Required Report: Required - Public Distribution Date: December 26, 2023

Report Number: CI2023-0032

Report Name: Exporter Guide

Country: Chile

Post: Santiago

Report Category: Exporter Guide

Prepared By: Maria Herrera

Approved By: Bret Tate

Report Highlights:

Chile presents excellent export opportunities for U.S. food and beverage exporters. After record-setting
exports in 2021, shipments of U.S. agricultural and related products to Chile reached $1.1 billion in
2022. Animal feed, dairy, wheat, beer, and beef dominate U.S. shipments to Chile. The United States is
the third largest supplier of agricultural and related products to Chile, after Colombia and Peru, holding
a 12 percent market share.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY
STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
Market Fact Sheet: Chile
Executive Summary convenience stores, and thousands of smaller independent
Chile is a South American country that borders the Pacific mom-and-pop shops. Supermarkets and grocery stores
Ocean, Argentina, Bolivia, and Peru. Chile is divided into 16 remained the primary retail channels for food products,
administrative regions. In 2022, Chile had a population of 19.8 accounting for around 55.5 percent of the market share.
million, with 8.3 million living in the Santiago Metropolitan
region. HRI Industry
2022’s consumer foodservice industry is significantly
In 2022, Chile’s Gross Domestic Product (GDP) in current different from that of 2019. The pandemic prompted many
prices totaled $324 billion, a 2.4 percent increase over 2021. changes, with the advancement of online ordering and
The Chilean Central Bank projects 0.25 percent in GDP home delivery the most significant. For restaurants, online
growth in 2023 and 1.75 percent growth in 2024. ordering developed from being almost insignificant in 2019
to representing 23 percent of value in 2022. This means
GDP per capita reached $30,209 PPP in 2022 (World Bank), that to be successful, restaurants now need to be able to
leaving Chile as one of the highest per capita GDPs in Latin develop an attractive online presence.
America.
Quick Facts
Chile Food & Ag Exports (U.S. billion): $26.9
Chile’s economy is driven by exports, concentrated primarily Chile Food & Ag Imports (U.S. billion): $11.8
in the mining and agricultural sectors - fishery products,
forestry, and fresh fruit. In 2022, Chilean agriculture Imports of U.S. Consumer-Oriented Products 2022:
represented 8.5 percent of the country’s GDP ($27.5 billion), $670 million
26.9 percent of exports ($26.9 billion), and employed around
10 percent of Chile’s labor force. Top Ten Ag and Related Products Exports to Chile:
1. Feeds, Meals, Fodders 2. Dairy Products
Imports of Consumer-Oriented Products 3. Wheat 4. Beer
5. Beef, and products 6. Condiments & Sauces
Chile is the third largest market in South America for U.S.
7. Poultry, and products 8. Pork, and products
agricultural products, after Colombia and Peru, and the second 9. Distilled Spirits 10. Food Preparations
largest market in South America for U.S. consumer-oriented
agricultural products with $670 million of exports in 2022, a Top Retailers in Chile:
14 percent market share. The top U.S. consumer-oriented 1. Walmart Chile (Líder, Express de Líder, Super Bodega,
products exports to Chile are dairy, beer, beef, condiments and aCuenta, and Central Mayorista)
sauces, poultry, pork, food preparations, distilled spirits, pet 2. Cencosud (Jumbo, Santa Isabel and Spid)
food, and tree nuts. 3. SMU (Unimarc, Mayorista 10, Alvi, Maxi Ahorro, and
Mayorsa)
4. Falabella (Tottus)

Food Industry by Channels (U.S. billion) 2022:

Retail Food Sales $29.5
Supermarket Food Sales $16.4
Retail (total retail sales) $63.6

GDP/Population 2022:
Population (millions): 19.8
GDP (billions USD): $324
GDP per capita (USD PP): $30,209 PPP

