South America Biofertilizer Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

South America Biofertilizer Market Analysis

The South America Biofertilizer Market size is estimated at 220 million USD in 2025, and is expected to reach 358.9 million USD by 2030, growing at a CAGR of 10.28% during the forecast period (2025-2030).

The South American biofertilizer industry is experiencing a significant transformation driven by an increasing emphasis on sustainable agricultural practices and environmental conservation. Government initiatives and regulatory frameworks are actively promoting the adoption of biological crop inputs across the region. A notable example is Argentina's implementation of the FAO's 2022-2031 Strategic Framework, which prioritizes the transformation of agri-food systems through agroeconomic methods. This framework specifically focuses on reducing chemical fertilizer and pesticide usage, creating substantial opportunities for biofertilizer adoption. The transition towards sustainable agriculture is further supported by various regional organizations and agricultural institutions working to educate farmers about the benefits of biological inputs.

Technological innovations in agricultural biotechnology are revolutionizing agricultural practices across South America. Research breakthroughs, particularly in Brazil, have demonstrated significant improvements in crop yields through advanced microbial strains. For instance, the combination of two specific strains of Azospirillum brasilense (Ab-V5 and Ab-V6) has shown remarkable results in key crops such as soybean, sugarcane, rice, wheat, and pasture. These innovative strains are particularly noteworthy as they are compatible with commonly used pesticides, making them more practical for widespread adoption. Under typical field conditions, Azotobacter inoculation has proven to reduce nitrogenous fertilizer requirements by 10-20% in various crops.

The market is witnessing significant consolidation through strategic partnerships and acquisitions among key players. Major companies are focusing on expanding their research and development capabilities to develop more effective sustainable fertilizer solutions. The industry has seen several notable strategic moves, including acquisitions by global agricultural companies looking to strengthen their presence in the South American market. These developments are contributing to improved product quality and distribution networks, making agricultural biologicals more accessible to farmers across the region.

The shift towards organic farming practices continues to gain momentum across South America, driven by increasing consumer awareness and demand for organic products. Brazil, as a leading agricultural nation, has demonstrated substantial growth in its organic sector, with organic food sales reaching USD 81 million in 2021, representing a 9.5% increase from the previous year. The region has seen remarkable expansion in organic cultivation area, reaching 717.2 thousand hectares in 2021. However, the industry faces challenges such as limited farmer awareness and the extended transition period required to shift from conventional to organic farming methods, which temporarily constrains market growth potential. The use of organic farming inputs is crucial in overcoming these challenges and fostering sustainable growth.

South America Biofertilizer Market Trends

Growing organic acreage owning to the rising international demand for soy, corn, sunflower, and wheat.

• The area under organic cultivation of crops in South America was recorded at 672.8 thousand hectares in 2021, according to the data provided by The Research Institute of Organic Agriculture (FibL statistics). Argentina and Uruguay are the major organic-producing countries in the region, with a large area under organic crop cultivation, with Argentina occupying a share of 11.5% of the organic area in the region in 2021. The primary organic crops produced in Argentina include sugarcane, raw wool, fruits, vegetables, and beans. The primary organic exports are soy, corn, sunflower, and wheat.
• Cash crops accounted for the maximum share of 53.9% under organic crop cultivation in 2021, with 384.3 thousand hectares of land. The region is a major grower of cash crops like sugarcane, cocoa, coffee, and cotton. Brazil is the largest sugarcane-growing country in the region.
• On the other hand, Uruguay is a large grower of organic fruits and vegetables in the region. The Organic Farmers' Association of Uruguay promotes organic cultivation in the country by partnering with various organic retail outlets. The World Bank-financed Sustainable Management of Natural Resources and Climate Change project (DACC) assisted 5,139 farmers in 2022 to adopt climate-smart agriculture (CSA), which helped increase the area under cultivation of organic crops in the region.
• Millions of farmers in South America continue to practice no-external input agriculture, which may very well represent the future of the region's economy despite the noticeably low domestic production. The population is becoming more health conscious, which creates a larger market for South America's increasingly eco-friendly and sustainable farming system.

Approximately 49.0% consumers in Argentina, Brazil and Colombia are interested in purchasing organic food.

