Urea Market Size
| Study Period | 2019 - 2029 |
| Market Volume (2024) | 191.90 Million tons |
| Market Volume (2029) | 209.91 Million tons |
| CAGR (2024 - 2029) | 1.81 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Urea Market Analysis
The Industrial Grade Urea Market size is estimated at 191.90 Million tons in 2024, and is expected to reach 209.91 Million tons by 2029, growing at a CAGR of 1.81% during the forecast period (2024-2029).
Considering the COVID-19 pandemic situation, several countries were forced to go into lockdown, which led people to minimize the usage of personal vehicles. Additionally, automotive manufacturing plants were on a temporary halt, thus leading to a decline in the consumption of urea-based catalysts. However, the market recovered in 2021. It is expected to grow at a significant rate during the coming years.
- Over the short term, the high applicability of technical grade urea, increasing demand from the automotive sector, and increasing usage in the fertilizer segment are expected to drive market growth.
- The indiscriminate use of urea in critical regions and fluctuation in prices are likely to hinder the market growth.
- The use of industrial grade urea in eco-friendly construction is likely to create opportunities for the market in the coming years.
- The Asia-Pacific region is expected to dominate the market. However, the Middle East and Africa is likely to witness the highest CAGR during the forecast period.
Urea Market Trends
Agriculture Segment to Dominate the Market
- Urea (NH2)2CO is a colorless organic chemical compound known as carbamide. It is highly soluble in water and has a pKa close to zero. More than 90% of the world's urea production is used as a nitrogen-release fertilizer. Urea has the highest nitrogen content of all solid nitrogenous fertilizers in common use (46.7%). Therefore, it has the lowest transportation costs per unit of nitrogen nutrients.
- In the soil, it hydrolyses back to ammonia and carbon dioxide. Bacteria oxidize the ammonia in the soil to nitrate, which the plants can absorb. Urea is also used in many multi-component solid fertilizer formulations. Urea is highly soluble in water, therefore, very suitable for use in fertilizer solutions (in combination with ammonium nitrate: UAN), e.g., in 'foliar feed' fertilizers. For fertilizer use, granules are preferred because of their narrower particle size distribution, an advantage for mechanical application.
- Nitrogen fertilizers are viable methods for expanding crop yield and profitability, particularly in the non-chernozem zone and moist areas. Nitrogen fertilizers are specially used as supplements for crops and are primarily utilized in the agriculture industry for harvesting.
- According to the World Bank, the total value of the agriculture, forestry, and fishing industries accounted for USD 4.17 trillion in 2021, compared to USD 3.72 trillion in the previous year.
- The Asia-Pacific region holds heavy reliance on nitrogenous fertilizers at present. However, the use of nitrogenous fertilizers, poor nutrition management, declining soil fertility, lack of complementary inputs, and weak marketing and distribution systems are some of the concerns in the Asia-Pacific agriculture sector. Regardless, the demand for nitrogenous fertilizer is still likely to dominate the fertilizer market in the region over the next few years, which is likely to continue driving the consumption of the urea market.
- Furthermore, agriculture is the primary source of livelihood across the globe. Countries such as India and the United States, among others, are witnessing positive growth in the agriculture sector. Hence, the demand for ammonia is expected to drive the market during the forecast period.
- For FY22, the Indian government has set a record target for farmers to raise food grain production by 2%, with 307.31 million tons of food grains. In FY21, production was recorded at 303.34 million tons against a target of 301 million tons. Thus, these factors are expected to increase the demand for fertilizers, driving the market studied.
- In addition, the American agricultural industry witnessed the highest annual export levels ever recorded in 2021. The 2021 trade data published by the Department of Commerce shows that exports of US farm and food products to the world totaled USD 177 billion, topping the 2020 total by 18%, driven by higher prices and larger quantities as global demand strengthens.
- The agriculture sector in Latin America and the Caribbean witnessed significant growth in the recent past. According to the Organization for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization of the United Nations (FAO), agricultural and fisheries production is expected to grow by 17% during the forecast period. Around 53% of this growth is expected to come from an increase in crop production.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region accounts for the highest market share, followed by North America.