Sources: Trade Data Monitor (TDM), Euromonitor, World

Bank, Chilean Central Bank and trade interviews

Food Processing Industry

Strengths/Weaknesses/Opportunities/Challenges
Food and beverage processing represents 15 percent of Chile’s
Strengths Weaknesses
exports, at $15 billion in 2022. The food processing industry is
the second largest economic export sector after mining. The U.S.-Chile Free Relatively small-size
According to the Chilean Export Promotion Agency Trade Agreement market compared to
(ProChile), the food processing sector employs over 368,316 resulted in zero percent neighboring countries.
workers. duties for all U.S.
agricultural products.
Food Retail Industry Opportunities Threats
In 2022, the Chilean retail food industry witnessed a robust Chile has one of the Economic uncertainty
recovery, with total sales reaching approximately $29.5 highest incomes per due to inflation.
billion, a 20.9 percent over 2021. The Chilean retail is made capita in Latin America.
up of large supermarkets, mid-sized grocery stores,

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Section I: Overview
Chile is home to 19.8 million people, nearly half of which live in the capital region of Santiago.
The country generally has open markets and the highest per capita income levels in the region at
$30,209 (PPP) per person. Chile produces and exports large volumes of horticulture products,
which are shipped to counter seasonal northern hemisphere markets. The Chilean food
processing sector is highly developed; imports account for around half of all ingredients used
domestically. The United States is a close trading partner and is considered by Chileans as a
reliable supplier of high-quality food and agricultural products.

U.S. agricultural exports to Chile totaled $1.1 billion in 2022, representing a 9.2 percent decrease
from 2021. Chile is the third largest market in South America for U.S. agricultural and related
products, after Colombia and Peru. It is also the second largest market in South America for U.S.
consumer-oriented agricultural products with $669 million worth of exports in 2022 and a 23
percent market share in that category.

In 2022, Chile’s economy experienced a deceleration in line with international markets, and a
concomitant decrease in consumption. In 2022, inflation reached 12.8 percent, as global input
prices spiked, and interest rates remained low. However, since then, the government and the
Chilean Central Bank have taken measures to control inflation. Experts predict that inflation will
remain around four percent in 2023.

Chilean consumers are eating increasing levels of animal protein, creating opportunities for U.S.
beef, pork, poultry, and dairy. Similarly, Chile’s relatively high purchasing power is an
opportunity for U.S. exports of beer, distilled spirits, condiments, and confections.

Table 1: Advantages and Challenges Facing U.S. Exporters

Advantages Challenges
Clear rules and transparent regulations. There are strict regulations for fresh products
to avoid the spread of diseases.

The U.S.-Chile Free Trade Agreement resulted in Chile is a competitive market, which has 33
zero percent duties for all U.S. agricultural free trade agreements that cover 65 markets.
products as of January 1, 2015.

Chile is a high-income country and could be a Relatively small-size market compared to

gateway to South American markets. neighboring countries.

U.S. brands are regarded as high quality. Many Strong competition from other suppliers such
U.S. brands are well-known and present in the as Brazil, Argentina, and Paraguay.
market.
Equal playing field for imported and local Chileans are price-sensitive, especially during
products. economic slowdowns.

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Section II: Exporter Business Tips
Higher value products are competitive in the Chilean market and Chilean consumers associate
U.S. brands with quality. Additionally, Chilean consumers are loyal to some U.S. brands; a fact
that could be leveraged by U.S. exporters. Exporters of new-to-market products should approach
buyers with a well-organized plan that outlines product specifications, shipment terms, and
financial obligations. There are many reliable and efficient Chilean importers and distributors.
Most are open to meeting new suppliers in person or through virtual fora.

Chilean consumers have become more health-conscious, further shifting food demand toward
products considered wholesome or healthy. This opens potential for products and ingredients
marketed as natural. In addition to healthy products, many Chilean consumers can afford to buy
high-end U.S. products like beef, pork, dairy products, and distilled spirits. Prepared food and
ready-to-eat meals have become part of many Chileans’ diets due to quick preparation time, long
shelf-life, and availability through many distribution channels. There is room in the market for
innovation and meals that focus on health and wellbeing.

