Australia Urea Market 2025–2033

Australia Urea Market Overview

According to Renub Research Latest Report Australian urea market is projected to grow from US$ 1,191.73 million in 2024 to US$ 1,814.20 million by 2033, representing a CAGR of 4.78% during 2025–2033. According to Renub Research, the market expansion is primarily driven by the rising demand for nitrogen-rich fertilizers in agriculture, growth in grain and crop cultivation, and government initiatives promoting sustainable agriculture.

In addition, import substitution policies and emerging local production opportunities are shaping market trends. Urea remains an indispensable input for the Australian agricultural sector, supporting crop yield optimization, livestock feed enhancement, and environmentally sustainable practices.

Introduction to Urea

Urea (CO(NH₂)₂) is a highly concentrated nitrogen fertilizer, containing approximately 46% nitrogen. It is widely utilized in agriculture to improve soil fertility and crop productivity. Urea is cost-effective, easy to handle, and suitable for both broadacre and horticultural farming.

Beyond agriculture, urea has industrial applications in resin and plastic production, as well as in diesel exhaust fluid (AdBlue) to reduce vehicle emissions. Despite heavy reliance on imports, debates around domestic manufacturing and enhanced storage facilities are ongoing to secure supply chains and improve availability across Australia’s farming regions.

👉 Want to explore detailed market trends, segment insights, and forecasts? 🔗 Request Free Sample Report

Key Growth Drivers

1. Increasing Agricultural Demand

Australia’s agriculture-dependent economy is a major driver for urea consumption. Urea is extensively used in grain cultivation, livestock grazing, and horticulture, owing to its high nitrogen content and affordability.

As global food demand rises and environmentally friendly farming practices gain prominence, farmers are increasingly applying urea to boost crop yields, enhance soil fertility, and improve pasture productivity. Urea’s role in both small-scale and large-scale operations solidifies its position as a crucial fertilizer in the Australian market.

2. Government Support for Fertilizer Security and Sustainability

The Australian government actively supports initiatives to reduce reliance on imports and enhance fertilizer security. Policies focus on:

Promoting domestic manufacturing

Enhancing logistics and distribution networks

Encouraging environmentally sustainable usage practices

Programs like the National Soil Strategy and agricultural innovation grants facilitate efficient fertilizer utilization while minimizing environmental impact. For instance, in August 2024, the Australian Farm Institute received a $638,000 grant to foster international collaboration on sustainable agriculture, including trade standards aligned with climate-friendly farming practices.

3. Livestock and Feed Industry Expansion

The growth of Australia’s livestock sector has increased the use of urea in animal feed as a non-protein nitrogen source. Urea supplementation enhances microbial protein production in ruminants, improving the digestion of low-quality forage and crop residues.

Companies like Food Recycle have leveraged urea-based feed supplements to convert commercial food waste into animal feed, addressing both environmental sustainability and livestock nutrition. This dual application—in fertilization and feed enhancement—fuels demand in Australia’s integrated agricultural systems.

Challenges in the Market

1. Heavy Reliance on Imports and Price Volatility

Australia sources most of its urea from Middle Eastern and Southeast Asian suppliers, making the market vulnerable to global price fluctuations, shipping delays, and geopolitical issues. The absence of large-scale domestic production increases supply risk and can spike costs, affecting farmers’ profitability.

Investment in local production facilities and diversified sourcing remains crucial for stabilizing supply and ensuring affordable urea availability across the country.

2. Environmental and Regulatory Constraints

Excessive or incorrect urea application can lead to nitrogen runoff, soil degradation, and greenhouse gas emissions. Regulatory oversight and environmental legislation require farmers to adopt precision farming techniques and adhere to strict application guidelines.

While these measures promote sustainable agriculture, they may increase operational costs and necessitate technology adoption, training, and infrastructure investments. Balancing productivity with environmental responsibility is a continuing challenge for the industry.

