Urea Market Outlook - Supply and Demand Analysis 2025-2034

Urea Market

Urea is a crystalline, colourless substance which melts at 271 degrees Fahrenheit. It is widely used as a feed supplement and fertilizer, while also serving as a raw material for the drug and plastics manufacturing industry. It is also utilised in the production of urea-formaldehyde resins, skin care products, and barbituric acid.

Global Supply/Demand Outlook

The global urea market stood at a volume of around 177210.00 Kilo Tons in the year 2024. The market is projected to grow at a CAGR of 0.90% between 2025 and 2034 to reach a volume of about 193820.58 Kilo Tons by 2034. There is a growing demand for nitrogenous fertilizers, which contributes to the urea market growth. Nearly 80-85% of urea produced on a global scale is used in the production of chemical fertilizers, particularly nitrogen-based fertilizers. One of the key factors propelling the market for urea is the expansion of the agriculture sector and the increasing focus on enhancing agricultural output. Farmers, in order to improve pasture and crop growth, often enhance soil nitrogen levels by applying nitrogen fertilizers. The increasing importance of nitrogen in the growth and development of plants is expected to continue to favour the market in the coming years.

The global capacity of urea was about 242,000 KT in the year 2024. It is estimated to reach 315,000 KT by 2034. The Asia Pacific holds the major share of urea capacities, representing around 66% of the global production capacity. The plant capacity utilization of urea remained 81% in 2024.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Regional Market Analysis

China dominates the production of urea on a global level. In 2019, the country’s production represented around 32% of the total world production. In India and China, the production of urea is usually coal-based. Other major urea producers after China and India, are known to have good natural gas reserves.

In terms of demand, South Asia is expected to continue to dominate the market, witnessing the largest increase in urea demand. Latin America is also expected to be another significant market, witnessing an increasing demand from the region’s industrial sector.

Key Market Players

The major players in the urea market are P.T. Pupak Indonesia, Yara Chemical, SABIC, Qatar Fertilise Co., Acron Group, and Koch Fertilizer LLC. Combined, these companies represent around 20% of the global capacity, of which P.T. Pupak Indonesia alone occupies around 5.7% market share, emerging as the market leader.

Pupuk Indonesia is one of leading fertilizer manufacturers in Asia and the company plays a crucial role in the world fertilizer trade. It has positioned itself as a market leader in ammonia and urea production in Asia.

Other players operating in the market are Nutrien Ltd., EuroChem Group AG, CF Industries Holdings, Inc., OCI N.V., Coromandel International Limited, and Indian Farmers Fertilizer Cooperative Limited (IFFCO).

Key Questions Answered in the Report:

• What are the high-growth opportunities and markets for urea by application and region?

• Which segments and regions are projected to grow at a faster pace and why in the urea market?

• What is the nameplate capacity of urea by region from 2018 to 2034?

• How does the plant capacity utilisation of urea vary by region between 2018 and 2034?

• Who are the major players in the urea market by capacity and region?

• What major plant shutdowns and expansions have occurred in the urea market in the last year and the last quarter?

• What major plant shutdowns and expansions are planned in the urea market over the next year and quarters?

• How did export and import dynamics of urea vary by region in terms of value between 2018 and 2024?

• How did export and import dynamics of urea vary by region in terms of volume between 2018 and 2024?

• What impacts have shutdowns, force majeure events, and plant closures had on demand and pricing of urea?

• What are the environmental considerations and regulatory impacts affecting the urea market?

• What technological innovations are having an impact on the production and application of urea?

• What are the key trends and innovations in the urea market?

• What are the challenges and opportunities faced by urea manufacturers?

• What are the potential risks and barriers to entry for new players in the urea market?

• What strategic investments and expansions have major players made in the urea market?

• How are geopolitical factors and international trade policies affecting the global urea market?

• What are the price trends for urea, and how are they expected to change?

• How does the supply chain of urea operate, and what are its key components?