• South America is one of the important producers and exporters of organic food products globally. The per capita spending on organic food products in South America is comparatively lesser than in other parts of the world. The average per capita spending was recorded as USD 4.3 in 2022. Nevertheless, these export-oriented countries are now generating an often-overlooked domestic demand.
• The demand for naturally grown products like organic food in South American countries like Argentina, Brazil, and Colombia has increased. A survey conducted by Wisconsin Economic Development in 2021 proved that consumers are willing to pay higher prices for organically grown food. The study revealed that 43-49% of consumers are conscious about their health. Brazil ranks 43rd globally for per capita spending on organic packaged food and beverages.
• The organic products market in Argentina reached a value of USD 15.9 million in 2021, representing 0.03% of the global market value, with a per capita consumption of USD 0.35, as per the data given by Global Organic Trade in 2021.
• Currently, the market for organic foods in the region is very fragmented, with its availability limited to a few supermarkets and specialty stores, as only people from higher-income families are potential customers. Many supermarkets, specialized stores, and local farmers’ markets in the region are now selling organic food to satisfy the growing latent demand for such products, mainly in Costa Rica, Mexico, and urban centers of South America. Growing awareness among consumers and their buying motives are expected to lead to a better understanding of the sustainability attributes of organic food in the region.

Segment Analysis: Form

Azotobacter Segment in South America Biofertilizer Market

Azotobacter dominates the South American biofertilizer market, accounting for approximately 28% of the total market value in 2024. This significant market share can be attributed to azotobacter biofertilizer's exceptional ability to fix atmospheric nitrogen, with studies showing it can fix up to 2.5 × 10^11 kg of N-NH3 annually, equivalent to twice the effectiveness of industrially produced mineral nitrogen in crop production. Field tests across various agro-climatic conditions have demonstrated that azotobacter biofertilizer is particularly effective when used with seeds or seedlings of crops such as onion, tomato, and cabbage, reducing the need for nitrogenous fertilizers by 10-20% under typical field conditions. The segment's dominance is further strengthened by its compatibility with various crops and its cost-effectiveness compared to chemical fertilizers.

Rhizobium Segment in South America Biofertilizer Market

The rhizobium biofertilizer segment is experiencing the fastest growth in the South American biofertilizer market, projected to expand at approximately 12% CAGR from 2024 to 2029. This remarkable growth is driven by rhizobium biofertilizer's proven ability to fix significant amounts of nitrogen, ranging from 40 to 250 kg per hectare, while reducing urea fertilizer requirements by 55 to 200 kg. The segment's growth is further propelled by its effectiveness in leguminous crops, where Rhizobium strains produce growth hormones like indole-3-acetic acid that stimulate rapid root nodule formation and development. Studies in Brazil have shown that Rhizobium inoculation can improve soybean grain yields by up to 750 kg/ha while enhancing soil fertility, making it increasingly attractive to farmers seeking sustainable agricultural solutions.

Remaining Segments in South America Biofertilizer Market

The other significant segments in the South American biofertilizer market include Mycorrhiza, Azospirillum, Phosphate Solubilizing Bacteria (PSB), and other biofertilizers. Mycorrhizal fertilizer has established itself as a crucial segment due to its ability to enhance plant root surface area and improve nutrient uptake, particularly in sugarcane cultivation where it significantly increases phosphorus content and juice quality. Azospirillum has gained traction for its nitrogen-fixing capabilities and positive effects on root development in various crops. Phosphate solubilizing biofertilizer plays a vital role in converting insoluble phosphates to plant-available forms, while other biofertilizers, including Bacillus species and Trichoderma, contribute to overall soil health and plant growth promotion through various mechanisms.

Segment Analysis: Crop Type

Row Crops Segment in South America Biofertilizer Market

Row crops dominate the South American biofertilizer market, commanding approximately 82% of the total market value in 2024. This substantial market share is primarily attributed to the increasing organic farming practices and growing organic acreage of row crops in the region. Major row crops benefiting from nitrogen-fixing biofertilizer applications include soybean, corn, wheat, rice, barley, sorghum, and sunflower. The segment's dominance is particularly notable in Brazil, where soybean growers are increasingly adopting biofertilizers instead of chemical fertilizers in their planted areas. Studies have shown that combining two strains of Azospirillum brasilense can increase yields in economically important crops like soybean, rice, wheat, and pasture. These strains are also compatible with other pesticides commonly used in these crops, making them a versatile choice for farmers. The segment is experiencing robust growth and is projected to maintain its market leadership position through 2029, driven by the growing adoption of sustainable farming practices and increasing demand for organic row crops.

