Urea Market Size, Share & Trends Analysis Report By Type (Liquid, Solid), By End Use (Agriculture, Chemical, Automotive, Medical, Others) and By Region (North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2026-2034

Last Updated: October 22, 2026 | Author: Ismail Sutaria | Format:

Urea Market Size, Share & Growth Analysis

The global urea market size was valued at USD 104.54 billion in 2025 and is projected to grow from USD 110.50 billion in 2026 to USD 172.17 billion by 2034, registering a CAGR of 5.7% during the forecast period (2026–2034). Asia Pacific dominated the urea market with a share of 46.8% in 2025.

Urea is a nitrogen-rich chemical compound widely used in agriculture as a fertilizer to support plant growth and improve crop yields. It is also used in animal feed, industrial resin production, adhesives, and diesel exhaust fluid for reducing nitrogen oxide emissions from vehicles. They are tracked under HSN Code (310210) (urea and nitrogenous fertilizers) and SIC Code (2873) (nitrogenous fertilizers).

Urea Market Key Takeaways

Global Market Size & Growth

2025 Market Size
USD 104.54 billion
2026 Market Size
USD 110.50 billion
2034 Projected Market Size
USD 172.17 billion
Forecast Period
2026–2034
Base Year
2025
Market CAGR (2026–2034)
5.7%

Regional Insights

Largest Regional Market (2025)
Asia Pacific
Asia Pacific Market Share (2025)
46.8%
Fastest-growing Region
North America
North America CAGR (2026–2034)
4.61%

Segment Insights

By Type
Fastest-growing Segment
Liquid
CAGR (2026–2034) 4.24%
By End Use
Fastest-growing Segment
Automotive
CAGR (2026–2034) 4.48%
Urea Market Size

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Urea Market Dynamics

01

Demand for Higher Crop Yields and Expansion of Irrigated Agricultural Land Drive Market

Food security requirements and the need to maintain crop productivity support demand for urea, a major nitrogen fertilizer used in rice, wheat, and maize cultivation. India’s final foodgrain production reached 357.73 million tonnes in 2024–25, according to the Ministry of Agriculture and Farmers Welfare, highlighting the scale of agricultural output that depends on effective nutrient management.For example, rice and wheat farmers use urea to supply nitrogen during key stages of crop development, supporting leaf formation and grain production. These agricultural requirements sustain demand for urea from farmers, fertilizer distributors, and government-supported supply channels.

Reliable irrigation access supports urea demand by allowing farmers to maintain crop nutrient schedules across different growing seasons and reduce dependence on rainfall. As of August 2025, India’s Pradhan Mantri Krishi Sinchayee Yojana had supported more than 27 million farmers and covered or developed over 24.61 million hectares through irrigation, micro-irrigation, watershed, and groundwater interventions. For example, rice and wheat farmers in irrigated areas can apply urea at key crop-development stages to support nitrogen availability and crop productivity. Wider access to irrigation infrastructure creates demand for dependable fertilizer distribution and seasonal urea supplies across agricultural regions.

01

Seasonal Agricultural Demand and High Transportation and Storage Costs Restrain Market Expansion

Dependence on agricultural demand and seasonal consumption exposes the urea market to changes in crop cycles, rainfall, and planting schedules, which affect fertilizer purchasing and distribution requirements across urea producing countries. India's Department of Fertilizers reported urea consumption of 193.21 lakh metric tonnes during Kharif 2025 and 203.39 lakh metric tonnes during Rabi 2025–26. These seasonal variations complicate inventory planning and supply allocation, creating risks of stock imbalances and limiting consistent market expansion.

High transportation and storage costs constrain the urea market because bulk shipments require reliable port facilities, warehouses, railways, and road networks to reach agricultural regions on time. India's Department of Fertilizers reported urea imports of 89.30 lakh metric tonnes during April 2025–January 2026, highlighting the logistical burden of moving substantial fertilizer volumes through international and domestic supply chains. Freight expenses, storage capacity constraints, and distribution delays can raise delivered costs and restrict timely access for farmers in remote regions.

01

Specialty Fertilizer Formulations and Industrial Applications Create New Revenue Opportunities Offers Growth Opportunities

Commercial farms, horticulture businesses, turf managers, and specialty fertilizer distributors are key customers for controlled-release and coated urea products. India recorded 352.61 lakh tonnes of urea sales during April 2025–January 2026, reflecting the scale of the fertilizer market and opportunities for premium formulations. Companies such as Nu-Tec Specialty Products can generate revenue through time-release urea products, specialized formulations, and distributor partnerships.

