Latin America is emerging as a promising, yet untapped market for India’s food and beverage (F&B) exports, driven by growing demand for diverse products, evolving consumer preferences, and strengthening trade ties. The LAC region can play a significant role in achievement of India’s target of US$ 100 billion F&B exports by 2030, and it should be critical to our market diversification strategy. To decode this potential, the Centre for Advanced Trade Research (CATR), the research division of Trade Promotion Council of India, has conducted an in-depth study, analyzing key product-market opportunities, existing challenges, and the most effective market entry strategies for Indian exporters.
This blog delves into the key insights from the study, highlighting which Indian F&B products hold the greatest promise, the regulatory and logistical hurdles that exporters must navigate, and strategic approaches to establishing a strong presence in the Latin American market. Whether you are an F&B manufacturer, exporter, or trade enthusiast, this analysis provides valuable guidance for tapping into one of the world’s most dynamic and underexplored regions.
As India looks to position itself as a US$ 5 trillion economy, its trade and investment strategies are becoming more outward-looking, emphasizing diversified partnerships across the world. This search for new markets, stable supply chains, and energy security has led India to deepen its engagement with regions that have historically been outside its immediate trade orbit. One such region that holds immense promise is Latin America and the Caribbean (LAC).
The LAC region, comprising 33 nations and over 650 million people, is one of the most resource-rich and diverse economic blocs in the world. Known for its vast natural reserves, LAC plays a crucial role in global supply chains. From the copper mines of Chile and the lithium reserves of Argentina to the vast agricultural lands of Brazil and the oil fields of Venezuela, the region is a key supplier of raw materials to global markets.
LAC economies have traditionally been strong in agriculture and commodities, exporting large volumes of soybeans, beef, sugar, and coffee, while also emerging as critical suppliers of strategic minerals like lithium, which is essential for electric vehicle production and the global clean energy transition.
Moreover current geopolitcal trends could further drive India-LAC ties. Suhayl Abidi, Information Specialist and Trainer in International Trade, comments, “Recent geopolitical upheaval due to Trump’s policies may result in a realignment of LAC trade with the countries looking at reducing their dependence on US and diversifying their trade with other countries. This offers a window of opportunity to India to increase its exports.“
Beyond its natural wealth, the LAC region is undergoing economic transformations, with countries like Brazil, Mexico, and Chile making significant advancements in technology, manufacturing, and services. LAC remains a critical player in global trade, and its economic potential continues to attract attention from international partners, including India.
Despite the significant geographical distance between India and the LAC region, the two regions share strong economic complementarities that make them natural trade partners. With its increasing demand for food, energy, and minerals, India’s rapidly growing economy aligns seamlessly with LAC’s abundant natural resources and agricultural productivity. Countries like Brazil, Argentina, and Uruguay serve as vital suppliers of essential agricultural commodities such as edible oils, sugar, pulses, and soybeans, which play a critical role in supporting India’s food processing industries.
These industries, in turn, generate employment opportunities and contribute significantly to India’s economic growth. Furthermore, critical resources like Venezuela’s crude oil, Chile’s copper, and lithium reserves in Argentina and Chile underpin India’s industrial, technological, and green energy sectors, especially as the nation transitions towards clean energy solutions and expands its electric vehicle (EV) market. These resources are pivotal to India’s ambitions in manufacturing, technology, and sustainable development.
The economic partnership between India and the LAC region has grown significantly over the last two decades. Trade volumes have surged from approximately US$ 4 billion in 2004 to nearly US$ 45 billion in 2023, reflecting deepening economic ties. This growth was marked by notable milestones, including a peak in bilateral trade at around US$ 47 billion in 2014-15, driven by robust demand for imports and exports. While the global financial crisis caused a temporary dip in 2009-10, trade between the two regions recovered and grew at an impressive average annual rate of 30.9% between 2004 and 2014.
For LAC countries, India represents an attractive opportunity to diversify their trade and investment partnerships beyond traditional allies like the US, China, and Europe. India’s expanding middle class and increasing demand for consumer goods, technology, and infrastructure offer significant opportunities for LAC exporters. In return, India views the LAC region as a strategic partner, with exports ranging from affordable, high-quality pharmaceuticals to automobiles, machinery, and consumer electronics.
Indian IT services also hold great potential in LAC as the region embraces technological advancements to modernize its economies. Indian businesses have begun to deepen their investments in LAC’s energy, agriculture, and technology sectors. Indian companies are actively involved in renewable energy projects, oil exploration, and infrastructure development in Brazil and Mexico. Additionally, collaborations in LAC’s agricultural sector are helping enhance productivity and market access. In technology, Indian firms are forging joint ventures and partnerships in fintech, edtech, and e-commerce, driving innovation and strengthening economic ties.
This growing trade and investment flow between India and the LAC region signals the evolution of a deeper, more strategic partnership. Both regions stand to benefit from shared economic growth, technological innovation, and sustainable development. This collaboration sets the stage for a long-term relationship, fostering not only trade and investment but also cultural and political ties that will strengthen mutual prosperity for years to come.
