A USDA report shows opportunities for U.S. agricultural products in Chile, the second-largest South American market.

Its stable macroeconomic environment, solid political institutions, and high consumer purchasing power make Chile a lucrative market for U.S. producers of wheat, cheese, pet food, alcoholic beverages, and other consumer-oriented products.

Chile’s high purchasing power is derived from having the highest gross domestic product per capita in South America at $28,372.

Since 2015, when all remaining duties were removed for the U.S.-Chile Free Trade Agreement, ag exports to Chile have increased by 33% to $1.1 billion.

Chile’s retail economy stands out with its more than 1,300 supermarkets, mid-sized grocery stores, convenience stores, gas station markets, and small independent neighborhood stores. 

Retail food sales are projected to increase 2.3%per year through 2026 with increasing demand for premium processed and healthy foods.

Chile’s trade policy

The South American country has 31 free trade agreements, with 65 economies worldwide, making it one of the world’s most open economies.

The report adds that Chilean regulations are generally fair, transparent and that customs clearance is generally fast and unproblematic, although, for straightforward entry, U.S. exporters should ensure products are aligned with current Chilean regulations.

Prosperous U.S. products in Chile

Wheat exports to Chile have increased in recent years. In 2022 they reached $102 million, mainly between June and December. 

Chile’s growing aquaculture sector imported 250,000 metric tons of U.S. hard wheat for feed use in 2022. FAS Santiago expects demand for wheat as an ingredient in aqua feed to continue to grow.

U.S. condiment and sauce exports to Chile nearly doubled since 2015, according to USDA, reaching $57 million in 2022. 

Tree nuts were the 10th-largest consumer-oriented export from the U.S. to Chile in 2022, totaling $24 million. Almonds, which accounted for more than 75% of tree nut sales, are favored by Chileans as ingredients in confectionery.

Additionally, the U.S. exported $174 million of animal proteins to Chile in 2022, with beef, poultry, and pork, respectively, comprising 37%, 32%, and 27% of the total. 

The report closes with a positive outlook on the Chilean market, because its high consumer purchasing power and a growing retail economy provide fertile ground for market expansion in the second half of the 2020s. 

Demand for natural, healthy, and innovative foods is accelerating opportunities for producers of specialty and plant-based products. 

Also, promotional activities to increase awareness among Chilean consumers and importers as to the variety and quality of U.S. agricultural products will further improve prospects for U.S. exporters.