Brazil Fertilizer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Brazil Fertilizer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Brazilian fertilizer market is projected to register a CAGR of 4.4% during the forecast period (2021-2026).

The impact of the COVID-19 pandemic on Brazil's fertilizer market has been minimal, mainly attributed to reduced transportation barriers. All manners of agricultural activities have been exempted from lockdown restrictions; hence there has been no groundbreaking effect of the pandemic on this sector. In fact, the fertilizer market has registered positive growth compared to last year, due to the panic buying behavior of the farmers.

The potential expandable agricultural land, growing demand for micronutrient fertilizers, and government subsidies for agricultural inputs are the major factors driving the growth of the market studied. Currently, 33.0% of the country’s total land area is used for agriculture. Brazil, being a large agricultural producer, offers many opportunities for agrochemical companies. The market is witnessing several joint ventures between global players who are likely to increase their market share and make the Brazilian fertilizer market a technology-based fertilizer market.

Key Market TrendsIncreasing Fertilizer Imports in Brazil

According to the National Fertilizer Association (ANDA), in the first ten months of 2018, the total volume of fertilizer supplied to the Brazilian market increased by 3.9%. The survey conducted by ANDA revealed that average spending by farmers on fertilizer has continued to increase as it has become more difficult to expand the planted areas. The trade statistics of the country are likely to remain heavily dependent on fertilizer imports. Brazil’s fertilizer imports reached about 75.0% of total domestic use in 2017-18. According to ANDA, fertilizer imports were up by 4.5% in 2018, in line with the historical five-year average. For the first 10 months of 2018, the national fertilizer production was down by 2.9% compared to the previous year, a better performance than the five-year average annual decline of 4%. Thus, the increasing import dependency, coupled with the rising fertilizer use in the country, is likely to accelerate the sales of fertilizers in the years to come.

Potassic Fertilizer Dominates the Market

Brazil accounts for 66.0% of total domestically-used fertilizer in South America and is continuing to expand its crop cultivating area. Hence, the fertilizer demand increased in recent years. This trend is expected to continue, even though the planted area did not expand as fast in 2018 as it did in the years before that. According to the FAO, murate of potash acquired the largest share in the potassic fertilizer usage in agriculture, accounting for 499.08 thousand ton by volume in 2016 and 484.87 thousand metric ton by volume in 2017. Potassic is the fastest-growing fertilizer segment due to increasing soybean cultivation in Brazil. Furthermore, potassic fertilizer is suitable for the low-fertile and acidic soils of tropical Brazil, which helps in increasing the yield and productivity of the agricultural crop; this is driving the growth of the segment

Competitive Landscape

The Brazilian fertilizer market is fairly fragmented. The companies in the market are not only competing based on product quality and promotion but are also focused on strategic moves to hold larger market shares. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the Brazilian fertilizer market. Fertilizantes Heringer S.A., Yara International ASA, The Mosaic Company, Nutrien Ltd, and Eurochem Group are some of the key players operating in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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