Urea Market Size and Forecast 2025–2033: Rising Agricultural Demand, Industrial Expansion & Global Market Shifts

The global urea market is undergoing a transformative shift driven by rising agricultural needs, growing industrial use, and major government initiatives across the world. According to Renub Research, the market was valued at USD 63.39 billion in 2024, is expected to reach USD 66.38 billion in 2025, and climb to USD 96.00 billion by 2033, expanding at a CAGR of 4.72% from 2025–2033.

This steady expansion is underpinned by increasing fertilizer consumption in agriculture, surging demand for urea-based industrial chemicals, and regulatory mandates pushing industries toward cleaner, more efficient solutions.

Renub Research’s Global Urea Market & Forecast 2025–2033 breaks down the industry by type (technical, fertilizer, feed grade), application (agriculture, chemical synthesis, animal feed, and others), and country-level performance across 25 nations—offering a thorough look at one of the world’s most essential industrial commodities.

Understanding the Urea Market

What is Urea?

Urea—chemically known as carbamide (CO(NH₂)₂)—is a nitrogen-rich compound widely used in agriculture, chemical manufacturing, pharmaceuticals, and automotive applications. Industrially, it is synthesized from ammonia and carbon dioxide in a highly efficient process, making it one of the most extensively produced chemicals globally.

Its high nitrogen content (46%) makes urea the most widely used nitrogen fertilizer on Earth, supporting food production for billions. Beyond agriculture, urea plays a pivotal role in:

Plastics and resin production

Diesel exhaust fluid (DEF) such as AdBlue

Adhesives and laminates

Cosmetics and skincare

Animal feed formulations

Because of its wide-ranging utility, urea remains a cornerstone of modern industry and global food systems.

Why Urea Remains Indispensable: Market Advantages

1. Exceptional Fertilizer Efficiency

Urea offers the highest nitrogen concentration among solid fertilizers. It is affordable, easy to transport, and compatible with multiple soil and crop types—making it a top choice for farmers worldwide.

2. Extensive Industrial Applications

Beyond agriculture, industries rely on urea for manufacturing resins, plastics, adhesives, and pharmaceuticals. Urea-based diesel exhaust fluids are increasingly critical under strict global emission regulations.

3. Cost-Effective Solution for Livestock Feed

Feed-grade urea acts as an economical non-protein nitrogen source for ruminants, reducing feed costs while promoting healthier growth.

4. Sustainability-Oriented Innovations

Advances in slow-release fertilizers, low-emission urea solutions, and biomass-balanced production methods are helping reduce the environmental footprint of urea usage.

Future Outlook: A Growing and Diversifying Global Market

The future of the urea market remains promising as agricultural modernization accelerates across Asia and Africa, while industrial consumption continues to rise in developed and emerging regions.

Key future growth factors include:

Increasing global food demand

Expansion of precision farming

Rising DEF consumption under emission norms

Government investments in fertilizer capacity

Improvements in sustainable urea manufacturing

Emerging markets will play an especially important role, with Asia-Pacific—led by India and China—holding the largest share of growth.

Uses of Urea in the Agriculture Sector

Agriculture remains the largest consumer of urea, accounting for the majority of global demand. Farmers rely on urea to improve soil fertility for staples such as:

Wheat

Rice

Corn

Sugarcane

Vegetables

Urea can be applied directly, mixed with soil, dissolved for foliar spray, or used in controlled-release formulations. It boosts plant growth, promotes vigorous foliage development, and increases photosynthesis efficiency.

With global food production needs projected to soar, urea will remain central to addressing food security challenges, especially in rapidly growing economies.

Global Urea Market Growth Drivers

1. Rising Demand for Fertilizers in Agriculture

Population growth, shrinking arable land, and food demand are pushing farmers to increase productivity. Urea, with its high nitrogen content, remains the most efficient fertilizer solution.

Emerging economies like India, Brazil, and Indonesia continue to drive global consumption, while major fertilizer producers expand capacity.

Example:

• Yara International announced a USD 1 billion investment in a new urea plant in Brazil (March 2023) with a 3.6 million-ton annual capacity expected by 2025.

2. Expanding Industrial Applications

The industrial use of urea is expanding rapidly, especially in:

Plastics manufacturing

Melamine and urea-formaldehyde resins

Adhesives & laminates

Cosmetics

Pharmaceutical synthesis

DEF for emission control

As clean mobility regulations tighten globally, diesel exhaust fluid demand is surging—further boosting the industrial urea market.

Recent development:

• In May 2024, IMI launched its first advanced control valve for urea plants, installed at a major fertilizer facility in the MEA region.

