Urea Market

The urea market is projected to reach USD 93.25 billion by 2029 from USD 80.25 billion in 2024, at a CAGR of 3.05% during the forecast period.

The urea market is likely to experience significant growth in the forecast period based on the increasing demands and emerging opportunities in the industry. Urea acts as a significant source of nitrogen and is, therefore, crucial to the crop's growth and development. The fertilizer consists of nearly 46% nitrogen and thus ranks high among the best fertilizers. The dependence of the farming sector on nitrogen-based fertilizers is indeed testimony to the role urea plays in meeting the targets for crop yield. Estimated growth in world population to 9.8 billion by 2050 is expected to spur 70% growth in food production, which is likely to uplift the demand for urea as one of the prominent nitrogen fertilizers that improve the productivity of agricultural production. The industrial use of the product for resins, adhesives, and diesel exhaust fluid, catalyzed by the rising automotive industry and environmental regulations, is also experiencing increasing demand.

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The urea market is dominated by key manufacturers like CF Industries Holdings, Inc. (US), Pupuk Indonesia (Persero) (Indonesia),  Yara International ASA (Norway), SABIC (Saudi Arabia), OCI (Netherlands), Nutrien (Canada), EuroChem Group (Switzerland), Qatar Fertiliser Company (Qatar), BASF SE (Germany), CNPC (China), and IFFCO (India) among others. These players have followed many initiatives, mergers & acquisitions, investment & expansion, new product launches, and partnerships, collaboration & agreements from January 2019 to September 2024, to expand the market share and global reach.

CF Industries Holdings, Inc. (US) is one of the largest global manufacturers and distributors of agricultural fertilizers, specializing in nitrogen products such as ammonia, urea, and ammonium nitrate. CF Industries was established in 1946 as Central Farmers Fertilizer Company and became CF Industries in 1970. The company operates through the following segments: Ammonia, Granular Urea, UAN, AN, and Others. The company produces a range of nitrogen-based fertilizers, including granular urea, urea ammonium nitrate (UAN), and ammonium nitrate. CF Industries produces nitrogen-based products such as granular urea, urea ammonium nitrate solution (UAN), and ammonium nitrate (AN). It offers other nitrogen products like diesel exhaust fluid (DEF), urea liquor, nitric acid, and aqua ammonia, which are mainly supplied to its industrial customers.

PT Pupuk Indonesia (Persero) is the leading fertilizer manufacturer in Asia. The company manufactures fertilizers across the spectrum, from urea to NPK. Other petrochemical products for the company include ammonia and sulfuric acid. The company has various segments, including the Fertilizer and Ammonia Segment, the Construction Services Segment, and other segments. The capacity of the production currently stands at 22 million tons, out of which 14 million tons comprise fertilizers and 8.6 million tons ammonia and others. The company has a network of 15 urea, 14 ammonia, 17 NPK (Nitrogen, Phosphorus, Potassium), 3 ZA (Zinc Ammonium Phosphate), 2 ZK (Zinc Potassium), and SP (Super Phosphate) plants respectively in Java, Sumatra, and Kalimantan. The operations of fertilizer production are also supported by 533 storage units, that have a total capacity of 2.8 million tons, while the ammonia storage capacity is pegged at 175,000 tons.

Yara International ASA (Norway) is one of the biggest manufacturers and suppliers of crop nutrition and ammonia worldwide and is an industrial solutions company. The operations of the company are categorized into various business lines, such as Europe, Americas, Africa & Asia, Global Plants & Operational Excellence, Clean Ammonia, and Industrial Solutions. The company operates nine fertilizer plants, two high-value product plants, three organic fertilizer plants, a phosphate mine, and a potassium sulfate plant in Europe. Yara has more than 10,800 stores in more than 60 countries, as well as 26 production sites, terminals, and warehouses.

• In August 2024, Yara International ASA announced strategic divestments from its fertilizer import and distribution business in Ivory Coast, which is part of a strategy to concentrate on African markets that are likely to grow better. This plays into the 2030 goal Yara set for Africa Food Systems Transformation to streamline operations and focus on locations with the greatest long-term growth potential.
• In July 2024, The Biomethane Purchase Agreement with ENGIE enables BASF to use sustainable biomethane at both its sites in Ludwigshafen and Antwerp, reducing the company's carbon footprint and expanding its portfolio with lower or zero PCF for its products.
• In June 2024, Yara Brasil Fertilizantes S.A. and Petrobras agreed to the nonbinding Master Agreement to find synergy opportunities and strengthen efficiency in the Brazilian fertilizer market with decarbonization options on the table.
• In November 2023, BASF and Yuntianhua collaborated to present a climate-smart farming project in China, which will allow the verification of CO2 emissions that are saved in the use of Yuntianhua's stabilized urea fertilizer with BASF's urease inhibitor Limus. The initiative is to support climate-smart farming projects in China, further exploring opportunities for global expansion.
• In November 2023, NGC signed a contract with Nutrien to supply natural gas to the company’s ammonia and urea plants.

Related Reports:

Urea Market by Grade (Agricultural, Technical, Feed, Medical), Product Type (Granular, Prilled), End-Use Industry (Agriculture, Chemical, Automotive, Medical), Application, Technology & Region - Global Forecast to 2029

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