Global Urea Market - Global Industry Size, Share, Trends, Competition, Opportunity, and Forecast, By Specialty Type (Water Soluble, Controlled-Release Fertilizers (CRF)), By Crop Type (Field Crops, Horticultural Crops), By Form (Conventional, Specialty Urea), By Region, By Company 2021-2031F 2021-2031F

Key Insights	Details
Forecast Period	2027 - 2032
Market Size (2025)	USD 61.73 Billion
CAGR (2026-2031)	3.18%
Fastest Growing Segment	Controlled-release fertilizers
Largest Market	Asia-Pacific
Market Size (2031)	USD 74.49 Billion

Market Overview

The Global Urea Market is expected to grow from USD 61.73 Billion in 2025 to USD 74.49 Billion by 2031 at a 3.18% CAGR. Urea, a white crystalline organic compound with the chemical formula CO(NH₂)₂, serves as the globe's primary nitrogen-release fertilizer, valued for its high nitrogen content. The market's growth is fundamentally supported by robust demand originating from global population expansion, which necessitates increased agricultural output to ensure food security. Furthermore, diverse industrial applications, including the manufacturing of resins and Diesel Exhaust Fluid, significantly contribute to its consumption. According to the International Fertilizer Association, global urea production is projected to reach a record 204.1 million tons in 2025.

Despite these inherent drivers, a significant challenge impeding market expansion stems from the pronounced volatility in feedstock prices, particularly for natural gas, which is a critical raw material and energy source for urea production. Geopolitical instabilities and supply chain disruptions can cause unpredictable shifts in these costs, directly impacting manufacturers' operational expenses and overall profitability within the market.

Key Market Drivers

Population Growth and Food Security Drive Urea Demand
The escalating global population, coupled with persistent food security imperatives, represents a fundamental and significant driver for the global urea market. As the world's populace continues to expand, the demand for increased agricultural productivity to ensure sufficient food supply directly translates into a heightened need for nitrogen-based fertilizers like urea. Farmers worldwide rely on urea to replenish soil nutrients, enhance crop yields, and support intensive farming practices. According to the International Fertilizer Association, as reported by the FAO Knowledge Repository in June 2025, nitrogen use reached a record level of 115 million tonnes in 2024, underscoring the critical role of nitrogen fertilizers in global agriculture. This sustained demand for crop enhancement is expected to continue supporting market expansion.

Industrial Applications and DEF Adoption Expand Urea Market
Complementing agricultural demand, the expanding industrial applications for urea significantly contribute to market growth. Urea is crucial in manufacturing diverse products, including adhesives, resins, and Diesel Exhaust Fluid (DEF). The increasing adoption of emission control technologies, such as Selective Catalytic Reduction systems in diesel vehicles, drives the demand for urea-based DEF solutions to comply with stringent environmental regulations. According to the Global Diesel Exhaust Fluid (DEF) Market Share, Companies & Trends Report, global DEF volume was 31.2 billion liters in 2025. Furthermore, according to the International Fertilizer Association's Short-Term Fertilizer Outlook 2024-2025, published in February 2025, global urea output was projected to reach a record 199.7 million tons in 2024. These industrial uses broaden urea's market reach beyond agriculture, fostering sustained growth across multiple sectors.

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Key Market Challenges

Natural gas price volatility constrains global urea growth
The pronounced volatility in feedstock prices, particularly for natural gas, significantly impedes the growth of the global urea market. Natural gas serves as both a critical raw material and an essential energy source for urea production, making its cost a dominant factor in overall manufacturing expenses. Unpredictable shifts in natural gas prices directly increase operational costs for urea manufacturers, consequently squeezing their profit margins. This elevated cost base can lead to reduced production, as facilities with higher operational expenses become uneconomical to run.

European gas-price surge raises costs, dampens demand, and limits investment
According to the World Bank, the European natural gas price reached $28.50 per MMBtu in October 2026, which was 2.6 times its October 2025 level of $10.89. Such substantial increases translate into higher selling prices for urea, potentially reducing demand from agricultural sectors reliant on affordable fertilizers for food security. Furthermore, sustained price uncertainty hinders long-term investment in new production capacities, thereby limiting the market's ability to expand and meet future demand.

Key Market Trends

Adoption of Enhanced Efficiency Urea Fertilizers
The global urea market is notably influenced by the wider adoption of enhanced efficiency urea fertilizers, which are designed to reduce nitrogen loss and optimize nutrient delivery to crops. These advanced formulations, including slow-release and coated urea, address environmental concerns such as ammonia volatilization and nitrate leaching, while also improving agricultural productivity by ensuring nutrients are available to plants over a longer period. This shift reflects a growing emphasis on sustainable agricultural practices that aim to maximize fertilizer effectiveness and minimize ecological impact. For example, according to The Financial Express, December 10, 2025, Indian Farmers Fertiliser Cooperative (IFFCO) had sold 26.5 million bottles of nano urea plus in fiscal year 2025.

