Overview
The global Urea Market (https://market.us/report/urea-market/) was valued at USD 67.9 billion in 2025 and is expected to reach around USD 96.0 billion by 2035, growing at a CAGR of 3.5% from 2026 to 2035. Asia Pacific dominated the market with a 44.8% share, generating approximately USD 30.4 billion in revenue. Urea remains the leading nitrogen fertilizer due to its high nitrogen content, affordability, easy handling, and suitability for crops such as wheat, rice, corn, and sugarcane. Rising food demand, population growth, fertilizer programs, and precision farming adoption are driving market growth.
According to the FAO, global cereal production reached nearly 2.84 billion tonnes in 2024, supporting continued demand for nitrogen fertilizers. Beyond agriculture, urea is used in melamine, resins, adhesives, plastics, textiles, pharmaceuticals, and DEF production. Growing sustainability efforts are boosting demand for coated, stabilized, and controlled-release urea fertilizers to improve nutrient efficiency and reduce environmental impact.
Key Takeaways
The global urea market was valued at US$67.9 billion in 2025.
The global urea market is projected to grow at a CAGR of 3.5% and is estimated to reach US$96.0 billion by 2035.
By Grade, agricultural grade urea dominated the global urea market, accounting for 80.1% of the total market share.
Based on product type, granular urea led the market, constituting 59.8% of the total market share.
By application, nitrogenous fertilizer emerged as the dominant segment, representing 74.2% of the global urea market.
Based on channel, the agriculture sector held the largest share, accounting for 75.4% of the total market demand.
In 2025, the Asia Pacific was the leading regional market for urea, capturing 44.8% of the global market share.
Grade Analysis
Agricultural Grade Urea represents the dominant Segment in the Market.
Agricultural Grade Urea accounted for 80.1% of the global urea market, driven by its extensive use as a nitrogen fertilizer for crops such as wheat, rice, corn, sugarcane, and oilseeds. Its high nitrogen content, affordability, ease of application, and compatibility with modern farming practices, along with the growing adoption of precision agriculture and balanced nutrient management, continue to strengthen its market leadership. Meanwhile, Technical Grade Urea holds a significant share due to its widespread use in resins, adhesives, chemicals, and other industrial applications, supported by expanding manufacturing and construction activities.
Product Type Analysis
Granular a significant product type.
Granular urea dominated the global market with a 59.8% share, owing to its larger and uniform particle size, lower dust generation, improved flowability, and better moisture resistance during storage and transportation. These advantages make it ideal for bulk handling, mechanized fertilizer application, and precision farming, while supporting efficient nutrient distribution. Rising demand for high-efficiency fertilizers and increasing investments in agricultural modernization continue to drive this segment.
Application Analysis
Nitrogenous fertilizers are the Most Widely Used Application.
Nitrogenous fertilizers held the largest application share at 74.2%, as urea remains one of the most widely used nitrogen fertilizers for improving soil fertility and crop yields across crops such as rice, wheat, corn, and sugarcane. Growing food demand, government fertilizer subsidies, and the adoption of precision agriculture and balanced nutrient management continue to support demand. Beyond agriculture, urea is increasingly used in diesel exhaust fluid (DEF) for emission control, as well as in chemicals, plastics, adhesives, textiles, and construction additives.
Channel Analysis
Agriculture Urea Held a Major Share of the Urea Market.
The Agriculture channel accounted for 75.4% of the global urea market, driven by the growing need to enhance crop productivity and global food production. Demand is supported by population growth, rising food consumption, fertilizer subsidy programs, modern farming techniques, and balanced nutrient management, while urea's high nitrogen content and cost-effectiveness further strengthen its position. The chemical industry remains a key consumer for resins, adhesives, melamine, and industrial chemicals, while the automotive sector uses urea in DEF to meet emission standards, and medical and healthcare applications utilize pharmaceutical-grade urea in specialized therapeutic products.
Key Market Segments
By Grade
Agricultural-grade urea
Technical grade urea
Feed-grade urea
Medical/pharmaceutical grade urea
By Product Type
Granular urea
Prilled urea
Other product types
By Application
Nitrogenous fertilizer
Animal feed and feed additives
Melamine and resins
Automotive diesel exhaust fluid
Chemicals, plastics, adhesives and textiles
Building and construction additives
By Channel
Agriculture
Chemical industry
Automotive
Medical and healthcare
Building and construction
Other end-use industries
Opportunity Analysis
Green / Low-Carbon Urea via Decarbonized Ammonia Feedstock
The shift toward green and low-carbon urea is creating a premium market opportunity, driven by the EU CBAM, which became fully operational in January 2026. Carbon costs on conventional urea imports are expected to increase from 10–15% to 45% by 2030, supporting demand for low-carbon alternatives. Sub-Saharan Africa, with over 60% of the world’s uncultivated arable land but less than 5% of global fertilizer use and below 20 kg/ha fertilizer intensity versus the 135 kg/ha global average, offers significant growth potential.
Challenges Analysis
Natural Gas Feedstock Volatility
Natural gas accounts for 60–80% of ammonia and urea production costs, creating exposure to energy price fluctuations. Granular urea prices exceeded $700/tonne in early 2026, impacting producer margins by 8–12 percentage points. Managing this risk requires long-term LNG contracts, hedging, and low-cost feedstock strategies, which may take 2–4 years to implement.
Driver Analysis
Natural Gas Feedstock Volatility and Supply-Chain Risk
With natural gas contributing 70–80% of total production costs, energy and geopolitical disruptions during 2025–2026 pushed urea prices from around USD 380/MT to USD 660–670/MT FOB China, with a USD 20/MT premium for India shipments. This is encouraging long-term supply agreements and creating a +0.9% value uplift through price-driven revenue growth.
Restraint Analysis
Strait of Hormuz Supply Chokepoint
Disruptions in the Strait of Hormuz reduced vessel movements from 130 per day to single digits, cutting traffic by over 95% and affecting around 3–4 million tonnes/month of fertilizer trade. With the Middle East supplying nearly 25% of global urea exports, prices exceeded $850/MT in April 2026, rising 80% in eight weeks. Higher shipping risks caused 15–20% landed-cost inflation and a -2.5 percentage-point impact on volume forecasts until supply conditions improve.
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