EXPORTT, this country’s official export facilitation organisation, is recommending that local manufacturers consider the Chilean market for potential exports from this country.
In primary research conducted by exporTT’s monitoring and research unit, the export facilitation organisation identified Chile as a growing market with decent consumption for the products produced by T&T’s non-energy manufacturers.
“Many economic pundits project Chile’s economy will see stronger growth fuelled by robust private consumption and buoyant investment. The market has managed this growth despite limiting factors in the external sector such as tariffs imposed by the trade war between the US and China and worsening of the economic situation in some trading partners in Asia and Europe. Real GDP is expected to grow by around 3.2 per cent per year in 2020-2026 after gains of 3.9 per cent in 2018,” according to the exporTT market research.
Assessing the prospects for T&T products in the Chilean market, exporTT said its research indicated that access to adequate market and competitor intelligence can allow companies to identify opportunities that present themselves as a result of changes in the legal and regulatory framework, political and economic environment, consumer trends, emerging technologies, materials and distribution.
The organisation, which falls under the Ministry of Trade, indicated: “There are opportunities in almost every market but the companies that benefit are the first movers and they are usually the ones with the information. If your company is one that can easily evaluate the suitability of your product, determine what adaptations or positioning might be required and then achieve them then read on!”
ExporTT’s research noted several developments in the Chile market, particularly the government of Chile’s recent legislative crackdown on sugar, fat and carbohydrate content in consumer goods.
It also took note of Chilean consumers’ growing concern for their health, which the agency noted has had a significant impact on products such as chocolates, sugar confectionary, soft drinks, baked goods, breakfast cereals and others.
As a result of those developments in the market of the South American country, exporTT said Chile’s consumer base is experiencing a strong shift in demand for products considered “healthy alternatives,” especially those targeting children.
According to exporTT: “Manufacturers will have to adhere to requirements for packaging and labelling as well as the content of their consumable products. The only consumable products for which this trend are not applicable, are those within the category of sauces and condiments.
“Differentiation could be the key to gaining a foothold in this market as so-called “premiumisation” is a growing trend. Products that position themselves as “high end” are becoming more appealing especially in light of an economic turnaround in the country. In addition to luxury items, consumer demand is on the rise for artisanal goods made using traditional/non-mechanised processes, example craft beer.”
The research noted that while Chile has a strong sense of consumer loyalty towards national brands or established international brands, “T&T products can be geared to satisfy tastes that are more sophisticated, such as gourmet burgers and vegan varieties and products low in saturated fat and/or sodium which are part of the health and wellness trend.”
ExporTT also said companies can also focus, for example, on single serve or heat-and-eat and ready to serve packaging as a way of responding to the growing number of single/two-person households and the growing need for convenience.
Another possible area of differentiation for T&T manufacturers seeking to target the Chilean market is in non-consumables such as home-care products and personal hygiene items. Here manufacturers can differentiate in areas of convenience, health and wellness and organic/environmentally friendly ingredients, the exporTT research advised.
The export promotion agency also advised manufacturers of household and industrial chemicals that in the umbrella category of surface care, private label products were available at attractive prices in 2018.
ExporTT said in the coming weeks it will take a more targeted look at key product categories, such as baked goods, snacks, breakfast cereals, ice cream, sauces and condiments, processed meat and seafood, confectionery, beer, soft drinks and more.