Australia Urea Market Size, Share and Growth (2026-2035)

Australia Urea Market

Australia Urea Market Outlook

According to the report by Expert Market Research (EMR), the Australia urea market attained a value of USD 1.73 billion in 2025. Aided by the sustained demand from the agricultural sector and the expanding applications of urea in industrial and environmental processes, the market is projected to grow steadily over the forecast period. The market is expected to register a CAGR of 1.40% between 2026 and 2035, reaching a value of USD 1.99 billion by 2035.

Urea is a nitrogen-rich chemical compound widely used as a fertiliser to enhance crop yield and soil fertility. It is also utilised in several non-agricultural applications, including diesel exhaust fluid (DEF) production, resins, adhesives, pharmaceuticals, and animal feed. In Australia, urea plays a critical role in supporting agricultural productivity, particularly in broadacre farming, horticulture, and pasture management, making it an essential input for the country’s food and agribusiness sectors.

Australia Urea Market Size

The Australia urea market size reflects the country’s strong reliance on nitrogen-based fertilisers to support large-scale agricultural activities. Australia’s diverse climatic conditions and extensive arable land require consistent nutrient management practices, which has sustained demand for urea across key farming regions. In 2025, the market reached USD 1.73 billion, supported by steady fertiliser consumption and ongoing investments in agricultural productivity.

While the market size growth is moderate compared to emerging economies, it remains stable due to Australia’s mature agricultural sector and consistent fertiliser usage patterns. The increasing adoption of precision farming techniques and improved fertiliser application practices is expected to optimise consumption levels, supporting incremental growth in market value over the forecast period.

Australia Urea Market Share

The Australia urea market is characterised by a combination of domestic production and imports, with market share distributed among fertiliser manufacturers, distributors, and agribusiness suppliers. Agricultural-grade urea accounts for the dominant share of the market, driven by its widespread use in cereal crops, oilseeds, fruits, vegetables, and pasturelands.

Non-agricultural applications, including diesel exhaust fluid and industrial uses, hold a smaller but growing share of the market. The transportation sector’s increasing focus on reducing nitrogen oxide (NOx) emissions has supported demand for urea-based DEF, contributing to diversification in market share. Major fertiliser suppliers and integrated agribusiness companies maintain a strong presence, supported by extensive distribution networks and long-term relationships with farming communities.

Get a Free Sample Report with Table of Contents - https://www.expertmarketresearch.com/reports/australia-urea-market/requestsample

Australia Urea Market Trends

One of the key trends in the Australia urea market is the increasing emphasis on sustainable and efficient fertiliser use. Farmers are adopting precision agriculture technologies, such as variable rate application and soil nutrient mapping, to optimise urea usage and minimise environmental impact. This trend is influencing demand patterns, shifting focus from volume-based consumption to efficiency-driven application.

Another significant trend is the growing demand for urea in environmental applications, particularly in diesel exhaust fluid for heavy-duty vehicles and agricultural machinery. Stricter emission standards and the gradual adoption of cleaner engine technologies are supporting the steady growth of this segment.

Additionally, the market is witnessing increased interest in enhanced-efficiency fertilisers, including coated and stabilised urea products. These formulations help reduce nitrogen losses through volatilisation and leaching, improving nutrient uptake and supporting sustainable farming practices.

Drivers of Growth

The primary driver of growth in the Australia urea market is the continued importance of agriculture to the national economy. Urea remains one of the most cost-effective nitrogen fertilisers, making it a preferred choice among farmers seeking to maximise crop yields while managing input costs. The need to ensure food security and maintain export competitiveness in grains and other agricultural commodities further supports demand.

Population growth and rising food consumption are indirectly driving fertiliser demand, as farmers seek to improve productivity from existing arable land. Additionally, government initiatives promoting agricultural innovation and efficiency are encouraging the adoption of improved fertiliser management practices, sustaining market growth.

The expanding use of urea in diesel exhaust fluid is another key growth driver. As Australia continues to modernise its transportation and logistics sectors, the demand for DEF is expected to increase, supporting incremental growth in non-agricultural urea consumption.

Technology and Advancement

Technological advancements are playing an increasingly important role in shaping the Australia urea market. Innovations in fertiliser production processes have improved energy efficiency and reduced emissions, aligning with sustainability goals. Manufacturers are investing in advanced production technologies to optimise output and ensure consistent product quality.

In agriculture, the integration of digital technologies, such as GPS-guided equipment, remote sensing, and data analytics, is transforming fertiliser application practices. These technologies enable precise urea placement and timing, improving nitrogen use efficiency and reducing wastage.

Furthermore, advancements in enhanced-efficiency urea products, including urease and nitrification inhibitors, are gaining traction. These products help mitigate environmental concerns associated with nitrogen loss, supporting regulatory compliance and sustainable farming objectives.

Australia Urea 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

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

Australia Urea Industry Analysis

The Australia urea industry operates within a complex ecosystem influenced by global fertiliser markets, energy prices, and supply chain dynamics. As urea production is energy-intensive, fluctuations in natural gas prices can impact production costs and pricing structures. Australia’s reliance on imports for a portion of its urea requirements also exposes the market to global trade dynamics and logistical challenges.

The industry is supported by a well-established distribution network, including fertiliser blenders, cooperatives, and agribusiness retailers. Strong relationships between suppliers and farmers play a crucial role in market stability, enabling effective demand forecasting and supply planning.

Regulatory frameworks related to environmental protection, nutrient runoff, and emissions are shaping industry practices. Compliance with these regulations is encouraging the adoption of advanced fertiliser products and responsible nutrient management strategies.

Challenges and Opportunities

Despite its stable outlook, the Australia urea market faces several challenges. Price volatility in global fertiliser markets, driven by energy costs and geopolitical factors, can impact affordability and farmer purchasing decisions. Environmental concerns related to nitrogen runoff and greenhouse gas emissions also pose challenges, potentially leading to stricter regulations on fertiliser use.

However, these challenges are accompanied by significant opportunities. The growing focus on sustainable agriculture presents opportunities for manufacturers to develop and promote enhanced-efficiency and environmentally friendly urea products. Investment in domestic production capacity and supply chain resilience can reduce dependence on imports and improve market stability.

The expansion of non-agricultural applications, particularly in emissions control, offers additional growth avenues. As industries and transportation systems increasingly prioritise environmental compliance, demand for urea-based solutions is expected to rise.

Australia Urea Market Forecast

Looking ahead, the Australia urea market is expected to experience steady and moderate growth over the forecast period from 2026 to 2035. With a projected CAGR of 1.40%, the market is anticipated to reach a value of USD 1.99 billion by 2035. Growth will be supported by sustained agricultural demand, gradual expansion of industrial applications, and ongoing technological advancements.

While the market is relatively mature, opportunities in sustainable fertiliser solutions, precision agriculture, and emissions control are expected to shape its future trajectory. Companies that invest in innovation, efficiency, and environmental stewardship are likely to strengthen their competitive position. Overall, the Australia urea market is set to remain a vital component of the country’s agricultural and industrial landscape, supporting productivity and sustainability objectives over the long term.