Automotive manufacturers, commercial fleet operators, diesel vehicle suppliers, and chemical producers represent customers for automotive-grade urea and industrial applications. The American Petroleum Institute specifies that diesel exhaust fluid contains 32.5% high-purity urea, creating opportunities for specialized urea supply, fluid manufacturing, and long-term contracts with distributors and fleet-service providers. Companies such as Cummins support this market through diesel emission-control technologies and related fluid requirements.

Urea Market Segmentation Analysis

By Type

The solid segment is expected to register a CAGR of 3.66% during the forecast period, supported by its suitability for large-scale fertilizer distribution and long-term storage. Its established role in conventional farming, along with ease of transportation and handling, sustains its relevance among agricultural users. Reliable availability through existing supply channels also supports continued use across diverse crop production systems.

The liquid segment is anticipated to record a CAGR of 4.24% over the forecast period. Its application in fertigation and liquid nutrient formulations offers farmers greater flexibility in fertilizer delivery. Compatibility with precision agriculture practices and the ability to distribute nutrients evenly through irrigation systems are key factors supporting its adoption. Industrial applications also contribute to demand for liquid urea.

Urea Market Size By Segments

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By End Use

The agriculture segment dominated the end-use category, accounting for a market share of 79.3% in 2025. Its leading position reflects the extensive use of urea as a nitrogen fertilizer to support crop nutrition and soil productivity. Demand from crop cultivation and the need to maintain nutrient availability across agricultural land reinforce agriculture's dominant position. The segment is projected to register a CAGR of 3.91% during the forecast period.

The automotive segment is projected to register the highest CAGR of 4.48% during the forecast period. Demand is use of urea-based solutions in selective catalytic reduction systems, which help reduce nitrogen oxide emissions from diesel vehicles. Emission-control requirements and the continued use of diesel-powered commercial vehicles support the application of automotive urea solutions.

Urea Market Share By Segments

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Urea Market Regional Outlook

Asia Pacific Urea Market

The Asia Pacific urea market accounted for the largest regional share of 46.8% in 2025.

Japan Urea Market

Japan’s Ministry of Agriculture, Forestry and Fisheries aims to reduce chemical fertilizer use by 20% by 2030 compared with the 2016 baseline, encouraging more efficient nutrient application and potentially moderating urea consumption. The ministry also targets an increase in the domestic-resource share of fertilizer inputs, measured on a phosphorus basis, from 25% in 2021 to 40% by 2030, reflecting a broader shift toward alternative fertilizer resources.

China Urea Market

China aims to achieve a fertilizer utilization rate of at least 43% for its three major grain crops by 2030, encouraging more efficient fertilizer application and potentially influencing urea-use patterns. In 2025, fertilizer utilization for wheat, maize, and rice reached 43.3%, according to China’s Ministry of Agriculture and Rural Affairs, indicating continued progress toward more efficient nutrient use.

India Urea Market

NITI Aayog projects India’s urea demand to increase from approximately 36 million tonnes in 2024–25 to 44 million tonnes by 2049–50, indicating a long-term requirement for nitrogen-based fertilizers. India’s indigenous urea production capacity reached 28.374 million tonnes per year in 2023–24, supporting efforts to reduce reliance on imports as fertilizer requirements evolve.

Asia Pacific Urea Market Revenue Share 2025

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North America Urea Market

The North America urea market is expected to register a CAGR of 4.61% during the forecast period, making it the fastest-growing regional market.

U.S. Urea Market

The U.S. Department of Agriculture projects fertilizer, lime, and soil-conditioner expenses to increase by USD 5.3 billion, or 15.3%, in 2026 compared with 2025, indicating potential changes in farm input spending that may affect fertilizer purchasing decisions. Although this projection covers multiple agricultural inputs rather than urea alone, it provides an official indicator of the cost environment influencing fertilizer use.

Canada Urea Market

Agriculture and Agri-Food Canada aims to reduce emissions associated with fertilizer use by 30% from 2020 levels by 2030, encouraging more efficient nutrient management while maintaining crop yields. As nitrogen fertilizer use has increased by 93% since 2005, the target may promote improved application practices and greater fertilizer-use efficiency, influencing how farmers manage urea inputs.

Europe Urea Market

The Europe urea market is expected to register a CAGR of 3.21% during the forecast period.

U.K. Urea Market

The U.K. government aims to reduce nitrogen, phosphorus, and sediment pollution from agriculture into the water environment by at least 12% by December 2030 compared with 2018 levels in England. This target may encourage more precise fertilizer application and improved nutrient management, influencing the volume and timing of urea use in agricultural production.

Germany Urea Market

Germany aims to reduce its average agricultural nitrogen surplus to 70 kilograms per hectare over the 2026–2030 period, encouraging more efficient use of nitrogen inputs. This environmental target may support precision fertilization and closer monitoring of nutrient application, potentially affecting urea consumption as farmers align fertilizer use with crop requirements.

