Ceresana analyzes the global growth market urea
Be it as a fertilizer, in cosmetics or medical products - urea is a highly versatile material manufactured in large quantities. The market study institute Ceresana forecasts revenues in the worldwide urea market to increase at dynamic growth rates to around US$96 billion in 2019.
Intensive and innovative application
As the world's population continues to grow rapidly, so does the demand for food. At the same time, less and less land is made arable - hence, intensity of cultivation has to be increased. Urea is an effective fertilizer to improve yields and thus will become even more important in the future. Ceresana expects the use of urea to increase at an AAGR of 3.2% during the next eight years, with the emerging and developing countries being the main motor for growth in the agricultural applications. Reasons for this can be found in the growth of population and a more intensive cultivation of arable land.
This worldwide most comprehensive report analyzes and illustrates descriptively how the use of urea in agriculture on one hand and in industry on the other will develop. A large part of urea consumption takes place in agriculture, where it is used as fertilizer. Industry mainly utilizes urea for producing formaldehyde resins and melamine. Innovative field of application with dynamic growth rates is the reduction of nitrogen by the use of the urea solution AdBlue, which is predominantly used in utility vehicles in Western Europe. Given the increased application of AdBlue in industrialized countries, these countries are likely to increase their urea demand in the following years.
Markets in the East
Asia-Pacific already is the largest sales market for urea, accounting for almost two thirds of total demand, followed by North America. In the next eight years, Asia-Pacific will gain additional market shares. Market researchers at Ceresana expect populous countries such as China and India to expand their position in the worldwide urea market. "Changes in regional demand will also have an effect on the production structure of manufacturers. Worldwide urea capacities of currently 184 million tonnes are likely to be expanded by about 71 million tonnes until 2019", explains Oliver Kutsch, CEO of Ceresana. More than 50% of these new capacities will be built in the Asia-Pacific region. Another major producing region is the Middle East, due to a number of natural gas resources that offer ideal conditions for production.
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