Latin America Specialty Fertilizers Market Research Report: Forecast (2023-2028)

Market Definition

Specialty fertilizers are a category of fertilizers formulated to address specific nutritional deficiencies of various crops & soil conditions and ensure optimal plant growth & productivity. They are gaining significant traction across different regions worldwide, including Latin America, where farmers are increasingly embracing them to enhance nutrient efficiency, maximize yields, and reduce environmental impact.

Market Insights & Projections: Latin America Specialty Fertilizers Market (2023-28)

The Latin America Specialty Fertilizers Market size is valued at around USD 11.4 billion in 2024 and is projected to grow at a CAGR of around 7.63% during the forecast period, i.e., 2023-28. The growth of the market imputes to the growing focus on sustainable agriculture practices, backed by environmental concerns & regulatory measures, coupled with the ever-increasing demand for high-quality & nutrient-rich crops and the soil variability & crop diversity in the region. With the rising population & its ever-evolving food requirements, Latin American countries, particularly Mexico & Brazil, are actively focusing on enhancing agricultural productivity and thus are showing greater interest in specialty fertilizers to provide essential nutrients to crops, improve their efficiency, and maximize yields & quality, thereby driving the market.

Moreover, remarkable advances in fertilization technologies and precision agriculture tools are also contributing to the widening acceptance of specialty fertilizers by enabling farmers to precisely assess nutrient requirements, apply fertilizers accurately, and monitor crop responses. Governments in Latin America are proactively promoting sustainable agricultural practices and offering support & incentives to farmers embracing specialty fertilizers. 

American organizations & agencies have been playing a dynamic role in taking various sustainable agriculture and food security initiatives for Latin America. The US, through multiple governmental programs, non-profit organizations, & private sector involvement, has supported such initiatives, focusing on areas like organic farming & certification, agroecology, sustainable land management, & capacity building, among others, in order to address challenges related to soil degradation, climate change, & water scarcity and enhance food security & rural livelihoods.

Furthermore, the growing adoption of precision agriculture practices, such as soil testing, variable rate application, & foliar feeding, is another aspect augmenting the demand for specialty fertilizers in the region to provide precise nutrient application based on soil & crop needs, consequently creating new avenues for the Latin America Specialty Fertilizers Market to expand notably in the years ahead.

Latin America Agriculture Industry Outlook, 2023

The agriculture industry in Latin America has remarkable potential and is a significant contributor to the region's economy. It is one of the world's largest agricultural exporters and produces a diverse range of crops, including soybeans, coffee, beef, sugar, & maize. According to the OECD-FAO Agricultural Outlook, in 2022, agriculture accounted for 5-18% of GDP in Latin America. Furthermore, Brazil ranks among the world's ten largest economies and is the second-largest global supplier of food & agricultural products. The country is dignified to become the foremost supplier in meeting additional global demand, arising mainly from Asia. Thus, the increasing productivity to meet the growing demand for food & agricultural products, both domestically & internationally, is creating the need for specialty fertilizers in Latin America.

Latin America Specialty Fertilizers Market Driver

Increasing Population & Consumer Demand for Sustainable Food - The population of Latin America is rising at a notable pace and, consequently, creating immense food requirements. Specialty fertilizers help farmers produce more food with fewer resources, which makes them an attractive option for farmers looking for increased yields & productivity. Along with this, more & more consumers are becoming increasingly aware of the adverse impact of traditional agricultural practices on the environment and thus are seeking more sustainable food options. As a result, farmers are adopting specialty fertilizers to minimize nutrient runoff & environmental pollution and promote soil health. It is helping farmers to reduce the use of pesticides, implement sustainable irrigation systems, and reduce greenhouse gas emissions. Moreover, active government efforts to promote sustainable agriculture and improve agricultural productivity, such as subsidies, tax incentives, & various programs that encourage the adoption of specialty fertilizers, are also set to boost the market in the coming years.

Latin America Specialty Fertilizers Market Challenge

Variable Weather Conditions & Water Quality- Latin America experiences periods of excessive rainfall and heavy precipitation, which result in soil erosion, surface runoff, and nutrient leaching. Specialty fertilizers, particularly water-soluble or fast-release formulations, can be prone to nutrient loss through leaching in such conditions and, in turn, lead to inefficient nutrient utilization by crops and economic losses for farmers, thereby hampering the specialty fertilizers market growth. Also, periods of heavy rainfall often cause flooding & soil erosion, particularly in regions with inadequate soil conservation practices, and wash away topsoil, organic matter, and nutrients, degrading the soil's fertility. Specialty fertilizers are only partially effective in flooded or eroded soils, as the nutrients do not reach the crop's root zone and get washed away before being absorbed by plants. Hence, insufficient or excessive soil moisture can negatively impact the availability & uptake of nutrients and, subsequently, restrain the growth of the Latin America Specialty Fertilizers Market in the coming years.

Latin America Specialty Fertilizers Market Opportunity

Growing Pressure and New Regulations from Governments to Improve Nitrogen Use Efficiency (NUE) - With several regulations imposed by governments to minimize the environmental impacts of agricultural practices, including the need to reduce nitrogen losses and promote sustainable agriculture, Latin America is set to witness an increased demand for specialty fertilizers in the coming years. According to the EU Nitrogen Expert Panel, an optimal NUE should be around 50-90%, while the average global NUE currently ranges between 45%-50%. Although some cropping systems in Brazil, Mexico, etc., are touching approximately 70% NUE, other countries like Chile & Peru have relatively lower NUE. Hence, farmers are actively adopting specialty fertilizers to optimize their fertilizer investments, increase crop yields, and minimize their environmental footprint, consequently creating remunerative prospects for the leading players operating in the Latin America Specialty Fertilizers Market.