3. Government Support, Subsidies & Policy Push

Countries like India, China, Turkey, and Brazil have made urea subsidies a cornerstone of their agricultural policies. Subsidies make fertilizers affordable to farmers and encourage consistent use.

India remains a standout example:

Aiming to eliminate urea imports by 2025

Reviving closed fertilizer plants

Promoting nano liquid urea to boost efficiency

Production capacity rising to 310–325 lakh tonnes annually

These initiatives strongly support long-term domestic urea consumption and market stability.

Challenges Restraining the Urea Market

1. Volatility in Raw Material Prices

Urea production is tied to natural gas and ammonia prices. Energy market fluctuations and supply instability can raise production costs and disrupt supply chains.

2. Environmental Concerns

Excessive urea use contributes to:

Soil acidification

Water contamination from nutrient runoff

Greenhouse gas emissions

Stricter environmental regulations and demand for eco-friendly alternatives pose challenges for conventional urea producers.

Deep Dive: Key Urea Market Segments

1. Fertilizer Grade Urea Market

This is the dominant segment globally. Demand is fueled by:

Strong agricultural expansion

Adoption of urea in cereal, fruit, and vegetable farming

Growth in emerging economies

Development of slow-release urea formulations

Controlled-release urea is gaining momentum due to its efficiency and low environmental impact.

2. Feed Grade Urea Market

Feed-grade urea is essential for:

Cattle

Sheep

Goats

With rising demand for dairy and meat products, feed-grade urea demand is rising sharply, particularly in the Americas, India, and Africa.

3. Agriculture Urea Market

The agriculture sector remains the engine of global urea demand. Asia-Pacific, Africa, and Latin America represent the fastest-growing regions due to increasing crop yield requirements.

4. Animal Feed Urea Market

Animal feed urea is gaining popularity where protein-rich feed is costly or limited. Its cost-effectiveness and efficiency make it indispensable for livestock farmers.

5. Chemical Synthesis Urea Market

The chemical sector uses urea to produce:

Melamine

Urea-formaldehyde resins

Pharmaceuticals

Adhesives

Growing demand for construction materials and durable plastics is propelling growth in this segment.

Country-Level Market Insights

United States Urea Market

The U.S. market is supported by:

Large-scale farming

Strong fertilizer demand

High consumption of DEF for emission control

In May 2024, BASF introduced its first biomass-balanced (BMB) ammonia and urea products, including urea prills and solutions, marking a significant sustainability milestone.

France Urea Market

France maintains a strong agricultural base shaped by environmental regulations that promote responsible fertilizer use. Industrial applications are also increasing.

• In May 2024, FertigHy selected Northern France for a low-carbon fertilizer plant, with annual capacity of 500,000 MT targeting 2030 operations.

India Urea Market

India is one of the world’s largest consumers and producers of urea. Government policies heavily support the sector.

Key developments:

Six new urea units under NIP with 12.7 lakh MT capacity

Talcher Fertilizers reviving coal-based urea production

Production increased from 225 LMT (2014–15) to 314.09 LMT (2023–24)

Massive push for nano liquid urea

India’s goal is to become fully self-sufficient in urea by 2025.

Saudi Arabia Urea Market

Saudi Arabia benefits from abundant natural gas and large-scale petrochemical capabilities.

• In July 2024, SABIC Agri-Nutrients received approval for feedstock allocation for a new plant producing 1.1 MMTA of urea and 1.2 MMTA of Blue Ammonia—supporting both export and domestic demand.

Market Segmentation Overview

By Type

Technical Grade

Fertilizer Grade

Feed Grade

By Application

Agriculture

Chemical Synthesis

Animal Feed

Others

Geographic Coverage (25 Countries)

United States, Canada, France, Germany, Italy, Spain, United Kingdom, Belgium, Netherlands, Turkey, China, Japan, India, Australia, South Korea, Thailand, Malaysia, Indonesia, New Zealand, Brazil, Mexico, Argentina, South Africa, Saudi Arabia, UAE.

Companies Covered

BASF SE

Petrobras

SABIC

Bunge Limited

Nutrien Ltd.

Sasol

CF Industries Holdings, Inc.

Final Thoughts

The global urea market is at a pivotal point. Rising agricultural needs, accelerating industrial innovations, and major governmental investments are fueling steady long-term growth. Yet, the industry faces challenges—environmental regulations, raw material volatility, and sustainability concerns—that will reshape production strategies.

Urea will continue to play a central role in ensuring global food security, supporting industrial ecosystems, and advancing clean-energy standards. With ongoing technological advancements, the world is moving toward smarter, more efficient, and more sustainable uses of this essential chemical.