Urea Market Growth Outlook and Global Size Share Forecast 2034
Urea Market Growth Outlook and Global Size Share Forecast 2034
According to Fortune Business Insights, the global urea market size was valued at USD 79.73 billion in 2025. The market is projected to grow from USD 76.58 billion in 2026 to USD 104.88 billion by 2034, exhibiting a CAGR of 3.90% during the forecast period. Asia Pacific dominated the urea market with a market share of 61% in 2025. Urea is an important nitrogen-rich product widely used across agriculture, animal feed, chemical synthesis, and several industrial applications. Its extensive utilization as a nitrogen source has made it an important component of global agricultural and industrial supply chains.
Commercially, urea is produced by reacting ammonia with carbon dioxide to form ammonium carbamate, which is subsequently decomposed to produce urea in solid form. Industrial production primarily involves the reaction of ammonia and carbon dioxide under high pressure and temperature. The product is widely utilized in fertilizers because of its high nitrogen content. It is also used in animal feed and industrial applications, including resins, adhesives, plastics, pharmaceuticals, and environmental control systems.
Rising demand from agriculture represents a major factor supporting the growth of the urea market. Urea contains approximately 46% nitrogen, an essential nutrient required for crop growth and development. Increasing population, declining soil fertility, and the need to improve agricultural productivity are encouraging greater utilization of nitrogen-based fertilizers. The product is also used as an economical protein source for cattle and other ruminants, particularly where grazing land and conventional high-protein feed are limited.
Growing industrial applications are creating additional demand. Urea is utilized in the production of urea-formaldehyde resins, adhesives, plastics, pharmaceuticals, cosmetics, and specialty chemicals. It is also used in automotive emission-control applications to reduce nitrogen oxide pollutants. Other applications include diesel exhaust fluid, de-icing agents, hydrogen sources, paraffin separation, and certain research and industrial processes.
However, increasing awareness of organic and alternative farming practices may restrain market expansion. Rising oil and gas prices can increase production costs and affect prices in countries dependent on imported energy resources. Excessive fertilizer application can also contribute to ammonia emissions, carbon dioxide emissions, nitrogen runoff, water pollution, and eutrophication. Environmental regulations and restrictions on nitrogen fertilizer usage are therefore creating additional pressure on producers and consumers.
The competitive landscape is fairly fragmented in terms of production and supply chains. Leading companies are focusing on expanding production capabilities and distribution networks to respond to changing demand. Acquisition, merger, capacity expansion, and supply-chain development are among the strategies highlighted in the market. Manufacturers are also working to ensure consistent product availability and strengthen their competitive positions across major consuming regions.
SABIC (Saudi Arabia)
Qatar Fertilizer Company (Qatar)
EuroChem (Switzerland)
Yara International ASA (Norway)
Nutrien AG (Canada)
OCI N.V. (Netherlands)
Acron Group (Russia)
CF Industries Holdings (U.S.)
HUBEI YIHUA CHEMICAL INDUSTRY CO., LTD. (China)
China National Petroleum Corporation (CNPC) (China)
Koch Fertilizer, LLC (U.S.)
Coromandel International Limited (India)
Based on grade, the urea market is segmented into
By Grade (Fertilizer Grade, Feed Grade, and Technical Grade)
By Application (Agriculture, Animal Feed, Chemical Synthesis, and Others)
Explore the full research report with detailed insights and TOC: https://www.fortunebusinessinsights.com/urea-market-106850
Asia Pacific held the largest position in the global market, contributing approximately USD 48.48 billion in 2025 and accounting for 61.00% of the global share. The region is supported by population growth, increasing food demand, rising fertilizer requirements, and expanding animal feed consumption. China represents the largest market in the region, followed by India, ASEAN, Japan, and South Korea.
Technological development is expected to create new opportunities for the urea market. Fortune Business Insights highlights developments such as Blue Urea, which uses water, nitrogen, and carbon dioxide as raw materials and can utilize renewable energy sources. Localized production through standardized equipment may reduce transportation-related costs and emissions.
Research into green production methods is also gaining importance. Emerging techniques involving plasma-ice interactions and advances in catalyst design are being explored to support more energy-efficient urea production. Artificial intelligence workflows, including large language models and Bayesian optimization, are also being applied to accelerate catalyst development for ammonia production, which is a precursor to urea synthesis.
Government initiatives and fertilizer subsidies are another important opportunity for the industry. Financial assistance and price-support mechanisms can make fertilizers more accessible to farmers and help stabilize demand. At the same time, environmental regulations, trade restrictions, export policies, geopolitical tensions, and supply-chain disruptions remain important considerations for market participants. Overall, the global urea market is expected to continue expanding as agricultural requirements, industrial applications, production technologies, and government support influence market development through 2034.
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