reduce the carbon footprint of urea production but also enhance the overall efficiency and scalability of operations. Collaborations between technology providers, fertilizer manufacturers, and energy companies are further catalyzing the commercialization of carbon-neutral urea, making it more accessible to a broader range of end-users.

Consumer awareness and demand for sustainable agricultural products are also playing a pivotal role in shaping the carbon-neutral urea fertilizer market. With food companies and retailers increasingly seeking to source products with lower environmental impacts, there is a trickle-down effect on farmers and fertilizer suppliers. The rise of eco-labeling, sustainability certifications, and transparent supply chains has led to a preference for inputs that can demonstrate measurable reductions in carbon emissions. This shift in consumer and business preferences is compelling fertilizer manufacturers to not only innovate but also to market their products as carbon-neutral, further amplifying market expansion across diverse applications such as agriculture, horticulture, and turf management.

Regionally, the market exhibits strong momentum in Europe and North America, where regulatory frameworks and consumer preferences are highly supportive of sustainable agriculture. However, Asia Pacific is emerging as a significant growth engine, driven by its vast agricultural sector, increasing government initiatives, and rapid adoption of green technologies. Latin America and the Middle East & Africa are also showing steady progress, albeit at a more gradual pace, due to ongoing investments in agricultural modernization and sustainability. The regional dynamics underscore the global nature of the carbon-neutral urea fertilizer market, with each geography presenting unique opportunities and challenges for stakeholders.

Product Type Analysis

The carbon-neutral urea fertilizer market is segmented by product type into granular, prilled, and li

According to Cognitive Market Research, the global Nitrogen Fertilizers market size is USD 115815.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 5.90% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 46326.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.1% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 34744.56 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 26637.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 5790.76 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.3% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 2316.30 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031.
The Urea category held the highest Nitrogen Fertilizers market revenue share in 2024.

Market Dynamics of Nitrogen Fertilizers Market

Key Drivers for Nitrogen Fertilizers Market

Growing global population to propel market growth

The need for agricultural land rises along with the population. Farmers are aiming to optimize production per unit area as they intensify their farming practices in order to fulfill this demand. With the use of nitrogen fertilizers, farmers may make more crops with less land. In order to raise additional food crops, the expanding population requires the extension of farmland. By increasing soil fertility and production, nitrogen fertilizers make it easier to grow crops in previously uncultivated or neglected regions. Foods heavy in protein, such as meat, dairy, and legumes, are being consumed more often as wages grow and dietary tastes alter. For the production of feed crops, such as maize and soybeans, which are used to feed animals and satisfy the need for animal protein, nitrogen fertilizers are necessary.

Rising need for high crop productivity to propel market growth

Crop yields are always being increased by farmers worldwide in an effort to meet the increasing demand for food, feed, and fiber. Because they provide essential nutrients that promote quick plant development and larger harvests, nitrogen-containing fertilizers are essential to this effort. One of the primary supplements required for plant development is nitrogen, which is also frequently the most restrictive element of crop yield. In order for activities like photosynthesis, protein synthesis, and general plant development to occur, plants must have an appropriate supply of nitrogen, which fertilizers provide. Nutrient levels in the soil can eventually be reduced by ongoing cropping and cultivation. Because nitrogen is necessary to preserve soil health and advance sustainable farming methods, nitrogen fertilizers restore soil fertility by supplying it.

Restraint Factor for the Nitrogen Fertilizers Market

Soil degradation and nutrient imbalance to hinder market growth

Reduced organic matter content, weakened soil structure, and disturbance of soil microbial populations are some of the ways that an over-reliance on nitrogen fertilizers can cause soil deterioration. Over time, this deterioration reduces soil fertility, which reduces the soil's capacity to sustain productive and healthy crop development. Excessive nitrogen fertilizer use without appropriate nutrient management techniques can cause nutrient imbalances in the soil, especially with regard to micronutrients such as potassium and phosphorus. Nutrient imbalances can have a negative impact on crop quality, output, and health. The usage of nitrogen fertilizers leads to nutrient imbalances and soil deterioration, which in turn causes habitat destruction, soil erosion, and biodiversity loss. Stricter laws and sustainability programs are the result of regulators, legislators, and environmental advocacy organizations being more concerned about these environmental effects.

