Packaged Food in Chile

Good growth linked to healthy economy and healthy diets

Packaged food continued to see good sales growth at the end of the review period, benefiting from a healthy economy and falling unemployment. With consumers leading increasingly busy lives there is growing demand for convenient products, benefiting many areas of packaged food.

Labelling and recycling legislation continues to be implemented

Two major areas of legislation are impacting packaged food. The third and last stage of the Labelling Law came into force in the middle of 2019, implementing limits that are even stricter than the previous stages, with the first of these stages coming into force in 2016.

Nestlé leads fragmented share thanks to wide portfolio but private label continues to climb

Global giant Nestlé maintained its lead in fragmented packaged food in 2019 thanks to its wide portfolio of popular products. However, the company continued to lose share in the year, facing growing competition from local players and economy brands.

Smartphones and demand for convenience shaping shopping habits

Consumers lead increasingly busy lifestyles and have a growing demand for convenience, while almost all are connected to the internet via smartphones, with these factors having an impact on shopping habits in Chile. Cornershop and Rappi are two apps that are increasingly popular for those keen to buy packaged food without visiting a store, with these offering on-demand delivery services that not only follow customer instructions with regards to specific items but will also contact the customer if products are not available, to discuss potential replacements.

Ongoing growth thanks to busy consumers and growing economy

Although Chile’s economy is projected to see slower growth over the forecast period, growth will nonetheless continue, with economic confidence and an ongoing slow rise in disposable income levels set to support sales increases within packaged food. Some products areas such as dairy will notably benefit from consumers continuing to shift to packaged options, while the health and wellness trend will likely be key to growth, with consumers increasingly looking for natural and nutritious products in packaged food.

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