When exporting to Chile, consider these business tips:

1. Understand Local Regulations: Familiarize with Chile's import regulations, customs
procedures, and any specific industry requirements. Compliance is crucial for a smooth
entry into the market.
2. Build Relationships: Establishing personal relationships is vital in Chilean business
culture. Invest time in networking and building trust with local partners, distributors, and
potential clients.
3. Spanish Language: While many Chileans speak English, knowing Spanish can enhance
communication and demonstrate commitment to the local market. Consider hiring
bilingual staff or using translation services.
4. Market Research: Conduct thorough market research to understand consumer
preferences, competition, and pricing strategies. Tailor the products or services to meet
the specific needs of the Chilean market.
5. Distribution Channels: Identify effective distribution channels. Work with experienced
local distributors who understand the market dynamics and can navigate the distribution
network efficiently.
6. Comprehensive Marketing: Develop a comprehensive marketing strategy that considers
local cultural nuances. Utilize digital marketing, social media, and traditional advertising
to reach target audience effectively.
7. Payment Terms: Be flexible with payment terms to accommodate local business
practices. Understand the prevalent payment methods and offer options that align with
Chilean expectations.
8. Quality and Compliance: Ensure the products meet Chilean quality standards and
regulations. Obtain necessary certifications and communicate the quality of goods or
services clearly to build trust.

Section III: Import Food Standards and Regulations and Import Procedures
The Chilean National Customs Service (Servicio Nacional de Aduanas – SNA) has overall
responsibility for the administration of import procedures and the collection of all import duties.
The Customs Service controls documentation and carries out physical inspections during

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customs clearance. All imported food products are also regulated by the Ministry of Health
(MINSAL) and the Ministry of Agriculture’s Agricultural and Livestock Service (Servicio
Agricola y Ganadero – SAG). Custom’s clearance in Chile can be quite expeditious if there are
no problems with documentation. Potential exporters should note that Chile requires the use of a
registered customs agent for all commercial imports valued over $3,000.

Specific import certificate requirements can be found in the FAIRS Export Certificate report. All
imported products must be labeled in Spanish, including nutritional labeling. More information
on food product labeling can be found in the FAIRS Country report.

Chile is a member of the World Trade Organization (WTO) and an associate member of the
Southern Common Market (MERCOSUR). Patents, trademarks, industrial designs, models, and
copyrights are protected in Chile by the provisions of the International Convention for the
Protection of Industrial Property (the Paris Convention). For more information, see the FAIRS
Country report.

Section IV: Market Sector Structure and Trends

Market Developments
In 2022, U.S agricultural and related exports to Chile reached $1.1 billion, which represents a
10.2 percent decrease from 2021. Exports from January to October 2023 decreased by 4.8
percent as compared to the same period in 2022. The United States is the third largest supplier of
agricultural and related products to Chile, after Colombia and Peru, holding a 12 percent market
share. Feeds, dairy, wheat, beer, and beef dominate U.S. shipments to Chile.

Figure 1: Top U.S. Agricultural and Ag Related Exports to Chile in 2022

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In recent years, Chilean imports of beer, cheese and milk powder, and corn gluten meal have
steadily increased from the United States. Beef shipments, which had also trended upward in
recent years, dropped off in 2022 due to inflationary pressure and competition from regional
suppliers. Conversely, in 2022, U.S. wheat exports to Chile increased by 190 percent due to
competitive prices and active marketing.

As with the broader trends in bilateral trade, consumer-oriented product exports from the United
States increased in recent years. From 2018 to 2022 U.S.-origin consumer-oriented product
shipments grew two percent, reaching $669 million in 2022. As of October, U.S. year-to-date
consumer-oriented exports were down 23 percent as compared to the same period in 2022. Beer,
beef, poultry, and distilled spirits explain most of this drop in value.

Best Prospects
Best prospects for U.S. exporters align closely with the broader trends in trade (see Table 2).
U.S. beer, cheese, distilled spirits, and beef are considered high quality and are within the
purchasing power of many Chilean consumers. U.S. pork cuts remain competitive against
regional suppliers and specific U.S. pork products, like bacon or breakfast sausage, offer an
opportunity to expand sales beyond commodity pork. U.S. beans and lentils are competitive in
the Chilean market and offer an opportunity, though competition from regional producers is
significant. Notably, there remains a great deal of loyalty to certain U.S. brands, as demonstrated
by the steady demand for U.S. confectionary, sauces and condiments. Included in these two
categories are candies/chocolates, syrups, mayonnaise, mustard, ketchup, and barbeque sauces.

