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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Las Brisas SA led the organic segment in Argentina in 2021 with a value market share of 23.1%, followed by Maoar SRL with a share of 14.5%.
  • The market for organic products in the country is currently fragmented, with a major share for “others”. Branded organic packaged food and beverages are struggling to gain share, partially due to the challenging economic climate and the lack of consumer awareness about organic products.
  • Organic products are currently purchased by high-income individuals, creating a low volume customer base and limiting accessibility to specialty stores and selective supermarkets.

 

  • The market for organic products in Argentina reached a value of US$15.9 million in 2021, representing 0.03% of the global market value with a per capita consumption of US$0.35.
  • The market is expected to continue its strong value growth from a low base, with a forecast CAGR of 28.7% for the period 2021-2026.

 

Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Argentina registered a market size of US$15.9 million in 2021, recording a CAGR of 50.1% over 2018-21 from a small base.
  • Despite the Covid-19 pandemic and its associated challenges, in 2020 there was a certified 132,000 tonnes of organic produce (+20% vs. 2019).
  • Retail value sales of organic beverages rose by 93.3% in current terms in 2021 to US$14.5 million.
Market Trends
  • Despite challenges posed by the Covid-19 pandemic, organic produce increased by 20% to record a certified 132,000 tonnes in 2020. The ongoing health and wellness trend was accelerated by the pandemic in Argentina, with health and wellness value sales increasing from US$2,741.2 million in 2019 to US$5,091.5 in 2021, recording a growth of 85.7% over the period. Organic packaged food grew in-line with the health and wellness trend in Argentina, recording a growth of 75.0% over 2019-2021. Organic Dairy held the largest share within organic packaged food in 2021, capturing almost half the value sales.
  • Organic beverages in Argentina grew in value terms from US$4.1 million in 2018 to US$14.5 million in 2021, recording a strong CAGR of 52.4% over the period. Increased health consciousness brought about by the Covid-19 pandemic was a key driver for this growth, as consumers strived to achieve healthier diets and lifestyles. Organic soft drinks and fruit juices, especially 100% juices, captured almost the entirety of the value sales within organic beverages in 2021. Consumers are replacing high-sugar juices with organic 100% varieties that contain no added sugar. However, in Argentina, organic 100% juice must compete with fresh, home-made organic juice, as consumers are increasingly showing a strong preference for fresh organic produce rather than packaged food and beverages and are more likely to use organic fruit and vegetables to produce smoothies or juices at home.
Competitive Landscape
  • Olivares y Viñedos San Nicolas SA was the leading player in organic packaged food in Argentina in 2021, capturing a retail value share of 13.4%. Organic olive oil was a category that thrived in 2021, growing by 38.5% from 2021, driven by the increase in home cooking due to the Covid-19 lockdowns in Argentina and closure of foodservice outlets. Nutribaby was the second largest player in 2021, capturing a retail value share of 8.0% amid dominance in organic baby food. Smookies was the only other brand that showed significance.
  • Las Brisas SA was the leading player in organic beverages in Argentina in 2021, capturing a retail value share of 25.4% and owner of the brand Las Brisas. Maoar SRL, with its brand Natufresh, was the only other major branded player in 2021. There were many other small local companies selling their products in independent and specialised retailers. Las Brisas held the leading share in 100% organic juices, a leading category within organic beverages in 2021. Las Brisas is positioned as a premium brand distributed via upscale urban outlets, such as luxury hotels, airports, restaurants, pharmacists, specialist food shops, kiosks, and premium supermarkets. Las Brisas organic juices are produced in the province of Santa Fe and the company also produces organic fruit and vegetables. Las Brisas entered the organic juice category in 2009, and as of 2021, offers the widest variety of flavours (pear, apple, raspberry, strawberry, lemon with mint and blueberries). In 2021, the company also widened its flavour coverage through the launch of two mixed flavours, named “Las Brisas Smoothie Organico” in raspberry/strawberry/orange, and pear/apple/orange. Las Brisas is available in 250ml, 500ml, and 1-litre glass bottles.
Prospects and Growth Opportunity
  • Nestlé Argentina SA is expected to make strides within organic packaged food in Argentina. In 2021, they announced that they will launch the first organic powder milk in the country, under their traditional brand Nido. In order to accomplish this, they have invested US$16.5 million and made agreements with 25 dairy farmers over the last three years.
  • Dietéticas (other grocery retailers) are becoming in a key channel for organic product sales. In 2021, grocery retailers witnessed a declining growth rate of -0.4% from 2020, with Carrefour remaining the top player. However, the Covid-19 pandemic has led to an expansion of dietéticas outlets in 2020 and 2021, in-line with the increase in home cooking. Dietéticas grew by 14.3% over 2020-21 as consumers became increasingly conscious about using healthy ingredients, which boosted demand for specialist retailers. This trend is set to continue over the forecast period.
  • Organic beverages are forecast to record a CAGR of 30.6% over 2022-25, growing rapidly in-line with the expanding health and wellness trend in Argentina. Private labels are forecast to gain presence within organic 100% juice, which will make organic beverages more accessible to consumers as they currently have a high price point and are most commonly consumed by high-income consumers. Organic 100% juice is forecast to record a CAGR of 47.9% over 2021-2026.
General Health and Wellness Trends
  • Health and wellness packaged food and beverages in Argentina is forecast to record a value CAGR of 4.14% over 2022-2025. The Covid-19 pandemic led to economic downfall in Argentina, with around one-third of the population currently living in poverty, and a rise in unemployment as various industries are scaling back. Health and wellness products, including organic, better for you, fortified/functional and naturally healthy products are non-essential and carry high prices. Therefore, though growth will be recorded due to increasing health awareness in Argentina and the possibility of lower price points with the growth of private labels, health and wellness is forecast to witness a relatively small growth over the forecast period.
  • The food labelling law in Argentina is under scrutiny in the Chamber of Deputies, some of which has already been approved by the Argentine Senate in October 2020. The initiative aims is to warn consumers, with a stop sign, about the excess of sodium, fat and sugar in ultra-processed foods and beverages. In addition, it intends to prohibit the association of foods that contain a warning stamp with athletes, children's characters and scientific organisations which endorse them. This is expected to positively impact health and wellness sales over the forecast period, 2022-25, with fortified/functional energy drinks, fortified/functional sports drinks, naturally healthy juice and naturally healthy bottled water expected to grow at a faster rate, witnessing an increase in sales from middle- and high-income consumers. Hybrid developments are expected to launch in the coming years, including combinations of plant-based energy drinks, digestive health RTD tea, and natural flavour powder concentrates; as well as the launch of organic yerba mate, new combinations of plant- based offerings with special mixtures of ginger, chocolate, or coffee, and BY flavoured powder with less sugar.
General Economic and Demographic Landscape

