Global Urea Market Report by Type, Application, Country and Company Analysis 2026-2034

Urea Market Size and Forecast 2026-2034

Global Urea market is expected to grow from US$ 49.86 Billion in 2025 to US$ 58.91 Billion in 2034, at a Compound Annual Growth Rate of 1.87% during the period 2026-2034. The growth in the Global Urea market is mainly due to the increasing need for fertilizers to improve agricultural output, the rising need for food in the world, and the increasing trend in farming. Moreover, urea is used in various industrial applications, including the production of chemicals and emissions control systems, which also boosts the growth of the Global Urea market.

Urea Market Overview

Urea is a chemical substance that contains carbon, nitrogen, oxygen, and hydrogen. Its formula is usually CO(NH2)2. It is considered one of the most commonly used nitrogen-based fertilizers in the world due to the presence of nitrogen in the formula, which assists in the promotion of growth in plants and the enhancement of crop yield. Urea is manufactured by reacting ammonia and carbon dioxide in a controlled environment. When it comes into contact with the soil, it breaks down and releases nitrogen, which acts as a nutrient that enhances the growth of plants.

Urea has received widespread popularity all over the world mainly due to its significance in agriculture. Farmers generally employ urea-based fertilizers for enhancing soil fertility and boosting output for crops such as wheat, rice, corn, and vegetables. As the world's population is expanding, so is the requirement for enhanced output. Therefore, fertilizers like urea are necessary for agriculture. Apart from this, urea is employed for a variety of industrial purposes, including resin, plastic, adhesive, and diesel exhaust fluid production, used for controlling emissions from vehicles. Its efficiency and cost-effectiveness have enabled it to gain prominence as a widely used chemical compound in many parts of the world.

Growth Driver in the Global Urea Market

Increasing Global Demand for Agricultural Productivity

One of the major factors that contribute to the growth of the market for urea is the rising demand for agricultural productivity globally. As the world's population is rising, the demand for increased food production has become more imperative. Farmers are required to produce more crops using the limited agricultural land available. This has increased the demand for fertilizers such as urea. Urea is widely used because it has a higher nitrogen content, and nitrogen is essential for the growth of crops. It is often applied to major crops such as rice, wheat, corn, and vegetables in order to improve the fertility of the soil. In some of the developing countries, the government is also encouraging the use of fertilizers through subsidies and other agricultural initiatives. As agriculture is moving towards more intensive cultivation, the need for efficient fertilizers like urea is still going to be high, and this will definitely fuel the growth of the global urea market. In today's global agrifood system, one-third of all greenhouse emissions are released. It is estimated that global food requirements will be higher to support a projected global population of 9.7 billion by 2050. In the past, the rise in food has been related to the rise in agriculture and unsustainable practices.

Expansion of the Global Agricultural Sector

The expansion of the agricultural sector in different parts of the world can also be considered an important factor in the growth of the urea market. Many countries are investing in modern techniques of agriculture, irrigation, and different technologies to increase the rate of crop production. With the increase in the rate of agriculture, the demand for fertilizers to support the growth of crops also increases. Urea is one of the widely used fertilizers in different parts of the world due to its low cost, availability, and effectiveness in providing nutrients to the crops. Apart from this, initiatives taken by different governments to encourage the development of the agriculture sector in different parts of the country are also increasing the demand for urea in different countries. The growth of the agriculture sector through commercial farming activities has also increased the demand for fertilizers. With the aim of maximizing crop production, the use of nitrogenous fertilizers like urea plays a vital role in supporting the growth of the agriculture sector in different parts of the world. July 2025, According to the Food and Agriculture Organization (FAO), about 67% of the total population is engaged in agricultural activities. This industry contributes 39.4% to the GDP. Agricultural commodities make up 43% of the total exports. About 11% of the world's land is used for agriculture. About 26% is used for grazing livestock. The major agricultural products include food, fuel, fiber, and raw materials. Continue reading to learn about the top agricultural producing countries in world.

