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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Organic packaged food and beverages are primarily dominated by Ama Time SPA, with a value share of 45.6% in 2021, followed by Agricola Forestal El Escude with a value share of 24.5% and Frusevia America SPA with a value share of 8.6%. 
  • Organic growth in Chile is forecast to outpace Latin America and the global market over 2021-26, with a CAGR of 8.7%.

 

  • With a market size of US$24.5 million, organic packaged food and beverages in Chile represented about 0.04% of global demand in 2021. Per capita expenditure on organic products was US$1.27 in 2021. 
  • Increasing consumer awareness and an increase in organic production in Chile is expected to help drive the demand for organic products for the forecast period 2021-2026.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • The market for organic packaged food and beverages in Chile recorded a growth rate of 20.8% in 2021 to reach a value of US$24.5 million. 
  • The primary category within organic packaged food was organic prepared baby food, which recorded value growth of 9.2% in 2021. Organic baby food accounts for almost the entirety of organic packaged food sales in Chile. 
  • In organic beverages, the key growth category is organic fresh coffee, which registered a value growth of 30.2% in 2021. However, organic 100% juice represents around 90% of the value of organic beverages sales.
Market Trends
  • Chilean consumers are well informed on health and wellness and often seek healthy alternatives for the food they consume. The outbreak of the Covid-19 pandemic has further boosted this trend as consumers are more cautious and paying greater attention to strengthening their immune systems. Furthermore, momentum is being supported by the introduction of the law of “seals” in Chile, which has directed manufacturers to identify products that exceed the established amount of sugar, fat, sodium, and carbohydrates on the front of packing. 
  • E-commerce growth in 2021 remained moderate compared to its dynamic performance in 2020. However, e-commerce could establish itself as an essential distribution channel for health and wellness food and beverages as major players focus on the development of online platforms. Furthermore, manufacturers are opting for an omnichannel strategy, as consumers are frequently switching to convenience channels while companies are working to improve their last-mile services. 
Competitive Landscape
  • The organic juice category is dominated by Agrícola Forestal El Esudoc and Ama Time SPA with 45.1% and 32.8% market share, respectively.  Ama Time’s market entry strategy in Chile was based on marketing organic juice for babies and children. The strategy helped the brand consolidate its position and eventually compete with organic beverages targeting adults. As the Covid-19 pandemic reinforced the health and wellness trend, organic certification on packaged beverages serves as quality assurance and a source of transparency for consumers.
  • Jammin Java Corp dominates the organic coffee space with 61.0% of the market share in 2021, followed by Federación Nacional de Cafeteros de Colombia with a market share of 35.4% in 2021. Together, Jammin Java Corp and Federación Nacional de Cafeteros de Colombia hold a market share of 96.4%.
  • Ama Time SPA remained a leader in organic baby food; the company had a majority market share of 69.2% in 2021, completely dominating the market. However, growth trends remain low but stable due to the relatively  small consumer base of high-income parents. Organic products do not have a big market in Chile and are primarily limited to affluent groups.
Prospects And Growth Opportunity
  • As Covid-19 related restrictions ease and more social activities are taking place, grocery retailers are expected to see a further increase in sales over the forecast period. Purchasing would be for on-the-go consumption, driven by impulse decisions, which will most likely benefit the traditional channel over large modern stores. Therefore, the traditional channel is set to witness growing demand, also from the flow of student activities as they return to colleges and universities. 
  • Due to higher price sensitivity and local consumers continuing to search for value for money products, it is likely that supermarkets and hypermarkets in Chile will launch their own private label organic lines. Additionally, private labels are expected to harness the opportunity presented by Covid-19 in terms of customers purchasing larger or family packs at discounted prices. 
  • Despite impressive growth since the emergence of the pandemic, e-commerce remains a marginal distribution channel for better for you beverages. Companies are leveraging e-commerce to showcase their entire portfolios, including new product developments and SKUs that have a lower penetration and sales. With local consumers being used to discounts on online purchases, companies are looking to adjust and optimize their distribution cost components to help improve the significance of e-commerce platforms.
General Health And Wellness Trends
  • 2022 is likely to be a complicated year for Chile due to political and economic uncertainty. The government is expected to reduce subsidies and government aid which is likely to slow demand for more extravagant purchases in the short term. Omnichannel adoption will continue to remain the main strategy of major competitors, further supported by enhanced consumer experience in retailing. 
  • It is expected that players will implement strategies such as discounts and promotions to attract potential customers due to lingering price sensitivity. Smaller brands and private labels will likely emerge strongly in 2021, offering lower prices and promotions to gain customer loyalty. Meanwhile, the waning effect of the Covid-19 pandemic will create a favourable environment for brands to revisit expansion processes and launch new products.
  • Emerging niche categories in Chile, such as organic hot drinks, will continue to grow and gain market share. Another product, flavoured bottled water, is likely to gain momentum with the introduction of more flavours and a wide range of pack sizes. Brands are also paying closer attention to the accessibility of the premium segment for consumers.
General Economics And Demographic Landscape

Economy: 

  • Real GDP growth in Chile rebounded to 11.5% in 2021, but is expected to slow to 2.2% in 2022 and thereafter to stay at an average of 2.4% for the period 2022-2030.
  • Inflation accelerated to 4.5% in 2021 and is forecast to further increase to 5.5% in 2022.
  • GDP per capita has reached US$16,633 in 2021, with a growth rate of 20.3%.

