Light Barriers to Imports
  • The total market size for organic packaged food and beverages in Argentina in 2017 is US$22.7mn. 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$0.51, which ranks as the 38th largest spending per capita in the world.
  • The largest company by sales in organic packaged foods and beverages is Las Brisas SA, which maintains 18.6% of total sales. Las Brisas is followed by Maoar SRL and AMS Group – Nature Crops.
  • Organic packaged food and beverages will see strong year-on-year growth of more than 40% in 2018. This is much higher than the rest of the Latin America region, which will experience approximately 9% year-on-year growth in 2018.
  • Argentina maintains a market size for organic packaged foods and beverages of US$22.7mn in 2017, which is 0.6% 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 a 37.4% CAGR from 2017–2022.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in Argentina in 2017 is US$22.7mn. 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.
  • However, inflation threatens to constrain growth in coming years if it continues to increase the already higher prices of organic products, rendering them unaffordable for many Argentinian consumers.

Market Trends

Competitive Landscape

  • AMS Group - Nature Crops, 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.
  • However, the organic food and beverages competitive landscape in Argentina is fragmented, with no single company capturing more than 19% share in 2017.

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 baby food and organic sweet biscuits, snack bars and fruit snacks are projected to have the highest rates of sales value growth in the near term.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy:

  • Argentina’s economy is finally beginning to pick up after several dismal years. Real GDP contracted by 2.2% in 2016 but grew by 2.8% in 2017, driven mainly by a rebound in private consumption and exports.
  • Double-digit inflation continues to be problematic for Argentinian consumers, and the government has set a goal of bringing inflation down to single-digit levels by 2019. The central bank has launched an inflation-targeting scheme, but another round of energy price increases is expected.
  • 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 more than 44 million in 2017.
  • Argentina’s population is also ageing at an accelerating pace. The population over age 65 currently represents 11% of the total population and will grow to be more than 13% by 2030.

Income & expenditure:

  • Argentina recorded income and expenditure growth in 2017, following drops in both measures in 2016.
  • The continuing expansion of the country’s middle class will fuel growing consumer expenditure per capita in coming years, with communications and household goods and services projected to benefit most through 2030.
  • Disposable income per capita was ARS158,853 (US$9,593) in 2017.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

CAGR
(14-17)

CAGR
(17-20)

 

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

USD million

     3,350.3

     4,539.8

     6,024.5

     7,481.5

     7,789.4

     8,119.5

     8,457.9

30.7%

4.2%

Organic packaged food and beverages consumption

USD million

            6.6

          10.1

          16.5

          22.7

          33.3

          44.6

          60.5

50.9%

38.6%

Organic packaged food consumption

USD million

            2.6

            3.3

            4.5

            5.6

            5.8

            6.1

            6.5

29.1%

5.1%

Organic beverages consumption

USD million

            4.0

            6.8

          11.9

          17.1

          27.4

          38.4

          54.0

62.3%

46.7%

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

%

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

-

-

Economic & demographic data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

 

 

 

 

 

 

 

 

 

Total population

million

          43.0

          43.4

          43.8

          44.3

          44.7

          45.1

          45.5

% Middle and upper class of total population

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

% Population aged 65+

%

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

% Population aged 0-14

%

            0.3

            0.3

            0.3

            0.2

            0.2

            0.2

            0.2

% Population with higher education degrees

%

            0.1

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

Average number of children per household

children

            1.0

            1.0

            0.9

            0.9

            0.9

            0.9

            0.9

GDP per capita

USD per capita

     6,433.3

     8,141.9

   11,086.7

   14,007.3

   14,285.0

   14,573.6

   14,877.1

Consumer expenditure per capita (US$)

USD per capita

     4,201.4

     5,315.7

     7,287.3

     9,683.1

   10,207.4

   10,592.8

   10,891.7

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

USD per capita

     1,178.6

     1,494.8

     2,058.2

     2,738.3

     2,886.8

     2,996.4

     3,082.4

Retailer & City Data

Data category

Rank

City/retailer

Population
(mns)

 

 

 

 

Top cities by population (2017)

1

Buenos Aires

           14.2

Top cities by population (2017)

2

Córdoba

             1.6

Top cities by population (2017)

3

Rosario

             1.3

Top cities by population (2017)

4

Mendoza

             1.0

Top cities by population (2017)

5

La Plata

             0.9

Top grocery retailers by sales (2017)

1

Carrefour

 -

Top grocery retailers by sales (2017)

2

La Anónima

 -

Top grocery retailers by sales (2017)

3

Dia

 -

Top grocery retailers by sales (2017)

4

Coto

 -

Top grocery retailers by sales (2017)

5

Vea

 -

USDA GATS data

Rank

2017

2016

2015

2014

  Export Value (US$, thousands)

1

Coffee Roast

-

-

-

Tomatoes

18.0

2

-

-

-

Coffee Roast

5.0

Total

2,503.0

56.0

-

23.0

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.