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Urea Market Size To Reach $97.13Bn By 2033 | CAGR 3.5%

Urea Market Size To Reach $97.13 Billion By 2033 | CAGR 3.5%

April 2026 | Report Format: Electronic (PDF)

Urea Market Growth & Trends

The global urea market size is projected to reach USD 97.13 billion and is expected to grow at a CAGR of 3.5% from 2026 to 2033, according to the report by Grand View Research Inc. The growth is primarily driven by the increasing need to enhance agricultural productivity amid a rising global population and food demand. The widespread use of urea as a cost-effective nitrogen fertilizer continues to support its dominance in the agriculture sector, particularly in emerging economies with large farming bases. The growing industrial applications, including resins and adhesives, along with rising demand for diesel exhaust fluid (DEF) due to stricter emission regulations, are further contributing to market expansion.

The urea market presents significant opportunities driven by advancements in production and fertilizer technologies, alongside rising demand from emerging economies. Innovations such as low-carbon ammonia processes, energy-efficient production systems, and enhanced-efficiency fertilizers, including coated and slow-release urea, are enabling manufacturers to improve sustainability while optimizing nutrient utilization. Emerging markets across Asia, Africa, and Latin America offer strong growth potential due to expanding agricultural activities, increasing food security initiatives, and improving access to modern farming inputs.

The urea market has encountered significant challenges, primarily due to volatility in natural gas prices, supply chain disruptions, and geopolitical tensions. Since natural gas is a key feedstock for urea production, fluctuations in energy markets have directly increased production costs and led to reduced output, especially in regions such as Europe and Asia. Recent geopolitical conflicts, particularly in the Middle East, have disrupted crucial trade routes such as the Strait of Hormuz, which is vital for the transit of a substantial portion of global urea and fertilizer exports. This has resulted in supply shortages and sharp price increases.

Agriculture held the largest revenue share of 75.1% of the global urea market in 2025. This is due to its crucial role in enhancing agricultural productivity. As the global population grows and arable land becomes more limited, the demand for effective nutrient management has increased, leading to a greater reliance on urea-based fertilizers. Strong policy support, the expansion of irrigation infrastructure, and a rising awareness of crop yield optimization further solidify agriculture's dominance in urea consumption.

The fertilizers segment dominated the urea market by application, contributing 72.1% of the total market share in 2025. This dominance is largely due to urea's essential role as a primary nitrogen source for crops. Its widespread use is driven by the need to enhance crop yields, improve soil fertility, and satisfy the increasing global demand for food. Factors such as government subsidies, the rising adoption of modern farming practices, and the cost-effectiveness of urea compared to other fertilizers will continue to support its extensive use in the agricultural sector.

Granular urea captured the largest revenue share of 66.0% in 2025, driven by its superior handling characteristics and application efficiency. Its larger particle size enables uniform distribution, reduced caking during storage, and compatibility with mechanized farming practices, making it highly suitable for large-scale agricultural operations. Granular urea is preferred for blending and controlled release formulations, further strengthening its adoption across both developed and emerging agricultural markets.

Asia Pacific held the largest revenue share of 55.2% in the global urea market in 2025, primarily due to its extensive agricultural landscape and the critical need to support food security for a large and growing population. The region benefits from strong government support in the form of fertilizer subsidies, favorable policies, and investments in rural and irrigation infrastructure, which significantly boost urea consumption. Countries such as China and India maintain substantial domestic production capacities, ensuring a consistent supply while also catering to export demand.

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Urea Market Report Highlights

Europe held the second largest share of the global urea market at 18.7%, supported by its well-established agricultural systems and consistent demand for high-efficiency fertilizers. The region benefits from advanced farming practices, precision agriculture, and strong regulatory frameworks that promote optimized nutrient usage, ensuring stable consumption levels. The presence of a mature chemical industry sustains demand for urea in industrial applications such as resins and adhesives.
The U.S. dominated the North American urea market with a revenue share of 73.2% in 2025, driven by its extensive commercial agriculture sector and high adoption of advanced farming technologies. The country benefits from abundant shale gas resources, which provide a cost advantage in urea production and support strong domestic manufacturing capabilities. Well-developed distribution networks, large-scale crop cultivation, and consistent demand for nitrogen-based fertilizers contribute to sustained consumption.
Based on form, prilled urea segment accounted for 26.3% of the global market in 2025, making it the second-largest segment by form due to its cost efficiency and widespread availability. Its relatively simple manufacturing process and lower production costs make it particularly attractive in price-sensitive markets and regions with limited access to advanced fertilizer variants. Prilled urea is easier to dissolve, which supports its use in certain industrial applications and small-scale farming practices.

Urea Market Segmentation

Grand View Research has segmented the global urea market based on form, application, end use, and region:

Urea Form Outlook (Volume, Kilotons; Revenue, USD Million, 2021 - 2033)

Granular
Prilled
Liquid

Urea Application Outlook (Volume, Kilotons; Revenue, USD Million, 2021 - 2033)

Fertilizers
Industrial/Chemical
- Resins
- Adhesives & laminates
- Other Industrial/Chemical Applications
Diesel Exhaust Fluid
Animal Feed
Other Applications