Sustainable Urea Production Through Low-Carbon Technologies
Another significant trend shaping the market is the increasing development and deployment of sustainable urea production methods. This involves integrating technologies such as carbon capture and utilization, and utilizing green ammonia derived from renewable hydrogen, to lower the carbon intensity associated with urea manufacturing. These innovations are critical for mitigating the environmental footprint of fertilizer production and responding to global climate goals. A notable example of this progress is the opening of Europe's largest industrial carbon capture plant by Yara International, which as reported by Futura-Sciences, September 14, 2026, is capable of trapping up to 800,000 metric tons of CO2 annually from its ammonia output.

Segmental Insights

Rapid Growth of Controlled-Release Urea Driven by Efficiency and Regulation
The controlled-release fertilizers segment is rapidly emerging as the fastest-growing category within the global urea market. This growth is primarily driven by the imperative to enhance nutrient use efficiency, as these fertilizers precisely synchronize nutrient release with crop demand, significantly reducing losses from leaching and volatilization. Furthermore, escalating global environmental regulations, such as tightening nitrogen emission standards, compel the adoption of more sustainable agricultural practices, positioning controlled-release urea as a vital solution. The increasing global food demand, coupled with the expanding integration of precision agriculture, further reinforces the necessity for advanced nutrient management tools that optimize crop yields while minimizing environmental impact.

Regional Insights

Asia-Pacific Leads the Global Urea Market Through Agriculture, Policy Support, and Industrial Applications
Asia-Pacific unequivocally leads the global urea market due to its extensive agricultural base, particularly in countries like China and India, where intensive farming practices are prevalent to meet the demands of a rapidly growing population and ensure food security. Governments in these nations actively support agricultural productivity through various policies and fertilizer subsidy programs, making urea a crucial and accessible input for farmers. Furthermore, the region benefits from established production infrastructure and competitive manufacturing costs, alongside expanding industrial applications for urea in chemical synthesis and the automotive sector.

Recent Developments

• In December 2025, a significant collaboration emerged as Indian companies Rashtriya Chemicals and Fertilizers Limited, National Fertilizers Limited, and Indian Potash Limited signed a memorandum of understanding with Russia's Uralchem Group. This agreement aimed to establish a new urea plant in Russia with an annual production capacity ranging from 1.8 to 2 million tonnes. This joint venture was positioned to boost fertilizer imports to India, making it one of the largest such collaborations outside India. The project underscored efforts to strengthen the global fertilizer supply chain and enhance India's access to urea.
• In November 2024, National Fertilizers Limited (NFL), a government-owned enterprise, announced its entry into nano urea production. The company stated it would commence manufacturing nano liquid urea at its Nangal plant, with a projected daily output of 1.5 lakh (150,000) bottles of 500 ml. This strategic product launch aimed to introduce an advanced, highly effective variant of urea using nanotechnology. Nano urea is designed for improved nutrient uptake and a slower release of nitrogen, offering an environmentally friendlier alternative to traditional urea in the global fertilizer market.
• In May 2024, QatarEnergy and Koch Fertilizer signed a significant 15-year agreement for the supply of urea. Under this collaboration, QatarEnergy committed to providing up to 0.74 million tons of urea annually, with initial deliveries scheduled to commence in July 2025. This long-term partnership strengthens Qatar's position as a major global urea exporter and is expected to play a crucial role in supporting the agricultural sector in the U.S. and other international markets, thereby contributing to global food security. The agreement also highlighted both companies' sustainability objectives.
• In May 2024, BASF launched its first line of biomass-balanced (BMB) ammonia and urea products, branded BMBcert™. This innovation represents a step towards more sustainable chemical production in the global urea market. The BMBcert™ products are manufactured by replacing fossil resources at the start of the production process with certified biowaste raw materials, which are then attributed to the final products. Utilizing renewable electricity during production further reduced their carbon footprint by at least 80% compared to conventional fossil-derived alternatives, without compromising product quality or performance.

Key Market Players

• Nutrien Ltd.
• CF Industries Holdings, Inc.
• Yara International ASA
• OCI N.V.
• SABIC Agri-Nutrients Company
• EuroChem Group AG
• Koch Fertilizer, LLC
• The Mosaic Company
• URALCHEM Holding P.L.C.
• Indian Farmers Fertiliser Cooperative Limited (IFFCO)

By Specialty Type	By Crop Type	By Form	By Region
Water Soluble Controlled-Release Fertilizers (CRF)	Field Crops Horticultural Crops	Conventional Specialty Urea	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Urea Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Urea Market, By Specialty Type:

• Water Soluble
• Controlled-Release Fertilizers (CRF)

• Urea Market, By Crop Type:

• Field Crops
• Horticultural Crops

• Urea Market, By Form:

• Conventional
• Specialty Urea

• Urea Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE