The global urea market was valued at USD 76.13 billion in 2024 and is projected to reach USD 80.24 billion in 2025 to USD 125.92 billion by 2033, growing at a CAGR of 5.4% during the forecast period. Urea serves as a solubility enhancer and moisture retainer in textile dyeing and printing, expanding its reach into textile manufacturing.ast period (2025-2033).
The chemical formula for urea, also known as carbamide, is CO(NH₂)₂. This compound consists of two amino groups (-NH₂) linked by a carbonyl functional group (-C(=O)-), making it the amide of carbamic acid with the lowest basicity. Carbamide is a crucial nitrogen-containing molecule found in mammalian urine and plays a significant role in the metabolism of nitrogenous compounds. It is a colorless, tasteless substance that is highly soluble in water and nearly non-toxic, with an LD50 value of 15 g/kg in rats. Importantly, dissolving urea in water does not result in an acidic or alkaline reaction.
In the chemical industry, urea serves as a key raw material and is commonly used as a nitrogen source (N) in fertilizers. A landmark moment in chemistry occurred in 1828 when Friedrich Wöhler synthesized carbamide from inorganic raw materials. This experiment was significant because it challenged the prevailing vitalism doctrine, which asserted that only living organisms could produce the chemicals associated with life. Wöhler’s work demonstrated for the first time that a compound previously thought to be exclusive to biological systems could be created in the laboratory without biological starting materials.
The below table shows annual prices at the global level ($/mt) in the 2020-2024 period
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
| Urea price in dollar ($/mt) | 265.3 | 495.8 | 689.6 | 348 | 342.5 |
Source: Annual Reports, Investor Presentations & Straits Research Analysis
The global urea market is experiencing notable growth driven by the expanding applicability of technical-grade urea across various industries. This versatile compound plays a significant role in several key sectors:
These diverse applications across industries highlight the critical role of technical-grade urea in both established and emerging markets, driving its increasing demand globally.
Urea is the most widely utilized nitrogen fertilizer, boasting a nitrogen content of 46%, making it cost-effective and efficient for enhancing plant growth and productivity. With the Food and Agriculture Organization (FAO) estimating that global food production must increase by 70% by 2050 to support a projected population of 9.7 billion people, the reliance on fertilizers, particularly carbamide, is set to rise.
Countries with expansive agricultural sectors, such as India and China, are major consumers of this. India, for instance, stands out as one of the largest producers and consumers of carbamide, with government subsidies aimed at making it affordable for farmers. This growing agricultural demand underscores urea's essential role in ensuring food security and meeting the needs of an increasing population.
Beyond agriculture, urea's versatility extends to industrial applications, particularly in the production of urea-formaldehyde resins. These resins are prized in the plastics industry for their excellent bonding properties, high tensile strength, and thermal stability. They find applications in adhesives, laminates, and molding compounds.
Moreover, the demand for lightweight, durable, and cost-effective materials in sectors like automotive and construction fuels the need for urea-formaldehyde resins. For example, in the automotive industry, these resins are utilized for manufacturing components designed to endure high stress and temperature fluctuations, thereby enhancing vehicle durability and performance.
Likewise, melamine-urea-formaldehyde (MUF) resins, which combine carbamide with melamine, are critical for producing high-quality laminates, plywood, and particleboard, further expanding the market in industrial applications.
One significant restraining factor for this global market is the rising awareness and adoption of organic farming. This agricultural approach prioritizes natural methods for soil fertility and pest control, avoiding synthetic chemicals and fertilizers like this. As environmental sustainability, health, and food safety concerns grow, organic farming is becoming increasingly popular.
The Research Institute of Organic Agriculture (FiBL) reports that the global organic agricultural land area reached nearly 96 million hectares in 2023, marking a notable increase. This shift poses a direct challenge to the global market, as organic farming prohibits synthetic fertilizers.
Moreover, the European Union’s Common Agricultural Policy (CAP) supports organic practices, aligning with the EU’s Green Deal, which aims to reduce chemical pesticide and fertilizer use by 2030. By fostering organic farming on 25% of agricultural land by 2030, these policies further undermine the demand for conventional fertilizers like carbamide.
The global market presents significant opportunities through technological advancements, particularly with innovations like blue urea and nano urea.
Blue Urea technology marks a significant advancement in sustainable fertilizer production. Created under controlled reaction conditions using water, nitrogen, and carbon dioxide, blue urea leverages renewable energy sources such as wind turbines for its production.
This innovative process reduces CO₂ emissions by up to 21% and allows for decentralized manufacturing, facilitating on-site production that minimizes transportation costs and emissions. Incorporating carbon capture and storage (CCS) techniques significantly lowers its overall carbon footprint, aligning with global sustainability goals.
