South America Market Overview

Market Overview

$2.1 billion

total U.S. exports of processed foods to South America in 2024

6th

largest for U.S. processed food exports

$239.6 Billion

retail sales in the packaged food market in South America in 2023

Focus Economics reports that in 2025, South America’s economy is expected to grow more quickly compared to 2024 as inflation and interest rates ease. However, the region is likely to remain the slowest-growing emerging market due to political instability, high crime, corruption, and limited high-value-added activities. The policies of the U.S. administration are a key factor to watch.  

Inflation decreased in Argentina, Colombia, Ecuador, Paraguay, and Uruguay during the third quarter of 2024, while it increased in Bolivia, Brazil, Chile, Mexico, and Peru. Most economies will see lower average inflation in 2025 versus 2024 amid a decline in global commodity prices. That said, U.S. trade tariffs and faster-than-expected currency depreciation are upside risks. 

The South American region remains the sixth largest for U.S. processed food exports. In 2023, U.S. exports of processed food declined considerably, 17%, to US$1.9 billion. In 2024, U.S. exports of processed foods to the region have recovered, growing 11% to just over US$2.1 billion. Market Assessments included below are for the top four U.S. markets for processed food products – Brazil, Chile, Colombia, and Peru.  

Top U.S. processed food products exported to South America in 2024 included: 

• Food Preparations and Ingredients 

• Processed/Prepared Dairy Products 

• Fats and Oils 

• Alcoholic Beverages 

• Chocolate and Confectionery 

• Condiments, Sauces, Jams and Jellies 

• Dog and Cat Food 

• Prepared/Preserved Meats 

According to Euromonitor, retail sales in the packaged food market in South America were estimated to reach US$239.6 billion in 2024. That also represents a growth rate of 82.8% or US$108.5 billion since 2020. The forecast for growth in this regional market is also quite promising. By the year 2029, retail sales in the packaged food market in South America are expected to reach US$487.6 billion, a growth rate of 75.5%, or US$209.8 billion from 2025.  

High-growth products included in the forecast:  

• Cheese 

• Confectionery 

• Pet Food 

• Dairy 

• Sweet Biscuits, Snack Bars, and Fruit Snacks 

• Baby Food 

• Processed Meat, Seafood, and Alternatives to Meat 

• Savory Snacks 

• Sweet Spreads