Light Barriers to Imports

OTA estimates total organic market consumer sales of Argentina at about $20 million USD per year. 

  • The total market size for organic packaged food and beverages in Argentina in 2015 is US$17.6mn. The country ranks as the 39th largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in Argentina is US$0.40, which ranks as the 39th largest spending per capita in the world.
  • The largest company by sales in organic packaged foods and beverages is Maoar SRL, which maintains 18.0% of total sales. Maoar is followed by AMS Group—Nature Crops and Laboratorios Roemmers.
  • Organic packaged food and beverages will see strong year-on-year growth of close to 20% in 2015. This is much higher than the rest of the Latin America region, which will experience approximately 4% year-on-year growth in 2015.
  • Argentina maintains a market size for organic packaged foods and beverages of US$17.6mn in 2015, which is 0.1% of global category sales.
  • Within the Latin America region, Mexico and Brazil surpass Argentina in total value sales of organic packaged foods and beverages.
  • Argentina will experience strong forecast growth of sales of organic packaged foods and beverages at 30.1% from 2015–2020.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in Argentina in 2015 is US$17.6mn. The country ranks as the 39th largest market in the world by value.
  • Organic food and beverages remains a niche but growing segment for Argentinian consumers.
  • National economic woes will continue to prevent sales of more expensive organic products from growing at higher rates. 
     

Market Trends

Competitive Landscape

  • AMS Group, a domestic company and owner of the Nature Crops brand that produces quinoa snack bars, continues growing. It distributes its products mainly in organic shops, health food stores, and Starbucks Coffee stores. 
  • Domestic organic honey brands—such as Terrasana, PampaGourmet, Monte Nativo, and Estancia Las Quinas, all superpremium options—are proliferating mainly in health food shops.
  • AMS Group dominates the organic foods competitive landscape, holding more than half of the market share. Maoar SRL has the largest share of the organic beverages space, at 28.9%. 

Prospects and Growth Opportunity

  • Consumers are expected to continue searching for healthy products like organic honey and snack bars, albeit with higher awareness of their nutritional and calorie content.
  • Organic honey and olive oil are projected to have the best growth performance in the near term. 

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy

  • Double-digit inflation proved to be a key weakness in the health and wellness market’s performance, eroding consumer purchasing power and making naturally healthy products an expensive alternative to traditional food and beverages.
  • Exports are falling sharply due to the drop in commodity prices. Argentina’s default on its debt adds to its problems by depressing the currency and deterring foreign investment.
  • Unemployment stood at 7.3% in 2014 and will drop to 6.9% in 2015.

Population demographics: 

  • Argentina’s population has been growing and totaled almost 43.0 million in 2014.
  • Fertility rates have decreased over the past several decades, but other factors (such as the growing number of women of childbearing age) slow the decline in the number of young children.

Income & expenditure: 

  • Argentina recorded robust income and expenditure growth rates over the 2009–2014 period, which in turn is influencing spending patterns in the country. 
  • Supported by large levels of government spending on social programs, income inequality is falling, and the middle class is experiencing strong growth.
  • Disposable income per capita was ARS67,635 (US$8,325) in 2014.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

 

Data type

2012

2013

2014

2015

2016

2017

2018

CAGR
(12-15)

CAGR
(15-18)

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

3,428.2

4,507.8

6,022.0

7,963.3

8,214.0

8,504.7

8,822.3

32.4%

3.5%

Organic packaged food and beverages consumption

4.6

7.1

11.5

17.6

21.8

27.7

36.2

56.4%

27.2%

Organic packaged food consumption

2.5

3.3

4.4

5.5

5.7

6.0

6.3

30.1%

4.6%

Organic beverages consumption

2.0

3.8

7.2

12.1

16.1

21.8

29.9

82.2%

35.2%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

0.1%

0.2%

0.2%

0.2%

0.3%

0.3%

0.4%

-

-

 

Economic & demographic data

Data type

2012

2013

2014

2015

2016

2017

2018

 

 

 

 

 

 

 

 

