Published Date : 18 Apr 2023
The urea market revenue is expected to reach USD 160.78 billion by 2032 from valued at USD 131.54 billion in 2022. It is expected to grow at a CAGR of 2.03% from 2023 to 2032.
The global urea market growth is driven by the rising demand for urea as fertilizers from the agriculture and agrochemical industry, increasing demand for carbamide from the industrial sector, favorable government initiatives on purchasing fertilizers, and increasing its domestic production of urea.
Urea is popularly known as Carbamide. Urea, which contains 46% nitrogen, is used as a nitrogen fertilizer. Urea is a low-cost form of nitrogen fertilizer. This is due to its high nitrogen content and, as a result, reduced transport and storage costs. Urea is the world's most extensively used solid nitrogen fertilizer. Urea is present in nature since it is excreted by mammals in their urine. Urea's high nitrogen percentage makes it easy to carry to farms and apply to fields. The high nitrogen content of urea and its ability to rapidly convert ammonia into soil make it a substantial nitrogenous fertilizer, which is predicted to enhance market demand for urea.
Urea is used as a fertilizer and feed supplement. Urea is used as a starting ingredient in the production of plastics and drugs. Urea is a colorless, crystalline chemical that melts at 132.7° C and decomposes before boiling. When just nitrogen is required in a soil fertility plan, urea may be the fertilizer of choice. Ammonia and carbon dioxide (CO2) are combined to produce the ammonium carbamate, which is then heated to form urea. Urea appears as a white crystal. It is a nitrogen fertilizer as well as a simple organic compound. Urea is simple to store and use and causes little soil harm. Urea is a commonly used chemical nitrogen fertilizer.
Urea is the primary nitrogenous end product of protein breakdown in all mammals and some fishes. It occurs not only in the urine of mammals but also in their bile, blood, perspiration, and milk. Urea is a raw material used in the production of a wide range of chemicals, including adhesives, urea-formaldehyde resins, and plastics. It is also required for the manufacturing of glue, feedstock, fertilizer, resin, and commercial items. Increasing awareness toward fertilizers, fungicides, pesticides, and other agrochemicals acts as a primary driver for the growth of urea suppliers.
Additionally, the global urea market has grown as a result of the production technology advancements such as blue urea. Furthermore, the high applicability of technical grade urea is projected to boost the growth of the urea market across the globe during the forecast period.
Urea Market Report Scope:
|Market Size in 2022||USD 131.54 Billion|
|Projected Forecast Value in 2032||USD 160.78 Billion|
|Growth Rate||2.03% from 2023 to 2032|
|Largest Market||Asia Pacific|
|Forecast Period||2023 to 2032|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa
Asia Pacific accounted for the larger revenue share in 2022, owing to the increase in carbamide manufacturing to meet the rising demand, favorable government initiatives, and rapidly rising population which increases food demand. Fertilizer usage has increased in order to increase agricultural production per hectare of field. China and India are the largest consumers of urea in the Asia Pacific region. In addition, several governments are helping farmers by offering subsidies to purchase fertilizers to enhance food grain production. Furthermore, the rising consumption of nitrogen fertilizers in developing countries such as Japan, China, and India is expected to boost the demand for the urea market during the forecast period. For instance, the Indian government has offered a nearly USD 270 billion subsidy for the fiscal year 2022-2023.
The rapid expansion of the agriculture industry
The rapid expansion of the agriculture industry around the world is expected to boost the market growth of the Urea market in the coming years owing to the product's increasing use in the agricultural sector in several emerging countries. The increasing requirement for nitrogen fertilizers to encourage plant growth is likely to influence the market positively. Several markets such as China, India, North America, and others use urea and its compounds widely as fertilizers.
As compared to ammonium nitrate, urea is more cost-effective and produces a better crop yield in much less time. As a result, urea has become widely used as a fertilizer and animal feed ingredient. The increased usage of fertilizers globally to boost per hectare production capacity of the land to meet the rising demand for food and other agricultural-based goods is increasing demand for urea. The high production capacity in several countries generates a significant requirement for fertilizers, which, in turn, drives the demand for urea.
Increasing awareness of organic farming
The increasing awareness of organic farming is projected to hamper the growth of the market and is likely to limit the expansion of the global urea market during the forecast period. Consumer preference for organic fruits and vegetables is reducing demand for urea in fertilizers. Organic farming utilizes biological fertilizers and ecological pest controls obtained from plant and animal waste. Excess urea pulls water from plant roots, which can cause fertilizers to burn.
Increasing applications of urea in various industries
Urea has a wide range of uses in several industries, including pharmaceuticals, agricultural, medical, automotive, cosmetics, chemical, and others which are expected to drive the growth of the urea market during the forecast period. Urea is used to make urea-formaldehyde resins, melamine, diesel exhaust fluids, animal feed, and others, and the demand for these products is growing. The growing need for producing diesel exhaust fluid from the automobile sector, which is utilized to convert nitrogen oxide from the exhaust into harmless nitrogen and water while meeting stringent environmental regulations is expected to accelerate the growth of the market.
In the chemical industry, urea is an important raw material. It is used to make resins, glue, adhesives, and other products. Due to its high nitrogen content, urea is primarily employed in the production of fertilizer. It is also used in the creation of urea-formaldehyde resin for laboratory applications and in the synthesis of barbiturates, which requires a large amount of urea. Urea is a source of nutritional components, particularly nitrogen, in agrochemicals, fertilizers, and insecticides.
Stringent government regulations
The implementation of stringent government restrictions on using urea in agriculture and the adverse effects of using excessive urea on humans and plants act as key challenges for the growth of the urea market during the forecast period. Urea can cause inflammation of the skin, eyes, and respiratory tract
Key Market Players:
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