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Urea Market

Global Market Study on Urea: Demand for Industrial-grade Urea from Automobile Sector Gaining Traction

Global Urea Market By End Use (Agriculture, and Industrial) & By Region – Forecast 2023-2033

Global Urea Market Snapshot

[280 Pages Report] Persistence Market Research has projected the global Urea market to reach a value of US$ 32,457.3 Mn in 2023. Sales prospects of Urea are expected to observe a CAGR of magnitude 2.5% and are expected to top a valuation of US$ 41,548.1 Mn by 2033. High demand from the agricultural sector for fertilizer use is expected to boost demand in the global Urea market during the forecast period.

Urea Sales (2022A)

US$ 31,866.9 Mn

Urea Demand (2023E)

US$ 32,457.3 Mn

Urea Market Projections (2033F)

US$ 41,548.1 Mn

Value CAGR (2023-2033)

2.5%

Collective Value Share: Top 3 Countries (2023E)

51.7%

Urea (CH4N2O), also known as carbamide, is a highly soluble nitrogenous substance that occurs naturally in human livers. Using high pressure, ammonia and carbon dioxide (CO2) are combined to create solid, odorless white pellets or crystals, which are then used in their commercial synthesis. It is used in the production of fertilizers, adhesives & resins, feed additives, laminates, medicines, and textile finishes. Numerous industries, including agriculture, medicine, chemicals, and automotive find substantial use for it.

The growth of the world's population is driving up demand for foods with high CAGRs, which is anticipated to support market growth for urea over the course of the forecast period. Countries in the Asia Pacific, such as China, India, and ASEAN, are anticipated to hold significant shares and robust CAGRs due to the rising demand for agriculturally based products around the world.

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2017-2022 Urea Market Overview Compared to 2023-2033 Outlook

The urea market is to witness a CAGR of 1.4% over the historical period from 2017 to 2022. Further, as per the recent estimates, the future growth outlook for Urea is to remain around 2.5% for the period of 2023 and 2033. A slight decrease in the growth rate in the forecast period is due to the Russia-Ukraine war that hampered the possibility of a COVID-19 pandemic-related global economic recovery. Economic sanctions on other nations, a rise in commodity prices, and disruptions in the supply chain as a result of the conflict between these two nations have all had an impact on numerous markets throughout the world in the coming years.

However, a number of government initiatives in some countries, such as the several subsidies offered by the Indian government on fertilizer purchases, are promoting growth in the particular area. Nearly everywhere, but less so in East Asia, urea demand is expected to rise. About one-fourth of the projected increase in world consumption will be attributable to South Asia.

According to Persistence Market Research, population growth, urbanization, and various government initiatives, along with other anticipated factors, will be the primary drivers of the worldwide urea market's healthy 2.3% growth between 2023 and 2033.

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Market Dynamics:

How agricultural industry is driving the global urea market?

The growing agricultural industry is having an impact on the worldwide urea market. Urea and its derivatives are widely used as fertilizers in the majority of markets, including those in North America, Brazil, and India. The increase in demand for N-fertilizers is what is driving the market's expanding demand for the product. As a result of the increased need for fertilizers and the use of nitrogen, the market for urea is developing. Developing nations including those in South Asia and Latin America are anticipated to have a stronger demand for the product than other regions due to the increased consumption of the product in these countries.

What are the factors responsible for hindering the growth of the Urea market?

Urea, which is also the world’s most extensively used fertilizer, produces less carbon dioxide during production than fertilizers based on nitrate. But ammonia losses in gaseous form from volatilization or from an ammonium-based fertilizer like urea can be harmful to the environment. Furthermore, ammonia is dangerous to the environment and to people's health. Due to this, the UK has outright banned the use of solid urea fertilizers. Strict government regulations like these are predicted to function as a barrier in the way of the developing urea market during the forecast period of 2023–2033.

How new opportunities in Urea usage can flourish the market growth?

The urea market in the automotive and energy sectors is expected to benefit from the expansion of environmental rules in response to the adverse impacts of various harmful gas emissions from power plants and autos. Urea is used to reduce Nitrous Oxide (NOx) emissions from power plants and diesel exhaust systems, although this is terrible for the environment and people's health. As urea is used in the processes to reduce NOx contaminants in exhaust gases from lea-burn natural gas, dual-fuel, and diesel engines as a result of strict regulations against the use of SNCR and SCR processes in a number of passenger vehicles, the demand for industrial grade urea is anticipated to rise at a health CAGR.

The cosmetic industry has also grown considerably in recent years as a result of rising disposable income levels globally and improved skin care understanding. Companies that manufacture skincare and hair care products regularly employ urea in the composition of cosmetic items. Therefore, it is projected that a rise in the cosmetics industry will help the worldwide urea market throughout the forecasted period.

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Country-wise Insights:

Why is India a prominent market for the consumption of urea worldwide?

“Agriculture sector in India makes it a prominent market for urea by consumption.”

India is one of the largest marketplaces in South Asia and the Pacific. India is anticipated to hold a 28% share of the South Asia & Pacific urea market. India's government provides a range of benefits to support the sector because the country's agriculture industry significantly contributes to the expansion of GDP. The nation's need for urea is being increased by initiatives like the subsidy provided on fertilizer purchases.