Growing Industrial Applications of Urea

Apart from agriculture, the increasing demand for urea in various industrial activities is also boosting the market. Urea is an essential raw material in the manufacture of various chemical products. These include resins, adhesives, plastics, laminates, etc. These products find application in various industries such as construction and furniture. Urea-formaldehyde resins, for example, are used in the manufacture of plywood. In addition, urea is an essential raw material in diesel exhaust fluid. Diesel exhaust fluid is an aqueous solution containing urea and is used in selective catalytic reduction. The solution is used in reducing nitrogen oxides in diesel-powered vehicle emissions. In recent times, there has been an increasing need for protecting the environment in various nations. As such, stricter regulations have been put in place. The increasing need for emission reduction is boosting the market for diesel exhaust fluid. The increasing need for various industrial chemicals is thus boosting the market for urea. In India, in February 2025, it was announced that a new urea manufacturing unit with an annual production capacity of 1.27 million tonnes per year will be set up in Namrup in Assam.

Challenges in the Global Urea Market

Environmental Concerns and Regulatory Restrictions

One of the challenges facing the urea market is the increasing concern over the environmental impact of the use of fertilizers. In cases where urea-based fertilizers are used in excess, it is feared that the use of such fertilizers could lead to the pollution of water resources. Moreover, urea-based fertilizers could lead to the emission of harmful gases into the environment, which could further pollute the environment. In the near future, it is expected that the government will implement regulations to control the use of such fertilizers in the environment. Although the regulations are intended to protect the environment, it is feared that the regulations could affect the urea market in the future. In the future, it is expected that the use of urea-based fertilizers could be affected by the regulations implemented by the government. As the environmental movement gains momentum in the future, it is expected that the urea market could face challenges in the future.

Volatility in Raw Material Prices

The next big challenge that is being faced by the urea market is the fluctuating prices of the raw materials that are used in the production of urea. Urea is mainly obtained from ammonia. Ammonia is mainly obtained from natural gas. Therefore, any fluctuation in the price of natural gas can directly impact the production cost of urea. If the prices of natural gas go up, it is quite natural that the production cost of urea will also go up. This can have a negative impact on the profit margins of manufacturers. In such a situation, farmers might not purchase urea in large quantities because they might not have sufficient income. Therefore, this is also a big challenge that is being faced by the urea market. This is one of the biggest challenges that is being faced by the manufacturers in the global urea market.

Fertilizer Urea Market

The Fertilizer Urea Market is the biggest segment of the global market for urea, as it is commonly used as a fertilizer in agriculture. Urea is a fertilizer that has a high concentration of nitrogen, a nutrient that is required for plant growth. Urea is commonly used by farmers to fertilize a variety of crops, including wheat, rice, corn, and vegetables, to increase their productivity. Urea is a widely used fertilizer in agriculture due to its high concentration of nitrogen, a nutrient that is required for plant growth. Urea is easy to transport and store, a factor that has made it a popular choice among farmers and suppliers of agriculture-related commodities. Governments in different parts of the world encourage the use of fertilizers in agriculture, a factor that has made it a crucial segment of the global market for urea. As global demand for food continues to rise, so does agriculture-related activity. Therefore, this market is likely to remain a crucial segment of the global market for urea in the near future.

Feed Urea Market

The Feed Urea Market is defined as the market for urea used as a nitrogen supplement in animal feed. This market is focused on ruminant animals such as cattle, sheep, and goats. Urea can be used as a non-protein nitrogen supplement that can help support microbial growth in the digestive system of ruminant animals. This is because microbes in the rumen can convert urea to proteins that can support growth and production. This is where feed urea can help because it is a cost-effective alternative to protein used in animal feed. This is usually used in animal feed to enhance feed efficiency and support healthy growth and development. However, there is a need to formulate urea used in animal feed to ensure safety and nutritional benefits. Animal producers can make use of feed urea to enhance feeding activities. This is because of the increasing demand for meat and dairy products. Therefore, this market is expected to increase with the growth of the livestock industry.

