South America Fertilizer Market Outlook, 2029

South America is a vital agricultural hub, characterized by diverse climatic zones and rich soil types that support a wide range of crops. Major agricultural countries like Brazil and Argentina lead the region in crop production, with Brazil being the world's largest exporter of soybeans and the second-largest producer of corn. The extensive plains of the Pampas in Argentina and the fertile cerrado in Brazil are critical agricultural areas where fertilizers play a crucial role in enhancing crop yields. Fertilizer application is particularly important for nutrient-intensive crops like soybeans, maize, and wheat, which require balanced fertilization to achieve optimal growth. In Brazil, nitrogenous fertilizers such as urea and ammonium nitrate are widely used, while phosphorus fertilizers like DAP and MAP are essential for improving root development. Additionally, potassium chloride (MOP) is increasingly applied to enhance the quality and resilience of crops against environmental stress. The region faces challenges such as soil degradation and nutrient depletion, prompting a stronger focus on sustainable agricultural practices and precision farming technologies. According to the research report, "South America Fertilizer Market Outlook, 2029," published by Bonafide Research, the South America Fertlizer market is anticipated to add to more than USD 4.50 Billion by 2024–29. The fertilizer market in South America is witnessing significant growth, driven by increasing agricultural production to meet both domestic needs and global export demands. As major agricultural producers, Brazil and Argentina play pivotal roles, with Brazil being the world's largest exporter of soybeans and the second-largest producer of corn. The demand for fertilizers, particularly nitrogenous, phosphorus, and potassium-based products, is rising due to the intensification of farming practices aimed at improving crop yields. Recent trends indicate a shift towards sustainable agriculture, with farmers increasingly adopting precision farming technologies and environmentally friendly fertilizers, including bio-based options. The use of controlled-release and slow-release fertilizers is gaining traction, allowing for more efficient nutrient management and reduced environmental impact. Additionally, the growing focus on organic farming is driving demand for organic fertilizers, as consumers increasingly seek sustainably produced food. Challenges such as soil degradation, nutrient depletion, and climate change are prompting governments and agricultural organizations to invest in research and development for innovative fertilizer solutions and practices.

Brazil and Argentina are top exporters of agricultural goods while Colombia has coal & natural gas reserves. Brazil has come out be a leader due to large investments in research & developments and credit systems in rural areas. Argentina has adopted modern farming techniques like no-tilling land, genetically modified seeds in spite of export taxes levied. Brazil is the top fruit growing country with 39.8 Million Tonnes and increasingly producing soybeans. Unlike other regions, fertilizers account for highest application for the growing of fruits & vegetables in this country. Argentina grows soybeans, wheat, maize, grapes, sunflower seeds, sugarcanes and apples. Earlier soybeans were not cultivated but with increasing demand and profits in soybeans the farmers have shifted preferences. It accounts for third largest producer of soybeans after USA and Brazil. Colombia has approximately 10% of world plantation species with Encenillo Tree, Palma de Cera, Pekea Nut Tree, and Marmalade Bush. Colombia is again a major fruits & vegetable producing country of South America. Some of its major crops include bananas, lemons, berry, onion, oranges and pineapple. In South America, the application segment of the fertilizer market is experiencing robust growth, largely driven by the increasing demand for cereals and grains, vegetables and fruits, and oilseeds and pulses. Cereals and grains, particularly soybeans and maize, dominate fertilizer usage in the region due to their significant contribution to both domestic consumption and export markets; Brazil and Argentina are among the top global producers of these crops. Nitrogen-based fertilizers, such as urea and ammonium nitrate, are extensively applied to maximize yields in these crops, with demand projected to continue rising as farming intensifies. The vegetable and fruit sector is also expanding, especially in countries like Chile and Brazil, where favorable climates support diverse crop production. Fertilizers such as potassium and phosphorus-based products are crucial in enhancing quality and production levels in this segment. The oilseeds and pulses market, particularly soybeans, is growing due to rising global demand for plant-based proteins, leading to increased fertilizer applications to optimize yields The South American fertilizer market has witnessed a significant surge in the growth of the Physical Formulation segment, encompassing both dry and liquid formulations. Dry fertilizers, such as granular and powdered formulations, have gained immense popularity due to their ease of application, uniform distribution, and extended shelf life. These dry products cater to a wide range of crop types, providing essential nutrients in a concentrated form that can be easily incorporated into the soil. Conversely, the liquid fertilizer segment has also experienced remarkable expansion, driven by the need for precision agriculture and targeted nutrient delivery. Liquid formulations, including solutions and suspensions, offer enhanced absorption and rapid plant uptake, making them particularly attractive for foliar applications and fertigation systems. The versatility of these physical formulations has allowed farmers in the South American region to tailor their fertilizer strategies to meet the specific needs of their crops and soil conditions, ultimately enhancing agricultural productivity and sustainability.

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Manmayi Raval

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COVID-19 Impacts: The pandemic however did not much affect the region’s agricultural production critically but the input materials flow was affected. Before the seed sowing season the farmers were short of fertilizers which can impact the output crops. Farmers had less liquidity to purchase and labour movements were restricted. This crisis can be overcome by converting primary production to more sustainable one through technology and government support. Major Companies present in the market The Mosaic Company, Yara International, Nutrien Limited, K+S Aktiengesellschaft, OCP Group, CF Industries Holdings, Sociedad Química y Minera de Chile (SQM), National Fertilizers Limited Coromandel International Limited, EuroChem Group, Wesfarmers, Indian Farmers Fertilizer Co-operative Limited (IFFCO)

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Considered In the Report • Geography: South America • Historical year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecasted year: 2029 Aspects covered in this report • South America fertilizer market with its value and forecast along with its segments • Country-wise fertilizer market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Countries covered: • Brazil • Argentina • Colombia By nutrient in the report • Nitrogenous fertilizer (Urea, ammonium sulphate, Calcium ammonium nitrate/ ammonium nitrate, others UAN, anhydrous ammonia etc.) • Phosphate fertilizer (Diammonium phosphate, monoammonium phosphate, others phosphate rock, superphosphates etc.) • Potash fertilizer (Muriate of potash/potassium chloride, sulphate of potash others potassium nitrate etc.) • Complex fertilizer (NPK, NK, PK, NP compounds etc.) By Product type in the report: • Urea • Ammonium sulphate • Calcium ammonium nitrate/ Ammonium nitrate • Di-ammonium phosphate (DAP) • Mono-ammonium phosphate (MAP) • Muriate of potash (MOP)/ (KCl) • Sulphate of potash (SOP) • Complex (NPK, NK, PK, NP) By physical formulation in the report: • Dry • Liquid By Application in the report: • Vegetable & Fruits • Cereals & Grains • Oilseeds & Pulses • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to fertilizer industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.