Latin America Ammunition Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Latin America Ammunition Market is segmented by Ammunition Type (Small Caliber, Medium Caliber, Large Caliber, Mortar, and Artillery Ammunition), End User (Civilian and Military), and Geography.

Market Snapshot

latin america ammunition market_overview
Study Period: 2018 - 2026
Base Year: 2020
CAGR: >2 %

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Market Overview

The Latin American ammunition market is projected to record a CAGR of more than 2% during the forecast period.

  • In Latin America, there is constant supply, availability, and proliferation of ammunition to civilians, law enforcement, and the military. This may be one of the major driving factors for the ammunition market in Latin America during the forecast period.
  • The countries in Latin America, like Mexico, Brazil, Peru, Argentina, Bolivia, and Colombia, are involved in the production and exporting of ammunition. This growth of ammunition trade in Latin America is another propelling factor for the growth of the market in the region.
  • The changing laws and regulations pertaining to the use of arms and ammunition by civilians in this region are expected to open up opportunities for the market during the forecast period.

Scope of the Report

The scope of the Latin American ammunition market includes the manufacturing and procurement of ammunition by local law enforcement agencies and police officials in Latin America only. Law enforcement is included in the military segment of the market. The market is also segmented based on the type of ammunition into small caliber, medium caliber, large caliber, mortar, and artillery ammunition.

Ammunition Type
Small Caliber
Medium Caliber
Large Caliber
Mortar and Artillery Ammunition
End User
Latin America
Rest of Latin America

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Key Market Trends

The Military Segment to Dominate the Market During the Forecast Period

The military segment of the market currently holds the highest market share, and it is expected to record the highest CAGR during the forecast period. This region has been strengthening its military front, with a strong focus on military spending, over the years, irrespective of the economic crisis and social and political unrest. Some of the major contributors to the military expenditure growth in the region are Brazil (with 51% of the region's military expenditure in 2019) and Mexico (military spending grew by around 8% in 2019), among others. The procurements of aircraft, armored vehicles, and naval vessels by Latin American countries may generate demand for ammunition and weapon systems. Additionally, the border issues between the United States and Mexico, along with the country's ongoing war on drugs, are generating demand for ammunition from border security forces and special forces in the region.

latin america ammunition market_segment

Brazil was the Largest Market for Ammunition in 2019

In 2019, Brazil held the highest share in the Latin American ammunition market. Brazil is also the largest defense spender in Latin America, which constituted more than 51% of Latin America’s total military spending in 2019. Also, in 2019, Brazil’s defense expenditure was USD 26.9 billion, which was the highest in Latin America. Brazil has been one of the largest ammunition exporters in Latin America over the past few years, owing to its high production levels of ammunition, with 85% share in ammunition exports. The country increased its arms exports from USD 41 million in 2015 to USD 111 million in 2018. Additionally, in 2019, the Brazilian government relaxed the strict gun laws through a decree, in order to make it easier for Brazilians to buy guns and ammunition. According to the decree, the right to purchase cartridges per year was increased from 50 to 5,000 and to 1,000 for restricted weapons, and gun owners can keep up to four guns in their homes or offices. This step was taken to open up the Brazilian market to firearms and ammunition manufactured outside the country and increase civilian self-defense capability. With such initiatives, the country is expected to support the local players, like IMBEL and CMC, and international players to get a significant share of the market during the forecast period.

latin america ammunition market_geography

Competitive Landscape

The prominent players in the market are CBC, FAMAE, Aguila Ammunition, IMBEL, and CAVIM. Most of the players in the region are local players and state-owned companies that extend their support to the corresponding local border forces, military, law enforcement, and police officials. The global players, due to their brand value, may have penetration into the market and capture significant share, as there are limited players in the market. At the same time, the ongoing ammunition contracts and their extensions, with the existing local state-owned players, can cause an entry barrier to the foreign players.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 Ammunition Type

      1. 5.1.1 Small Caliber

      2. 5.1.2 Medium Caliber

      3. 5.1.3 Large Caliber

      4. 5.1.4 Mortar and Artillery Ammunition

    2. 5.2 End User

      1. 5.2.1 Civilian

      2. 5.2.2 Military

    3. 5.3 Geography

      1. 5.3.1 Latin America

        1. Mexico

        2. Brazil

        3. Argentina

        4. Chile

        5. Rest of Latin America


    1. 6.1 Company Profiles

      1. 6.1.1 CBC Defense

      2. 6.1.2 FAMAE

      3. 6.1.3 Aguila Ammunition

      4. 6.1.4 IMBEL

      5. 6.1.5 OPTIC-CAVIM

      6. 6.1.6 INDUMIL

      7. 6.1.7 EMGEPRON


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Frequently Asked Questions

The Latin America Ammunition Market market is studied from 2018 - 2026.

The Latin America Ammunition Market is growing at a CAGR of >2% over the next 5 years.

FAMAE, OTIC-CAVIM, CBC Defense, Aguila Ammunition, IMBEL are the major companies operating in Latin America Ammunition Market.

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