This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 1/9/2020

Overview
Uruguay will continue to be a net importer of several foods and beverages (F&B) and ingredients that it does not produce domestically.  The best prospects are for food ingredients, high-value F&B products, and "commodity-type" products which are not manufactured locally.

Imported F&B which are not produced locally, or whose production is inadequate to supply the domestic market, include:

  • Dressings, spices, condiments, bananas, kiwifruit, grapefruit, tomato paste/ketchup, confectionery products, chocolates, coffee, snacks, sauces, prepared foods, soups, cheddar cheese, dehydrated potatoes, alcoholic beverages (whisky, beer, and wine), energy drinks, prepared beverages, cookies/pastries, power bars, healthy snacks, and pet food.
Food ingredients, especially those used for the manufacturing of more-sophisticated products include:
  • Nutritional ingredients, dried fruits and nuts, cocoa paste/butter, additives, ingredients for the dairy and processed-meat industries.
Uruguay has no quotas or restrictions and manages reasonably transparent labeling and sanitary requirements.  Most U.S. FDA-approved processed F&B can be imported into the country.  However, some products of animal and vegetable origin may have sanitary restrictions.

Exports of U.S. food products to Uruguay have very good potential.  Imported food products for mass consumption are typically purchased from Argentina, Brazil, and Chile, which together account for almost 80 percent of total imports.   Imports from Europe and the U.S. are aimed at the middle- and higher-income sectors.  The opening in 2015 of the Uruguayan market for U.S. beef and poultry products presents a good opportunity for American exporters, since several Uruguayan importers have expressed interest in bringing those products, especially bovine sweetbreads, into the country.  Some importers have already brought the first containers of both chicken, turkey and sweetbreads into Uruguay.  The government is expected to continue with awareness campaigns promoting consumption of healthy snacks at primary and secondary schools; this brings new opportunities for imported power bars, dried fruits snacks, and other healthy foods.

Uruguay’s Ministries of Public Health, Industry, and Energy jointly proposed an executive decree June 2017 to modify food-labeling regulations, purportedly to combat childhood obesity and raise consumer awareness.  The decree would require nutritional labels on food products determined to be high in sugar, salt, saturated fats, and/or calories.  The decree was signed in August 2018 by President Vazquez and is expected to enter in full operation after March 2020.  The government reports that it consulted with industry and food specialists on the draft decree and the Pan American Health Organization had provided the dietary guidelines used.  Inspired by similar legislation in Chile (the 2016 Chilean Nutritional Labeling Law), the decree would require nutritional labels on food products determined to be high in sugar, salt, saturated fats, and/or calories.  Local industry contacts and the Industry Chamber of Uruguay publicly oppose the new requirements, claiming the draft decree is not consistent with relevant MERCOSUR labeling standards or guidelines.

The USDA Foreign Agricultural Service Office is based in Buenos Aires and covers Argentina, Paraguay, and Uruguay.  The office foresees increased opportunities for U.S. food ingredients, especially for the dairy and processed meat sectors, as most local companies have been focusing on increasing production and expanding exports. 

Opportunities
Most Uruguayan consumers are aware of the wide variety and high quality of U.S. foods and beverages and may be willing to try new products. The influence of U.S. culture is significant and transmitted through cable TV and the internet.  Many Uruguayans travel or study in the United States. Supermarkets are willing to have imported F&B on the shelves as a tool to differentiate themselves from other retailers. During the past few years, the self-serve format and the display of food products have improved remarkably. Large supermarket chains are logistically ready to import foods directly. Cold-storage facilities are good and can easily meet manufacturers’ requirements. The expansion of the food processing industry (especially the beef and dairy sectors), primarily to supply export markets, has created very good opportunities for U.S. food ingredient imports. There has been greater exposure of local retailers to U.S. exporters and products through USDA/FAS-sponsored marketing activities.

Challenges:
Imported food products from the United States are more expensive than regionally produced products. In general, MERCOSUR intra-regional trade pays zero import tariffs, which prompts strong competition primarily from Argentina and Brazil.  Import tariffs for other countries vary between 20 and 23 percent for most F&B. The relatively small size of the market and small import volumes many times limits import opportunities. Any onerous food labeling requirements, should they be implemented, could pose a technical barrier to U.S.-processed food imports.

Web Resources
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More Information

Uruguay Agribusiness Trade Development and Promotion