- With the increase in population, developments in the agriculture industries are taking place in countries like India and China. This increases the consumption of nitrogen fertilizers, thereby driving the market.
- Apart from the agriculture industry, consumption is also increasing with the advancements in the chemical, automobile, and medical industries.
- Chinese authorities are imposing new hurdles for fertilizer exporters among growing concerns over surging power prices and food production, which could worsen a global price shock and food inflation.
- China is one of the largest producers of urea-formaldehyde resin in the world. The urea-formaldehyde resins are used in construction as adhesives for bonding plywood, particleboard, and other wood products.
- According to the National Bureau of Statistics, in 2021, grain production totaled 682.9 million tons, up from 650 million tons last year, registering an increase of 2%. Corn acreage rose 5 percent from last year, and output rose 4.6 percent. The growing use of fertilizers to increase productivity to keep up with the declining cultivated area is expected to drive the market in the country.
- China exported 849,000 tons of urea from July 2022 to September 2022, up from 303,000 tons and 421,000 tons during Q1 2022 and Q2 2022, respectively.
- According to the OICA, China has the world's most significant automotive production base, with a total vehicle production of 26.08 million units in 2021, registering an increase of 3% compared to 25.23 million units produced last year.
- In 2021, retail sales of fertilizers in India had fallen 12.4% in April-July over the four months of last year. All major nutrients have posted lower sales, and urea observed the highest decline of 12.8%.
- According to the Fertilizer Association of India, the production of total fertilizer products stood at 43.49 million MT during 2020-21, showing an increase of 1.7% over 2019-20. The production of urea stood at 24.60 million MT, NP/ NPK complex fertilizers at 9.32 million MT, and SSP at 4.92 million MT during 2020-21, recording an increase of 0.6%, 7.6%, and 15.8%, respectively, over 2019-20. However, production of DAP at 3.77 million MT witnessed a sharp decline of 17.1% during the same period.
- Furthermore, India is among the largest producer of automobiles in the world. According to OICA, the automotive production in the country stood at 4.4 million units in 2021, registering an increase of 30% compared to 3.38 million units produced in the same period last year.
Urea Industry Overview
The industrial grade urea market is fragmented, where many players, holding a small share in the global production capacity, have been operating in the industry. Some of the major players in the market include Industries Qatar, SABIC, OCI NV, Yara, and CF Industries Holdings Inc., among others.
Urea Market Leaders
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SABIC
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Yara
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OCI NV
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Industries Qatar
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CF Industries Holdings Inc
*Disclaimer: Major Players sorted in no particular order
Urea Market News
- November 2022: OCI NV invested USD 5 billion to expand its East Texas complex. The company plans to add a plant that uses ammonia and carbon dioxide to make 2,200 metric tons of urea daily.
- June 2022: Pupuk Kaltim announced its plans to expand its operations by building a factory in West Papua's Bintuni Bay in Indonesia that will produce urea, increasing its overall production capacity.
- May 2022: Indian Farmers' Fertiliser Cooperative Limited (IFFCO) expanded its business by installing the first IFFCO nano urea (liquid) production unit at Kalol, Gujarat, India, with an investment of INR 175 crore (~USD 21.52 million).
Urea Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 High Applicability of Technical Grade Urea
4.1.2 Increasing Demand from the Automotive Sector
4.1.3 Increasing Usage in the Fertilizers Segment
4.2 Restraints
4.2.1 Indiscriminate Use of Urea in Key Regions
4.2.2 Fluctuation in the Prices
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Feedstock Analysis
4.6 Technological Snapshot
4.6.1 Production Process
4.6.2 Patent Analysis
4.7 Import-Export Trends
4.8 Regulatory Policy Analysis
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 Grade
5.1.1 Fertilizer
5.1.2 Feed
5.1.3 Technical
5.2 End-user Industry
5.2.1 Agriculture
5.2.2 Chemical
5.2.3 Automotive
5.2.4 Medical
5.2.5 Other End-user Industries
5.3 Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 ASEAN Countries
5.3.1.6 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 France
5.3.3.3 United Kingdom
5.3.3.4 Italy
5.3.3.5 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%) Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Acron