Competitive Landscape 

The urea market is moderately fragmented, with large-scale fertilizer manufacturers, integrated natural gas and chemical producers, state-owned fertilizer companies, and regional agricultural input suppliers competing across agricultural and industrial applications. Yara International ASA, CF Industries Holdings, Inc., Nutrien Ltd., SABIC, and OCI Global are among the leading players in the market, collectively accounting for an estimated 25–30% urea market share.

Established players compete through production capacity, access to cost-effective feedstock and long-term supply agreements with agricultural and industrial customers. Emerging and regional players focus on cost-efficient production, localized distribution, specialized industrial-grade urea, flexible supply arrangements, and improved access to underserved agricultural markets. Competitive positioning also depends on energy consumption, feedstock price fluctuations, environmental compliance, logistics efficiency, and the ability to maintain consistent product availability during seasonal fertilizer demand.

List of Key and Emerging Players in Urea Market

OCI Global (Netherlands)
Koch Fertilizer, LLC (U.S.)
The Chemical Company (U.S.)
PT Pupuk Kalimantan Timur (Indonesia)
China National Petroleum Corporation (China)
Chambal Fertilisers and Chemicals Limited (India)
Acron Group (Russia)
CF Industries Holdings, Inc. (U.S.)
EuroChem Group AG (Switzerland)
Nutrien Ltd. (Canada)
Qatar Fertiliser Company (Qatar)
Saudi Basic Industries Corporation (Saudi Arabia)
Yara International ASA (Norway)
Asahi Kasei Corporation (Japan)
BASF SE (Germany)
Indian Farmers Fertiliser Cooperative Limited (India)
Togliattiazot (Russia)
IBI Scientific (U.S.)

Key Industry Developments

September 2025
EuroChem expanded its fertilizer production capabilities by strengthening nitrogen fertilizer operations, including urea-related products, to support agricultural markets across global regions.
July 2025
CF Industries expanded its nitrogen fertilizer portfolio by advancing urea manufacturing and low-carbon ammonia initiatives, supporting fertilizer supply and emissions reduction efforts.
June 2025
Nutrien expanded its nitrogen fertilizer operations by strengthening urea production capabilities and supply chain initiatives to support global agricultural demand.
May 2025
Yara International expanded its fertilizer portfolio by advancing urea production and sustainable nitrogen fertilizer solutions, supporting agricultural productivity and improved nutrient management practices.

Report Scope

Segmentation

By Type 2
  • Liquid
  • Solid
By End Use 5
  • Agriculture
  • Chemical
  • Automotive
  • Medical
  • Others

Geographies Covered

North America 2
  • U.S.
  • Canada
Europe 8
  • U.K.
  • Germany
  • France
  • Spain
  • Italy
  • Russia
  • Nordic
  • Benelux
APAC 7
  • China
  • Korea
  • Japan
  • India
  • Australia
  • Taiwan
  • South East Asia
Middle East and Africa 6
  • UAE
  • Turkey
  • Saudi Arabia
  • South Africa
  • Egypt
  • Nigeria
LATAM 5
  • Brazil
  • Mexico
  • Argentina
  • Chile
  • Colombia
Competitive Coverage OCI Global (Netherlands) · Koch Fertilizer, LLC (U.S.) · The Chemical Company (U.S.) · PT Pupuk Kalimantan Timur (Indonesia) · China National Petroleum Corporation (China)
Research Deliverables Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends

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Frequently Asked Questions (FAQs)

The urea market size is valued at USD 110.50 Billion in 2026 and is projected to reach USD 172.17 Billion by 2034, at a CAGR of 5.7% during the forecast period 2026-2034.
Asia Pacific dominated the market with a share of 46.8% in 2025.
The leading companies in this market are OCI GLOBAL, Koch Fertilizer, LLC, The Chemical Company, PT Pupuk Kalimantan Timur.
The urea market is projected to grow at a CAGR of 5.7% during the forecast period of 2026 2034.
About the Author
Ismail Sutaria
Ismail Sutaria
Research Head

Ismail Sutaria is Research Head at Straits Research with over 12 years of experience in market intelligence, industry research, and strategic advisory across chemicals, materials, packaging, industrial machinery, and energy markets. He specializes in market sizing and forecasting, competitive intelligence, value chain analysis, demand assessment, and commercial due diligence.

Over the course of his career, Ismail has led and contributed to numerous industry studies covering specialty chemicals, advanced materials, industrial technologies, manufacturing equipment, renewable energy, and sustainable packaging. His research focuses on evaluating market trends, technology adoption, competitive dynamics, regulatory developments, and growth opportunities to support informed business and investment decisions.

His expertise includes market forecasting, industry benchmarking, supply-demand analysis, pricing assessment, and strategic market evaluation across global and regional markets.

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