Trade between India and the LAC region has seen consistent growth, surpassing US$ 40 billion in recent years. Initially, the trade relationship was primarily driven by commodities, but food and agriculture have increasingly become central to bilateral exchanges. This shift is particularly driven by India’s rapidly growing population and expanding middle class, which fuel an ever-increasing demand for essential agricultural products. As India’s food security becomes more reliant on imports, the LAC region, with its vast agricultural production, has become a critical partner in meeting these needs.
India’s F&B sector depends heavily on imports of key commodities such as edible oils, pulses, sugar, and soybeans, many of which are produced abundantly in LAC countries. Nations like Brazil, Argentina, and Uruguay are major suppliers of these essential agricultural products, making food and agriculture a natural focal point in India-LAC trade. The availability of these commodities supports India’s food processing industries, which are vital for both domestic consumption and export. The relationship also plays a significant role in sustaining employment in India’s rural areas and stimulating economic growth by supporting the agricultural value chain.
While LAC economies have the agricultural output that India needs to meet its growing food security demands, India offers LAC access to a large and expanding consumer market. The increasing demand in India for a diversified range of food products, from processed foods to fresh fruits and vegetables, presents an opportunity for LAC countries to expand their export markets. In return, India’s growing expertise in food processing technologies, logistics, and large-scale distribution networks presents an opportunity for LAC countries to modernise their agricultural sectors.
Indian businesses are well-positioned to collaborate with LAC economies in upgrading their agricultural infrastructure, improving supply chain efficiency, and enhancing the value-added exports that flow from the region to India. Furthermore, the rise in India’s demand for sustainable agricultural practices and technology opens doors for deeper collaboration on agricultural innovation, which can benefit both regions in the long term.
Agricultural and F&B trade is a major driver of economic interdependence between India and LAC. India’s demand for edible oils, pulses, and specialty products like quinoa and avocados has led to increased imports from LAC countries such as Argentina, Brazil, and Mexico. Conversely, India exports high-value agricultural products like spices, Basmati rice, and processed foods to LAC, creating a balanced trade relationship . For instance, India is one of the largest importers of soybean oil from Argentina and Brazil, while LAC countries rely on Indian spices and tea (APEDA, 2023[1]; FAO, 2023[2]).
In 2023, India’s F&B trade with LAC amounted to US$ 6.7 billion. However, there was a notable trade imbalance, with imports from LAC accounting for 90% of the total F&B trade.
On the other hand, India’s F&B exports to LAC have also seen notable growth, increasing at a 5-year CAGR of 18.22%, reaching US$ 715 million in 2023. In 2004, raw F&B products dominated, making up 89.9% of the exports to the LAC region, while processed F&B products accounted for only 10.1% (Figure 2.3). However, in 2023, raw F&B exports to LAC now make up 76.1% of the total, while processed F&B products have risen to 23.9%.
Mexico stands as the largest importer of India’s F&B products within the LAC region, followed by significant importers such as Brazil, Cuba, and the Dominican Republic. These countries are crucial in driving India’s F&B exports to LAC.
When analysing markets that import above the regional average for each LAC country, Cuba emerges as the fastest-growing market, boasting an impressive 5-year CAGR of 118%. This surge reflects Cuba’s shift toward diversifying food sources. Other markets that are performing well include Ecuador and Colombia, which are also seeing strong growth in F&B imports from India. Additionally, Mexico, India’s largest F&B importer in the LAC region, is not only maintaining its leading position but also experiencing substantial growth. This steady expansion underscores the ongoing potential of the LAC region as a key market for India’s food and beverage exports.
At HS 2-digit India’s top five F&B exports to LAC account for 65% of India’s total F&B exports to the region. These key export categories include animal/vegetable oils (HS 15), cereals (HS 10), oil seeds and oleaginous fruits (HS 12), Coffee/tea and spices (HS 09), and sugar confectionery (HS 17).
Fastest growing LAC markets for Indian F&B products
A comparison with 2004 data reveals that animal/vegetable oils, oil seeds, oleaginous fruits, and spices have consistently been among the top five exports in the two decades since and cereals and sugar confectionery have emerged more recently, driven by high export growth.
India’s major F&B exports to LAC region
Further granular analysis of these HS codes at the 6-digit level reveals the dominant products within each HS Code:
Major F&B exports at 6-digit level
In the following table, we take a look at the major sectoral categories showing high 5-year CAGR in terms of exports from India.
Fastest growing F&B categories to LAC region
India’s agricultural and F&B trade with LAC faces several challenges that need to be addressed to unlock its full potential. These challenges span regulatory, logistical, and strategic dimensions, requiring targeted interventions to enhance trade efficiency and competitiveness.
i. Compliance with Food Safety Standards, Certification, and Pesticide Residue Limits
One of the most significant challenges for Indian exporters is meeting the stringent food safety standards and certification requirements imposed by LAC countries. Regulations related to pesticide residue limits, organic certification, and labelling often act as non-tariff barriers, limiting market access for Indian agricultural products. For instance:
● LAC nations like Brazil and Argentina have strict norms for imported spices, fruits, and processed foods, which can be difficult for Indian exporters to comply with due to gaps in testing infrastructure and awareness (APEDA, 2023[3]).
