Urea Market Size is Projected to Exhibit Growth Rate 1.5% CAGR During 2025-2033

IMARC Group, a leading market research company, has recently released a report titled "Urea Market Report by Grade (Fertilizers Grade, Feed Grade, Technical Grade), Application (Nitrogenous Fertilizer, Stabilizing Agent, Keratolyte, Resin, and Others), End-Use Industry (Agriculture, Chemical, Automotive, Medical, and Others), and Region 2025-2033". The study provides a detailed analysis of the industry, including the urea market share, growth, size, trends and forecast. The report also includes competitor and regional analysis and highlights the latest advancements in the market.

Report Highlights:

How Big Is the Urea Market?

The global urea market size was valued at USD 52.7 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 60.2 Billion by 2033, exhibiting a CAGR of 1.5% during 2025-2033. Asia-Pacific currently dominates the market, holding a significant market share of over 45.2% in 2024. The establishment of new urea production facilities and collaborations among industry players, are driving the market growth. The increasing agricultural demand for nitrogen-based fertilizers, growing food demand necessitating higher crop yields, ongoing advancements in urea production technology, steadily increasing product applications across industries, and favorable government policies is further driving the urea market share across the region.

Key Market Highlights:

• Market Growth: The urea market is experiencing consistent growth, driven by rising demand in agriculture and industrial applications.
• Target Demographics: Primarily used by farmers, fertilizer manufacturers, and chemical processing industries for crop nutrition and raw material needs.
• Product Variety: Available in prilled and granular forms, catering to various soil types and application methods across global farming systems.
• Agricultural Trends: Increasing focus on crop yield optimization and food security is boosting urea consumption in developing and developed regions.
• Distribution Channels: Supplied through agro-dealers, fertilizer distribution networks, cooperatives, and B2B trading platforms to reach end users efficiently.

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Urea Market Trends

The urea market is entering a transformative phase, driven by advancements in agricultural practices and growing environmental accountability. By 2025, demand for urea will be increasingly shaped by the rise of precision agriculture-an approach that leverages technologies like soil sensors, satellite imaging, and real-time data analytics to enhance fertilizer efficiency. These tools enable farmers to apply urea with pinpoint accuracy, delivering nutrients precisely when and where crops need them, thereby improving yields while minimizing environmental impact.

Simultaneously, intensifying environmental regulations are prompting a shift toward more sustainable fertilizer solutions. In response, urea manufacturers are innovating with enhanced-efficiency products, including slow- and controlled-release formulations designed to reduce nitrogen leaching and support long-term soil health. These advancements align with global sustainability initiatives and growing stakeholder expectations for eco-conscious farming inputs.

As climate change continues to reshape agricultural conditions and increase pressure on global food systems, urea's versatility, affordability, and agronomic value position it as a cornerstone of resilient farming strategies. With producers investing in greener technologies and smarter application methods, the urea market is poised for sustained growth-anchored in both productivity and environmental responsibility.

Market Dynamics of the Urea Market

• Rising Global Food Demand Fuels Agricultural Urea Consumption
The growing need to ensure global food security is a primary force driving the expansion of the urea market. With the world population projected to reach nearly 10 billion by 2050, agriculture must deliver higher crop yields to meet escalating consumption demands. Urea, as a nitrogen-rich fertilizer, plays a vital role in enhancing soil fertility and boosting plant productivity. By 2025, intensified farming practices-especially in rapidly developing regions-will lead to increased reliance on urea to maximize output.

Emerging economies in Asia and Africa are witnessing a rapid shift toward modernized, high-efficiency agriculture, supported by mechanization and better input utilization. In these regions, urea's affordability, accessibility, and proven effectiveness make it indispensable for sustainable crop production. As nations strive to feed growing populations using limited arable land, demand for urea will continue on a steady upward trajectory.

• Regulatory Shifts and Environmental Sustainability Challenges

As environmental concerns rise, the urea market is increasingly influenced by evolving sustainability mandates and regulatory frameworks. Excessive use of nitrogen-based fertilizers, including urea, has contributed to issues such as nutrient runoff and water pollution. In response, governments are tightening environmental guidelines and promoting responsible fertilizer use. By 2025, this regulatory momentum will encourage broader adoption of sustainable alternatives.

Manufacturers are responding with innovations like enhanced-efficiency urea (EEU), coated or slow-release formulations that reduce nutrient loss and environmental impact. Additionally, the global movement toward regenerative and organic agriculture is shaping demand for fertilizers that align with eco-friendly practices. These changes present both challenges and opportunities-prompting producers to balance performance with environmental stewardship and reposition urea within a more sustainable agricultural framework.

• Innovation in Urea Production and Precision Application Technologies
Technological advancements are reshaping both the production and use of urea, making the market more efficient and environmentally conscious. On the manufacturing side, the adoption of carbon capture and utilization (CCU) and cleaner synthesis processes is helping reduce emissions and improve energy efficiency. These innovations are becoming increasingly vital as producers face mounting pressure to align with climate goals.

Simultaneously, the rise of precision agriculture is revolutionizing fertilizer application at the farm level. Farmers are using GPS, drones, AI, and remote sensing technologies to apply urea with greater accuracy, minimizing waste and maximizing yield. As digital tools become more accessible and affordable, the demand for smart, adaptable fertilizer solutions will rise. This fusion of technology and agronomy is positioning urea not just as a basic input, but as a strategic component of data-driven, high-efficiency farming systems.

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Champagne Market Report Segmentation:

Breakup by Grade:

• Fertilizers Grade

• Feed Grade

• Technical Grade

Technical grade represented the largest segment, accounting for the majority of the market share for fertilizers, feed, and technical grades.

Breakup by Application:

• Nitrogenous Fertilizer

• Stabilizing Agent

• Keratolyte

• Resin

• Others

Nitrogenous fertilizer dominated the market, accounting for the largest share among applications like stabilizing agents, keratolytes, resins, and others.

Breakup by End-Use Industry:

• Agriculture

• Chemical

• Automotive

• Medical

• Others

Agriculture was the dominant end-use industry, accounting for the largest market share among segments like chemicals, automotive, medical, and others.

Breakup by Region:
• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa

Asia Pacific dominated the global urea market, holding the largest market share among regions like North America, Europe, Latin America, and the Middle East & Africa.

Top Companies Operated in Urea Industry:

The competitive landscape of the urea market size has been studied in the report with the detailed profiles of the key players operating in the market.

• Acron Group
• BASF SE
• BIP (Oldbury) Limited
• EuroChem
• Jiangsu Sanmu Group Co. Ltd.
• Koch Fertilizer LLC
• OCI N.V
• Petrobras
• Qatar Fertiliser Company
• SABIC
• Yara International ASA

Key Highlights of the Report:

• Market Performance (2019-2024)
• Market Outlook (2025-2033)
• Market Trends
• Market Drivers and Success Factors
• Impact of COVID-19
• Value Chain Analysis
• Comprehensive mapping of the competitive landscape

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If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

About Us:

IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC's information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company's expertise.

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This release was published on openPR.