Agriculture Urea Market

The Agriculture Urea Market is influenced by the increasing requirement for effective fertilizers that can assist in the production of foodstuffs globally. Urea is a significant component of modern-day farming and is needed for the production of crops because it provides nitrogen, an essential nutrient necessary for the development of crops. When applied to the soil, the nitrogen in the urea is released and helps in the development of crops and leaves. It is utilized in various farming operations, such as commercial and small-scale farming. Farmers use urea at various growth stages of the crop in order to achieve maximum productivity and growth. The availability of urea in the market, along with the relatively low price, makes it the most sought-after fertilizer for farming. Moreover, the government's encouragement towards adopting better farming practices is also driving the market for urea in the agriculture sector. With the ever-increasing population, the market for agriculture urea is still significant.

Animal Feed Urea Market

The Animal Feed Urea Market is related to livestock production and is defined as the market that uses urea as a nutrient supplement for ruminant animals. Urea is used to add nitrogen to animal feed that can be used by microbes in the rumen to produce protein. This protein can be used to produce growth and milk in animals. Therefore, urea can be used as an alternative protein supplement in animal feed. Urea is used in cattle feed formulations, especially in areas where conventional protein sources such as soybean meal are expensive. Animal feed manufacturers formulate feed using urea in appropriate proportions to enhance feed efficiency. Urea is also used in animal feed formulations because it is cheap. However, it is important to note that excess urea can be harmful to animals. Therefore, appropriate dosages of urea are used in animal feed formulations. In addition, the increasing demand for dairy products, meat products, and other livestock products globally is expected to boost the growth of the Animal Feed Urea Market.

Chemical Synthesis Urea Market

The Chemical Synthesis Urea Market is the market segment where urea acts as a raw material in the manufacture of various chemicals, which are further utilized in various industries. Urea plays a significant role in the manufacture of resins, adhesives, plastics, and laminates, especially in the manufacture of urea formaldehyde resins, which are used in the manufacture of wood-based materials such as plywood, particleboard, and fiberboard. All these materials are used in the manufacture of furniture as well as in the construction industry. Urea is also used in the manufacture of melamine and various chemicals, which are further utilized in various industrial applications. In addition, urea is one of the essential raw materials in the manufacture of diesel exhaust fluid, which is further utilized in the emission control systems of diesel-driven vehicles to reduce the emission of harmful nitrogen oxide into the environment. The versatility of urea in the manufacture of chemicals makes it a valuable raw material in the various manufacturing industries. With the ever-increasing growth in industrial production, the construction sector, as well as environmental control systems, the market for urea in the chemical synthesis segment is expected to grow steadily.

United States Urea Market

The United States Urea Market plays an important role in the agriculture and industrial sectors of the country. The chemical compound urea is mostly used as a nitrogenous fertilizer to encourage the growth of key crops like corn, wheat, soybeans, and other grains. American farmers depend on nitrogenous fertilizers to enrich the soil to ensure fertility and increase crop productivity, especially in large-scale farming activities. Apart from agriculture, urea also finds usage in different industrial activities like resin, plastic manufacturing, and diesel exhaust fluids in vehicles. The availability of better agriculture techniques and modern agriculture technologies also supports the continuous demand for urea in the country. Moreover, environmental protection policies to reduce vehicle emissions have also boosted the usage of urea in diesel exhaust fluids in vehicles. With continuous demand from both the agriculture and industrial sectors, the United States Urea Market is expected to grow steadily in the coming years. Jun 2023, Indian Farmers Fertiliser Cooperative Ltd (IFFCO) has signed an agreement with Kapoor Enterprises Inc based in California to export nano liquid urea to the United States.

