Market Overview
| Study Period | 2021 - 2031 |
|---|---|
| Base Year For Estimation | 2025 |
| Forecast Data Period | 2026 - 2031 |
| Market Size (2026) | USD 1.06 Billion |
| Market Size (2031) | USD 1.38 Billion |
| Growth Rate (2026 - 2031) | 5.41% CAGR |
| Market Concentration | Medium |
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. | |
South America Primary Battery Market Analysis by Mordor Intelligence
The South America Primary Battery Market size is estimated at USD 1.06 billion in 2026, and is expected to reach USD 1.38 billion by 2031, at a CAGR of 5.41% during the forecast period (2026-2031).
Robust consumer-electronics replacement demand, expanding IoT deployments in agribusiness, and disaster-preparedness stockpiling keep single-use chemistries relevant even as rechargeables gain ground. Alkaline formats anchor volume in remote controls and toys, while primary lithium variants capture premium niches that require long shelf life and wide operating temperatures. Special-shape prismatic cells are gaining momentum in industrial sensors and wearables that cannot accept standard cylindrical geometries. Regulatory tightening on heavy-metal content is accelerating a pivot toward mercury-free alkaline, lithium, zinc-air, and silver-oxide options.
Key Report Takeaways
- By type, alkaline cells led with 50.5% revenue share in 2025; primary lithium chemistries are forecast to expand at an 8.7% CAGR through 2031.
- By form factor, cylindrical batteries held 59.8% of volume in 2025, whereas special-shape prismatic and custom cells are advancing at a 9.6% CAGR.
- By application, consumer electronics commanded a 40.1% share of the South America primary battery market size in 2025, while IoT sensors and smart infrastructure are growing at a 10.2% CAGR to 2031.
- By geography, Brazil accounted for 43.4% of regional revenue in 2025; Chile is the fastest-growing geography at a 9.9% CAGR through 2031.
- Duracell, Energizer, and Panasonic collectively controlled an estimated 55%–60% South America primary battery market share in 2025.
Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of January 2026.
South America Primary Battery Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Expanding consumer-electronics penetration | +1.2% | Brazil, Argentina, Colombia | Medium term (2-4 years) |
| Government incentives for rural off-grid electrification | +0.8% | Brazil, Peru, Colombia | Long term (≥ 4 years) |
| Proliferation of battery-powered IoT sensors in Brazilian agribusiness | +1.5% | Brazil (Cerrado) | Short term (≤ 2 years) |
| Growing demand for primary cells in critical medical devices | +0.9% | Regional metro hospitals | Medium term (2-4 years) |
| Disaster-preparedness kits amid extreme-weather events | +0.7% | Chile, Peru, Colombia | Short term (≤ 2 years) |
| Tactical communications upgrades in Andean defense procurements | +0.5% | Peru, Colombia, Chile | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Expanding Consumer-Electronics Penetration
Smartphone adoption passed 70% of adults in 2025, and accessories ranging from wireless gaming controllers to LED flashlights still depend on alkaline AA and AAA cells.[1]GSMA Intelligence, “Mobile Economy Latin America 2025,” gsma.com Retail partnerships with Lojas Americanas and Carrefour Brasil lifted Energizer’s Latin America alkaline shipments by 9% in fiscal 2025. Price-sensitive buyers in Colombia and Peru continue to favor disposable batteries over upfront rechargeable costs. Seasonal toy demand during Christmas and Carnival further sustains replacement cycles. Although USB-rechargeable peripherals are gaining shelf space, entrenched device ecosystems delay rapid substitution.
Government Incentives for Rural Off-Grid Electrification
Brazil allocated BRL 450 million (USD 90 million) in 2024 to distribute solar-battery kits across indigenous territories, pairing photovoltaic modules with primary lithium cells that buffer cloudy intervals. Chile’s SEC mandated sub-zero-rated backup cells for off-grid sites in Aysén and Magallanes in 2025, favoring Li-SOCl₂ chemistry SEC.CL. Peru supplied 12,000 LED lamps and radio kits to Loreto households the same year, creating a recurring D-cell replacement stream. These initiatives produce lumpy tenders but cement last-mile distribution networks that later benefit retail sales.
