Newly released data from the urea market analysis shows that global demand for organic fertilizer application enjoyed year-on-year (YoY) growth of 1.3% in 2021 to total 143,884 KT. Persistence Market Research has anticipated urea sales to witness a value CAGR of 2.3% over the assessment period of 2021 and 2031. In terms of volume, demand is expected to increase at around 2.2% CAGR over the same period.
Find Out More about the Report Coverage
- PT PupukSriwidjaja Palembang (PUSRI)
- PT PupukKujang
- PT Pupuk Kalimantan Timur
- Yara International ASA
- Industries Qatar Q.P.S.C
- EuroChem Group
- Nutrien Ltd
- BASF SE
- CF Industries Holdings, Inc.
Key Insights Provided in Urea Industry Research Study:
- Market Estimates and Forecasts (2016-2031)
- Key Drivers and Restraints Shaping Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand Share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Urea Demand and How to Navigate
- Recommendation on Key Winning Strategies
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Sales Analysis of Urea from 2016 to 2020 Vs Market Outlook for 2021 to 2031
Historically, from 2016 to 2020, use of urea increased at a sluggish rate of 0.77% CAGR, wherein, countries such as the U.S., Canada, China, and India held significant share in the global market.
On a global scale, growth in population across the globe is fuelling demand for food products on a global scale at a healthy CAGR, which, in turn, is expected to fuel demand for urea during the forecast period. Countries in Asia Pacific, such as China, India, and ASEAN, among others, are expected to hold prominent shares and healthy CAGRs owing to growth in demand for agricultural-based products.
Moreover, various government initiatives in some countries, such as subsidies offered by the Indian Government on purchase of fertilizers, are also promoting market expansion. Demand for urea is expected to rise in almost every region, but to a lesser extent in East Asia. Nearly a quarter of worldwide potential demand increase will come from South Asia.
Drivers such as growth in population, urbanization, and various governmental initiatives are having a positive impact on the global market for urea, Persistence Market Research projects that the market will witness moderate growth of 2.3% CAGR during the assessment period of 2021-2031.
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What are the Key Opportunities for Urea Manufacturers?
Increasing environmental regulations owing to adverse effects of emission of various harmful gasses emitted through combustion in automobiles and various power plants are expected to create opportunities for urea suppliers in the automobile coolant and energy sector.
Urea is used in power plants and diesel exhaust systems in order to reduce emissions of nitrous oxide (NOx), which is harmful for the environment as well as human health. After stringent regulations on the use of selective non-catalytic reduction (SNCR) and selective catalytic reduction (SCR) processes in a number of passenger vehicles, demand for industrial-grade urea is expected to increase at health CAGR, as these processes employ urea to reduce NOx pollutants in exhaust gases from diesel, dual-fuel, and lean-burn natural gas engines.
The cosmetics industry also witnessed significant growth over the past years due to rise in disposable income of people worldwide and growing awareness toward skincare. Many skincare and haircare product manufacturers employ urea during the synthesis of cosmetic products. This is expected to create healthy opportunities for urea manufacturers over the coming years.
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What are the Roadblocks that Urea Suppliers Encounter?
Urea, which is the most used fertilizer at a global level, emits less carbon dioxide during the production phase than nitrate-based products. However, negative environmental impacts can originate from losses of ammonia in the gaseous form through volatilization or from an ammonium-based fertilizer such as urea.
Ammonia is hazardous for the environment as well as human health. Owing to this factor, the U.K. has a put complete ban over the use of solid urea fertilizers. Stringent governmental regulations such as these are expected to become a roadblock in the growing path of the urea market during the forecast of 2021-2031.
Which Country Offers the Largest Opportunity for Sales of Urea?
With an absolute dollar opportunity of around US$ 1.2 Bn, China is expected to be the most lucrative market for urea suppliers. China is leading the East Asian market and is expected to witness a CAGR of 1.2% during 2021-2031.
Owing to vast population of the country coupled with limited availability of land area, China has strong demand for products to increase per hectare yield of land. For this, the country has engaged the use of various pesticides and fertilizers, which is fueling demand for urea.
Will India Be a Lucrative Market for Urea Manufacturers?
India is one of the largest markets in South Asia & Pacific. India is anticipated to hold 28% of this regional market.
The agriculture industry in India contributes a significant share in the development of the country’s GDP, and owing to this fact, the Indian government provides various benefits to encourage the agricultural industry. Subsidies are provided on the purchase of fertilizers, which is fuelling demand for urea in the country.
Moreover, India is country with a huge population. Owing to this, the country creates huge demand for food and other agricultural-based products. To cater to such demand with limited land area, need for products that can increase per hectare yield of the land, such as fertilizers and pesticides, increases, which, in turn, is expected to propel demand for urea in the country.
