Market Trends of south america fertilizers Industry
This section covers the major market trends shaping the South America Fertilizers Market according to our research experts:
Field Crops is the largest segment by Crop Type.
- The overall fertilizer consumption by different crops has grown by 31.65% value and is estimated to record a CAGR of 7.53% during the forecast period. By volume, the overall consumption accounted for a growth of 17.4% and is estimated to record a CAGR of 4.2% during the forecast period.
- By crop type, field crops are dominating the market by 75.9%, followed by horticultural crops with 23.8% of fertilizer consumption value. Both horticultural and field crops are essential to the country's trade and consumption, and the increased domestic and international demand are bolstering the segment's growth.
- The area under cereals cultivation has increased by 8.73% during the study period. With important crops being cultivated in the country, such as soybean, corn, and wheat, among others, the country is actively importing fertilizers to meet the domestic demand, which is driving the growth of the segments.
- Accordingly, Free trade agreements (FTAs) between the United States and Chile and several Latin American countries have been a major factor in the increase in fruit and vegetable production in South American countries over the last few decades. These FTAs, including NAFTA (USMCA), CAFTA-DR, and bilateral agreements with countries such as Chile, Colombia, Panama, and Peru, are expected to further boost fertilizer demand in the region.
- Therefore, based on the aforementioned characteristics, the market for fertilizers is anticipated to grow during the forecast period.
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Brazil is the largest segment by Country.
- Fertilizer consumption measures the amount of plant nutrients used per unit of arable land. According to our analysis, Brazil accounts for 66.0% of the total domestically used fertilizer in South America. By fertilizer type, conventional fertilizers dominated the Brazilian fertilizer market and accounted for 63.1%, followed by specialty fertilizers contributing 36.8% in 2021.
- Argentina
is one of the world’s major exporters of wheat and soybean, and the share of
agriculture contributes to 5.9% of Argentina's gross domestic product.
Argentina accounted for 5.7% of the South American fertilizers market in
2021. By fertilizer type, specialty fertilizers recorded the largest share of
59.4%, followed by conventional fertilizers accounting for 40.5% in 2021. Among
specialty fertilizers, liquid fertilizers account for 31.2%, followed by water
soluble fertilizers for 20.8%, controlled-release fertilizers accounting for
5.7%, and slow-release fertilizers contributed 1.5% of the Argentine
fertilizers market.
- Field crops dominated the South American fertilizers market by accounting for 95.0% of the market share in 2021. The top three crops grown in South 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 the planted area and push for higher yields.
- In
South America, the area harvested under major food crops has been continuously
increasing, mainly due to the growing population and related increase in demand
for food grains. Hence, the fertilizer market in the region is expected to grow
during the forecast period.
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