India too has a huge population. The country's population creates a large amount of demand for food and other products derived from agriculture. In order to meet such a high demand on such a small amount of land, there is an increase in the requirement for products like fertilizers and pesticides, which is expected to fuel the need for urea in the country.

Why do Latin American countries have high market demand for urea fertilizers?

“Agriculture sector from Latin American countries pose high demand for urea fertilizer”

Nations like Brazil, Argentina, Chile, and others are among the world's agricultural hubs. Due to its large production capacity, Brazil is expected to grow at a CAGR of 3.8% over the course of the projected period. Brazil is the world's top producer of soybeans and a leader in the production of other agricultural products including sugarcane, coffee, and several others. The country creates a substantial demand for fertilizers, which in turn increases the requirement for urea in the country. The rise of urea in the country in recent years has been largely attributed to growing public awareness of the use of pesticides, fungicides, and other agrochemicals, and it is anticipated that this growth trend will continue during the projected period.

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Category-wise Insights:

What is the market growth projection based on End-Use?

“Agriculture segment to dominate the growth and consumption of Urea market owing to the high demand for nitrogen-based fertilizer”

The Global Urea Market's Agriculture segment saw revenues increase by a healthy 2.4% in 2023. In 2023, the combined global urea markets had year-over-year growth of 2.5%, according to the PMR research titled. Demand for the Industrial segment climbed by 2.1% between 2020 and 2022.

The agricultural industry is anticipated to account for the largest portion of the global urea market. The agriculture sector has grown significantly in recent years, and it is anticipated that this trend will continue in the years to come. It is mainly because of the rising demand for food and other agricultural products brought on by the expansion of the world's population. Urea is the most efficient nitrogenous fertilizer due to its high nitrogen content. As a result, it is used as a supplement to cow feed to meet some of the needs for protein and for crop applications.

Competitive Landscape

The industry is diverse thanks to the existence of major companies that together dominate the urea market for a variety of uses. Leading companies in the urea market are concentrating on product advancements and joint ventures with other companies to broaden their product offerings and customer base. In order to strengthen its position in the market, the expansion strategy also involves regional and capacity expansions in emerging markets. Important firms are also making investments in research and innovation for the creation of new products as well as the introduction of dependable and sustainable ones.

For instance :

  • In June 2021, The EuroChem Group committed to invest USD 1.6 billion in the construction of a new ammonia and urea factory in northwest Russia. Additionally, the facility is anticipated to produce 1.4 million tonnes of urea annually, with commercial production beginning in 2024.
  • In June 2021, The commercial manufacture of nano urea liquid was established by the Indian Farmers Fertilizer Cooperative Ltd (IFFCO). The company's unique technology, created at its Gujarat Nano Biotechnology Research Center, is used in production. Additionally, Phase I will install a 14 crore bottle yearly production capacity that will be expanded to 18 crore bottles in Phase II by the year 2023.

Scope of Report

Attribute

Details

Forecast Period

2023-2033

Historical Data Available for

2017-2022

Market Analysis

  • USD Million for Value
  • Tons for Volume

Key Countries Covered

  • U.S.
  • Canada
  • Brazil
  • Mexico
  • Germany
  • Italy
  • France
  • U.K.
  • Spain
  • BENELUX
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • ANZ
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa

Key Segments Covered

  • Application
  • End Use
  • Region

Key Companies Profiled

  • Euro Chem
  • BASF SE
  • China National Petroleum Corporation
  • CF Industries Holdings, Inc.
  • Nutrien Ltd.
  • OST chem
  • Yara International ASA
  • Industries Qatar Q.P.S.C
  • SABIC
  • PT Pupuk Sriwidjaja Palembang (PUSRI)
  • PT Pupuk Kujang
  • PT Pupuk Kalimantan Timur

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & Pricing

Available Upon Request

Urea Market Segmentation

By End-Use:

  • Agriculture
  • Industrial

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa

- Companies Covered in This Report -

  • PT Pupuk Sriwidjaja Palembang (PUSRI)
  • PT Pupuk Kujang
  • PT Pupuk Kalimantan Timur
  • Yara International ASA
  • Industries Qatar Q.P.S.C
  • SABIC
  • EuroChem Group
  • Nutrien Ltd
  • BASF SE
  • CF Industries Holdings, Inc.
  • OSTChem
  • China National Petroleum Corporation
  • PT Pupuk Sriwidjaja Palembang (PUSRI)
  • PT Pupuk Kujang
  • PT Pupuk Kalimantan Timur
  • PT Petrokimia Gresik
  • PT Pupuk Iskandar Muda (PT PIM)

- Frequently Asked Questions -

The global market of Urea is estimated to reach a valuation of US$ 32,457.3 Mn in 2023.

The Ureas demand is anticipated to witness a growth rate of 2.5% over the forecast period of 2023 and 2033 in terms of value.

Growing demand for urea from the industrial segment for automotive fuel & energy storage applications is driving the growth of the global urea market.

According to PMR analysis, Euro Chem, BASF SE, China National Petroleum Corporation, CF Industries Holdings, Inc., and Nutrien Ltd. are key players in the Urea market.

Key players in the global Urea market are expected to account for about 35-40% of the overall market share.

The top countries driving the global Urea demand are India, Russia, ASEAN and U.S.

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