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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 45.9% in 2019, followed by Agricola Forestal El Escude with a value share of 24.4% and Frusevia America SPA with a value share of 8.4%.
  • Despite outpacing growth in Latin America and the global market, the YoY growth for organic products in Chile is expected to witness a sharp decline over the forecast period 2019-2024.

  • With a market size of US$16.3 mn, organic packaged food and beverages in Chile represent about 0.03% of global demand. Per capita expenditure on organic products was US$0.86 in 2019. A key factor for the market performance is the low level of awareness among Chilean consumers.
  • 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 2019-2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • The market for organic packaged food and beverages in Chile recorded a value of US$ 16.3 mn in 2019, with a YoY growth of 63.0% for the period 2018-2019.
  • The primary category within organic packaged food was organic prepared baby food, which recorded YoY value growth of 82.0%. Organic baby food is the predominant category commanding nearly 100.0% of organic packaged food sales.
  • In organic beverages, one key growth category is organic coffee, which registered a YoY value growth of 28.1% for the period 2018-2019, while organic 100% juice represents approx. 90.0% of the value of organic beverages in 2019. Collectively, they represent the only two existing categories for organic beverages in Chile, as consumer awareness on organic products overall is still extremely low.
Market Trends
  • Chilean consumers still lack awareness of the definition of "organic". Currently, organic products in Chile are prioritized for exports to foreign markets such as the USA or EU over a need for local consumption. While there is a demand for organic packaged food, it is limited to parents purchasing baby food. Thus, there is still a significant need to educate the population to build a market for organic products beyond baby food.
  • Currently, organic goods are associated with higher prices and consumers do not necessarily believe there is value to the product. The small demand for organic coffee and growth in organic juices is supported by the popularity of convenient consumption formats, which are ideal to complement meals such as breakfast and lunch.
Competitive Landscape
  • The organic juice category is dominated by Agrícola Forestal El Esudoc and Amaa Time. During the period 2013-2018, innovation on packaging helped position Ama as a convenient option for children juices to take to school and enjoy on away from home occasions. Additionally, the applications of a direct to consumer e-commerce website facilitating parents purchase of a months’ worth of breakfast and lunch drinks delivered to their home helped Ama maintain their position with a value share of 31.3% in 2019.
  • With Commercial Dicalia obtaining a license to distribute their Marley coffee brand in Latin America in 2019, the company is set to stimulate the already well-established brand, as Marley Coffee is the number one brand of organic coffee in volume terms in Chile with a business model heavily focused in the on-trade channel. Further, Marley Coffee is also likely to expand its product offering to match Chilean consumer preferences, where instant coffee is becoming a more relevant category. For the short term, the introduction of an RTD organic yerba mate base drink in 2019 is expected to attract consumers looking for new flavours and products from a well-established brand.
  • The Gerber brand by Nestlé Chile SA re-entered organic baby food in 2018, retailing via hypermarkets such as Jumbo and Tottus and Chemists such as Ahumada, with an increase in distribution channels expected in the near future. The re-entry of the Gerber brand of baby food is expected to help Nestlé Chile boost their share in the coming years.
Prospects And Growth Opportunity
  • The low level of consumer awareness on organic products has limited sales to baby formula in packaged food and juices and coffee in beverages. However, as consumer awareness on the health benefits of organic products rises, it is likely to lead to the shift of organic products from being just a high-quality export commodity to also being in demand for domestic production.
  • The agreement made between Chile and the EU in 2018, focusing on the equivalence of production norms, which allows all organic products produced and controlled according to EU rules to be directly placed on the Chilean market, and vice-versa, has helped facilitate exports of Chilean products to the EU. The agreement has helped local producers of organic fruits, especially apples, progress significantly in recent years. The agreement is further expected to promote the expansion of organic production in Chile, which is, in turn, expected to improve the presence of organic products in the local market.
  • With the introduction of fruit and vegetable purees in baby food and shelf processed fruits in convenient pouches, purees are becoming an ideal snack for consumers on the go. Additionally, the products are priced the same as non-organic variants, which is expected to help appeal to a broader audience, increasing the consumer base as well as overall awareness for organic products.
General Health And Wellness Trends
  • With organic products still slow in gaining popularity in Chile, the current consumption of organic products is predominantly in baby food, with demand generated from concerned parents wanting the most nutritious option for their children’s health.
  • Currently, organic tea is a negligible category in the Chilean market with a few brands offering an organic variant. This stems from a lack of differentiation as for consumers; tea is already considered a healthy beverage while organic tea provides no clear distinction in terms of product quality or flavor. While in organic coffee companies have established a positioning where organic coffee is not only friendlier to the environment but also more socially sustainable, thus, showcasing the need to educate consumers to generate awareness on the differentiation of the category.
General Economics And Demographic Landscape

