Advanced Materials and Chemicals

Urea Market is Expected to Reach USD 180.88 Billion by 2031

Mar 2024

Advanced Materials and Chemicals

As per the report published by Kings Research, the global Urea Market was valued at USD 140.23 billion in 2023 and is projected to reach USD 180.88 billion by 2031, growing at a CAGR of 3.28% from 2024 to 2031.

The urea industry is witnessing continuous advancements in production technologies aimed at improving efficiency, reducing environmental impact, and enhancing product quality. Innovations such as low-emission urea production processes, controlled-release formulations, and nitrogen stabilizers are gaining significant traction to meet environmental regulations and consumer preferences. These advancements are crucial in addressing the growing concerns regarding nitrogen pollution and greenhouse gas emissions. Low-emission urea production processes help minimize the release of harmful gases during manufacturing, ensuring more sustainable and environmentally friendly production. Controlled-release formulations and nitrogen stabilizers, on the other hand, improve the efficiency of nitrogen utilization in agriculture, reducing the risk of nutrient runoff and leaching, and ultimately promoting sustainable farming practices. As the demand for urea continues to rise, these innovations are anticipated to play a significant role in shaping the industry's future.

Furthermore, rapid urbanization, population growth, and dietary changes in emerging economies are fueling demand for food crops, thus increasing the need for fertilizers such as urea. Countries in Asia-Pacific, Latin America, and Africa are experiencing robust growth in urea consumption as they strive to modernize agriculture and increase crop yields to meet rising food demand. As a result, the global urea market is expected to witness significant growth in the coming years. In addition to agricultural needs, urea is used in various industries such as pharmaceuticals, textiles, and plastics. This versatile nature of urea further contributes to its increasing demand worldwide. With the advancements in technology and the surging adoption of sustainable farming practices, the use of urea is expected to continue to rise, making it a crucial component in addressing the food security challenges of the future.

Key Insights

  • By Grade, the fertilizer grade segment registered a significant revenue share of 42.29% in 2023
  • By application, the agriculture segment accounted for a significant revenue share of 40.19% in 2023
  • Based on region, Asia Pacific held the largest market share of 36.25% in 2023

Nutrien Collaborates with U.S. Farmers and Ranchers in Action to Promote Sustainable Agriculture

September 2020: Nutrien partnered with U.S. Farmers and Ranchers in Action (USFRA), highlighting a significant advancement in its position as a global leader in sustainable agriculture. 

Growing Emphasis on Sustainable Agricultural Practices to Foster Global Urea Market Progress

The market is experiencing substantial growth, primarily fueled by a growing emphasis on sustainable agricultural practices worldwide. This emphasis is driving demand for fertilizers that minimize environmental impact and enhance nutrient use efficiency. As a result, there is a growing inclination toward urea-based products with reduced greenhouse gas emissions, improved nutrient uptake, and lower leaching losses. Urea is a popular choice among farmers and researchers due to its high nitrogen content and cost-effectiveness. However, conventional urea tends to release significant amounts of nitrogen into the atmosphere as greenhouse gases, which contributes to environmental pollution and climate change. To address this issue, innovative technologies are being developed to produce urea-based fertilizers with controlled-release mechanisms that minimize nitrogen losses, thereby improving nutrient uptake by crops and reducing the risk of water pollution. These advancements in urea-based products align with the global efforts to promote sustainable agricultural practices and protect the environment.

Population Growth and Food Security to Drive Urea Market Growth

Population growth, particularly in emerging economies, leads to an increase in the demand for food crops. This drives the need for fertilizers such as urea to support higher agricultural productivity and ensure food security. Furthermore, rising disposable incomes and urbanization contribute to an increased consumption of meat and dairy products, driving demand for urea in feedstock production. As a result, the global urea market is experiencing significant growth, with projections indicating a steady increase in demand over the next decade. This has led to a surge in worldwide urea production and trade, with major players in the industry expanding their capacities to meet the growing demand.

For instance, in India, the government's focus on increasing agricultural productivity has resulted in a significant rise in the demand for urea. To meet this demand, Indian urea manufacturers have expanded their production capacities and invested extensively in advanced technologies. Additionally, the country's growing middle-class population and changing dietary preferences have increased the consumption of meat and dairy products, thereby driving the need for urea in feedstock production.

Asia Pacific to Dominate the Market with a CAGR of 2.42% Between 2024 and 2031

Based on region, the global urea market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. This dominance can be attributed to the increasing demand for urea in the agriculture sector in countries such as China and India. Furthermore, the widespread adoption of advanced farming techniques and the growing need for higher crop yields have contributed to the growth of the urea market in the Asia Pacific region. With the continuous investments in agricultural infrastructure and the rise in population, the demand for urea in Asia Pacific is expected to continue to grow in the coming years.

Companies Focusing On Product Launches and Collaborations to Fulfill Consumer Demands

The global urea market is fragmented with key players such as Yara International ASA, CF Industries Holdings Inc., Nutrien Ltd, OCI Nitrogen, QAFCO (Qatar Fertiliser Company), EuroChem Group AG, Sinochem Corporation, Indorama Ventures Public Company Limited, BASF SE, and PTT Global Chemical Public Company Limited. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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