Market Overview – Chile
March 2019
Market snapshot
Chile is a small but affluent market with a population of 18.1 million people, expected to increase to approximately 19.1 million by 2025. The poverty rate has declined from 26.0% to 7.9% between 2000 and 2015, however, the country has one of the most unequal income distribution level throughout the world.
Chile had a total gross domestic product (GDP) valued at US$277.4 billion in 2017, a 10.8% increase from US$250.3 billion in 2016.
Chile is a net exporter of agri-food and seafood products with total exports of US$16.1 billion (total imports of US$6.5 billion) in 2017, an increase of 0.2% from 2016.
An ageing and more health conscious population are increasingly demanding food with easy-to-use packaging and more nutritional foods. This will lead to growth in health and wellness and packaged foods.
Packaged food sales were valued at US$14.8 billion in 2017 and are anticipated to reach US$20.5 billion by 2022.
The top packaged food company in Chile in 2017 was Nestlé Chile SA with a 10.6% retail value share, followed by Soprole SA (6.1%) and Watt's SA (6.1%).
Chile's annual household expenditures per capita reached US$15,059.5 in December 2017 and are expected to increase by 2.9% in real terms in 2018.
Chilean consumers have become more health conscious in recent years as a result of a recent labelling legislation to indicate the nutrition of the foods and drinks they consume. Canadian exporters may find good opportunities if their products contain healthy ingredients, nutritional benefits, low fat, sugar or salt content, or have convenient packaging.
Production
Of Chile's top 10 crops, only sugar beets, corn and peaches and nectarines decreased in production over the 2012 to 2016 period.
Among the top 10 production crops, oats saw the most significant increase in 2016, growing by 26.6% over the volume recorded in 2015. Wheat was the fastest-growing production crop across the whole 2012-2016 period, with a compound annual growth rate (CAGR) of 9.3%. Despite the growth in domestic wheat production, there has been a substantial niche demand for Canadian wheat in which a large portion of the baking industry (and the mills that supply them) recognize the superior value of Canadian wheat for their products.
Top 10 crops (tonnes) | 2012 | 2013 | 2014 | 2015 | 2016 | CAGR* % 2012-2016 |
---|---|---|---|---|---|---|
Grapes | 2,304,953 | 2,325,921 | 2,398,096 | 2,414,784 | 2,473,588 | 1.8 |
Apples | 1,622,620 | 1,729,358 | 1,751,991 | 1,736,153 | 1,759,421 | 2.0 |
Wheat | 1,213,101 | 1,474,663 | 1,358,128 | 1,482,310 | 1,731,935 | 9.3 |
Sugar beet | 1,824,001 | 1,885,621 | 1,732,032 | 2,069,874 | 1,646,680 | −2.5 |
Corn | 1,493,292 | 1,518,545 | 1,186,127 | 1,538,755 | 1,174,487 | −5.8 |
Potatoes | 1,093,462 | 1,158,922 | 1,061,324 | 960,502 | 1,166,024 | 1.6 |
Tomatoes | 739,115 | 836,264 | 909,025 | 967,714 | 997,174 | 7.8 |
Oats | 450,798 | 680,382 | 609,926 | 421,048 | 533,080 | 4.3 |
Dry onions | 344,952 | 339,551 | 324,580 | 311,994 | 346,778 | 0.1 |
Peaches and nectarines | 365,466 | 369,595 | 354,100 | 333,928 | 337,402 | −2.0 |
Source: FAOSTAT, 2018 *CAGR: Compound Annual Growth Rate |
Meat (tonnes) | 2012 | 2013 | 2014 | 2015 | 2016 | CAGR* % 2012-2016 |
---|---|---|---|---|---|---|
Chicken | 566,261 | 577,503 | 567,004 | 607,182 | 627,755 | 2.1 |
Pork | 583,671 | 550,033 | 520,074 | 523,831 | 507,740 | −2.0 |
Cattle | 197,459 | 206,200 | 224,112 | 225,261 | 215,266 | 1.1 |
Turkey | 103,087 | 98,094 | 96,802 | 103,581 | 112,768 | 3.5 |
Source: FAOSTAT, 2018 *CAGR: Compound Annual Growth Rate |
Livestock (head) | 2012 | 2013 | 2014 | 2015 | 2016 | CAGR* % 2012-2016 |
---|---|---|---|---|---|---|
Chickens | 48,002,000 | 47,558,000 | 97,929,000 | 103,259,000 | 107,108,000 | 22.2 |
Cattle | 3,750,000 | 3,007,883 | 3,000,000 | 2,735,857 | 2,836,523 | −6.7 |
Pigs | 3,325,481 | 2,798,868 | 2,431,449 | 2,696,765 | 2,614,670 | −5.8 |
Sheep | 3,650,000 | 3,401,700 | 3,300,000 | 2,185,449 | 2,000,000 | −14.0 |
Source: FAOSTAT, 2018 *CAGR: Compound Annual Growth Rate |
Trade
Chile is a net exporter of agri-food and seafood products. In 2017, Chile's agri-food and seafood trade surplus was US$9.6 billion with imports valued at US$6.5 billion, and exports of US$16.1 billion. Chile's agri-food and seafood imports grew at a CAGR of 0.3% between 2013 and 2017.
