Industrial Grade Urea Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Urea Market is Segmented by Grade (Fertilizer, Feed, and Technical), End-user Industry (Agriculture, Chemical, Automotive, Medical, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle East and Africa). The report offers market size and forecasts for the urea market in volume (kilotons) for all the above segments.

INSTANT ACCESS

Urea Industry Overview

Urea Market Summary
Study Period: 2017-2027
Fastest Growing Market: Middle East and Africa
Largest Market: Asia-Pacific
CAGR: > 1.5 %

Major Players

Urea Market Major Players

*Disclaimer: Major Players sorted in no particular order

setting-icon

Need a report that reflects how COVID-19 has impacted this market and its growth?

Urea Market Analysis

The urea market is expected to reach 186,051.52 kilo metric tons by the end of this year. It is projected to register a CAGR of over 2% during the forecast period.

Considering the COVID-19 pandemic situation, several countries were forced to go into lockdown, which led people to minimize the usage of personal vehicles. Along with that, 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 for urea from the automotive sector, and increasing usage from 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 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, Middle East and Africa are likely to witness the highest CAGR during the forecast period.

Urea Industry Segments

Urea is extensively used in urea-formaldehyde (UF) resin, a non-transparent thermosetting polymer. It is manufactured mainly from urea and methanal (formaldehyde). 

The 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 (kilo metric tons).

By Grade
Fertilizer
Feed
Technical
By End-user Industry
Agriculture
Chemical
Automotive
Medical
Other End-user Industries
By Geography
Asia-Pacific
China
India
Japan
South Korea
ASEAN Countries
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
France
United Kingdom
Italy
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle East and Africa
Saudi Arabia
South Africa
Rest of Middle East and Africa

Report scope can be customized per your requirements. Click here.

Urea Market Trends

This section covers the major market trends shaping the Urea Market according to our research experts:

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 world 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 supplementary 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 fertilizer at present. However, the use of nitrogenous fertilizer, 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. However, 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 2018-2028. Around 53% of this growth is expected to come from an increase in crop production. Hence, the growing agricultural industry is expected to drive the demand for fertilizers, which, in turn, is expected to boost the demand for urea.
  • All the above factors are expected to drive the market for urea in the coming years.
urea market : Value Added of Agriculture, Forestry, and Fishing Industry, In USD trillion, Global, 2017-2021

Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region accounted 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 the construction industry 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 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.​
  • Due to all such factors, the market for urea in the region is expected to have steady growth during the forecast period.
Urea Market - Growth Rate by Region, 2022-2027

Urea Market Competitor Analysis

The urea market is fragmented in nature, 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 Top Players

  1. SABIC

  2. Yara

  3. OCI NV

  4. Industries Qatar

  5. CF Industries Holdings Inc

*Disclaimer: Major Players sorted in no particular order

Urea Market Concentration

Urea Market Recent Developments

  • 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 per day of urea.
  • 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. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 High Applicability of Technical Grade Urea

      2. 4.1.2 Increasing Demand for Urea from the Automotive Sector

      3. 4.1.3 Increasing Usage from the Fertilizers Segment

    2. 4.2 Restraints

      1. 4.2.1 Indiscriminate Use of Urea in Key Regions

      2. 4.2.2 Fluctuation in the Prices

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Feedstock Analysis

    6. 4.6 Technological Snapshot

      1. 4.6.1 Production Process

      2. 4.6.2 Patent Analysis

    7. 4.7 Import-Export Trends

    8. 4.8 Regulatory Policy Analysis

  5. 5. MARKET SEGMENTATION (Market Size in Volume)

    1. 5.1 By Grade

      1. 5.1.1 Fertilizer

      2. 5.1.2 Feed

      3. 5.1.3 Technical

    2. 5.2 By End-user Industry

      1. 5.2.1 Agriculture

      2. 5.2.2 Chemical

      3. 5.2.3 Automotive

      4. 5.2.4 Medical

      5. 5.2.5 Other End-user Industries

    3. 5.3 By Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 ASEAN Countries

        6. 5.3.1.6 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 France

        3. 5.3.3.3 United Kingdom

        4. 5.3.3.4 Italy

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%) Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Acron

      2. 6.4.2 BASF SE

      3. 6.4.3 CF Industries Holdings Inc.

      4. 6.4.4 China National Petroleum Corporation

      5. 6.4.5 Chambal Fertilisers & Chemicals Ltd

      6. 6.4.6 EuroChem Group

      7. 6.4.7 IFFCO

      8. 6.4.8 Industries Qatar

      9. 6.4.9 Koch Fertilizer LLC

      10. 6.4.10 Notore Chemical Industries PLC

      11. 6.4.11 Nutrien Ltd

      12. 6.4.12 OCI

      13. 6.4.13 Paradeep Phosphates Ltd

      14. 6.4.14 Petrobras

      15. 6.4.15 PT Pupuk Kalimantan Timur (PKT)

      16. 6.4.16 SABIC

      17. 6.4.17 The Chemical Company

      18. 6.4.18 URALCHEM JSC

      19. 6.4.19 Yara

      20. 6.4.20 NATIONAL FERTILIZERS LIMITED

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Use of Urea in Eco-friendly Construction

**Subject to Availability
You can also purchase parts of this report. Do you want to check out a section wise price list?

Urea Market Research FAQs

The Urea Market market is studied from 2017 - 2027.

The Urea Market is growing at a CAGR of >1.5% over the next 5 years.

Middle East and Africa is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

SABIC, Yara, OCI NV, Industries Qatar , CF Industries Holdings Inc are the major companies operating in Urea Market.

Urea Industry Reports

In-depth industry statistics and market share insights of the Urea sector for 2020, 2021, and 2022. The Urea research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Urea report PDF.

close-icon
80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!