This is a best prospect industry sector for this country. Includes a market overview and trade data.
Despite the economic effects of the global pandemic, Brazil’s demand for chemical imports remains extremely high, presenting exciting opportunities for U.S. companies ready to export. In the past 30 years, Brazilian chemical imports have increased by more than 1,200%. Traditionally, the Brazilian chemical industry has been very receptive to American chemicals imports. Both Brazilian importers and distributors are continually seeking new suppliers, particularly from the United States, which enjoys a reputation for high-quality products coupled with often competitive prices.
Yearly Two-way Trade Data for Brazilian Chemical Market
Imports: US$ 41.4 billion
Exports: US$ 10.9 billion
Trade Deficit: US$ 30.5 billion
Imports: US$ 44.1 billion
Exports: US$ 12.6 billion
Trade Deficit: US$ 31.5 billion
Imports: US$ 43.3 billion
Exports: US$ 13.7 billion
Trade Deficit: US$ 29.6 billion
(Source: Brazilian Chemical Industry Association (ABIQUIM))
In the first half of 2021, Brazil imported US$ 25 billion in chemical products, an impressive 27.8% increase compared to the same period in 2020. Assuming the trend continues into the coming years, imports of chemical products will hit new records in Brazil.
On average, U.S. chemical suppliers account for roughly 16% of Brazil’s annual chemical imports. During this period of heightened demand, U.S. exporters have a great opportunity to increase their market share against international competitors and should consider the unique market conditions in Brazil when looking to expand their footprint abroad.
CS Brazil has identified 5 sub-sectors that appear particularly advantageous for U.S. suppliers: pharmaceuticals, inorganics, organics, resins and pesticides. However, there is still considerable potential to be explored in other sub-sectors as well and exporters are encouraged to speak with an export specialist to identify the local demand for different chemical products in Brazil.
Currently, fertilizers for Brazil’s massive agriculture industry remain the product with the highest demand, amounting to roughly US$ 8 billion and 31 million tons imported in 2020.
Brazil imports several other chemical products (raw materials) such as potassium chloride, urea, monoanionic or monoamoniacal phosphate, immunological products, insecticides, mediation containing nitrogenated heterocyclic, fungicides, herbicides, vaccines, ammonium sulfate, caustic soda, among others.
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