Impact of Covid-19 on the Nitrogen Fertilizers Market

The COVID-19 pandemic has had various effects on the Nitrogen Fertilizers marketplace. The implementation of lockdowns, travel re...

The global coated urea fertilizer market is experiencing robust growth, driven by increasing demand for enhanced nutrient efficiency and sustainable agricultural practices. While precise figures for market size and CAGR are unavailable, a reasonable estimation, considering industry trends and the presence of numerous significant players like Turf Care, The Andersons, and Everris, suggests a 2025 market size of approximately $5 billion USD. A projected Compound Annual Growth Rate (CAGR) of 6-8% from 2025 to 2033 is anticipated, indicating substantial market expansion over the forecast period. This growth is fueled by several key factors. Farmers are increasingly adopting coated urea fertilizers to improve nitrogen use efficiency, reducing fertilizer waste and environmental impact. The growing awareness of the need for sustainable agriculture, coupled with stricter environmental regulations in various regions, further drives market expansion. Moreover, technological advancements in coating formulations are contributing to improved nutrient release profiles and enhanced crop yields, making coated urea an attractive option for farmers seeking higher returns on investment. The market segmentation is likely diverse, encompassing various coating types (polymer, sulfur, etc.), application methods, and crop types. Regional variations in adoption rates are expected, with regions like North America and Europe showing relatively higher adoption due to established agricultural practices and environmental awareness. However, growth potential remains significant in developing economies, driven by increasing agricultural production and rising fertilizer consumption. Competitive intensity within the market is moderate, with several established players and emerging companies vying for market share. Challenges include fluctuations in raw material prices and the need for continued research and development to improve coating technologies and reduce production costs. The overall outlook for the coated urea fertilizer market remains positive, presenting substantial opportunities for growth and innovation in the coming years.

The global urea market size reached USD 52.7 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 60.2 Billion by 2033, exhibiting a growth rate (CAGR) of 1.5% during 2025-2033. The establishment of new urea production facilities and collaborations among industry players, are driving the market growth. The market is further driven by increasing agricultural demand for nitrogen-based fertilizers, growing food demand necessitating higher crop yields, ongoing advancements in urea production technology, steadily increasing product applications across industries, and favorable government policies.

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

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 4.00% from 2025 to 2033. This growth is primarily driven by the increasing demand for fertilizers in developing economies experiencing rapid agricultural expansion and population growth. Factors such as rising crop yields, government initiatives promoting agricultural development, and the increasing adoption of advanced farming techniques further contribute to the market's expansion. However, the market faces challenges including fluctuating raw material prices (natural gas being a key component), stringent environmental regulations aimed at reducing nitrogen emissions, and the potential for substitution by alternative nitrogen fertilizers. Competition among established players like Coromandel International Ltd, CF Industries Holdings Inc, Koch Industries Inc, Indian Farmers Fertiliser Cooperative Limited, EuroChem Group, SABIC Agri-Nutrients Co, Yara International AS, OCI NV, and Nutrien Ltd, is intense, leading to pricing pressures and a focus on innovation and efficiency improvements across the value chain. The market is segmented based on various factors, including application (agriculture, industrial), type (prilled, granular), and region. Future growth will likely be concentrated in regions with significant agricultural potential and supportive government policies. The forecast period (2025-2033) anticipates continued growth, though the pace might fluctuate depending on global economic conditions and agricultural output. The historical period (2019-2024) likely exhibited variations influenced by factors such as weather patterns impacting crop yields and global energy prices affecting production costs. Companies are focusing on sustainable production practices and developing new formulations to meet the growing demand while mitigating environmental concerns. Strategic partnerships, mergers, and acquisitions are anticipated as major players strive to consolidate their market positions and expand their geographic reach. The market's trajectory hinges on maintaining a balance between meeting the rising food production needs and addressing environmental sustainability concerns. Innovation in fertilizer technology and efficient distribution networks will play a crucial role in shaping the urea market’s future. Key drivers for this market are: Awareness of Landscaping Maintenance, Technological Advancements. Potential restraints include: Shortage of Skilled Labor, Wastage of High Amount of Water For Irrigating Lawns. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

