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

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

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

• 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 in terms of exports, followed by apples and blueberries.
• The profitability of the industry has significantly reduced in recent years. Long-term governmental policies, positive changes in orchard management practices, and more research funding are required to maintain the viability of the Chilean fruits and vegetable industry. Government policies may aid in producing more fresh fruits and vegetables in the country and help increase the farmers’ income.

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 in terms of exports, followed by apples and blueberries. The two main export products are grapes (30.0% of total fruit exports) and apples (25.0% of total fruit exports).

As per an article by Fresh Plaza, in 2021, the fruit-growing sector in Chile achieved record exports, representing over USD 4.36 billion and an increase of about 8% compared to 2020. This growth reflects ProChile's strategy of expanding into new markets. More than 223 grower-exporters are now involved in Chile's organic fruit and vegetable sector.

According to ITC Trademap, the exports of fruits from the country increased from USD 5,801.7 million in 2020 to USD 6,479.2 million by 2021.

The demand for food is increasing exponentially as the rising tourism and the growing hotel and restaurant industry in Chile open new avenues and boost the demand for fruits and vegetables in South America. For instance, the tourism business in Chile increased at an annual growth rate of about 16% during 2020-2022. The consumption of fruits and vegetables increased by 7.2% during the same period.

There is an increase in the number of restaurants in the country. Alsea plans to open more than 20 restaurants in Chile in 2023. The grapes produced by farmers are in high demand by the processing companies to produce wine. The companies are entering partnerships to evaluate if biofuel can be produced from crops such as maize. Therefore, Chile is witnessing a demand for fruits and vegetables due to the increasing number of restaurants and the high demand for food by tourists.

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