Urea Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Urea market reached a value of about 195.4 million tonnes in 2021. The industry is projected to grow at a CAGR of around 1.8% in the forecast period of 2022-2027 to reach a value of about 213.6 million tonnes by 2027.

The global Urea industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The industry is primarily driven by the agricultural sector's demand for fertilisers. In the industry report, the key demand indicator is the highest category spender by region—Asia Pacific.

Industry Definition and Segmentation

Urea or carbamide is the major nitrogen-containing component in mammalian urine and plays a significant role in the metabolism of nitrogen-containing substances by animals. It's a colourless, odourless substance that's very water-soluble and almost non-toxic. Urea is used as a fertiliser and feed supplement and a raw ingredient for the production of polymers and pharmaceuticals. Before boiling, it decomposes into a colourless, crystalline material. The Urea industry report comprises segments by application (fertiliser, urea-formaldehyde (UF) and melamine resins, melamine (cyanurates), and animal feed) and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

The Asia Pacific Region is Driving the Growth of the Industry

The Asia Pacific holds the largest share in the market due to the rapid developments in the agriculture sector, leading to robust demand for fertilisers in countries such as India and China. In addition, China is the leading producer and user of urea in the Asia Pacific area. Furthermore, numerous government programmes in some countries, such as the Indian government's fertiliser subsidy programme, are boosting market development.

The market is mainly driven by the product's application in the production of fertilisers. Compared to the commonly used ammonium nitrate, urea is less expensive and produces a larger crop yield in less time. As a result, urea is now widely used as a fertiliser and an animal feed ingredient. Fertilisers, medicines, adhesives, laminates, moulding compounds, resins, varnishes, and textile finishes are all made with it. It has a wide range of uses in agriculture, chemistry, automotive, and medicine. The growing use of urea in the automobile industry is further fuelling the market expansion, and urea is widely used to reduce nitrogen oxide emissions from diesel vehicles in this business. Also, the factors like Population growth, urbanisation, and numerous government programmes have a favourable influence on the worldwide urea market.

However, the hazardous effect of urea is likely to hinder the market growth.

Best Procurement Practices

The global Urea industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Urea regions, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

Urea is created from artificial ammonia and carbon dioxide for industrial use. Large amounts of carbon dioxide are produced due to the ammonia manufacturing process as a by-product of hydrocarbons (primarily natural gas, but also petroleum derivatives) or coal (steam shift reaction); urea plants are almost always located near the ammonia manufacturing site. Even though natural gas is the most cost-effective and readily accessible ammonia plant fuel, plants that use it create less carbon dioxide than is required to convert their total ammonia production to urea.

Various Uses of the Component, Further Augmenting the Procurement of Urea

The industry is being propelled by the use of technical grade urea in various applications, including glue, medicinal medications, colours, disinfectants, cosmetics, and yeast manufacturing. The nitrogen content of technical grade urea must be at least 46% by weight (on a dry basis). Urea-formaldehyde resins, adhesives, plywood, animal feed, and cloud seeding agents require technical grade urea. Urea is generally used to make urethane, then polymerised to create polyurethane foams. Another key growth-inducing aspect is the availability of high-quality technical grade urea, which is widely used in the production of medicinal medicines, dyes, disinfectants, cosmetics, and yeast. Other reasons, such as advances in melting and granulation technologies to improve urea's energy and cost-effectiveness and the expanding demand for urea in the chemical sector, are expected to fuel the market even more.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Urea Industry Report

• Yara International ASA
• Qatar Fertiliser Company (QAFCO)
• PT Pupuk Kaltim
• Indian Farmers Fertiliser Cooperative Ltd. (IFFCO)
• CF Industries Holdings, Inc.

Market Landscape

The global urea market is somewhat fragmented, comprising a small share of the manufacturing capacity. To extend their geographical presence and sales, several main market participants highlighted in the report have concentrated on product innovation, strategic alliances, and expanding their production facilities. Acquisitions, product innovation, collaborations and partnerships with important players, strategic alliances, and the growth of regional and worldwide distribution networks are just a few of the main tactics.

Key Initiatives by Companies

• EuroChem Group agreed to develop a new ammonia and urea factory in northwest Russia for USD 1.6 billion in capital expenditure (CAPEX) in June 2021. Furthermore, the factory is expected to generate 1.4 million tonnes of urea per year, with commercial production beginning in 2024.
• The Competition Commission of India (CCI) approved Paradeep Phosphates Ltd.'s acquisition of Zuari Agro Chemicals LTD's Zuarinagar factory in Goa in June 2021. The facility is dedicated to researching and developing urea and other fertiliser products. As a result, Paradeep Phosphates Ltd's Urea business will benefit from the acquisition.