Table 2: Best Prospects Products in Chile

Beer and ingredients Pork and products (bacon)
Dairy products (cheeses) High quality beef
Condiments & sauces (BBQ, ketchup, etc.) Food preparations
Poultry and products Dog & cat food
Distilled spirits (bourbon) Tree nuts
Candy and confections Beans and lentils

Retail, HRI, and Food Processing

The Chilean retail sector is composed of over 1,355 supermarkets, mid-sized grocery stores,
convenience stores, gas station markets, and small independent neighborhood stores. Around 39
percent of all retail transactions take place in the Santiago Metropolitan Region. Retail food sales
reached $29.5 billion in 2022, a 20.9 percent increase over 2021. Supermarket food sales totaled
$16.4 billion and represented 55.5 percent of total grocery retail sales in 2022. A few large retail
supermarket chains dominate the Chilean market. These supermarket chains buy from local
distributors and through direct import; both channels are potentially accessible to U.S. suppliers.
Open markets (wet markets) still exist, but are primarily outlets for fruit and vegetables, or
seafood. Chilean consumers lean heavily on online shopping, both direct from traditional
retailers and via third party platforms. Chile’s largest supermarkets Walmart, Cencosud, Tottus
and Unimarc, represent 53 percent of retail revenues. For detailed information, please see FAS
Santiago’s GAIN Retail Food report.

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Chile has a thriving hotel, restaurant, and institutional (HRI) sector. While much of the HRI
sector caters to domestic consumers, there is also a well-developed tourism industry. Prior to the
COVID-19 pandemic, Chile was ranked as the number one destination for adventure tourism.
Chile has both domestic and international hotels and restaurants, many of which offer a wide
variety of imported food products. In 2022, Chile's travel and tourism sector contributed $28.4
billion to the GDP, representing 9.2 percent of the economy, a growth of 35.4 percent from the
previous year. In 2023, Post expects the HRI sector to continue expanding in line with the
growth in tourism and food service consumption. For detailed information, please see FAS
Santiago’s GAIN Hotel, Restaurant and Institutional Food Service report.

Chile has a developed food processing industry that represents 15.2 percent of Chilean exports,
at $15 billion in 2022. Chilean food processors sell their products domestically or internationally
and import about half of food ingredients. Some large international companies use their
production plants in Chile to serve other markets in Latin America. Chilean consumers have an
increasing concern for health-related issues, and the food processing industry continues to adapt
to shifting demand. There continue to be opportunities for U.S. ingredients in Chile, specifically
additives, preservatives, thickeners, and sweeteners. For detailed information, please see the
FAS Santiago’s GAIN Food Processing and Ingredients report.

Table 3: Overall Competitive Situation of Consumer-Oriented Products in Chile

Ranking Product Category/Total Largest Suppliers Strengths of Key Advantages and
Chilean Import Supply Disadvantages of
Countries Local Suppliers

1 Beef and Products 1. Paraguay – 49% (1 and 2) Proximity Chilean beef

Total imports: $1.4 billion 2. Brazil – 28% and availability. production is
From the U.S.: $63 million 3. Argentina – 13% Brazil and insufficient to meet
4. U.S. – 4% Paraguay sell lower domestic demand.
quality and price
competitive beef.

2 Dairy Products 1. Argentina – 27% Argentina benefits Chile has a limited

Total imports: $509 million 2. U.S. – 21% from low costs and production of dairy
From the U.S.: $107 million 3. N. Zealand – 10% proximity. New products, especially
4. Mexico – 9% Zealand is a low- cheeses.
cost producer.
3 Poultry and Products 1. Brazil – 77% (1 and 3) Proximity Chicken is the most
Total imports: $410 million 2. U.S. – 13% and availability. consumed meat in
From the U.S.: $52 million 3. Argentina – 9% Brazil sells price Chile.
4. Uruguay – 1% competitive
poultry.
4 Processed Vegetables 1. Belgium – 29% Belgium mainly Chilean production is
Total imports: $329 million 2. China – 13% supplies frozen insufficient to meet
From the U.S.: $15 million 3. Netherlands – 12% French fries and domestic demand.
4. Argentina – 9% sweet corn. China
5. Spain – 9% primarily supplies
6. Peru –7% preserved
7. Germany – 6% mushrooms.
8. U.S. – 5%

