Chile Fruits and Vegetables Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Chile Fruits and Vegetables Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Chilean fruits and vegetables market is projected to register a CAGR of 2.5% during the forecast period (2022-2027).

The COVID-19 outbreak resulted in the closure of hotels, bars, and restaurants. Thus, 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 increased with increasing consumer preference for healthy and immunity-boosting food, thus driving the fruits and vegetable market in Chile.

Strong support from the Chilean government, free-trade agreements with major countries, and minimal tariff access to multiple global markets lend Chile numerous comparative advantages in the fruits and vegetable sector over the long term.

Chile is responsible for 60.0% of all fruit exports. It is largely driven by investment in the fruit sector due to increased earnings from the export market and high returns from 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 profitability of the industry significantly 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 vegetable industry. Thus, the government policies may aid in the production of more fresh fruits and vegetables in the country and help increase the farmers’ income. This support is projected to boost the production of fresh produce during the forecast period.

Key Market TrendsIncreasing Exports of Fruits and Vegetables

Within South America, Chile is responsible for 60.0% of all fruit exports. It 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 are grapes (30.0% of total fruit exports) and apples (25.0% of total fruits exports). 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. This growth reflects ProChile's strategy of expanding into new markets, leading to a significant increase in the number of export destinations, up from 78 markets in 2003 to 129 in 2019. Thus, based on the aforementioned factors, the market is projected to grow during the forecast period.

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 fruits and vegetables in South America, making the cuisine appealing to foreigners and meeting the needs of the rapidly altering tastes and preferences of local consumers. The viability and weak infrastructure of cold storage in the country are affecting the storage of fruits and vegetables, leading to an increase in their price. The domestic production of fruits has been decreasing and showing a negative trend since 2014. The decreasing production is associated with climatic conditions, decreasing arable land, and increasing production of other crops. 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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