Market Entry - Genetically Modified Food Market in Chile: Analysis of Growth, Trends and Progress (2020 - 2025)

About the Market

High nutritional content in food, greater production quantity and low requirement of pesticides drive the genetically modified food market. However, damage to beneficial insects, soil fertility coupled with genetic pollution, the absence of any centralized government regulation and lack of awareness about the benefits of GMO are restraining market growth. Rising demand for healthy food products, year round and easy availability of genetically modified food are the main trends in the global market. In 2014, the first world countries were the largest market for genetically modified food and are likely to remain so in terms of revenue, over the forecast period. China and India are expected to emerge as major markets for genetically modified food. Major players operating in this category are Monsanto US, DuPont US, Syngenta Switzerland, Bayer Crop Science Germany, Sakata Japan, BASF GmBH, and Group Limagrain France. These global giants are actively involved in collaboration with the Advanced Research Institutes (ARIs) in industrial countries such as Brazil, Argentina, China, India, Malaysia and the Philippines for significant R&D program in biotechnology and transgenic crops. Companies are also increasing their R&D in some of the African countries such as South Africa, Kenya, Zimbabwe, Mali, Nigeria, Egypt, and Uganda in order to cater to the growing demand for genetically modified food in Africa. The developers of the genetically modified food products are intensely involved in certifying their safety. For instance, FDA depends on consultative processes with developers, who voluntarily present their plans to the agency before marketing their products.

About the Geography

Chile is recognized as one of the most stable, open and competitive economies in Latin America. With a presidential republic at its helm, the recent success of the Chilean economy is based on the export of copper.

With the continued drop in copper prices since 2014, Chile has experienced its second consecutive year of slow growth, elevated inflation and a depreciating currency. To counter this sluggish growth, Chile’s policymakers have been actively seeking foreign investment that shall provide the needed capital and technology for economic development. Chile withdrew from the ANCOM (Andean Common Market) in order to be free from restrictions on foreign investment. Regional incentives are available granting certain benefits, to promote investment in these areas and an all-round development of the country.

Negotiations made mostly in Spanish and weak IPR enforcement are challenges of conducting business in Chile. However, the strengths of the market, which include an open economy, commitment to free trade, a well-developed financial market and economic structure, seem to stand tall among these challenges.

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