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 5 Bakery Goods, Cereals, & 1. Argentina – 15% Argentina and Peru Chilean production is
Pasta 2. Peru – 14% supplies pasta and insufficient to meet
Total imports: $308 million 3. Spain – 10% pastries. Both domestic demand.
From the U.S.: $20 million 4. China – 7% countries benefit
5. U.S. – 6% from low costs and
proximity.
6 Pork and Products 1. Brazil – 54% Brazilian and U.S. Chile traditionally
Total imports: $274 million 2. Spain - 17% pork compete in produces and
From the U.S.: $45 million 3. U.S. – 17% Chile based on consumes pork, but
4. Germany – 6% price. also exports based on
price.

7 Dog & Cat Food 1. Argentina – 37% (1 and 3) Proximity Chile has limited
Total imports: $269 million 2. U.S. – 17% and availability. variety of domestic
From the U.S.: $46 million 3. Brazil – 17% Argentina and dog and cat food.
4. Czech Republic – Brazil sell price
7% competitive dog
and cat food.
8 Soup & Other Food 1. U.S. – 30% The U.S. is the Chilean production is
Preparations 2. Spain – 7% main supplier of insufficient to meet
Total imports: $267 million 3. Germany – 7% food preparations domestic demand.
From the U.S.: $79 million 4. Singapore – 6% and non-alcoholic
beverages.
Source: U.S. Census Bureau Trade Data

Section V: Agricultural and Food Imports

Table 4: Total U.S. Exports of Agricultural Related Products to Chile, 2018-2022 (USD)

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Table 5: Top U.S. Agricultural Exports to Chile, by Category

Table 6: Best Prospects in Chile

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Figure 2: Growth in Best Prospects Categories, 2018-2022 (USD Million)

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Section VI: Key Contacts and Further Information
Ministry of Agriculture - Office of Ministry of Economy, Development and
Agricultural Policies and Studies (ODEPA) Tourism
Teatinos 40 Piso 7 – Santiago National Institute of Statistics (INE)
Tel.: +56 2 800-360-990 Morandé 801 Piso 22 – Santiago
www.odepa.gob.cl Tel.: +56 2 3246-1010, +56 2 3246-1018
[email protected]
www.ine.cl
Ministry of Agriculture - Agriculture and Ministry of Health
Livestock Service (SAG) Seremi de Salud (SEREMI)
Av. Bulnes 140 – Santiago Padre Miguel de Olivares 1229 – Santiago
Tel.: +56 2 2345-1100 Office Directory:
Office Directory: https://www.minsal.cl/secretarias-
https://www.sag.gob.cl/directorio-oficinas regionales-ministeriales-de-salud/
www.sag.gob.cl https://seremi13.redsalud.gob.cl/
National Customs Agency Instituto Nacional de Normalización (INN)
Plaza Sotomayor 60 – Valparaíso Chilean Standards
Tel.: +56 2 600-570-7040 Matías Cousiño 64, piso 6, Santiago
www.aduana.cl Tel.: +56 2 2445-8800
[email protected]
www.inn.cl/
National Chamber of Commerce (CNC) American Chamber of Commerce Chile
Merced 230, Santiago (AMCHAM)
Tel.: +56 2 2365-4000 Av. Pdte. Kennedy 5735 Of. 201, Torre
[email protected] Poniente – Las Condes, Santiago
www.cnc.cl Tel.: +56 9 8621-7416
[email protected]
www.amchamchile.cl
Chilean Institute of Public Health Instituto de Nutrición y Tecnología de los
Av. Maratón 1000 – Ñuñoa, Santiago Alimentos – INTA
Tel.: +56 2 2575-5101 - 2575-5202 Universidad de Chile
[email protected] Av. El Líbano 5524
www.ispch.cl Casilla 138 Correo 11 Santiago
Tel.: +56 2 2978-1411 / 2978-1400
www.inta.cl

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