The manufacturing of CAN is a complicated and technical series of steps that typically begins with the production of concentrated ammonium nitrate from ammonia and nitric acid, then mixed with a calcium-supplying material (such as lime or dolomite) or calcium nitrate. The mixture is either granulated or prilled, dried, screened to size, cooled, and coated with anti-caking agents to ensure it will flow during storage.
Modern manufacturing plants have placed more emphasis on energy efficiency and emissions control through various methods, such as heat recovery and treatment of vapors or other processes to limit environmental impact. Newer technologies, including the use of low-carbon or “green” ammonia as a feedstock, are beginning to influence the economics and emissions of new facilities.
APPLICATION AND PRODUCT FORMATS
Granular CAN has served as the workhorse for broadcasting in broad-acre farming, while liquid CAN is gaining traction for fertigation and greenhouse systems due to its ease of injection and even distribution. CAN is compatible for use with cereals, vegetables, fruits, oilseeds, and turf, meaning it can adopt many different uses, which adds flexibility for the distributors and retailers. Start-ups should consider the product formats that are aligned with existing application technologies – this is where the growth and value are derived.
Farmers across the globe have pressing challenges to produce more food on increasingly limited land and with dwindling resources. Nowhere is this more evident than in fast-developing regions such as Asia and Africa, where increasing demand is remarkably evident. Fertilizers play a critical role in that growing demand — it is estimated that the global food supply relies on about half of fertilizers.
Calcium Ammonium Nitrate (CAN) is a nitrogen fertilizer that the agronomic community relies upon, due to its cooling properties and self-providing calcium source, which encourages crop growth in both the crops and soils. CAN containers have 21 – 27% nitrogen and 8% calcium.
Characteristics and Agronomic Benefit
Fundamentally, CAN is a double salt of both calcium nitrate and ammonium nitrate. Commercial CAN appears as white – pale yellow granules and has moderate solubility in water. The nitrogen is easily taken up by crops and consists of immediate nitrogen (nitrate) and mineral nitrogen (ammonium) in a similar ratio over time for continuous uptake.
Farmers often prefer CAN because it reduces nitrogen losses to the air (volatilization) compared with urea, especially in dry soils. That means more of the applied nitrogen actually reaches the crop. CAN also tends to improve root growth, increase disease resistance, and lift both yield and crop quality. In short, CAN acts as both a fertilizer and a soil conditioner, which is why it is widely used across a range of crops — from cereals and oilseeds to high-value vegetables, fruits, and ornamentals.
Find our Handbook
Market Outlook and Growth Drivers
The CAN market is steadily developing in its growth trajectory, with analysts expecting it to rise from approximately USD 5.5 billion in 2025 to close to USD 6.9 billion in 2030. Several factors are contributing to this growth: the increase in food demand across the globe, increased adoption of precision farming (including fertigation), and favorable public policy for chloride-free nutrients in eco-minded areas.
Geography is important to the CAN market, as Europe is an important market due to strict environmental policies that favor environmentally compliant fertilizers. The Asia-Pacific region is growing the quickest due to greenhouse expansion, increased adoption of irrigation systems, and government support for modern farming practices. North America will see steady demand, while Latin America, the Middle East, and Africa will see opportunity for more rapid growth. CAN can also be used in non-agricultural applications, as it is a safer alternative to pure ammonium nitrate in construction and mining, allowing manufacturers to offer valuable diversification opportunities to agronomic businesses.
Opportunities for Entrepreneurs
There are various strategic entry points into CAN for startups and newer businesses. One example of this is liquid CAN formulations. These formulations apply to fertigation and smart drip systems to help the grower apply nutrients to their crops as accurately as possible through irrigation systems. Liquid CAN is especially attractive to greenhouse operators and precision farmers, who value the operational benefits of accurate and uniform dosing of nutrients with labor savings.
Detail project report on Calcium Ammonium Nitrate production
Regulatory Environment and Quality Standards
The production and sale of CAN are heavily regulated, and for good reason. In the EU, regulations for fertiliser products and the REACH rules for certain input materials apply to manufacturers. In the United States, the EPA effluent guidelines and state-level agencies regulate manufacturing discharges and product registration. All this is compounded by quality controls whereby manufacturers are required to test for nutrient content, moisture, particle size, and contaminants. All these compliance obligations do add complexity to production, but they also provide marketing differentiation in that companies that can provide evidence of testing, traceability, and reduced environmental footprint can more easily reach premium buyers and export markets.