Horticultural Crops Segment in South America Biofertilizer Market

The horticultural crops segment in the South American biofertilizer market is showing promising growth potential, with significant developments in organic fruit and vegetable cultivation. Field tests have demonstrated remarkable success with Azotobacter applications under various agro-climatic conditions, particularly in crops such as onion, tomato, and cabbage. The application of mycorrhiza in vegetable crops during the seedling stage has shown impressive results in productivity, yield, and quality improvements. The segment's growth is further supported by increasing consumer awareness and demand for organically grown fruits and vegetables. Uruguay has emerged as a significant player in organic fruits and vegetables production, with the Organic Farmers' Association actively promoting organic cultivation through partnerships with various organic retail outlets. The World Bank-financed Sustainable Management of Natural Resources and Climate Change project has been instrumental in assisting farmers to adopt climate-smart agriculture practices, contributing to the segment's expansion.

Cash Crops Segment in South America Biofertilizer Market

The cash crops segment plays a vital role in the South American biofertilizer market, focusing on important crops like sugarcane, coffee, cocoa, and cotton. The segment has shown significant potential in organic farming applications, particularly in sugarcane cultivation where the application of arbuscular mycorrhizal fertilizer has demonstrated notable improvements in phosphorus content and juice quality. The segment's growth is supported by increasing international demand for organically grown cash crops and South America's strong position in the global export market. Various government initiatives and sustainable agriculture programs across the region are encouraging farmers to transition to organic farming methods, particularly in cash crop cultivation, which is driving the adoption of bacterial fertilizer in this segment.

South America Biofertilizer Market Geography Segment Analysis

South America Biofertilizer Market in Brazil

Brazil dominates the Latin America biofertilizers market, commanding approximately 65% of the total market share in 2024. The country's strong position is driven by its extensive agricultural base and growing adoption of sustainable farming practices. Brazilian soybean growers are particularly notable for their embrace of biofertilizers, with implementation in 80% of their planted area, demonstrating significant cost advantages over traditional chemical fertilizers. The country's farmers are actively responding to the global demand for organic food products, supported by a robust distribution network and technical expertise. Research initiatives, particularly from the Brazilian National Agricultural Research Company's soybean unit, are advancing the application of beneficial bacteria in various crops, especially focusing on reducing chemical fertilizer usage in corn cultivation. The country's agricultural sector benefits from the presence of major biofertilizer manufacturers who maintain extensive distribution networks and provide crucial technical support through teams of agronomists and consultants.

South America Biofertilizer Market in Argentina

Argentina represents a rapidly expanding market in the South American biofertilizer sector, with projections indicating a robust growth rate of approximately 11% from 2024 to 2029. The country's biofertilizer market is characterized by its strong focus on organic vineyards and wineries, alongside diverse crop cultivation including fruits, vegetables, and grains. The implementation of FAO's Strategic Framework 2022-2031 is significantly influencing the market, promoting the transformation of agri-food systems toward more sustainable practices. This framework specifically emphasizes reducing chemical fertilizer usage, creating substantial opportunities for microbial fertilizer adoption. The country's regulatory framework, overseen by REDCAI-AAM and SENASA, ensures proper quality control and standardization of biofertilizer products, fostering market confidence. The presence of both domestic and international manufacturers, coupled with growing awareness about sustainable agriculture, is creating a robust ecosystem for biofertilizer adoption. The market is particularly strong in regions with established organic farming practices, where farmers are increasingly recognizing the long-term benefits of biological inputs.

South America Biofertilizer Market in Other Countries

The Latin America biofertilizers market across other South American countries, including Uruguay, Peru, Bolivia, Paraguay, Ecuador, and Nicaragua, demonstrates varying levels of development and adoption. These markets are characterized by their unique agricultural landscapes and growing emphasis on sustainable farming practices. Uruguay stands out for its strong organic farming sector, supported by initiatives from the Organic Farmers' Association. Peru and Ecuador are seeing increased adoption in their extensive coffee and cocoa plantations, while Bolivia and Paraguay are expanding usage in their soybean and grain sectors. The World Bank-financed Sustainable Management of Natural Resources and Climate Change project has been instrumental in promoting climate-smart agriculture across these regions. These countries are witnessing a gradual shift toward organic farming practices, driven by increasing environmental awareness and export market demands. Local government initiatives, combined with support from international organizations, are helping to create a more conducive environment for microbial fertilizer adoption, though challenges such as limited awareness and infrastructure constraints persist in some regions.

Free With This Report

Along with the report, We also offer a comprehensive and exhaustive data pack on Areas under organic cultivation, one of the key trends that affect the market size of agricultural biologicals. This data pack also includes areas under cultivation by crop types, such as Row Crops (Cereals, Pulses, and Oilseeds), Horticultural Crops (Fruits and Vegetables), and Cash Crops in North America, Europe, Asia-Pacific, South America and Africa.