IQUIQUE, CHILE – Free zone north Chile to serve neighboring Peru and Bolivia
SANTIAGO, CHILE – Main selling and marketing office, with coverage to entire country
- Population of 17 million; 89% urban
- GDP (PPP) of $335 billion (compared to US); est. 2013 ranks 43 in the world
- GDP (OER) of $281 billion (compared to US); est. 2013
- GDP real growth rate 4.4%; est. 2013
- GDP Per Capita (PPP) $19,100; est. 2013 ranks 74 in the world
- GDP Composition, by end use:
- Household consumption: 63%
- Government consumption: 12%
- Investment in fixed capital: 25%
- Investment in inventories: 6%
- Export of goods and services: 32.7%
- Import of goods and services: -33.5%
- 9% of all imported products are of US Origin
- By the year 2017, the retail sales in the packaged food market in Chile is expected to reach US$14.2 billion, a growth rate of nearly 15.1%, or US$1.8 billion.
- High growth categories in the forecast include noodles, baby food, chilled processed food, sweet and savory snacks, dairy products, snack bars, ready meals and frozen processed food.
- The main food distribution channels are supermarkets, with a share of over 65%.
- The higher consumption capacity, increased infrastructure and a favorable regulatory environment will continue to drive retail sales in the country in the next four years.
- Given the room to grow outside of Santiago, sales are expected to grow just in supermarkets alone by almost 40% up to US$ 28.5 billion in 2015.
- A rise in consumer sophistication in the mid to high socioeconomic areas, in terms of products, brands and price, has resulted in increased demand for imported food products. These stores now account for over 26% of total sales and offer customers fresh bakery goods, fresh seafood, coffee bars, prepared salads, pizzas, meat dishes, and the typical assortment of grocery products.
- The Chilean market, as characterized by it openness, is very competitive. Price is a crucial factor, so Post advises that companies wishing to export their products to Chile should be aware that they must adjust their margins to be as competitive as possible. The other alternative, equally as important, is for the U.S. exporter to differentiate its products so that any added value is understood by the end client and serves to justify a higher price. The Chilean middle class now has more purchasing power and values the price, quality and brand of the food they buy.