Latin America Specialty Fertilizers Market Trend

Site-Specific Nutrient Management of Crops through Precision Agriculture - Latin American countries are witnessing increasing concerns over food security, the rising adoption of precision farming techniques, and various government initiatives toward promoting precision agriculture. Precision agriculture includes remote sensing, soil sampling, and GPS-guided equipment, where farmers precisely identify nutrient deficiencies or imbalances within specific areas of their fields. This information allows them to apply specialty fertilizers more accurately and target specific nutrient requirements rather than using a uniform approach for the entire field. Additionally, there's a surging adoption of drones & other UAVs (Unmanned Aerial Vehicles) in agriculture, i.e., favoring precision agriculture and, in turn, augmenting the demand for specialty fertilizers in the region.

Latin America Specialty Fertilizers Market (2023-28): Segmentation Analysis

The Latin America Specialty Fertilizers Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–28. Based on the analysis, the market has been further classified as:

Based on Crop Type:

• Cereals & Grains
  • Wheat
  • Rice
  • Corn
  • Others (Sugarcane, Cotton, etc.)
• Fruits & Vegetables
  • Leafy Vegetables
  • Roots & Tuber Vegetables
  • Citrus Fruits
  • Others (Pome, Stone, Grapes, etc.)
• Oilseed & Pulses
  • Soybean
  • Sunflower
  • Others (Rapeseed, Niger, etc.)

Among all, Cereals & Grains hold a significant share of the Latin America Specialty Fertilizers Market. It owes to Brazil & Mexico being major producers of soybeans, corn, & rice, which are the essential cereal & grain crops in the region. According to the United States Department of Agriculture (USDA), Brazil is the world's second-largest producer of soybeans. As a result, to optimize planting & fertilization strategies, farmers in Latin America adopt specialty fertilizers to improve yields & reduce environmental impact, which helps them analyze the soil in their fields with greater accuracy and determine soil composition & nutrient levels, among other factors that can affect crop growth, consequently, driving the market.

Based on Form:

• Controlled Release Fertilizers
• Slow Release Fertilizers
• Water Soluble Fertilizers
• Liquid Fertilizers
• Others (Micronutrients, Granular, etc.)

Here, Controlled Release Fertilizers (CRFs) witnessed considerable growth in the specialty fertilizers market in previous years, backed by the increasing emphasis on sustainable agricultural practices across Latin America. CRFs provide a slow & steady release of nutrients over an extended period, ensuring a continuous supply of essential elements to plants. This controlled release improves nutrient use efficiency, reduces nutrient losses through leaching or volatilization, and minimizes over-fertilization risks. More & more farmers are realizing the benefits of CRFs in optimizing crop growth, improving yields, & enhancing overall crop efficiency. Hence, the mounting demand for CRFs to maintain optimal nutrient levels in the root zone, reduce the risk of nutrient deficiencies, and improve soil nutrient management is set to create lucrative prospects for the specialty fertilizers industry in Latin America over the coming years.

Latin America Specialty Fertilizers Market (2023-28): Regional Analysis

Geographically, the Latin America Specialty Fertilizers Market expands across:

• Mexico
• Brazil
• Argentina
• Columbia
• Chile
• Peru
• Rest of South America

Of all countries in Latin America, Mexico is projected to attain a significant share of the Specialty Fertilizers Market during 2023-28 as the country faces water scarcity & irregular rainfall patterns in certain regions, along with soil nutrient deficiencies or imbalances, leading to limited irrigation resources for agricultural activities and negatively impacting crop growth & productivity. Hence, in order to reduce nutrient leaching, preserve water quality, promote sustainable agriculture practices, and optimize water management, the country is witnessing high demand for specialty fertilizers, particularly CRFs.

Moreover, since Mexico is a significant exporter of agricultural products, including fruits, vegetables, & processed foods, farmers often utilize specialty fertilizers to enhance crop quality, increase yields, & comply with export regulations, ensuring high-quality products and meeting international standards. This export-oriented agriculture is another prominent aspect propelling the demand for specialty fertilizers in the country and, consequently, fueling the overall market growth in Latin America.

Latin America Specialty Fertilizers Industry Recent Developments:

• In 2023, Manttra Americas, a manufacturer & distributor of specialty fertilizers in Latin America, and Grupo Industrial Monclova opened a new production facility in Coahuila, Mexico, which comes under the joint venture ManttraGimsa and has a capacity of 100,000 tonnes/year of specialty fertilizers, including formulations of micronutrients, fulvic acids & amino acids.
• In 2022, EuroChem Group AG completed the acquisition and purchase of Brazilian distributor Fertilizantes Heringer SA, with around 51.48% of the shares. Under this acquisition, the company aims to strengthen its production & distribution capacity in Brazil, one of the world's most important crop nutrient markets.

Gain a Competitive Edge with Our Latin America Specialty Fertilizers Market Report

• Latin America Specialty Fertilizers Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Latin America Specialty Fertilizers Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.