Nano Urea, developed in India, represents another groundbreaking opportunity. This formulation is designed to replace conventional carbamide, potentially reducing its usage by up to 50% while maintaining efficacy.
These technological advancements not only enhance efficiency but also support the global shift toward more sustainable agricultural practices, positioning this market for robust growth in the coming years.
| Study Period | 2021-2033 | CAGR | 5.4% |
| Historical Period | 2021-2023 | Forecast Period | 2025-2033 |
| Base Year | 2024 | Base Year Market Size | USD 76.13 Billion |
| Forecast Year | 2033 | Forecast Year Market Size | USD 125.92 Billion |
| Largest Market | Asia-Pacific | Fastest Growing Market | North America |
The carbamide (urea) market in the Asia Pacific region is experiencing significant growth driven by a shift toward sustainable agriculture, advanced farming technologies, and an increase in industrial applications. Countries like China, India, and Vietnam are at the forefront of adopting precision farming techniques, which optimize urea usage and boost crop yields. This shift reflects a broader trend toward sustainable agricultural practices, emphasizing the need for food security and high productivity.
Additionally, the livestock sector plays a crucial role in driving demand, with nations such as Australia, India, and various Southeast Asian countries incorporating carbamide into animal feed to enhance protein intake for livestock. Moreover, industrial applications of carbamide are on the rise, particularly in the production of resins, plastics, and adhesives. Countries like Japan and South Korea are leading the way in adopting selective catalytic reduction (SCR) systems, which utilize urea to comply with stringent environmental regulations aimed at reducing emissions.
The North American carbamide (urea) market represents a mature segment within the global landscape, with significant growth driven by the United States and Canada. The region is characterized by large-scale farming operations, which are the primary consumers of this. In 2021, the U.S. produced approximately 6.02 million tons of carbamide across 22 production facilities, primarily for agricultural use.
Moreover, the demand for urea in North America is further supported by the automotive industry, particularly through the production of diesel exhaust fluid (DEF), which is essential for reducing nitrogen oxide emissions from diesel engines. Canada mirrors this trend, with its agricultural sector consuming around 3 million metric tons of carbamide annually. The country’s focus on nitrogen-intensive crops, such as canola, wheat, and barley, necessitates substantial urea application to ensure optimal crop performance.
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Liquid Urea, also known as aqueous carbamide solution, is a concentrated mixture of carbamide dissolved in water, typically containing 32.5% to 46.5% urea by weight. It is extensively utilized in both industrial and agricultural applications. In agriculture, liquid urea serves as a highly effective nitrogen fertilizer due to its significant nitrogen content and ease of application. Farmers can apply it directly to the soil or as a foliar spray, providing plants with an immediate source of nitrogen that promotes healthy growth and boosts crop yields.
Moreover, the water-soluble nature of liquid urea allows plants to efficiently uptake nutrients, enhance fertilizer efficacy, and minimize nitrogen losses through leaching or volatilization. Beyond agriculture, liquid carbamide plays a vital role in industrial applications, particularly in automotive emissions control systems, specifically within selective catalytic reduction (SCR) technology.
In agriculture, It is a cornerstone nitrogen fertilizer, containing around 46% nitrogen, a critical nutrient for plant growth. Nitrogen plays an essential role in processes such as photosynthesis, protein synthesis, and overall plant metabolism. This provides a readily available nitrogen source that promotes vigorous vegetative growth, enhances leaf coloration, and increases crop yields. Farmers commonly apply urea to the soil or as foliar sprays to combat nitrogen deficiencies in crops such as corn, wheat, rice, and sugarcane.
However, the effectiveness of carbamide is influenced by factors like soil type, climate conditions, and application methods. Improper application can result in nitrogen losses through volatilization or leaching, necessitating careful management practices to maximize benefits while minimizing environmental impacts.
In this market, the direct sales channel involves transactions that occur directly between manufacturers and end-users, eliminating the need for intermediaries. This approach is particularly prevalent in industries where carbamide serves as a primary raw material, such as agriculture, where it is primarily used for fertilizer applications. The direct sales model is characterized by bulk transactions often governed by contracts that outline delivery schedules and quantities over specified periods.
In the global urea market, companies like Yara International ASA, OCI NV, CF Industries Holdings, Inc., Nutrien Ltd., and SABIC Agri-Nutrients Co. are making significant investments to meet the rising demand from end-user industries. These companies are enhancing their production capacities and adopting advanced technologies to improve efficiency and sustainability.
