Chile Fruits and Vegetables Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Chile Fruits and Vegetables Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Chilean fruits and vegetables market is projected to register a CAGR of 2.5% during the forecast period (2021-2026).

As an impact of COVID-19 in 2020 on the closure of hotels, bars, and restaurants, fruit and vegetable farmers and distributors were forced to shift supplies almost entirely from the food service to the retail channel. Shippers reported labor and logistical constraints in making the change. On the positive side, the consumption of fruits and vegetables went up as a part of increased consumer's preference toward healthy living and immunity-boosting, which has driven the fruits and vegetable industry.

Strong support from the Chilean government, free-trade agreements with major countries, which occupy 80.0% of the world’s GDP, and minimal tariff access to multiple global markets lend Chile numerous comparative advantages in the fruit and vegetable sector.

The profitability of the industry has markedly reduced in recent years. Long-term governmental policies, positive changes in orchard management practices, and more research funding are needed to maintain the viability of the Chilean fruits and vegetables industry.

Key Market TrendsIncreasing Exports of Fruits and Vegetables

Within South America, Chile is responsible for 60.0% of all fruit exports. Chile is the leading exporter of fresh blueberries, grapes, plums, dried apples, and prunes. It is also the second-largest exporter of avocados, cherries, walnuts, and raspberries. Grape is the leading fruit, followed by apples and blueberries. The two main export products exported, viz., grapes with 30.0% and apples with 25.0% of total fruits exports, respectively. As per an article by the Fresh Plaza in 2019, the fruit-growing sector in Chile achieved record exports, representing over USD 5,878 million and producing an increase of 3.6% compared to 2018. A result that reflects ProChile's strategy of expanding into new markets led to a significant increase in the number of export destinations, up from 78 markets in 2003 to 129 in 2019.

Increasing Domestic Demand for Fruits and Vegetables

The rise of tourism, along with the hotel and restaurant industry in Chile, is opening up new avenues and demand for fruit and vegetable in South America, making final dishes appealing to foreigners, as well as meet the needs of fast altering local consumers' tastes and preferences. The viability and weak infrastructure of cold storage in the country are affecting the storage of fruits and vegetables, leading to an increase in the prices of fruits and vegetables. The domestic production of fruits is decreasing and showing a negative trend since 2014. The decrease in production is associated with different reasons such as climatic conditions, decreasing arable land, and increase in production of other crops, amongst others. On the other hand, the demand is increasing exponentially. The increasing demand for fruits and vegetables is likely to influence the industry during the forecast period.

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Companies Mentioned

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LightEdge Solutions, Inc

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