Chile's Pesticide Market: Legacy Agricultural Chemical Companies Maintain Dominance

Chile, located at the southernmost tip of the South American continent, is often referred to as the ″Country at the End of the World.″ As a key economic and trade partner of China in Latin America and the Caribbean, Chile has enjoyed long-term, stable, and fruitful relations with China.

In recent years, Chinese direct investment in Chile has surged significantly. By the end of 2023, China’s direct investment stock in Chile reached US$1.598 billion, spanning a wide range of sectors, including agriculture, electricity, mining, and infrastructure. China has held the position of Chile’s largest trading partner, top export market, and largest source of imports for 13 consecutive years, making the China-Chile relationship a model of win-win cooperation between developing countries.

Chilean Agriculture and Fruit Industry: Key Export Sectors

Chile is the largest exporter of fresh fruit in the Southern Hemisphere, annually exporting 75 types of fruit to over 100 countries and regions worldwide. The country has a fruit cultivation area of approximately 340,000 hectares, with fruit exports reaching a record US$7.053 billion in the first half of 2024. 

Notably, cherries, table grapes, and blueberries have shown particularly strong export performance, with China, the United States, and Europe being the main markets. For instance, cherry exports surged to US$1.961 billion, marking a 26.4% year-on-year increase, and solidifying cherries as a flagship export product of Chile.

Another critical area of Chilean agriculture is the production of key food crops. In the 2021/22 season, the country produced 1.1069 million tons of wheat, 1.0245 million tons of potatoes, and 608,000 tons of corn, providing a strong foundation for its agricultural sector.

Chilean Wine: An Emerging International Brand

Chile’s unique geographical conditions and Mediterranean climate create ideal conditions for grape cultivation. Since the 1990s, the country’s wine industry has rapidly expanded, positioning Chile as one of the emerging wine production regions globally. The main grape varieties include Cabernet Sauvignon, Carmenère, Merlot, and Sauvignon Blanc.

In 2023, Chile’s total wine exports reached US$1.2336 billion, reflecting a year-on-year decline of 20.7%, primarily due to the global wine inventory surplus. However, exports to China showed promising signs of recovery, with export volume increasing by 20.5% and export value rising by 7.9%. Additionally, demand in Brazil, Japan, and Europe has gradually regained momentum.

Key wine producers in Chile include Concha y Toro, Santa Rita, and San Pedro. Concha y Toro, the largest wine producer in the country, operates 50 vineyards and holds the second-largest planting area in the world. Its products are exported to 135 countries and regions.

Chile’s natural advantages and abundant agricultural resources have drawn the attention of global agrochemical companies. The following article will explore the pesticide registration landscape in Chile, analyzing the market characteristics and development opportunities within this sector.

As of now, Chile has issued a total of 1,449 pesticide registration certificates, involving 91 pesticide manufacturers. Among these, conventional chemical pesticides dominate, with 1,417 registrations, accounting for 97.79%. Biological pesticides are limited, with only 32 registrations, representing just 2.21%.

Data Source: Chile Federal Food Safety and Veterinary Office

Data Time: Aug. 29, 2024

When sorted by the number of registration certificates, the top ten manufacturers are: Point Industrial y Comercial Chile SA, Corteva, Adama, Agrospec SA, Sumitomo, Bayer, BASF, Syngenta, UPL, and Anasac Chile SA. Together, these ten companies have registered a total of 980 products, accounting for 67.63% of the total registrations, nearly 70%. Among them:

        •   Anasac Chile SA ranks first with 223 registered products, making up 15.39% of the total;

        •   UPL ranks second with 174 registered products, accounting for 12.01%.

These two companies alone represent more than 10% of the market, highlighting their strong competitive position. An interesting trend in Chile’s pesticide registration market is the dominance of traditional multinational companies. The four major multinational pesticide companies occupy positions in the top 10, alongside well-established players like UPL, Adama, and Sumitomo. This indicates that the Chilean pesticide market remains largely dominated by traditional industry leaders, with few new entrants.