👉 For deeper analysis, detailed segment data, and company insights: 🔗 Request Customization Report

Urea Market Segments

Fertilizer Grade Urea

Fertilizer-grade urea dominates the Australian urea market due to its high nitrogen content and compatibility with other nutrients. It is applied in both solid and liquid forms and mixed with other inputs to maximize nutrient efficiency.

Widely used in wheat, barley, and canola cultivation, fertilizer-grade urea supports high-yield crop production. Government initiatives promoting precision agriculture and soil health management further reinforce demand in this segment.

Agricultural Use

Agriculture is the primary consumer of urea in Australia. Key applications include:

Enhancing soil fertility

Increasing crop yields

Improving pasture regrowth

Urea is especially critical in broadacre farming and regions with nitrogen-deficient soils, where it enables rotational cropping and conservation agriculture. Seasonal variations and rainfall patterns directly influence application rates, but the long-term focus on sustainable intensification ensures consistent market demand.

Animal Feed Use

Urea is widely used in feed for ruminants, including cattle and sheep, to improve digestion and protein synthesis. Its role is vital in drought-prone or nutrient-poor pastures.

With the expansion of feedlots and meat exports, urea’s use in animal nutrition is gaining traction, creating a stable and growing market segment.

Regional Insights

New South Wales (NSW)

NSW is a key agricultural state, producing wheat, barley, and livestock, which drives year-round urea consumption. Unpredictable rainfall and emphasis on sustainable farming practices increase reliance on precision application techniques. NSW’s strong logistics network makes it a central hub for urea importers and distributors.

Victoria

Victoria focuses on dairy, horticulture, and high-value crops, including fruits and vegetables. Fertilizer-grade urea supports pasture renewal, silage production, and crop intensification, while precision agriculture and fertigation technologies enhance nutrient efficiency and environmental compliance.

South Australia

South Australia’s dryland agriculture necessitates strategic urea application for cereal crops like wheat, oats, and barley. Farmers frequently employ pre-seeding or top-dressing techniques to optimize nitrogen supply. Government research programs assist in environmentally responsible fertilizer use, sustaining a stable market in the region.

Queensland

Queensland’s diverse agricultural profile, including sugarcane, cotton, grains, and livestock, makes it a major urea market. Multiple cropping seasons and high nitrogen demand for sugarcane require frequent fertilizer application. Government-supported nutrient management initiatives encourage responsible and efficient urea use, promoting growth while reducing environmental impact.

Market Segmentation Overview

By Type:

Technical Grade

Fertilizer Grade

Feed Grade

By Application:

Agriculture

Chemical Synthesis

Animal Feed

Others

By Top States:

New South Wales

Victoria

Queensland

South Australia

Western Australia

Australian Capital Territory

Tasmania

Northern Territory

Key Companies in the Market

Leading players in the Australian urea market include:

BASF SE

Petrobras

SABIC

Bunge Limited

Nutrien Ltd.

Sasol

CF Industries Holdings Inc.

These companies are evaluated based on:

Company Overview

Key Persons

Recent Developments

SWOT Analysis

Revenue Analysis

Their strategic activities include product innovation, sustainability initiatives, and supply chain expansion, ensuring a competitive edge in the market.

Market Outlook

The Australian urea market is expected to maintain steady growth due to:

Increasing crop cultivation and livestock production

Rising government support for sustainable agriculture

Growing demand for high-quality feed and fertilizer inputs

Advancements in precision farming and nutrient management

Challenges like import dependence, price volatility, and environmental regulations remain, but strategic government interventions and technological advancements will continue to support market expansion.

The combination of fertilizer and feed-grade applications ensures that urea remains central to Australia’s agricultural and livestock productivity, with a strong outlook for the 2025–2033 period.

Note: If you need details, data, or insights not covered in this report, we are glad to assist. Through our customization service, we will collect and deliver the information you require, tailored to your specific needs. Share your requirements with us, and we will update the report to align with your expectations.