With a recorded GDP of over USD 320 billion in 2024, Chile is the fifth largest economy in Latin America. The World Bank forecasts that Chile’s economy will grow by 2.2 per cent by the end of 2025. Malaysia maintains a strong bilateral trade relationship with Chile, with total trade recorded at USD 178.07 billion in 2024. Malaysia’s top five exports to Chile include urea, vegetable fats and oils, wooden and kitchen furniture, preparations of animal or vegetable fats and oils, and non-wired float glass sheets for the construction industry.

Chile is a potential market for Malaysian exporters to explore, as it was the first country in the Americas to establish a free trade agreement with Malaysia. Under this agreement, 99 percent of Malaysian products can enter Chile with zero import duty. Chile also serves as a gateway to other Latin American markets, maintaining strong business relations with Argentina, Peru, Uruguay, Colombia, and Ecuador. While Chile has a small population, it has a strong consumer class and mentality.

Current trends in the Chilean FMCG sector include sustainably sourced products and eco-friendly packaging, convenience foods, premium and gourmet food products, health and wellness foods, and plant-based and alternative products. There are also opportunities for Malaysian food products, such as palm oil and derivatives, processed foods and ingredients, halal products, coconut products, health and wellness products, and food ingredients and additives.

As Chilean consumers value quality and sustainable products, exporters need to adapt their offerings to meet the expectations of a more informed and conscious public. They also tend to seek out the best deals, with one in three shoppers visiting multiple stores to optimise their spending. Additionally, consumers will seek for sustainable and responsibly sourced products.

To enter the Chilean market, exporters should consider leveraging distributors, retail, digital channels, and the Horeca sector. Distributors allow rapid scaling through established logistics networks, which helps optimise operational costs and broadens territorial coverage. Retail outlets, such as supermarkets and specialty stores, offer significant volume and visibility, but exporters need to ensure they comply with supply requirements and commercial margins demanded by these retailers. Meanwhile, digital channels, such as e-commerce and online marketplaces, provide an opportunity for direct sales, though they require investment in logistics and advertising. The Horeca sector, encompassing hotels, restaurants, and casinos, is ideal for distinctive products that aim to gain recognition through user experience.

Although Chile is open to trade, it has strict regulations in place to protect consumers, and has enforced high quality and labelling standards for imported products. Customs controls are also stringent, which can lead to delays and increased costs in the import and export process. Furthermore, the Chilean market is highly competitive, as the country imports a wide selection of products from various regions.

For enquiries, please contact:

MATRADE Santiago
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References
MATRADE Webinar (Exploring Chile’s Booming FMCG Sector: A Gateway For Malaysian Exporters)