What is Brazil’s Market Outlook for Urea?
Countries such as Brazil, Argentina, Chile and others are considered as agricultural hubs in the world. The market in Brazil is expected to expand at a CAGR of 3.8% during the forecast period, owing to the fact that Brazil is the largest producer of soybean and a leader in terms of producing various agricultural products such as sugarcane, coffee beans, and various others.
Owing to such a vast production capacity in the country, it creates significant demand for fertilizers, which, in turn, increases the demand for urea. Rise in awareness toward the use of fertilizers, pesticides, fungicides, and other agrochemicals is a key driver for the growth of urea suppliers in the country.
How are Stringent Regulations in the U.K. Affecting Urea Sales in the Country?
Ammonium-based fertilizers such as urea can lose ammonia in the gaseous form through volatilization, which can be very dangerous for the environment and human health. Owing to this fact, the U.K. government put a total ban over the use solid urea in the country. This ban is a longstanding challenge for urea suppliers in the European region.
What is the Expected Growth Rate for the Fertilizer End-use Segment?
Revenue from the fertilizer segment increased at 1.3% year over year in 2021. Demand from the industrial segment increased 1.7% in 2020 and 2021, giving the combined market year-over-year growth of 1.4%& in 2021, according to the report. Fertilizers are the largest end use of urea among all. Fertilizers are widely adopted chemicals used to increase the yield of agricultural land.
Several key market participants discussed in the study have focused on product innovation, strategic collaborations, and expanding their manufacturing capacities in order to increase the geographical footprint and sales. Key strategies include acquisitions, product innovation, collaborations and partnerships with key players, strategic alliances, and strengthening of regional and global distribution networks.
Some of the key developments are:
- In April 2019, Pusri Received the Best Innovation Award on Manufacturing.
- In February 2019, PT Pupuk Kujang signed a collaboration with PT East West Seed Indonesia in the Synergy of Good Agriculture Practice and Develop Customized Fertilizer, which will produce benefits in increasing productivity and efficiency in the cost of agricultural cultivation in order to encourage the prosperity of farmers, food security, and development of agricultural systems
- In December 2019, PT Pupuk Kujang synergized with PT Pertamina and ITB to develop a catalyst plant. This collaboration was realized with the signing of a joint venture framework agreement.
Similarly, more developments related to companies manufacturing urea have been tracked by the team at Persistence Market Research, which are available in the full report.
Urea Market Report Scope
Historical Data Available for
Key Regions Covered
Key Countries Covered
Key Market Segments Covered
Key Companies Profiled
Available upon Request
Key Market Segments Covered in Urea Industry Survey
By End Use
FAQs Answered in Study
- How much is the global urea market valued at currently?
The global urea market is currently valued at over US$ 31 Bn.
- What is main factor driving demand for urea?
Growing demand for urea from the agriculture industry and government subsidies on certain fertilizers are driving market expansion.
- At what CAGR did demand for urea increase over the past 5 years?
From 2016 to 2020, demand for urea increased at a CAGR of 0.8%.
- What will be the demand outlook for urea through 2031?
Sales of urea are projected to increase at 2.3% CAGR and be valued at over US$ 40 Bn by 2031.
- What are the key trends being witnessed in this marketplace?
Growth of the agricultural sector, rising preference for organic fertilizers, and increased demand for technical-grade urea are being witnessed in this space.
- What is the market share of the top 5 manufacturers of urea?
Yara International ASA, OCI Nitrogen, Indian Farmers Fertiliser Cooperative Ltd. (IFFCO), CF Industries Holdings, Inc. (granular urea), and National Fertilizers Ltd (NFL) are the top 5 urea manufacturers accounting for around ¼ market share.
- At what rate is the market in Ukraine registering growth in Europe?
The market for urea in Ukraine is progressing at around 3% CAGR, giving the country a 14% share in the European market.
- Which are the top 5 countries driving most of the demand for urea?
China, India, Indonesia, the U.S., and Bangladesh are the major demand centers for urea.
- Which countries are the key producers of urea?
China, the U.S., India, Indonesia, Egypt, Turkey, Canada, Ukraine, Bangladesh, and Vietnam are key producers of urea.
- Which nations are the key exporters of urea?
China, Russia, Ukraine, Canada, Saudi Arabia, Qatar, Oman, Algeria, Indonesia, and Malaysia are key exporting countries of urea.
- How is the urea market faring in Japan and South Korea?
Through 2031, the market in Japan and South Korea is expected to expand at 1.2% and 1.6% CAGRs, respectively.
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