The global urea market size was valued at USD 98.9 billion in 2024 and is projected to grow from USD 103.2 billion in 2025 to USD 154.1 billion by 2033, exhibiting a CAGR of 5.7% during the forecast period (2025-2033).
Carbamide, also known as urea, is a nitrogenous compound that plays a pivotal role in various industries, including agriculture, animal feed, and chemical synthesis. It is commercially produced by reacting ammonia with carbon dioxide to yield ammonium carbamate, which is then decomposed to form urea. With a global production exceeding 192 million tonnes in 2024, urea serves as the most widely used nitrogenous fertilizer, accounting for over 46% of nitrogen content in solid fertilizers.
The agricultural sector remains the primary driver of the global market. Urea fertilizers are essential for enhancing crop yields, particularly for corn, wheat, and rice, which are staple food sources for billions of people worldwide.
The global market exhibits a mature landscape with regional variations. Major producers include China, India, Russia, and the U.S. While established markets like North America and Europe are expected to experience moderate growth, driven by agricultural needs and evolving farming practices, significant growth potential lies in developing regions like the Asia Pacific and Africa, where rising populations and increasing disposable incomes will necessitate higher food production.
The Government of India in 2015 introduced 100% neem coating on all subsidized agricultural grade urea in the country. All the indigenous and imported urea were neem coated so as to make the urea slow release and difficult to use for non-agricultural purposes. In addition, demand and consumption of for green urea is expected to increase in India in upcoming years owing to the increasing government subsidies for the production of green ammonia.
Ø For instance, the Indian government is incentivizing green ammonia production through the National Green Hydrogen Mission, specifically the SIGHT (Strategic Interventions for Green Hydrogen Transition) Programme, with a focus on the fertilizer sector, offering subsidies and increasing annual allocations to stimulate demand.
Urea plays a crucial role in plastic production, primarily as a raw material for synthesizing urea-formaldehyde (UF) resin, a thermosetting plastic used in adhesives, molded objects, and polyurethane production. Plastic manufacturing plays a pivotal role in the U.S. economy, serving as a cornerstone of several key industries
According to the Food and Agriculture Organization (FAO) of the United Nations, global food production must rise by 70% by 2050 to feed an estimated 9.7 billion people. Urea, with its high nitrogen content of 46%, is a critical input for boosting crop yields, particularly in major economies like the U.S. and Canada.
Urea’s role in industrial applications, particularly in the automotive industry, has grown due to its use in diesel exhaust fluid (DEF) to reduce nitrogen oxide (NOx) emissions. Germany, a global leader in automotive manufacturing, has seen steady demand for technical-grade urea for DEF, driven by strict EU emissions standards (e.g., Euro 6 norms).
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Source: OICA
Stringent environmental regulations pose a significant restraint on the urea market. The European Union’s Green Deal, aiming to reduce chemical fertilizer use by 2030, promotes organic farming on 25% of agricultural land, as outlined by the European Commission. This shift undermines demand for conventional urea, which contributes to nitrogen-related pollution through leaching and volatilization.
Innovations like blue urea and nano urea present significant growth opportunities by aligning with global sustainability goals. Moreover, urea production relies on ammonia, which is traditionally produced using the Haber-Bosch process, consuming significant amounts of natural gas and emitting CO₂. The shift toward green ammonia produced using renewable energy sources (solar, wind, and hydropower) is a major technological advancement in sustainable urea production.
These advancements lower environmental impact, reduce transportation costs through decentralized production, and tap into the growing demand for eco-friendly fertilizers, positioning the global market for long-term expansion.
| Study Period | 2021-2033 | CAGR | 5.7% |
| Historical Period | 2021-2023 | Forecast Period | 2025-2033 |
| Base Year | 2024 | Base Year Market Size | USD 98.9 Billion |
| Forecast Year | 2033 | Forecast Year Market Size | USD 154.1 Billion |
| Largest Market | Asia-Pacific | Fastest Growing Market | North America |
The Asia Pacific market is shaped by agricultural demand, industrial usage, government policies, and raw material availability. The region accounts for a major portion of global urea consumption, primarily due to the presence of large agricultural economies such as China and India. Food security concerns drive the demand for fertilizers, making urea an essential input for crop production. For instance, the Chinese government continues to support the urea market through fertilizer subsidies under the National Rural Revitalization Strategy (2021-2035), ensuring affordable access for farmers.
In 2023, the Ministry of Agriculture and Rural Affairs (MARA) increased direct subsidies for nitrogen fertilizers by 7% year-on-year to stabilize food production costs amid rising global urea prices. In India, the Department of Fertilizers has promoted nano liquid urea as an alternative to conventional urea. Moreover, in January 2024, the Cabinet Committee on Economic Affairs approved “Urea Gold” (sulfur-coated urea) at subsidized rates, matching neem-coated urea prices.
In North America, UAN (a liquid fertilizer that combines urea and ammonium nitrate) is commonly used, while nitrates are primarily utilized in Europe. In U.S., the urea market in the U.S. is primarily driven by its growing applications across various end-use industries, including fertilizers, automotive, chemicals, and pharmaceuticals. The agricultural, food, and related sectors in the U.S. contribute 5.5 percent to the country’s GDP in 2023, further fueling the urea consumption.
According to the Government of Canada, the country was the world's third-largest exporter of fertilizer in 2021, after Russia and China. Following Russia's invasion of Ukraine, Canada's fertilizer exports more than doubled compared to the previous year, making Canada the second-largest exporter in the world, behind Russia, in 2022. Further driving the demand for urea in Canada. For instance, in the first six months of 2023, sales of pesticides, fertilizers, and other agricultural chemicals reached USD 6.2 billion for the second consecutive year, with USD 2.8 billion allocated for export. Fertilizers represent the majority of sales in this broad industrial category.