Economy:

  • Following three successive years of economic decline, real GDP growth in Argentina rebounded to 9.0% in 2021 but is expected to moderate to 2.5% in 2022.
  • Inflation continues to run at high levels and is projected to stand at 50% in 2022, up from 48.3% in 2021.
  • Public debt stood at 85.1% of GDP in 2021.

 

Population demographics:

  • The population of Argentina increased to 45.1 million in 2021 and is expected to rise to 46.0 million by 2025.
  • The % population aged 65+ in forecast to grow over 2022-25, while the % population aged 0-14 is expected to decline. The Covid-19 pandemic negatively impacted the economy of Argentina and with around one-third of the population living in poverty; birth rates are expected to fall.
  • The median age in 2021 was recorded at an all-time high 31.5 years and is further expected to increase to 32.7 years by 2025 and 38.2 years by 2050.

 

Income & expenditure:

  • Per capita gross income in Argentina is forecast to increase by 48.6% in real terms over 2021-2040.
  • Over the period 2020-2030, Argentina is projected to drop by 14 positions and rank 53rd out of 84 countries in Euromonitor International’s Wealth Index.
  • The Gran Buenos Aires region is anticipated to remain the largest consumer market in Argentina by 2040, accounting for 36.9% of total consumer expenditure. Food and non-alcoholic beverages is forecast to be the largest consumer spending category in 2040, while education will record the fastest growth over 2021-2040.