Snapshot img

Fertilizers Market Size 2025-2029

The fertilizers market size is forecast to increase by USD 24.7 billion, at a CAGR of 2.2% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing demand for organic fertilizers and the adoption of high-efficiency fertilizers in the agriculture sector. Organic fertilizers are gaining popularity due to their environmental benefits and the growing consumer preference for sustainable farming practices. Meanwhile, high-efficiency fertilizers, which offer improved nutrient use efficiency and reduced environmental impact, are increasingly being adopted to enhance agricultural productivity. However, the market faces challenges, including health issues associated with fertilizer use. The potential health risks posed by excessive exposure to fertilizers, such as respiratory problems and skin irritation, are a concern for farmers and laborers. Furthermore, the volatility of raw material prices and the increasing regulatory pressure on fertilizer manufacturers to reduce their environmental footprint add complexity to the market landscape. To capitalize on opportunities and navigate these challenges, companies must focus on innovation, sustainability, and regulatory compliance. Strategic partnerships, research and development initiatives, and investments in technology can help companies differentiate themselves and stay competitive in this dynamic market.

What will be the Size of the Fertilizers Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe fertilizer market continues to evolve, driven by the ongoing quest for agricultural efficiency and sustainable practices. Natural and synthetic fertilizers play integral roles in enhancing crop yield and plant growth. Broadcast spreading and GPS guidance optimize fertilizer application, while nutrient management strategies consider the NPK ratio and root development. Water-soluble fertilizers and foliar feeding expedite nutrient uptake, and slow-release and granular fertilizers ensure consistent delivery. Fertilizer blending and soil testing are essential components of effective nutrient management. The use of inorganic and organic fertilizers, each with unique environmental impacts, necessitates careful consideration. Greenhouse gas emissions from fertilizer production and application are under scrutiny, necessitating ongoing research and innovation. Precision farming, including crop modeling, yield monitoring, and precision agriculture, is revolutionizing fertilizer application and distribution networks. Soil health and degradation are critical concerns, with the potential for water pollution and environmental damage underscoring the need for sustainable practices. Phosphate rock and potassium chloride are essential resources in fertilizer production, while ammonium nitrate and liquid fertilizers cater to various agricultural needs. Supply chain management and fertilizer distribution networks remain crucial for ensuring a steady supply of essential nutrients. In this dynamic market, the interplay of various factors—from crop production to environmental impact—continuously unfolds, necessitating ongoing research and adaptation. The future of fertilizer applications lies in the integration of technology, sustainability, and efficiency.

How is this Fertilizers Industry segmented?

The fertilizers industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeInorganicOrganicApplicationAgricultureHorticultureGardeningProduct TypeDryLiquidProductStraightComplexGeographyNorth AmericaUSCanadaEuropeFranceRussiaAPACAustraliaChinaIndiaJapanSouth KoreaSouth AmericaBrazilRest of World (ROW)

By Type Insights

The inorganic segment is estimated to witness significant growth during the forecast period.The inorganic the market plays a pivotal role in contemporary agriculture, supplying necessary nutrients that substantially boost crop yield and quality. Inorganic fertilizers, consisting mainly of nitrogen, phosphorus, and potassium (NPK), are popular due to their quick availability to plants and their capacity to rectify specific nutrient shortages in the soil. The escalating global population necessitates increased food production, thereby fueling the demand for inorganic fertilizers. Key players in this sector include Yara International, CF Industries Holdings, and Nutrien Ltd. Yara International is recognized for its extensive line of nitrogen-based fertilizers, while CF Industries Holdings excels in the manufacturing and distribution of nitrogen fertilizers, such as ammonia, urea, and ammonium nitrate. Agricultural efficiency is a significant conce