Market Overview – Chile

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.

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.

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.

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.

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.

• Overview of the Trade Commissioner Service in Chile
• Find a Trade Commissioner

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.

Market Overview – Chile
Global Analysis Report

Prepared by: Jonathan Inada, Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2019).

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