South America Fertilizers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The South America Fertilizer Market is projected to grow at a CAGR of 3.4% during the forecast period (2020-2025). Top three crops grown in Latin America were soybeans, corn, and sugarcane, which have increased significantly over the past two decades. Production is expected to continue to rise, as growers in countries, such as Brazil, continue to expand planted area and push for higher yields. This, in turn, is expected to support increased fertilizer consumption. Owing to the high demand for potash for South American crops, the potassic fertilizer, occupies the largest share of the domestic market. South America imports fertilizers extensively, in 2017, it imported 6.7 million metric tons of nitrogen fertilizer, 4.7 million metric ton of phosphate fertilizer and 7.0 million metric ton of potash fertilizes (FAO). Major exports of fertilizers to the South American countries are Canada, the Russian Federation and the United States, Morocco, Germany, Algeria, and China.

Scope of the report

The International Fertilizer Association defines a fertilizer as “any solid, liquid, or gaseous substance containing one or more plant nutrient in a known amount, that is applied to the soil, directly on plants, or added aqueous solutions to maintain soil fertility, improve crop development, yield, and/or crop quality”. In this report, the market is segmented by type ( Straight Fertilizers, Complex Fertilizers), by crop type (Grains and Cereals, Pulses and Oilseeds, Commercial Crops, Fruits and Vegetables, Other Crop Types) and by geography ( Argentina, Brazil, Chile, Colombia, Rest of South America).

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Key Market Trends

Increase in Area Harvested

An increase in land area under agriculture of a region is both evidence of efficient use of fertilizers in the past and an indication of an increase in the use of fertilizers and other yield-enhancing chemicals in the future. In South America, area harvested under major food crops has been continuously increasing, mainly due to the growing population and related increase in demand for food grains. In Argentina itself, area harvested under cereals grew from 11.7 million hectares in 2015 to 15.1 million hectares in 2018 (FAO). Area harvested under coarse grain in South America was 27.7 million hectares in 2015 and it increased to 31.2 million hectares in 2018 (FAO). Application of fertilizers for bio-fuel production in countries like Brazil and Argentina is also helping the market to grow, given the continuous expansion of the biofuel industry. This increase in farmland ensures continuous demand for fertilizers, thereby driving the market significantly during the forecast period.

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