Proliferation of Battery-Powered IoT Sensors in Brazilian Agribusiness
Eighteen percent of large soy farms in Mato Grosso had deployed soil-moisture and weather sensors by 2024, according to Embrapa.[2]L. Oliveira, “Battery-Powered Agritech in the Cerrado,” Embrapa Technical Report 2024, embrapa.br Li-MnO₂ coin cells in LoRaWAN transmitters offer 5-10 year lifespans, eliminating field-service visits. GPS cattle collars using Li-SOCl₂ packs withstand humid pastures for eight-year duty cycles, reducing labor on herds exceeding 10,000 head. JBS piloted blockchain traceability tags powered by primary lithium in 2025 across 245 Brazilian facilities. Export-market traceability mandates and remote-location realities underpin the segment’s double-digit growth.
Growing Demand for Primary Cells in Critical Medical Devices
Implantable cardiac monitors, pacemakers, and neurostimulators require primary lithium chemistries to meet stringent FDA and ANVISA voltage and safety profiles.[3]FDA, “Battery Safety in Implantable Devices,” fda.gov Brazil’s public health system added 22,000 covered implant procedures in 2024, boosting medical-grade cell demand. Portable diagnostics, handheld ultrasound scanners, and glucometers favor alkaline or silver-oxide button cells for stockroom stability.[4]World Health Organization, “Global Medical Devices Market 2025,” who.int An aging population is lifting hearing-aid adoption, with zinc-air cells dominating for capacity and cost. Rayovac Brasil posted double-digit zinc-air revenue gains in 2025 through audiology-clinic partnerships.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rapid substitution by rechargeable chemistries | -1.3% | Brazil, Argentina, Chile | Short term (≤ 2 years) |
| Stricter disposal rules on cadmium / mercury content | -0.6% | Brazil, Chile, Argentina | Medium term (2-4 years) |
| Port-logistics and import-tariff volatility | -0.4% | Brazil (Santos, Paranaguá) | Short term (≤ 2 years) |
| Pilot battery-sharing kiosks in Argentina | -0.2% | Buenos Aires, Córdoba | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Rapid Substitution by Rechargeable Chemistries
USB-rechargeable LED flashlights, gaming controllers, and wireless speakers are replacing disposable-battery models in major Brazilian and Chilean retailers. Energizer’s fiscal-2025 Latin America alkaline volume slipped 4%, partly offset by higher prices and lithium-primary growth. Urban households with stable grids can charge overnight, accelerating the shift, while rural areas remain alkaline-centric. Consumer education remains limited, delaying total-cost-of-ownership awareness in lower-income segments.
Stricter Disposal Rules on Cadmium / Mercury Content
Brazil’s CONAMA Resolution 401 tightened cadmium limits in button cells to 0.002% by weight in 2024 and mandated retailers to take back schemes. Chile introduced producer-responsibility legislation in 2025, targeting a 45% recovery rate by 2028. Manufacturers incur 2%-4% higher production costs to shift toward mercury-free designs, and importers must finance reverse logistics. Duracell partnered with Recicladora Ambiental to pilot 500 supermarket collection bins in 2025.
Segment Analysis
By Type: Lithium Chemistries Outpace Alkaline in Specialized Niches
Alkaline batteries maintained 50.5% of 2025 revenue thanks to ubiquitous AA and AAA devices in retail channels. In contrast, primary lithium chemistries are projected to grow 8.7% annually through 2031, powering medical implants, industrial IoT nodes, and defense radios that need decade-long service lives. Zinc-air cells dominate the hearing-aid segment as the population aged 65+ expands 3.2% per year. Regulatory pressure on mercury content accelerates the phase-out of zinc-carbon variants.
Silver-oxide cells, priced three to five times higher than alkaline, serve precision watches and gas detectors in Chile’s mines. Specialty chemistries like lithium-iron-disulfide target extreme temperatures in Patagonian and Andean defense applications with a commercial launch slated for 2026. As a result, the South America primary battery market size for lithium chemistries is set to widen its footprint, even as alkaline remains the volume leader.
Note: Segment shares of all individual segments available upon report purchase
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By Form Factor: Special Shapes Surge for Industrial IoT
Cylindrical cells accounted for 59.8% of shipments in 2025, anchored by legacy device compatibility in consumer electronics. D-cell demand persists in flashlights and emergency lanterns distributed via rural-electrification programs.