 

Population demographics: 

  • Chile’s population was recorded at 12.2 million in 2021. The median age has increased to 35.6 years in 2021, which is 3.9 years higher than that in 2010.
  • Chilean society is also experiencing a rapid ageing process with 14.9% of the population expected to be over 65 years in 2025, up from 12.8% in 2021. A rapidly ageing population can drastically affect the country’s potential growth rate. 

 

Income & expenditure:  

  • Chile’s savings ratio was 3.7% of disposable income in 2021. It is expected to slightly fall to 3.5% in 2022, which sits below the regional average. 
  • Consumer expenditure per capita in 2021 was recorded at US$10,115, with the indicator increasing by 2.0% in real terms. 
  • Overall, total consumer expenditure, representing 60.8% of GDP in 2021, is forecast to grow at an average annual rate of 2.5% for the period 2021-2030 in real terms, increasing by a cumulative value of 24.9% during this period. 
  • Disposable income per capita amounted to US$10,439 in 2021, with a growth rate of 25.0%. For the period 2021-2030, total disposable income is expected to increase by a cumulative value of 23.4% in real terms, averaging an annual rate of 2.4%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption [1]

USD million

2,706.9

2,787.6

2,886.2

3,215.2

3,408.7

3,593.8

3,776.8

3,970.4

5.9%

5.2%

Organic packaged food and beverages consumption

USD million

9.8

17.1

20.2

24.5

26.6

29.0

31.5

34.2

35.7%

8.7%

Organic packaged food consumption

USD million

6.0

9.2

11.2

14.6

16.7

19.1

21.6

24.4

34.5%

13.5%

Organic beverages consumption

USD million

3.8

7.9

9.0

9.8

9.9

9.9

9.8

9.8

37.1%

-0.3%

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

%

0.4

0.6

0.7

0.8

0.8

0.8

0.8

0.9

-

-

 

[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

18.7

19.0

19.1

19.2

19.2

19.2

19.2

19.2

% Middle and upper class of total population

%

31.9

31.9

31.9

32.0

32.0

32.0

32.0

32.0

% Population aged 65+

%

11.6

12.0

12.4

12.8

13.3

13.8

14.4

14.9

% Population aged 0-14

%

19.8

19.4

19.0

18.7

18.4

18.1

17.7

17.4

% Population with higher education degrees

%

28.4

28.8

29.1

29.4

29.7

29.9

30.1

30.3

Average number of children per household

children

0.8

0.8

0.7

0.7

0.7

0.7

0.7

0.7

GDP per capita

USD per capita

13424.6

13652.9

13822.1

16633.5

16975.9

17329.3

17750.5

18208.5

Consumer expenditure per capita (US$)

USD per capita

8455.5

8549.8

8084.5

10115.8

10323.1

10574.7

10863.8

11185.4

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

USD per capita

1481.8

1501.8

1448.8

1800.8

1814.4

1854.9

1904.6

1958.8

 

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2021)

1

Santiago

7.5

Top cities by population (2021)

2

Valparaíso

1.1

Top cities by population (2021)

3

Concepción

1.0

Top cities by population (2021)

4

Temuco

0.5

Top cities by population (2021)

5

Rancagua

0.4

 

Top 5 Grocery Retailers By Sales

Data category

 

Rank

City/retailer

Top grocery retailers by sales (2021)

1

Walmart Inc

Top grocery retailers by sales (2021)

2

Cencosud SA

Top grocery retailers by sales (2021)

3

SMU SA

Top grocery retailers by sales (2021)

4

Falabella SACI

Top grocery retailers by sales (2021)

5

Cía de Petroleos de Chile Copec SA

 

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Chile

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2021

Chile

1

Organic Vinegar and Substitutes

520,658

2021

Chile

2

Organic Coffee Roast Not Decaf

452,993

2021

Chile

3

Organic Apples Fresh

289,085

2021

Chile

4

Organic Peach/Nectarine Fresh

229,923

2021

Chile

5

Organic Lemons Fr/Dr

150,000

2021

Chile

Total

Total Organics*

1,711,553

2020

Chile

1

Organic Coffee Roast Not Decaf

341,292

2020

Chile

2

Organic Vinegar and Substitutes

206,351

2020

Chile

3

Organic Grapes Fresh

181,200

2020

Chile

4

Organic Lemons Fr/Dr

37,684

2020

Chile

5

Organic Tomato Sauce Ex Ketchup

7,835

2020

Chile

Total

Total Organics*

774,362

2019

Chile

1

Organic Coffee Roast Not Decaf

122,864

2019

Chile

2

Organic Vinegar and Substitutes

56,005

2019

Chile

3

Organic Peach/Nectarine Fresh

49,280

2019

Chile

4

Organic Grapes Fresh

28,800

2019

Chile

Total

Total Organics*

256,949

2018

Chile

1

Organic Coffee Roast Not Decaf

78,943

2018

Chile

2

Organic Lettuce Not Head Fr/Ch

76,795

2018

Chile

3

Organic Peach/Nectarine Fresh

33,240

2018

Chile

4

Organic Vinegar and Substitutes

16,967

2018

Chile

5

Organic Watermelon Fresh

4,200

2018

Chile

Total

Total Organics*

213,145

 

