Australia Urea Market Report and Forecast 2025-2034

Australia Urea Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia urea market size reached around USD 1.71 billion in 2024. Aided by rising agricultural demands for nitrogen-based fertilizers and the increasing use of urea in industrial applications, the market is projected to grow at a CAGR of 1.40% between 2025 and 2034 to attain nearly USD 1.95 billion by 2034.

The Australia urea market growth is being supported by the increasing demand for fertilisers in the agriculture sector and the rising need for nitrogen-based products in industrial applications. Urea, a highly concentrated nitrogen fertiliser, is essential for promoting plant growth and enhancing crop yields. It is widely used in both broadacre and horticultural farming, contributing to the productivity of major crops such as wheat, barley, canola, and sugarcane. As Australia continues to prioritise food security and sustainable agricultural practices, the role of urea as a key input in soil fertility management is becoming increasingly important, driving consistent market demand across rural and semi-urban regions.

As per the Australia urea market analysis, the agricultural sector remains the primary consumer of urea in Australia, with farmers relying on its high nitrogen content to support healthy crop development and improved harvests. Urea is cost-effective, easy to handle, and compatible with a variety of soil and weather conditions, making it a preferred choice among growers. With growing emphasis on precision farming and nutrient optimisation, the use of urea is being carefully calibrated to minimise environmental impact while ensuring maximum yield. Advances in application techniques, such as controlled-release urea and urease inhibitors, are helping to reduce nitrogen loss and promote more efficient nutrient absorption by crops, further reinforcing its position in modern farming systems.

Seasonal demand patterns, rainfall variability, and climatic conditions significantly influence the Australia urea market dynamics. During planting seasons and favourable weather periods, urea demand typically surges, placing pressure on supply chains and highlighting the need for efficient logistics and storage infrastructure. Australia’s reliance on urea imports from global producers, particularly from regions such as the Middle East and Asia, adds an additional layer of complexity, making supply chain coordination a critical factor in meeting domestic needs. Strategic reserves, warehousing, and forward purchasing agreements are being used by distributors and cooperatives to manage supply risks and stabilise prices for end-users.

The growing use of urea in various industrial applications, including the production of resins, adhesives, and plastics, is aiding the Australia urea market expansion. The compound is also essential in the manufacture of melamine and is used in the pharmaceutical and cosmetics industries for its moisturising and exfoliating properties. Another growing use of urea is in diesel exhaust fluid, commonly known as AdBlue, which helps reduce nitrogen oxide emissions in diesel engines. As Australia continues to adopt stringent emissions standards and promote cleaner transport technologies, the demand for automotive-grade urea is expected to grow, supporting broader environmental objectives and regulatory compliance efforts.

The development of urea production capacity within Australia has become a strategic focus in recent years, driven by the need to reduce import dependency and enhance self-sufficiency in critical agricultural inputs. Investment in domestic urea plants, often integrated with natural gas infrastructure, aimed at securing a reliable and cost-effective supply for both farmers and industrial users are revolutionising the Australia urea market landscape. These projects are also aligned with regional development goals as they create jobs, stimulate economic activity, and strengthen local supply chains. Government support, including grants and policy incentives, is encouraging public-private partnerships and innovation in urea production technologies to improve efficiency and sustainability.

Environmental considerations are playing a growing role in boosting the Australia urea market revenue, particularly with respect to its impact on soil health, water quality, and greenhouse gas emissions. The agricultural sector is under increasing pressure to adopt best management practices that mitigate the risks of nitrogen leaching and volatilisation. Research and extension programmes are promoting the responsible use of urea, emphasising timing, placement, and the use of complementary soil conditioners. Industry stakeholders are also exploring low-emission fertiliser alternatives and integrating digital tools to monitor application rates, weather conditions, and crop performance, contributing to more sustainable fertiliser use.

The Australia urea market is also influenced by international pricing trends, currency fluctuations, and geopolitical developments affecting the global fertiliser trade. As a net importer, Australia is sensitive to changes in supply availability, shipping costs, and international competition. To mitigate these risks, local stakeholders are diversifying sourcing strategies, entering long-term supply agreements, and exploring regional trade partnerships. These efforts are aimed at ensuring stable access to urea and insulating the domestic market from external shocks that could disrupt supply or cause price volatility.

Looking forward, the Australia urea market is expected to grow steadily, underpinned by rising agricultural activity, increased industrial use, and expanding demand for environmentally compliant transport solutions. The market’s future will depend on continued investment in domestic production, adoption of sustainable practices, and alignment with evolving regulatory and environmental expectations. With urea playing a central role in supporting food production and industrial development, its strategic importance to the Australian economy remains strong. As innovation, sustainability, and supply security become more prominent themes, the market will continue to evolve to meet the changing needs of its diverse user base.

Market Segmentation

The market can be divided based on application, end user, and region.

Market Breakup by Application

• Fertiliser
• Urea Formaldehyde (UF) and Melamine Resins
• Melamine (Cyanurates)
• Animal Feed
• Others

Market Breakup by End User

• Agriculture Industry
• Chemical Industry
• Automotive Industry
• Medical Industry
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia urea market. Some of the major players explored in the report by Expert Market Research are as follows:

• Perdaman Group
• Yara Australia Pty. Ltd.
• NeuRizer Ltd
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.