Chile's top agri-food and seafood imports in 2017 were fresh boneless beef, non-durum wheat, corn, oil cake and malt beer. Key supplying countries were the United States, Brazil, Paraguay, China and Canada. Canada was Chile's fifth-largest supplier of total agri-food and seafood products in 2017, with a 3.4% share.
Commodity | Import value US$ millions | Top suppliers and market share % | Canada's share % | ||
---|---|---|---|---|---|
1 | 2 | 3 | |||
Fresh boneless beef | 900.2 | Paraguay: 46.3 | Brazil: 27.8 | Argentina: 17.9 | 0.0 |
Non-durum wheat | 305.0 | Argentina: 55.6 | United States: 23.9 | Canada: 20.5 | 20.5 |
Corn | 287.1 | Argentina: 78.2 | United States: 15.7 | Paraguay: 6.0 | 0.0 |
Oil cake | 282.7 | Paraguay: 45.4 | Argentina: 32.8 | Bolivia: 14.0 | 0.0 |
Malt beer | 186.4 | United States: 47.0 | Mexico: 29.4 | Germany: 7.1 | 0.0 |
Animal food | 167.3 | Argentina: 26.5 | Brazil: 13.2 | Netherlands: 11.7 | 0.0 |
Frozen chicken meat | 165.6 | United States: 47.2 | Brazil: 45.5 | Argentina: 7.3 | 0.0 |
Frozen pork | 161.5 | United States: 45.0 | Brazi: 31.5 | Canada: 13.9 | 13.9 |
Cane or beet sugar | 146.1 | Guatemala: 35.5 | Argentina: 34.5 | Colombia: 26.6 | 0.0 |
Food preparations, NES* | 140.2 | United States: 27.9 | Netherlands: 12.7 | Argentina: 7.1 | 1.2 |
Source: Global Trade Tracker, 2018 *NES: Not Elsewhere Specified |
Chile's processed food and beverage imports were valued at US$5.3 billion in 2017, with Canada accounting for 2.4%. Argentina, the US, Brazil, Paraguay, and Peru were the largest suppliers of processed food and beverages to Chile in 2017, accounting for 64.3% of the market. Chile's processed food and beverage imports increased by a CAGR of 0.9% between 2013 and 2017.
Canada's agri-food and seafood exports to Chile were valued at US$215.3 million in 2017. Top exports were non-durum wheat, rape or colza oil, frozen pork and dried, shelled lentils. In 2017, Canada registered an agri-food and seafood trade deficit of US$329.4 million with Chile (Canada imported US$544.7 million worth of agri-food and seafood from Chile in 2017).
Retail sales
Chile's packaged food market is robust with growth, which is expected to continue in the forecasted period. Retail sales were valued at US$14.8 billion in 2017, with a CAGR of 7.2% from 2013 to 2017. By the year 2022, retail sales are expected to reach US$20.5 billion, registering a growth of 6.7%.
Savoury snacks, baby food, and ready meals are expected to grow the fastest within the packaged food sector over the 2018-2022 forecast period. The most popular consumer trends and distribution channels utilized in this subsector are for prepared foods sold at supermarkets, takeout meals sold at specialty store chain operators, and various ready-made foods sold at convenience and department stores. Manufacturers are focusing on developing premium food products that are becoming increasingly more popular among consumers. New legislation in the country has forced manufacturers to provide nutritional labelling details on their products, leading many producers to reformulate and add more fortified functional health ingredients to their existing or newly launched products. By adding value to their products, manufacturers can appeal to the more health conscious consumers.