Total population

42.1

42.5

43.0

43.4

43.8

44.3

44.7

% Middle and upper class of total population

33.7%

33.9%

33.9%

34.0%

34.1%

34.2%

34.2%

% Population aged 65+

10.6%

10.7%

10.8%

10.9%

11.1%

11.2%

11.3%

% Population aged 0-14

25.6%

25.5%

25.3%

25.2%

25.0%

24.9%

24.7%

% Population with higher education degrees

13.5%

14.0%

14.5%

15.0%

15.5%

16.0%

16.5%

Average number of children per household

1.0

1.0

1.0

1.0

1.0

0.9

0.9

GDP per capita

7,088.5

8,639.7

11,110.1

13,438.7

13,160.1

13,360.9

13,597.1

Consumer expenditure per capita (US$)

4,683.7

5,690.0

7,143.7

8,612.1

8,511.0

8,651.9

8,858.4

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

981.0

1,176.6

1,462.3

1,748.2

1,716.4

1,736.1

1,770.4

 

Retailer & urban area data

 

Data category

Rank

Urban Area/retailer

Population 
(mns)

 

 

 

 

Top urban areas by population (2015)

1

Buenos Aires

13.4

Top urban areas by population (2015)

2

Córdoba

1.6

Top urban areas by population (2015)

3

Rosario

1.2

Top urban areas by population (2015)

4

Mendoza

1.0

Top urban areas by population (2015)

5

San Miguel de Tucumán

0.9

Top grocery retailers by sales (2015)

1

Carrefour

-

Top grocery retailers by sales (2015)

2

Coto

-

Top grocery retailers by sales (2015)

3

Dia

-

Top grocery retailers by sales (2015)

4

La Anónima

-

Top grocery retailers by sales (2015)

5

Vea

-

 

 

USDA GATS data

Rank

2014

2012

1

Tomatoes

Coffee Roast

2

Coffee Roast

-

Policy Information

Government Agency(s)/Competent Authority

Authorized Government Agency(s): 

The competent authority for the inspection system of organic production in Argentina is the "Secretaría de Agricultura, Ganadería, Pesca y Alimentación" (Ministry of Agriculture, Animal Husbandry, Fisheries and Nutrition), through the "Servicio Nacional de Sanidad y Calidad Agroalimentaria" (National Agrifood Health and Quality Service; SENASA).

Agency(s) Contact Information: 

SENASA - Servicio Nacional de Sanidad y Calidad Agro-alimentaria
General Coordinator of Management and Quality Assurance:
Ing. Agr. Juan Carlos Ramírez
Ministry of Agriculture, Animal Husbandry, Fisheries and Nutrition
Av. Paseo Colón 367, 5th floor,
(1063) Buenos Aires, Argentina
Tel./Fax: (+) 4345-4110/12; (+) 4331 - 6041/49
E-mails: jramirez@senasa.gov.ar; DICA@inea.com.ar
SENASA website (in Spanish)

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard: 

July 14, 2016: Resolución 374/2016 (in Spanish)

In June 1992, SAGPyA, through Resolution 423/92, established the norms for organic, ecologic or biologic plant production, and the next year, through Resolution 1286/93, those of animal production. In addition, on September 8th, 1999, the National Congress issued Act 25.127, defining the concept, scope, and authority of the application of ecologic production.

Act 25.127 (in Spanish) See "General Files" below for an English translation.

Date of Implementation: 

1992

Regulation and/or Standard Scope: 

The production, characterization, processing, packaging, distribution, identification and certification quality of organic agricultural products.  "Green" or "organic" products subject to regulations issued by the Argentine Institute of Plant Health and Quality and provisions of the this resolution.

Imported Products Requirements

Imported Products: 

Imported products labeled as "organic" must come from a country whose organic standards have been evaluated by SENASA and found to be equivalent to the Argentine regulations on organic production. Otherwise, they must be certified by any of the Argentine certifying agencies approved by SENASA prior to export.

Additional information about importing plant products (in Spanish).

Certification and Accreditation

Certification: 

There are currently private sector foreign certification bodies working in Argentina. See the list on the Coordination of Organic Products website (in Spanish).

Accreditation Method: 

Government

Accreditation: 

"Servicio Nacional de Sanidad y Calidad Agroalimentaria" (SENASA)

Additional Information

Reference Standards: 

Argentina is considered third country for the certification of organic products destined to the European Union.  Argentina is applying for equivalence to the US and to Japan.

Additional Information: 

Argentina's regulation is in compliance with CODEX.

Definitions

Review definitions of terminology included in this website.