Global Urea Ammonium Nitrate (UAN) Market Size By Type (UAN 28, UAN 30), By Application (Cereals & Grains, Oilseeds & Pulses), By Region, And Segment Forecasts, 2023 to 2032

The Global Urea Ammonium Nitrate (UAN) Market was valued at USD 12.4 billion in 2023 and is projected to surpass USD 18.9 billion by 2031, growing at a CAGR of 5.7% during the forecast period from 2023 to 2031.

UAN is a widely used liquid fertilizer composed of urea, ammonium nitrate, and water, providing an efficient source of nitrogen for crops. The rising demand for high-efficiency fertilizers to improve agricultural yield, combined with increasing awareness of sustainable farming practices, is driving the market's growth. Additionally, the growing global population is escalating the need for enhanced food production, further fueling demand for UAN fertilizers.

Drivers

1. Growing Demand for High-Efficiency Fertilizers

As global agriculture shifts toward higher productivity and sustainability, UAN is becoming a preferred nitrogen fertilizer due to its easy application, rapid nutrient availability, and lower environmental impact compared to traditional fertilizers like urea and ammonium nitrate.

2. Rising Global Food Demand

The world's population is expected to surpass 9 billion by 2050, necessitating higher agricultural yields. UAN fertilizers help increase crop production efficiency, particularly in major grain-producing countries such as the U.S., China, Brazil, and India.

3. Government Support for Sustainable Agriculture

Many governments are promoting eco-friendly fertilizers to reduce nitrogen losses and improve soil health. UAN fits these initiatives as it has a lower risk of volatilization losses than conventional nitrogen fertilizers.

Restraints

1. Volatility in Raw Material Prices

The production of UAN is highly dependent on natural gas, which serves as a raw material for ammonia synthesis. Price fluctuations in natural gas can significantly impact UAN production costs, making the market sensitive to energy price volatility.

2. Environmental Concerns and Regulations

Although UAN has a lower environmental footprint than traditional fertilizers, excessive use can still contribute to nitrogen runoff and water pollution. Stringent regulations on nitrogen-based fertilizers in Europe and North America may pose challenges for market expansion.

Opportunity

1. Expansion in Developing Markets

Emerging economies in Asia-Pacific and Latin America are rapidly adopting modern farming techniques, presenting lucrative opportunities for UAN producers. The increasing mechanization of farming in these regions further supports the growth of liquid fertilizers like UAN.

2. Technological Advancements in Fertilizer Application

The integration of precision agriculture technologies, such as variable-rate application (VRA) and GPS-based fertilization, is increasing the efficiency and adoption of UAN fertilizers. Farmers are leveraging these advancements to optimize fertilizer use, thereby boosting market demand.

Market by System Type Insights

1. UAN-28 Segment Dominated in 2023

Among different concentrations of UAN, UAN-28 (28% nitrogen) held the largest market share in 2023. It is widely used in temperate climates and has been favored due to its balance between efficiency and cost-effectiveness.

2. UAN-32 Expected to Witness Higher Growth

The UAN-32 segment is projected to grow at the highest CAGR, driven by its higher nitrogen content and cost-effectiveness in high-yield farming.

Market by End-Use Insights

1. Grains & Cereals Accounted for Over 50% of Market Share

The grains & cereals segment, including corn, wheat, and rice, was the largest consumer of UAN fertilizers in 2023. These crops require high nitrogen inputs, making UAN a preferred choice for large-scale agriculture.

2. Oilseeds & Pulses Segment Expected to Grow Rapidly

Increasing demand for soybean, sunflower, and canola has fueled the need for high-efficiency nitrogen fertilizers, driving growth in the oilseeds & pulses segment.

Market by Regional Insights

1. North America Dominated the Market in 2023

North America accounted for the largest share of the UAN market, driven by high adoption rates of liquid fertilizers in the United States and Canada. The presence of large-scale corn and wheat farming operations further supports regional market dominance.

2. Asia-Pacific Expected to Exhibit the Highest Growth Rate

The Asia-Pacific region is projected to register the fastest CAGR during the forecast period due to rapid agricultural expansion, government incentives for fertilizer use, and increasing food demand in countries like China, India, and Indonesia.

3. Europe Witnessing Steady Growth Despite Strict Regulations

Europe remains a key market, but stringent environmental regulations regarding nitrogen-based fertilizers may slow down growth in this region.

Competitive Scenario

Key players in the Global Urea Ammonium Nitrate (UAN) Market include:

CF Industries Holdings, Inc.

Nutrien Ltd.

Yara International ASA

OCI N.V.

EuroChem Group

Koch Fertilizer, LLC

TogliattiAzot

Acron Group

CVR Partners, LP

Mosaic Company

Key Market Developments

CF Industries Holdings, Inc. expanded its UAN production capacity in North America in 2023 to meet rising demand.

Yara International launched a new precision application system for UAN fertilizers to reduce nitrogen loss in 2024.

OCI N.V. partnered with agricultural cooperatives in Europe to promote eco-friendly nitrogen fertilizers in 2025.

Scope of Work – Global Urea Ammonium Nitrate (UAN) Market