Economy:

  • The Chilean economy is expected to witness slower growth, with real GDP growth reaching 2.2% in 2019, post growth of 4.0% in 2018 owing to a contraction in mining and exports, despite stable domestic demand. However, private consumption expected to remain strong, supported by low real interest rates and strong wage growth.
  • Investment is expected to rise in the period 2020-2030, post a substantial contraction. Real GDP is expected to grow by 2.7% in 2020 and further by 3.0% per year for the period 2021-2026.
  • Despite a currently contracted economy, Chile remains strong in fiscal credibility. The country holds US$ 28 bn in the sovereign wealth fund while another US$ 70 bn is held in assets by Chilean pension funds outside Chile. The budget deficit reached 2.2% of GDP, up from its 2018 value of 1.8%.
     

Population demographics:

  • Chile is witnessing a slowdown in population growth. In 2018, the population was recorded at 18.2 million, up from 15.3 million in 2000. The median age has seen an increase to 34.4 years in 2018, which is 5.5 years more than that in 2000
  • Chilean society is also experiencing a rapid ageing process with 16.5% of the population expected to be over 65 years in 2030, up from 11.4% in 2018, which could be a demographic change that could drastically affect the country’s rate of potential growth.
     

Income & expenditure:  

  • Chile’s savings ratio was 4.2% of disposable income in 2018, which fell to 4.1% in 2019, which is below the regional average. Consumer expenditure per capita in 2018 was recorded at US$6,660, with the indicator increasing by 3.8% in real terms in 2019. Hotels and catering are expected to represent the highest portion of consumer expenditure for the period 2019-2030, followed by telecommunications.
  • Overall, total consumer expenditure, which represented 62.5% of GDP in 2019, is forecast to grow at an average annual rate of 2.9% for the period 2018-2030 in real terms, increasing by a cumulative value of 37.5% during this period.
  • Disposable income per capita amounted to US$5,889 in 2019 with the indicator growing by 6.7% in real terms. For the period 2019-2030, total disposable income is expected to increase by a cumulative value of 37.7% in real terms, averaging an annual rate of 3.0% in real terms.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

2,641.6

2,793.3

2,976.6

3,191.3

3,344.1

3,507.8

3,689.0

6.5%

5.0%

Organic packaged food and beverages consumption

USD million

5.6

7.1

10.0

16.3

18.0

19.8

21.8

42.8%

10.1%

Organic packaged food consumption

USD million

1.0

1.9

3.6

6.5

6.6

6.6

6.7

86.6%

0.8%

Organic beverages consumption

USD million

4.6

5.2

6.5

9.9

11.5

13.2

15.1

29.1%

14.6%

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

%

0.2%

0.3%

0.3%

0.5%

0.5%

0.6%

0.6%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

18.2

18.5

18.7

19.0

19.1

19.2

19.3

% Middle and upper class of total population

%

31.6

31.9

31.9

31.9

31.9

32.0

32.0

% Population aged 65+

%

10.9%

11.2%

11.5%

11.9%

12.2%

12.7%

13.1%

% Population aged 0-14

%

20.3%

20.1%

19.8%

19.5%

19.2%

19.0%

18.8%

% Population with higher education degrees

%

27.4

27.9

28.4

28.8

29.1

29.4

29.7

Average number of children per household

children

0.8

0.8

0.8

0.8

0.7

0.7

0.7

GDP per capita

USD per capita

13,240.7

13,880.7

14,527.4

14,969.0

14,975.5

15,205.1

15,578.5

Consumer expenditure per capita (US$)