6.4.2 BASF SE
6.4.3 CF Industries Holdings Inc.
6.4.4 China National Petroleum Corporation
6.4.5 Chambal Fertilisers & Chemicals Ltd
6.4.6 EuroChem Group
6.4.7 IFFCO
6.4.8 Industries Qatar
6.4.9 Koch Fertilizer LLC
6.4.10 Notore Chemical Industries PLC
6.4.11 Nutrien Ltd
6.4.12 OCI
6.4.13 Paradeep Phosphates Ltd
6.4.14 Petrobras
6.4.15 PT Pupuk Kalimantan Timur (PKT)
6.4.16 SABIC
6.4.17 The Chemical Company
6.4.18 URALCHEM JSC
6.4.19 Yara
6.4.20 NATIONAL FERTILIZERS LIMITED
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Use of Industrial Grade Urea in Eco-friendly Construction
Urea Industry Segmentation
Urea is extensively used in urea-formaldehyde (UF) resin, a non-transparent thermosetting polymer. It is manufactured mainly from urea and methanal (formaldehyde).
The industrial grade urea market is segmented by grade, end-user industry, and geography. By grade, the market is segmented into fertilizer, feed, and technical. By end-user industry, the market is segmented into agriculture, chemical, automotive, medical, and other end-user industries. The report also covers the market size and forecasts for the urea market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kilotons).
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| Fertilizer | |
| Feed | |
| Technical |
| End-user Industry | |
| Agriculture | |
| Chemical | |
| Automotive | |
| Medical | |
| Other End-user Industries |
| Geography | ||||||||
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Urea Market Research FAQs
How big is the Industrial Grade Urea Market?
The Industrial Grade Urea Market size is expected to reach 191.90 million tons in 2024 and grow at a CAGR of 1.81% to reach 209.91 million tons by 2029.
What is the current Industrial Grade Urea Market size?
In 2024, the Industrial Grade Urea Market size is expected to reach 191.90 million tons.
Who are the key players in Industrial Grade Urea Market?
SABIC, Yara, OCI NV, Industries Qatar and CF Industries Holdings Inc are the major companies operating in the Industrial Grade Urea Market.
Which is the fastest growing region in Industrial Grade Urea Market?
Middle East and Africa is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Industrial Grade Urea Market?
In 2024, the Asia-Pacific accounts for the largest market share in Industrial Grade Urea Market.
What years does this Industrial Grade Urea Market cover, and what was the market size in 2023?
In 2023, the Industrial Grade Urea Market size was estimated at 188.43 million tons. The report covers the Industrial Grade Urea Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Industrial Grade Urea Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key factors driving the Industrial Grade Urea Market?
The key factors driving the Industrial Grade Urea Market are a) Urea remains a crucial nitrogen fertilizer for enhancing crop yield and improving soil fertility b) Growing demand in developing economies due to expanding agricultural activities and infrastructure projects
Urea Fertilizers Industry Report
Industrial grade urea is instrumental across numerous sectors, notably in agriculture and automotive, further amplified by an upsurge in eco-conscious solutions and stringent environmental norms. Despite environmental concerns linked to its production, the versatility of urea in dual-function applications, from reducing automotive emissions to medical drug formulations, boosts its demand. The Asia-Pacific region leads in market growth, thanks to increased agricultural activities and automotive developments. Challenges like health hazards tied to excessive urea use persist, yet the potential for urea's role in eco-friendly construction indicates a promising market expansion. Insights from Mordor Intelligenceā¢ underscore the importance of urea analysis in understanding market dynamics, projecting a notable growth trajectory for urea fertilizers, fueled by continuous innovation and a wider global demand. Get a sample of this industry analysis as a free report PDF download.
Urea Fertilizers Market Report Snapshots