 

 

Data

Data

Organic Packaged Food and Beverage Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

CAGR
(18-21)

CAGR
(22-25)

Health & wellness products consumption [1]

USD million

1,927.7

2,741.2

3,503.0

5,091.5

5,369.6

5,619.9

5,847.7

6,065.2

38.2%

4.1%

Organic packaged food and beverages consumption

USD million

4.7

6.6

8.5

15.9

19.3

24.6

31.6

41.5

50.1%

29.1%

Organic packaged food consumption

USD million

0.6

0.8

1.0

1.4

1.4

1.5

1.6

1.7

32.6%

6.7%

Organic beverages consumption

USD million

4.1

5.8

7.5

14.5

17.9

23.0

30.0

39.9

52.4%

30.6%

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

%

0.2

0.2

0.2

0.3

0.4

0.4

0.5

0.7

14.5%

20.5%

 

[1] Health and Wellness Definition: Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products. The above definition and more can be referenced from the definitions table at the end of the report.

Economic and Demographic Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

Total population

million

44.2

44.5

44.8

45.1

45.3

45.6

45.8

46.0

% Middle and upper class of total population

%

24.5

24.4

24.3

24.4

24.4

24.4

24.4

24.5

% Population aged 65+

%

11.4

11.5

11.7

11.9

12.0

12.2

12.4

12.6

% Population aged 0-14

%

25.0

24.6

24.2

23.8

23.5

23.0

22.6

22.1

% Population with higher education degrees

%

15.3

15.4

15.6

15.7

15.8

15.9

16.0

16.0

Average number of children per household

children

0.7

0.7

0.6

0.6

0.6

0.6

0.6

0.6

GDP per capita

USD per capita

27,165.4

27,870.8

27,509.5

29,100.0

29,695.5

30,113.8

30,374.0

30,648.6

Consumer expenditure per capita (US$)

USD per capita

27,165.4

27,870.8

27,509.5

29,100.0

29,695.5

30,113.8

30,374.0

30,648.6

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

USD per capita

3,625.8

3,733.4

3,888.5

4,028.4

4,035.7

4,077.2

4,113.8

4,146.2

 

Retailer and City Data

Top 5 Cities by Population:

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2021)

1

Buenos Aires

14.6

Top cities by population (2021)

2

Córdoba

1.6

Top cities by population (2021)

3

Rosario

1.4

Top cities by population (2021)

4

Mendoza

1.0

Top cities by population (2021)

5

La Plata

0.9

Top 5 Grocery Retailers by Sales:

Data category

Rank

City/retailer

Top grocery retailers by sales (2021)

1

Carrefour SA

Top grocery retailers by sales (2021)

2

Cencosud SA

Top grocery retailers by sales (2021)

3

Distribuidora Internacional de Alimentación (Dia) SA

Top grocery retailers by sales (2021)

4

Importadora y Exportadora de la Patagonia SA

Top grocery retailers by sales (2021)

5

Coto CICSA

 

United States Department of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities to Argentina:

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2021

Argentina

1

Organic Vinegar and Substitutes

9,904

2021

Argentina

Total

Total Organics*

9,904

2020

Argentina

Total

Total Organics*

-

2019

Argentina

1

Organic Milk

422,640

2019

Argentina

2

Organic Cherry Tomato Fr/Ch

27,201

2019

Argentina

Total

Total Organics*

449,841

2018

Argentina

Total

Total Organics*

-

 

Note : Total organics is the sum of all exports to a country within a year

Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2018 – 2021 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2018-2021 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

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
Address: Av. Paseo Colón No. 367
Postal code: ACD1063 - Buenos Aires, Argentina.
Telephone:  (+54-011) 4121-5000/0800-999-2386
Email: respond@senasa.gob.ar

SENASA website (in Spanish)

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

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.

The Ecologic, Biologic and Organic Production Act #25.127 was published in 1999 (the link for Act 25.127 is correct) and in 2001 the regulations were published in Decree 97/2001 and Decree 206/2001Resolución 374/2016 (in Spanish) combines all previous regulations and revises sections of the previous regulations. 

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

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. Argentina is recognized as a third country by the EU.

Certification and Accreditation

Certification:

There are currently private sector certification bodies working in Argentina. Registration requirements for organic certifying agents: https://www.argentina.gob.ar/inscribir-certificadoras-de-productos-organicos

Accreditation Method:

Government

Accreditation:

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

Additional Information

Reference Standards:

Argentina’s organic regulation is  compliant with the Codex Committee on Food Labeling Guidelines for the Production, Processing, Labelling and Marketing of Organically Produced Food. 

Additional Information:

U.S. International Trade Administration

USDA's GAIN Report Argentina Exporter Guide (2022)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2022)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2022)