Related articles:- Start Production of Bio-Organic Fertilizer from Tea Waste
Manufacturing Considerations
Producing CAN is a technical, multi-stage process that typically begins with forming concentrated ammonium nitrate from ammonia and nitric acid, then combining it with a calcium source (lime or dolomite) or calcium nitrate. Modern plants emphasize energy efficiency and emissions control, recovering heat and treating vapors to reduce environmental impact. Innovations such as using low-carbon or “green” ammonia as feedstock are beginning to reshape the economics and emissions profile of new facilities.
Application and Product Formats
Granular CAN remains the workhorse for broadcasting in broad-acre farming, while liquid CAN is gaining traction for fertigation and greenhouse systems thanks to its ease of injection and even distribution. CAN’s suitability across cereals, vegetables, fruits, oilseeds, and turf makes it a flexible product choice for distributors and retailers. Entrepreneurs should prioritize product formats compatible with contemporary application technologies — that’s where growth and value lie.
Environmental and Safety Considerations
Compared with some nitrogen sources, CAN generally causes less volatilization and has a more neutral effect on soil pH. However, responsible manufacturing, correct application timing, and appropriate rates are essential to minimize nitrate runoff and other environmental risks. Anti-caking measures, proper packaging, farmer education on best-use practices, and adoption of precision application tools all help reduce environmental footprints.
Conclusion
Calcium Ammonium Nitrate is more than another nitrogen fertilizer — it’s a practical tool for sustainable yield improvement. Its balanced nutrient profile, soil-conditioning benefits, and compatibility with modern application systems make it an attractive option for growers and agribusinesses. For entrepreneurs, CAN represents a strategic opportunity: success depends on combining solid product performance with regulatory compliance, environmental stewardship, and value-added services that help farmers maximize return on investment.
Find best business ideas for yourself our startup selector tools
About Niir Project Consultancy Services (NPCS)
Niir Project Consultancy Services (NPCS) prepares Market Survey cum Detailed Techno-Economic Feasibility Reports that help entrepreneurs make informed decisions. Their reports cover manufacturing processes, raw material requirements, plant layouts, and financial projections, providing practical insights for business planning and project implementation.
Frequently Asked Questions
Q1. What is Calcium Ammonium Nitrate (CAN), and how does it differ from urea?
CAN is a double-salt fertilizer combining nitrate and ammonium nitrogen with calcium. Unlike urea, CAN supplies both immediate (nitrate) and more stable (ammonium) nitrogen and contains calcium, which helps soil structure and reduces acidification. CAN also tends to lose less nitrogen to volatilization under dry conditions.
Q2. Which crops benefit most from CAN?
CAN is versatile: it performs well on cereals, oilseeds, pulses, fruits, vegetables, turf, and ornamentals. It is especially attractive for chloride-sensitive, high-value horticultural crops and greenhouse production, where nitrate nutrition and calcium are desirable.
Q3. What product formats should a new CAN manufacturer offer?
Offer both granular (dry) CAN for broad-acre soil broadcasting and liquid CAN for fertigation and greenhouse systems. Liquid CAN is growing fast due to its compatibility with precision irrigation and fertigation systems, which many premium growers prefer.
Q4. What are the main feedstocks and key steps in CAN manufacturing?
Primary inputs are ammonia, nitric acid, and a calcium source (limestone or dolomite). Core steps include forming an ammonium nitrate solution, integrating the calcium component, granulation or prilling, drying, screening, cooling, and anti-caking coating. Robust process control and quality checks at each stage are essential.
Q5. How capital-intensive is a CAN plant, and what scale makes sense for startups?
CAN production is capital-intensive because of its chemical process, energy needs, and compliance systems. Startups can explore lower-capital routes such as contract manufacturing, tolling, joint ventures, or focusing on liquid formulations and specialty blends that require smaller production footprints.