● Mexico requires compliance with COFEPRIS regulations, while Brazil follows ANVISA standards. Indian exporters often struggle with certification processes like USDA Organic, EU Organic, and HACCP.
● In 2022, Chile rejected several shipments of Indian spices due to pesticide residue violations (Chilean Agricultural and Livestock Service, 2022).
● The European Union’s stringent Maximum Residue Levels (MRLs) for pesticides, which many LAC countries align with, pose additional challenges for Indian exporters.
⮚ Actionable Strategies:
✔ Invest in advanced testing facilities and certification programs to meet international standards.
✔ Collaborate with LAC regulatory bodies to harmonize standards and streamline compliance processes.
✔ Provide training and capacity-building programs for Indian exporters to understand and adhere to LAC regulations.
✔ Promote Good Agricultural Practices (GAP) and provide training to farmers on sustainable farming techniques.
ii. Infrastructure and Cold-Chain Logistics Bottlenecks
Inefficient infrastructure and inadequate cold-chain logistics pose significant hurdles to India’s agricultural trade with LAC. The lack of robust cold storage facilities refrigerated transportation, and port handling capabilities often leads to post-harvest losses and delays in perishable goods such as fruits, vegetables, and dairy products.
S. M. Chaturvedi, Faculty, NIFT, Legal Cum-Corporate Adviser, comments, “One of the biggest challenges is the lack of direct connectivity between India and LAC. There are no direct flights, and shipping routes often go through the U.S., increasing freight costs and extending transit times. For perishable agricultural goods, longer shipping durations pose significant logistical challenges. High freight costs also make Indian manufactured products less competitive in LAC markets.“
For example:
● India’s exports of fresh produce to LAC are constrained by the inability to maintain the required temperature and humidity levels during transit (FICCI, 2023[4]).
● Poor road connectivity and port congestion further exacerbate delays, increasing costs and reducing competitiveness.
● India’s inadequate cold-chain infrastructure leads to spoilage and quality degradation of perishable products. Only 25% of India’s perishable produce is transported through cold chains, compared to 90% in the USA (NCCD, 2023).
✔ Develop integrated cold-chain networks through public-private partnerships (PPPs).
✔ Invest in modern infrastructure, including refrigerated warehouses and transportation systems.
✔ Leverage technology such as IoT-enabled cold-chain monitoring to ensure product quality during transit.
✔ Invest in cold-chain infrastructure and partner with private players like Snowman Logistics and ColdEX to improve efficiency.
Dr Monojit Das, Hon. Advisor, Editorial Board, Indian Aerospace and Defence News, opines, “Indian companies looking to expand in LAC must adopt a more geopolitically informed approach. Trade is no longer just a transactional activity; it is deeply intertwined with global political dynamics. Engaging with government-backed think tanks like IDSA and ORF, as well as tri-services exchanges, could help businesses better understand the geopolitical risks and opportunities in LAC markets.“
Sudhakar Kasture, noted expert and EXIM trade consultant, points out, “Food choices vary significantly across Latin American countries, and Indian products may not always align with local tastes and preferences. Cultural factors, traditional cuisines, and familiarity with domestic or regional brands play a crucial role in shaping demand.” Furthermore, he adds, “Indian F&B brands have relatively low visibility in Latin America, and the lack of strong distribution networks further restricts market penetration. Competing with well-established regional or global brands requires sustained marketing efforts and investment in brand-building activities.“
Mr S M Chaturvedi adds, “Ultimately, the key to expanding India’s trade with LAC lies in sustained engagement, improved connectivity, and targeted trade policies that address logistical and financial barriers. By focusing on high-value exports and strengthening institutional linkages, India can unlock significant trade opportunities in the LAC region.”
✔ Leverage India’s strengths in spices and processed foods to target niche markets in LAC.
✔ Address weaknesses by investing in infrastructure and compliance mechanisms.
✔ Capitalize on opportunities by aggressively promoting Indian organic and ethnic foods in LAC markets.
✔ Mitigate threats by diversifying export markets and building strategic partnerships.
It is clear that India’s current F&B export performance to LAC region is showing growth, but is still well below potential. There are several reasons for this, which we have identified in our research. Moreover, while they agree on its potential, some of the exporters we interacted with are not very well aware of the dynamics of this market, or admit that it is not their immediate area of focus. But it definitely makes sense for companies to start looking at emerging opportunities, building brand awareness, assessing synergies and build enduring relationships in the LAC market for the long term.
Read the report for further details on:
– Top potential F&B products for export by India
– Key competing suppliers in the region
– Top Latin American markets and export prospects
– Potential strategies for exporters looking for market entry
– Latin American F&B exports to India, key products and growth opportunities
For your copy of the report, please click on this link.
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