Australia Urea Market Report and Forecast 2024-2032

Australia Urea Market Outlook

The Australia urea market size was valued at USD 1.71 billion in 2023. The market is further projected to grow at a CAGR of 1.4% between 2024 and 2032, reaching a value of USD 1.95 billion by 2032.

Key Takeaways

• In December 2022, federal government and Incitec Pivot agreed to boost local urea production at the Gibson Island plant in Brisbane for AdBlue, ensuring stable supply without affecting agricultural fertiliser availability or distribution chains.

• In 2022, urea exports from Australia surged to 3,200 tons, marking a 106% increase compared to the previous year.

• As per industry reports, the average export price for urea in 2022 was USD 813 per ton, reflecting a decade-long trend of price growth.

Some of the key trends that are aiding the Australia urea market development include the surge in demand for increased crop yield and quality, the adoption of precision farming methods, and the growing need for food production. Moreover, the market is influenced by factors such as the ban on urea trade by China leading to shortages and increased prices, prompting Australia to secure local production agreements.

For example,  the Perdaman project, with a planned capacity of 2.3 million tons of urea annually, supported by a 20-year offtake partnership with Incitec Pivot Fertilisers, is set to boost Australia's agricultural sector by providing essential fertiliser inputs. Additionally, the NeuRizer Urea Project in South Australia, aiming to produce 1-2 million tons of urea per annum, signifies a strategic move towards securing a stable supply of nitrogen-based fertiliser for both local and export markets. These initiatives not only contribute to the Australia urea market growth but also create job opportunities, stimulates economic growth, and enhance the agricultural sector's resilience by ensuring a reliable source of urea within Australia.

In the chemical industry, urea is utilised in the production of urea formaldehyde (UF) and melamine resins. These resins find applications in wood products, adhesives, and coatings, driving the demand for urea in chemical manufacturing processes. Urea also plays a crucial role in the automotive industry to produce AdBlue, a urea-based solution used in selective catalytic reduction (SCR) systems to reduce nitrogen oxide emissions from diesel vehicles. The automotive sector relies on high-quality urea products to meet stringent emission standards, driving the demand for urea in the automotive industry. Urea is also used in the medical industry for various applications, including as a component in skincare products, pharmaceutical formulations, and diagnostic tests.

Market Segmentation

Australia Urea Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments

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

Market players are focused on increasing crop yield by adopting precision farming methods and address challenges related to shrinking arable land and soil nutrition.

• Perdaman Group

• Yara Australia Pty. Ltd.

• NeuRizer Ltd

• Others

Key Highlights of the Report