Category | 2013 | 2014 | 2015 | 2016 | 2017 | CAGR* % 2013-2017 |
---|---|---|---|---|---|---|
Packaged food | 11,164.4 | 12,120.4 | 12,908.4 | 13,814.4 | 14,768.7 | 7.2 |
Baby food | 166.3 | 180.2 | 193.2 | 203.0 | 216.6 | 6.8 |
Baked goods | 2,626.4 | 2,854.3 | 2,959.8 | 3,140.2 | 3,249.5 | 5.5 |
Breakfast cereals | 144.7 | 150.2 | 155.3 | 169.6 | 169.6 | 4.0 |
Dairy | 3,015.7 | 3,287.2 | 3,472.0 | 3,772.0 | 4,119.9 | 8.1 |
Edible oils | 409.1 | 411.5 | 421.0 | 454.6 | 472.8 | 3.7 |
Processed fruit and vegetables | 518.0 | 573.8 | 628.6 | 691.4 | 760.4 | 10.1 |
Processed meat and seafood | 759.8 | 807.5 | 879.9 | 950.6 | 1,034.6 | 8.0 |
Ready meals | 52.6 | 65.8 | 72.3 | 79.4 | 86.6 | 13.3 |
Rice, pasta and noodles | 463.7 | 486.1 | 517.3 | 535.1 | 547.5 | 4.2 |
Sauces, dressings and condiments | 363.1 | 378.7 | 392.4 | 416.9 | 446.2 | 5.3 |
Soup | 35.7 | 34.7 | 35.4 | 36.3 | 38.1 | 1.6 |
Spreads | 68.3 | 75.7 | 89.0 | 95.5 | 101.9 | 10.5 |
Confectionery | 786.1 | 877.7 | 976.2 | 955.6 | 1,059.2 | 7.7 |
Ice cream and frozen desserts | 704.2 | 755.5 | 830.6 | 906.9 | 958.6 | 8.0 |
Savoury snacks | 554.9 | 613.9 | 670.9 | 748.2 | 817.7 | 10.2 |
Sweet biscuits, snack bars and fruit snacks | 495.8 | 567.6 | 614.5 | 659.2 | 689.4 | 8.6 |
Source: Euromonitor International, 2018 *CAGR: Compound Annual Growth Rate |
Category | 2018 | 2019 | 2020 | 2021 | 2022 | CAGR* % 2018-2022 |
---|---|---|---|---|---|---|
Packaged food | 15,859.1 | 17,000.0 | 18,134.7 | 19,297.6 | 20,540.9 | 6.7 |
Baby food | 238.0 | 262.5 | 288.4 | 316.0 | 345.1 | 9.7 |
Baked goods | 3,412.1 | 3,580.8 | 3,741.6 | 3,905.0 | 4,076.0 | 4.5 |
Breakfast cereals | 182.2 | 195.6 | 210.0 | 225.6 | 242.5 | 7.4 |
Dairy | 4,463.3 | 4,843.3 | 5,208.7 | 5,580.3 | 6,000.3 | 7.7 |
Edible oils | 494.7 | 516.8 | 539.9 | 565.4 | 587.6 | 4.4 |
Processed fruit and vegetables | 833.7 | 906.8 | 982.3 | 1,059.6 | 1,138.9 | 8.1 |
Processed meat and seafood | 1,123.5 | 1,215.9 | 1,311.6 | 1,409.9 | 1,511.2 | 7.7 |
Ready meals | 96.3 | 105.9 | 115.9 | 126.8 | 138.2 | 9.5 |
Rice, pasta and noodles | 582.2 | 618.0 | 656.2 | 692.8 | 730.4 | 5.8 |
Sauces, dressings and condiments | 478.9 | 512.7 | 547.5 | 583.0 | 619.5 | 6.6 |
Soup | 39.1 | 40.2 | 41.6 | 43.2 | 44.8 | 3.5 |
Spreads | 109.2 | 116.9 | 124.9 | 133.3 | 142.0 | 6.8 |
Confectionery | 1,174.2 | 1,275.6 | 1,365.2 | 1,445.1 | 1,517.4 | 6.6 |
Ice cream and frozen desserts | 1,013.1 | 1,068.5 | 1,125.3 | 1,183.4 | 1,242.7 | 5.2 |
Savoury snacks | 895.9 | 983.2 | 1,082.6 | 1,198.3 | 1,336.0 | 10.5 |
Sweet biscuits, snack bars and fruit snacks | 722.7 | 757.4 | 793.1 | 830.0 | 868.4 | 4.7 |
Source: Euromonitor International, 2018 *CAGR:Compound Annual Growth Rate |
Health and wellness food products
The health and wellness sector grew by a CAGR of 10.5% from 2013 to 2017 and is expected to grow by a CAGR of 9.0% over the 2018-2022 period. The increase in health consciousness of the average Chile consumer will benefit this sector.