United Kingdom Urea Market

The driving factor for the United Kingdom Urea Market is the agricultural industry in the UK, where urea is used as an essential fertilizer for improving soil fertility. The agricultural industry in the UK utilizes urea for improving crop production. The farmers in the UK use urea for improving crop growth for producing essential agricultural products such as wheat, barley, and other agricultural products. In addition to agricultural activities, urea is also used in various industrial activities such as producing adhesives, resins, and plastics. Another factor driving the growth of the UK Urea Market is the use of diesel exhaust fluids for reducing nitrogen oxide emissions in diesel-powered engines. The increasing need for improving air quality is driving the growth of the UK Urea Market. The UK Urea Market is also driven by increasing developments in sustainable agricultural activities. The growth in agricultural activities is expected to drive the growth of the UK Urea Market in the near future. Nov 2023, Glasson Fertilisers, one of the largest suppliers of granular fertilisers in the UK, has announced the launch of Starbur, an exclusive protected urea product, at this year's CropTec Show.

India Urea Market

The India Urea Market is one of the largest in the world because of its heavy dependence on agriculture for food production and economic growth. Urea is used by farmers across India as a fertilizer for crops such as rice, wheat, sugarcane, and vegetables. The Indian government is also contributing to the growth of the India Urea Market because of its initiatives in making fertilizers more accessible to farmers. This is done through subsidies on fertilizer prices. This ensures that food production is not hampered in the country because of its huge population. In addition to this, India is also importing urea to meet the heavy demand of the agricultural industry. Steps are also being taken to make fertilizer usage more efficient. Thus, the India Urea Market is expected to remain highly significant in the fertilizer industry. DEC 2024, Under New Investment Policy (NIP), to facilitate fresh investment in the urea sector and to make India self-sufficient, 6 new urea units have been set up with a production capacity of 12.7 Lakh MT each. Further, exclusive policy for the revival of the Talcher unit of FCIL through JVC mode of the nominated PSUs namely Talcher Fertilizers Limited (TFL) by setting up a new Greenfield urea plant of 12.7 LMTPA at the coal gasification route has also been approved.

Saudi Arabia Urea Market

The Saudi Arabia urea market is also supported by the country's thriving chemical manufacturing industry. The country also ranks highly in the manufacturing of petrochemicals. The manufacturing of urea in Saudi Arabia is also supported by the availability of natural gas, which serves as a raw material in the manufacturing of ammonia and urea. The country also exports a significant quantity of manufactured urea to meet the demand in other countries. The country also uses urea in its agriculture to enhance crop development in regions where agriculture is practiced. Besides the use of fertilizers, urea is also used in the production of resins, plastics, and emission control agents for diesel engines. The country's well-developed petrochemicals sector and export-ready production facilities have enabled it to hold a dominant position in the urea market across the world. As the world's demand for fertilizers and industrial chemicals is rising, Saudi Arabia holds a significant position in the urea market. In July 2025, Indian companies have signed a five-year deal with Saudi Arabia for 31 LMT DAP every year from 2025-26 onward. In addition to this, 25 LMT DAP and TSP has also been secured from Morocco.

Market Segments

Type

• Technical Grade
• Fertilizer Grade
• Feed Grade Urea

Application

• Agriculture
• Chemical Synthesis
• Animal Feed
• Others

Countries - Market breakup in 25 Countries:

North America

• United States
• Canada

Europe

• France
• Germany
• Italy
• Spain
• United Kingdom
• Belgium
• Netherlands
• Turkey

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Thailand
• Malaysia
• Indonesia
• New Zealand

Latin America

• Brazil
• Mexico
• Argentina

Middle East & Africa

• South Africa
• Saudi Arabia
• United Arab Emirates

All the Key players have been covered from 5 Viewpoints:

• Overviews
• Key Person
• Recent Developments
• SWOT Analysis
• Revenue Analysis

Company Analysis

• BASF SE
• Petrobras
• SABIC
• Bunge Limited
• Nutrien Ltd.
• Sasol
• CF Industries Holdings, Inc.