The global market is experiencing dynamic growth and diversification across the globe, with each county contributing uniquely to the advancement of this transformative field.
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Solid urea dominated the global urea market with a revenue share of 68.1% in 2024 owing to its cost-effectiveness, ease of handling, and suitability for agricultural applications. Solid urea is primarily available in granular and prilled forms, both widely used in fertilizers. Granular urea is preferred in mechanized farming due to its larger particle size, reduced dust formation, and better-spreading properties. Prilled urea is commonly used in regions where manual fertilizer application is prevalent due to its smaller particle size and quicker dissolution in water. For instance, over 80% of global urea consumption is in the agriculture sector, as per the Food and Agriculture Organization (FAO).
However, liquid urea is the second-largest segment with a market share of 31.9% in 2024, primarily driven by its growing application in industrial and environmental solutions. Liquid urea is widely used in diesel exhaust fluid (DEF), also known as AdBlue, which helps reduce nitrogen oxide (NOx) emissions from diesel engines, a critical application in the automotive and transportation sectors. Additionally, it is utilized in certain industrial chemical processes, such as urea-based adhesives and resin production.
Agriculture dominated the global urea market with a revenue share of 64.3% in 2024, as reported by the United States Geological Survey (USGS) and the Food and Agriculture Organization (FAO). Urea is essential in farming as it provides high nitrogen content (46%), making it one of the most efficient nitrogen fertilizers. According to the International Fertilizer Development Center (IFDC), urea is cheaper than alternative nitrogen fertilizers, making it the first choice for farmers globally. For instance, the United Nations (UN) projects that the global population will exceed 9 billion by 2050, increasing the demand for high agricultural productivity.
However, the chemical industry is the second-largest segment with a market share of 16.6% in 2024, driven by its role in producing resins, adhesives, and pharmaceuticals. Urea serves as a key feedstock in the manufacturing of urea-formaldehyde and melamine-formaldehyde resins, essential for the wood, construction, and automotive sectors. Despite its extensive industrial applications, the chemical sector ranks second because the demand for urea in fertilizers far surpasses its consumption in specialty chemicals and resins, which have relatively limited volumes and specialized end uses.
In the global market, different companies compete for dominance, with the top players collectively holding a significant yet fragmented share. CF Industries leads with a 5.3% market share, driven by its extensive production capacity in North America and strategic investments in operational efficiency, such as adopting cleaner technologies to reduce carbon emissions.
Yara International follows with 4.6%, leveraging its global distribution network and initiatives like precision farming solutions to strengthen its position. Nutrien, with 3.9%, benefits from its integrated supply chain and focus on sustainable agriculture practices.
EuroChem, holding 3.0%, has expanded through acquisitions and investments in modern production facilities. OCI GLOBAL (2.8%) emphasizes innovation, including low-emission urea production, aligning with environmental regulations. For instance, EuroChem is constructing the EuroChem Northwest 2 project, a plant with a design capacity of 1.4 MMT of urea and 1 MMT of ammonia. Commissioning and start-up work will begin from the second half of 2025, with the first product expected at the start of 2026. Others reflect a highly competitive landscape with numerous smaller producers.
| Company | Percentage |
|---|---|
| CF Industries | 5.3% |
| Yara International | 4.6% |
| Nutrien | 3.9% |
| EuroChem | 3.0% |
| OCI GLOBAL | 2.8% |
| SABIC | 2.5% |
| QAFCO | 2.2% |
| Koch Fertilizer, LLC | 2.0% |
| Togliattiazot (TOAZ) | 1.4% |
| BASF SE | 1.2% |
| PT Pupuk Kalimantan Timur | 0.5% |
| Others | 70.3% |
Acron Group: An emerging player in the urea market
Acron Group is one of the leading global mineral fertilizer producers with a vertically integrated business model covering the entire value chain, from raw material extraction to high-quality fertilizer production and distribution. Headquartered in Veliky Novgorod, Russia, Acron Group operates multiple production facilities, including its flagship Acron plant in Veliky Novgorod, the Dorogobuzh plant in Smolensk Region, and Hongri Acron in China, ensuring a strong manufacturing footprint in both domestic and international markets. The company specializes in nitrogen and complex fertilizers, including urea, ammonium nitrate, NPK (nitrogen-phosphorus-potassium) fertilizers, and liquid ammonia, which are widely used in agriculture and industrial applications.
Recent developments by Acron Group
The global urea market is influenced by several factors, including agricultural demand, industrial applications, and raw material availability. Urea is a key nitrogen-based fertilizer, and its consumption is largely driven by the agricultural sector, where it plays a role in enhancing crop yield. Market trends are shaped by population growth, food security concerns, and government policies supporting fertilizer use.
Production is concentrated in regions with abundant natural gas reserves, as natural gas is a primary feedstock for urea synthesis. Countries such as China, India, and the United States have significant production capacities, while regions with limited domestic production rely on imports. Trade flows are affected by export restrictions, geopolitical factors, and currency fluctuations, which contribute to price volatility.
Price movements are closely linked to energy prices, particularly natural gas, as well as global supply-demand balances. Innovations in fertilizer efficiency and alternative nitrogen sources may influence long-term demand. Regulatory developments, particularly environmental policies, are expected to shape production and consumption patterns in the coming years.