Data Source: Chile Federal Food Safety and Veterinary Office

Data Time: Aug. 29, 2024

After classifying the 1,449 pesticide products registered in Chile by dosage form, the top ten forms are: Water Soluble Powder、Emulsion.oil In Water、Water Soluble Granule、Suspension Concentrate For Seed Treatment、Dustable Powder、Water Dispersible Granule、Wettable Powder、Soluble Concentrate、Emulsifiable Concentrate and Suspension Concentrate.    

Among these:

    •   Suspension Concentrate ranks first with 351 products, accounting for 24.22%;

    •   Emulsifiable Concentrate ranks second with 215 products, making up 14.84%;

    •   Soluble Concentrate rank third with 193 products, accounting for 13.32%;

    •   Wettable Powder follow with 186 products, representing 12.84%;

    •   Water Dispersible Granule rank fifth with 165 products, accounting for 11.39%.

Together, these five dosage forms account for nearly 76.6% of the market, holding a significant share. Notably, the sixth-ranked dustable powder form has only 54 products, reflecting a sharp drop-off in comparison to the leading forms.

Data Source: Chile Federal Food Safety and Veterinary Office

Data Time: Aug. 29, 2024

In terms of pesticide product types, conventional products—such as fungicides, insecticides, and herbicides—account for a total of 1,349 registration certificates, representing 93.10% of the market.

Breaking it down:

        •   Fungicides hold the largest share, with 718 registrations, accounting for 49.55%;

        •   Herbicides rank second, with 325 registrations, representing 22.43%;

        •   Insecticides come third, with 306 registrations, making up 21.12%.

These three categories together account for 93.10% of the market, underscoring their core position in the Philippine pesticide industry. Notably, fungicides alone dominate, comprising nearly 50% of the market share.

Data Source: Chile Federal Food Safety and Veterinary Office

Data Time: Aug. 29, 2024

The top 10 active ingredients in pesticides account for a total of 156 registered products, representing 10.77% of the market.

     • Imidacloprid ranks first, with 43 products, accounting for 2.97%;

     • Acetamiprid and Lambda-Cyhalothrins rank second, with 20 products, accounting for 1.38%;

     • Abamectin ranks third, with 16 products, accounting for 1.10%;

     • Aluminum phosphide ranks fourth, with 11 products, accounting for 0.76%;

     • Cyantraniliprole ranks fifth, with 9 products, accounting for 0.62%;

     • Chlorantraniliprole ranks sixth, with 7 products, accounting for 0.48%;

     • Beta-Cyfluthrin, bifenthrin, permethrin, pyriproxyfen, and thiacloprid rank seventh, each with 6 products, accounting for 0.41%.

Data Source: Chile Federal Food Safety and Veterinary Office

Data Time: Aug. 29, 2024

The top 10 active ingredients in herbicides account for a total of 107 registered products, representing 7.38% of the market.

    •   Glyphosate isopropylammonium salt ranks first, with 17 products, accounting for 1.17%;

    •   Metsulfuron-methyl ranks second, with 14 products, accounting for 0.97%;

    •   Diuron and atrazine rank fourth, each with 10 products, accounting for 0.69%;

    •   Simazine, oxyfluorfen, nicosulfuron, and glyphosate potassium salt rank fifth, each with 9 products, accounting for 0.62%;

    •   2,4-D dimethylamine salt ranks sixth, with 8 products, accounting for 0.55%.

Data Source: Chile Federal Food Safety and Veterinary Office

Data Time: Aug. 29, 2024

The top 10 active ingredients in fungicides account for a total of 395 registered products, representing 27.26% of the market.

    •   Copper preparations rank first, with 89 products, accounting for 6.14%;

    •   Tebuconazole ranks second, with 59 products, accounting for 4.07%;

    •   Sulfur ranks third, with 53 products, accounting for 3.66%;

    •   Mancozeb ranks fourth, with 41 products, accounting for 2.83%;

    •   Thiophanate ranks fifth, with 33 products, accounting for 2.28%;

    •   Fludioxonil ranks sixth, with 27 products, accounting for 1.86%;

    •   Difenoconazole ranks seventh, with 26 products, accounting for 1.79%;

    •   Azoxystrobin ranks eighth, with 23 products, accounting for 1.59%;

    •   Iprodione and kresoxim-methyl rank ninth, with 22 products, each accounting for 1.52%.

Data Source: Chile Federal Food Safety and Veterinary Office

Data Time: Aug. 29, 2024