Note : Total organics is the sum of all exports in a particular 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 Ministry of Agriculture (MOA) is the leading Government agency for the organic sector; its Agriculture and Livestock Service (Servicio Agrícola y Ganadero – SAG) regulates organic production and certification.

Agency(s) Contact Information:

Agricultural and Livestock Service (SAG)
Av. Presidente Bulnes 140
Santiago, Chile
Telephone: (562) 2345 11 00

National Director of SAG is Andrea Collao Veliz (appointed March 2022)

SAG Home Page
Organic products information

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

Organic Law No. 18.755, from Agriculture and Livestock Service, modified by Law No. 19.283

Law No. 20.089 (.pdf in Spanish) which Creates the National Certification System for Agricultural Organic Products 

 

See General Documents below for English translations of technical standards.

  • Supreme Decree No. 3/2016 (.pdf in Spanish) came into force June 2017 and established the requirements and protocols for assignment to the National System for Certification of Agricultural Organic Products
  • Supreme Decree No. 2/2016 (.pdf in Spanish) contains technical rules of Law N ° 20.089

Law and Decrees in one documment: http://www.sag.cl/sites/default/files/dto-2_09-abr-2016_consolidado_con_el_123.pdf

Detailed information on laws, regulations, guidelines, and forms can be found here.

Date of Implementation: 2007

Regulation and/or Standard Scope:

The regulation establishes requirements for the production, processing, labeling and marketing of organic products, and applies to processed products, plants, animals, livestock, beekeeping, fungal products, and wine.

Small ecological farmers: Organizations made up by small producers, families, farmers and natives with juridical personality whose annual sales do not exceed the equivalent to 25000 Index-Linked Units (Unidades de Fomento, UF1) are required to register but not to be certified. Can use their own standards but must have a system that is an alternative to certification and allows consumers and supervising agencies free access to the

Imported Products

Organic products must be certified.

Imports have the following options:
1.  Imported products do not have to be certified to to the Chilean regulations and standards, however the importer of organic products must be registered and inspected by SAG and two certificates are required: 

  • Master certificate that verifies that the product is certified to a national (country of origin) and be produced in that country or international organic standard by competent authorities; and 
  • Transactional certificate issued by a certification body, indicating the product quantity traded and lot numbers.
    • If importers cannot meet these requirements, then they must be certified by SAG.
    • Products imported in bulk and/or those used as raw materials to produce organic products in Chile, must be certified by a certifying body registered with SAG.  

2. Organic products are certified to the Chilean regulations and standards by certifying bodies accredited and registered by SAG.

3. Chile has an equivalency arrangement with a third country.  There is a bilateral agreement between Chile and Brazil for products certified by third-party certifying agents or products certified through participatory certification.  There is a qualified bilateral agreement between Chile and the EU that designates only certain items that can be imported from the EU to Chile and exported from Chile to the EU.

More details (.pdf, in Spanish)

Certification and Accreditation

Certification:

In order to be recognized as organic, products must be certified either by a third-party certification body or by a Small Ecological Farmers Organization registered with the competent authority. Certification is mandatory for marketing products as organic or its equivalents, such as "ecological products" or "biological products" and use the official seal that expresses said quality.

A register of certifiers is available.

Accreditation:

National Institute of Standardization (INN) or by another accreditation body that is a member of the International Accreditation Forum (IAF) or the Inter-American Accreditation Cooperation (IAAC)

Additional Information

U.S. International Trade Administration

USDA’s GAIN Report Chile Exporter Guide (2023)
USDA’s GAIN Report Chile Food Processing Ingredients (2022)
USDA’s GAIN Report Food Service - Hotel Restaurant Institutional (2023)
USDA’s GAIN Report Chile Exporter Guide Excellent Opportunities for U.S. Exports of Agricultural and Related Products (2017) 
USDA's GAIN Report Chile Retail Food Guide (2023)
USDA’S GAIN Report Chile Food and Agricultural Import Regulations and Standards Country Report (2023)
USDA’S GAIN Report Chile Food and Agricultural Import Regulations and Standards Export Certificate Report (2023)

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How to use this website

The Organic Trade Association (OTA) brings the US organic industry to developing markets around the world. This database is a comprehensive tool for OTA membership interested in participating in or expanding international trade in organic products by providing information to understand international markets for organic products. Select the country you wish to export to and find out whether it has an agreement with the United States, who its certifiers are, and much more.

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