USD per capita

8,303.0

8,653.9

9,059.3

9,329.7

9,436.4

9,652.0

9,906.9

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

USD per capita

1,473.0

1,519.6

1,604.1

1,672.6

1,668.4

1,699.3

1,742.6

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Santiago

7.5

Top cities by population (2019)

2

Valparaíso

1.1

Top cities by population (2019)

3

Concepción

1.0

Top cities by population (2019)

4

Temuco

0.5

Top cities by population (2019)

5

Rancagua

0.4

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Walmart Inc

Top grocery retailers by sales (2019)

2

Cencosud SA

Top grocery retailers by sales (2019)

3

SMU SA

Top grocery retailers by sales (2019)

4

Falabella SACI

Top grocery retailers by sales (2019)

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$)

2019

Chile

1

Organic Coffee Roast Not Decaf

122,864

2019

Chile

2

Organic Vinegar and Substitutes

56,005

2019

Chile

3

Organic Peach/Nectarin 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/Nectarin 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

2017

Chile

1

Organic Apples Fresh

440,411

2017

Chile

2

Organic Lettuce Not Head Fr/Ch

207,324

2017

Chile

3

Organic Coffee Roast Not Decaf

75,641

2017

Chile

4

Organic Peas Fr/Ch

65,772

2017

Chile

5

Organic Peach/Nectarin Fresh

35,520

2017

Chile

Total

Total Organics*

871,752

2016

Chile

1

Organic Coffee Roast Not Decaf

398,984

2016

Chile

2

Organic Grapes Fresh

42,275

2016

Chile

3

Organic Lemons Fr/Dr

31,500

2016

Chile

4

Organic Tomato Sauce Ex Ketchp

24,416

2016

Chile

5

Organic Grapefruit Fresh

10,080

2016

Chile

Total

Total Organics

515,790

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 2016 – 2019 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 2016-2019 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:

Servicio Agrícola y Ganadero  
Av. Bulnes 197 Piso 3o 
Santiago 
Jefe de Sub departamento Agricultura Orgánica 
Claudio Cardenas
Phone: (56 2) 2345-1531 
Email: claudio.cardenas@sag.gob.cl
Web
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 Portugese) 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 Portugese) 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 Portugese) contains technical rules of Law N ° 20.089
  • Decree No. 17 approving Technical Standard from Law No. 20.089
    "Guidelines for the registration of organic products certifying bodies and small ecological farmer organizations"

    Resolution No. 7880 of November 29, 2011, which sets minimum content certified for use in organic farming under Law No. 20,089 Decree No. 36 approving Regulations from Law No. 20.089 which created the National Certification System for Agricultural Organic Products

    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.

There are two options for imports:
1. If the country of origin has a competent authority to monitor compliance with its rules, the import must be accompanied by the Transaction Certificate which must be issued by a certificate registered in the country of origin recognized by a Competent Authority. The certificate must indicate the quantities imported certified under organic standards supported by the Competent Authority of the country of origin. Additional required information includes:

Name and address of the Certification Body certifying export. Name and address of carrier / importer. Product trade name, quantity and condition (organic / in conversion / transition).

 

2. Where there is no competent authority in the country of origin, the products imported as organic must be verified by a certifier registered with SAG.

More details (.pdf, in Spanish)

  • The transaction certificate must clearly indicate whether it covers a lot or more, and indicate the number or lots.
  • Signature and seal of the Certification Body of the exporting country.
Certification and Accreditation

Certification:

In order to be recognized as organic, products must be certified either by a 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

USDA’s GAIN Report Chile Exporter Guide (2020)
USDA’s GAIN Report Food Processing Ingredients Chile Food Processing Ingredients Report (2019)
USDA’s GAIN Report Food Service - Hotel Restaurant Institutional (2019)
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 (2019)
USDA’S GAIN Report Chile Food and Agricultural Import Regulations and Standards - Narrative (2016)
USDA’S GAIN Report Chile Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA’S GAIN Report Chile Food and Agricultural Import Regulations and Standards Export Certificate Report (2020)