All health and wellness categories showed growth throughout the 2013-2017 period. Each is expected to continue growing in the next 5 years, albeit at a slightly slower pace.
Category | 2013 | 2014 | 2015 | 2016 | 2017 | CAGR* % 2013-17 |
---|---|---|---|---|---|---|
Health and wellness by type | 2,154.7 | 2,381.2 | 2,657.4 | 2,940.0 | 3,214.6 | 10.5 |
Better for you (BFY) | 694.4 | 763.1 | 849.4 | 965.2 | 1,068.7 | 11.4 |
Fortified/functional (FF) | 731.1 | 823.1 | 923.2 | 1,002.9 | 1,063.4 | 9.8 |
Free from | 86.1 | 97.1 | 109.2 | 114.4 | 127.6 | 10.3 |
Naturally healthy (NH) | 643.1 | 697.9 | 775.6 | 857.6 | 954.8 | 10.4 |
Organic | N/A | N/A | N/A | N/A | N/A | N/A |
Source: Euromonitor International, 2018 *CAGR: Compound Annual Growth Rate N/A: Not Applicable |
Category | 2018 | 2019 | 2020 | 2021 | 2022 | CAGR* % 2018-22 |
---|---|---|---|---|---|---|
Health and wellness by type | 3,523.4 | 3,858.4 | 4,205.1 | 4,573.6 | 4,968.8 | 9.0 |
Better for you (BFY) | 1,173.9 | 1,284.9 | 1,402.4 | 1,531.1 | 1,675.2 | 9.3 |
Fortified/functional (FF) | 1,156.8 | 1,268.7 | 1,380.9 | 1,495.1 | 1,613.3 | 8.7 |
Free from | 137.7 | 151.6 | 165.6 | 179.7 | 195.5 | 9.2 |
Naturally healthy (NH) | 1,055.0 | 1,153.2 | 1,256.2 | 1,367.7 | 1,484.8 | 8.9 |
Organic | N/A | N/A | N/A | N/A | N/A | N/A |
Source: Euromonitor International, 2018 *CAGR: Compound Annual Growth Rate N/A: Not Applicable |
Opportunities for Canada
On March 8, 2018, Canada signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with 10 countries: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. CPTPP represents a significant step toward closer trade and investment between Canada and Chile. Significant gains are possible for Canadian producers, who could gain market share in economies such as Chile. The CPTPP provides Canada with greater market access to CPTPP countries with the same level of tariffs as major regional competitors like Australia and New Zealand for key sectors, including beef, pork, seafood, cereal and many others. To obtain more information on specific Chile tariff reductions under this agreement see Tariff schedule of Chile (HS2012) (PDF).
From Chile's processed food and beverage imports valued at US$5.3 billion in 2017, Canada's trade share was 2.4%. With the new CPTPP free trade agreement, it will provide preferential access for Canadian agri-food exporters to key Latin American markets. This agreement has the potential to increase current opportunities with Chile in commodities such as non-durum wheat, canola, rape or colza oil, frozen porc, poultry and dried, shelled lentils. Also, Canadian cattle farmers could enter more strongly within Chile's beef industry, which is Chile's top import commodity sector throughout the world. For more information on what the CPTPP will mean for Canada's agriculture and agri-food sector visit the CPTPP for Agri-Food Exporters page.
The CPTPP Agreement, along with the Canada-United States-Mexico agreement (CUSMA) and free trade agreements with the European Union (CETA) and South Korea (CKFTA), will make Canada the only G7 nation with free trade access to the Americas, Europe and the Asia-Pacific region. All Canadian provinces and territories are expected to benefit from the CPTPP.
For more information
International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.
For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found on the International agri-food market intelligence page, arranged by region.
Resources
- Country Economy Data. Chile's GDP – Gross Domestic Product (2017)
- Euromonitor International, 2018. Consumer foodservice and retail sales data – Chile
- Euromonitor International. Country Report | 06 March 2018. Packaged food in Chile
- Euromonitor International. Country Report | 23 November 2018. Chile: Country Profile
- FAOSTAT (2018). Agricultural production data
- Global Trade Tracker, 2018. Import and export statistics – Chile
Market Overview – Chile
Global Analysis Report
Prepared by: Jonathan Inada, Market Analyst
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