Urea Market Growth Rate Insights:
The global Urea Market is expected to grow at a CAGR of 3.27% during the forecast period (2022-2029) to reach a value of US$ 43,781.72 million in 2028
Urea is a nitrogenous compound with the molecular formula NH2CONH2 that contains two amine groups attached to a carbonyl group. It is primarily used in agriculture in prilled and granular forms, with a nitrogen content of approximately 46%
Urea is created by combining ammonia and carbon dioxide. Urea, also known as carbamide, is a common ingredient in fertilizer, feed supplements and as a starting material in manufacturing plastics and drugs. Urea is a colorless crystalline substance with a high nitrogen content, which has increased its use as a highly concentrated nitrogenous fertilizer.
Industry Drivers:
Fertilizer plays an important role in agriculture. The plant requires major nutrients, NPK, for growth. Chief source of artificial nitrogen fertilizer is urea
The growing agriculture sector is driving the global urea market growth. Urea and its derivatives are widely used as fertilisers in most of the markets, including North America, Brazil, and India
China may have been all the talk of agriculture markets in 2020, but in fertiliser markets, the spotlight has been shared with India. In 2021, it’s been strong import demand from India and tight export supplies in China that have supported the global urea market.
The market is being propelled by increasing adoption in the automotive sector to efficiently remove toxic substances during diesel fuel combustion and its high compliance with Euro6 and other environmental standards. It is also being used more in automobiles due to changing regulations regarding the use of nitrogen oxide in diesel engines, which is driving the urea market even further.
Industry Opportunities:
The cosmetics industry also witnessed significant growth over the past years due to rise in disposable income of people worldwide and growing awareness toward skincare. Many skincare and haircare product manufacturers employ urea during the synthesis of cosmetic products. This is expected to create healthy opportunities for urea manufacturers over the coming years.
Toxicologists and horticulturists globally are adopting nanotechnology and nanoparticles in the development of new, environmentally friendly fertilizers Most engineers believe that nanotechnology can help make fertilizers much safer as a large variety of them are non-toxic.
Impact Of COVID-19 on the Industry:
COVID-19 impact on global urea market is flat and the y-o-y growth rate was 0.60% in the year 2020. The demand for urea as a fertilizer was not much affected due to the pandemic as agricultural sector was considered essential. Hence, the agricultural industry was resilient to COVID-19. For many producers, co-operatives, wholesalers and farmers it has been business as usual during COVID-19
National Fertilizer has achieved ever highest production of 9.99 Lakh MT Urea in the third quarter during FY 2020-21. The company successfully maintained its operations during constraints posed by COVID 19. The plants at Nangal and Panipat achieved their ever best Urea production during Oct-Dec, 2020.
Regional Share Insights:
North America urea market was valued USD 5,594.64 million in 2020, due to the rapid expansion of the healthcare industry and the escalating agricultural activities fostering GDP growth, especially in the U.S. As per reliable statistics, the agriculture, food, and other related industries contributed $1.109 trillion to the country’s GDP in 2019.
On the other hand, urea agricultural use of United States of America increased from 5.14 million tones in 2010 to 6.29 million tones in 2019 growing at an average annual rate of 2.31%
Europe has estimated annual nitrogen, phosphate and potash fertilizer consumption to reach 10.6, 2.7 and 3.1 million tons respectively by the 2029/2030 season, applied to 132.4 million hectares of farmland
Germany, UK and France contributed for market revenue share of 16.36%, 4.45% and 16.02% respectively. Fertilizer consumption in Germany was reported at 45.07 % in 2018, according to the World Bank collection of development indicators. Sales of nitrogen fertilizers in 2017/2018 totaled 1.477 million tons, a decrease of 9.8% in Germany.