Special-shape prismatic and custom cells are rising at a 9.6% CAGR because industrial and medical OEMs require slim designs for sensors and wearables. Flat prismatic lithium cells sealed into soil probes withstand harsh Cerrado field conditions without housings that fit cylindrical forms. Coin and button cells fuel implantables and watches, benefiting from silver-oxide and zinc-air chemistries. Premium pricing offsets lower volumes, improving supplier margins relative to commoditized cylindrical SKUs.
By Application: IoT Sensors Eclipse Consumer-Electronics Growth
Consumer electronics still held 40.1% of the South America primary battery market in 2025, but the segment inches forward as rechargeables cannibalize alkaline replacements. IoT sensors used in precision agriculture, mining telemetry, and smart-city infrastructure are advancing at a 10.2% CAGR, propelling the South America primary battery market size for this niche ahead of legacy consumer gadgets.
Industrial OEMs choose Li-SOCl₂ cells for 10-year maintenance-free operation in remote meters and factory sensors. Medical applications, although smaller in volume, command premium pricing for implant-grade lithium and zinc-air button cells that satisfy safety and longevity mandates. Defense and aerospace remain high-margin corners, with Saft and Ultralife shipping Li-SOCl₂ packs for Andean tactical radios and maritime beacons.
Note: Segment shares of all individual segments available upon report purchase
Get Detailed Market Forecasts at the Most Granular Levels
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Geography Analysis
Brazil contributed 43.4% of regional revenue in 2025, combining great consumer-electronics demand with expanding agribusiness IoT deployments that depend on lithium primary cells. Port congestion in Santos and Paranaguá lifts landed costs 12%-18% above North American benchmarks, squeezing distributor margins and tilting industrial tenders toward price-aggressive Chinese brands. CONAMA’s stricter disposal rules are nudging retailers toward mercury-free products and imposing take-back compliance overhead.
Chile is the fastest-growing market at 9.9% CAGR through 2031, fueled by copper-mining telemetry, renewable-energy monitoring, and disaster-preparedness stockpiling. The SEC’s 2025 specification for sub-zero-rated backup cells in Magallanes and Aysén solidified demand for Li-SOCl₂ formats. Extended producer-responsibility mandates compel importers to finance collection kiosks, adding logistical complexity but giving early movers a reputational edge.
Argentina’s market is volatile due to currency depreciation and tariff swings, yet pilot battery-sharing kiosks in Buenos Aires and Córdoba hint at future disruption if scaled nationally. Colombia and Peru are emerging segments, driven by disaster-relief stockpiles and rural electrification programs that distribute battery-powered radios and lanterns. Smaller economies such as Uruguay, Bolivia, and Paraguay exhibit heterogeneous demand profiles tied to electrification rates and mining or agricultural activity, keeping supply chains fragmented.
Note: Segment shares of all individual segments available upon report purchase
Competitive Landscape
The South America primary battery market is moderately concentrated. Duracell, Energizer, and Panasonic control roughly 55%-60% of retail alkaline volume via supermarket and pharmacy channels. Chinese manufacturers, Ningbo Hi-Watt, Shenzhen MUSTANG, Zhongyin, undercut incumbents by 15%-25% in industrial tenders, leveraging low manufacturing costs and flexible payment terms.
Saft and Ultralife command high-margin defense and aerospace niches with Li-SOCl₂ packs certified for harsh-environment radios and beacons; Saft’s 2025 Latin America defense sales rose 12% on Chilean and Colombian contracts. Rayovac Brasil benefits from Zona Franca tax incentives in Manaus, enabling localized assembly that tempers tariff exposure.
Technology differentiation in alkaline remains slight, so shelf placement and promotions dominate retail competition. In contrast, proprietary cathode recipes and long-life guarantees generate pricing power in lithium segments. Patent filings, such as Ultralife’s 2024 Li-CFx formulation that extends implantable runtime 18%, signal ongoing innovation, especially for medical markets. Agritech startups bundling sensors with multiyear battery-replacement contracts represent a nascent competitive layer as service models gain traction among large soy and cattle producers.
South America Primary Battery Industry Leaders
Energizer Holdings Inc.
Duracell Inc.
Panasonic Corp.
GP Batteries International Ltd.
Camelion Battery Co. Ltd.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- January 2026: US-based Energizer Holdings, a key player in the primary battery manufacturing and distribution arena, has unveiled a new initiative: recyclable, plastic-free packaging for its products, including primary batteries. The company highlighted that its innovative paper-based packaging, crafted to elevate both consumer experience and retail displays, is set to make its first appearance at Walmart stores nationwide in March. Following this debut, a wider rollout is on the horizon, extending to other countries, notably in South America, later this year.
- August 2024: Duracell, a global leader in high-performance batteries, has unveiled a new range of lithium coin batteries with a focus on child safety. Offered in sizes CR2032, CR2025, and CR2016, the latest line boasts a non-toxic bitter coating and comes in child-resistant packaging, both aimed at minimizing the risk of accidental ingestion by young children.
South America Primary Battery Market Report Scope
Primary batteries are used to supply power to a wide range of electrical equipment, such as consumer electronics and implantable medical devices.
The South America primary battery market is segmented by type, form factor, application, and geography. By type, the market is segmented into alkaline, primary lithium, zinc-air, zinc-carbon/chloride, silver-oxide and others. By form factor, the market is segmented into cylindrical, coin and button cells, prismatic/packaged, and others. By application, the market is segmented into consumer electronics, industrial and OEM, medical and healthcare, defence and aerospace, IoT sensors and smart-infrastructure. The report also covers the market size and forecasts for the South America primary battery market across the major countries in the region. The market size and forecasts for each segment have been done based on revenue (USD billion).
By Type
| Alkaline |
| Primary Lithium (Li-MnO₂, Li-SOCl₂, Li-CFx) |
| Zinc-Air |
| Zinc-Carbon/Chloride |
| Silver-Oxide and Others |
By Form Factor
| Cylindrical (AA, AAA, C, D) |
| Coin and Button Cells |
| Prismatic/Packaged |
| Others (Special shapes) |
By Application
| Consumer Electronics |
| Industrial and OEM |
| Medical and Healthcare |
| Defence and Aerospace |
| IoT Sensors and Smart-Infrastructure |
By Geography
| Brazil |
| Argentina |
| Colombia |
| Chile |
| Peru |
| Rest of South America |
| By Type | Alkaline |
| Primary Lithium (Li-MnO₂, Li-SOCl₂, Li-CFx) | |
| Zinc-Air | |
| Zinc-Carbon/Chloride | |
| Silver-Oxide and Others | |
| By Form Factor | Cylindrical (AA, AAA, C, D) |
| Coin and Button Cells | |
| Prismatic/Packaged | |
| Others (Special shapes) | |
| By Application | Consumer Electronics |
| Industrial and OEM | |
| Medical and Healthcare | |
| Defence and Aerospace | |
| IoT Sensors and Smart-Infrastructure | |
| By Geography | Brazil |
| Argentina | |
| Colombia | |
| Chile | |
| Peru | |
| Rest of South America |
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Key Questions Answered in the Report
How large is the South America primary battery market in 2026?
The market stood at USD 1.06 billion, with the trajectory continuing towards USD 1.38 billion by 2031 at a 5.41% CAGR.
Which battery chemistry is growing fastest across South America?
Primary lithium chemistries, led by Li-MnO? and Li-SOCl?, are forecast to expand at 8.7% annually through 2031, driven by medical devices and IoT sensors.
Why is Chile the fastest-growing market in the region?
Copper-mining telemetry, disaster-preparedness stockpiling, and off-grid renewable monitoring push Chile to a 9.9% CAGR, the highest in South America.
What role do IoT sensors play in future battery demand?
IoT applications in agribusiness, mining, and smart cities are advancing at 10.2% CAGR, increasingly influencing product mix toward long-life lithium cells.
How are disposal regulations affecting battery suppliers?
Brazil and Chile have introduced strict take-back and heavy-metal limits, prompting suppliers to shift toward mercury-free chemistries and invest in recycling logistics.
Which companies dominate retail sales of primary batteries?
Duracell, Energizer, and Panasonic collectively control around 55%-60% of retail alkaline volume through supermarket and pharmacy channels.
