Overview

Ecuador's diversity in regions and climates means it is diverse in fruits, legumes and others and has a strong agricultural sector. According to the classification by economic activity by the Central Bank of Ecuador, the food and beverage sector includes the areas of agriculture, livestock, hunting, forestry and manufacture (excluding oil refining). The main sub-ectors are: meat, meat products and sub products; processed shrimp, fish and other processed aquatic products, preserved aquatic species; crude and refined oils; developed lacteal products; milling products; bakery products; noodles and pasta; sugar and sugar cane; developed cocoa products; chocolates and confectionery products; foodstuffs.  

Sales & Distribution Channels

Ecuador’s retail channels consist of supermarket chains, open markets, groceries stores, and convenience stores while food purchasing in local grocery stores and modern supermarkets is almost equally represented.

Supermarket chains can be found in larger cities like Quito, Guayaquil or Manta and are mostly dominated by citizens of middle-higher income. They represent the main channel for imported food, thanks to its diversity and availability as well as their offer of promotions and discounts.

Another channel to take into account is the online environment that is growing competition among retailers. Mobile e-commerce was the top growing channel in 2019 as internet consumption and smartphones utilization has led to a rise in online purchasing options.

One way for new market entrants to build sales in Ecuador is by offering a combination of competitive pricing along with profit sharing, promotion cost support, and by engaging in joint product promotions. If it is not possible to penetrate existing distribution channels, exporters can attempt to establish their own distribution channels. Distribution channels in Ecuador will vary between those for domestic and imported products.

Local Food Processing

The food-processing sector is one of the strongest performing sectors in Ecuador’s economy. The sector is a huge component of the nation’s manufacturing sector, accounting for about 43 percent of the sector’s contribution to the country’s gross domestic product (GDP). In 2020, the food-processing sector represented 12 percent of Ecuador’s $11.3 billion in non-oil export earnings, or $1.4 billion. Spurring the sector’s growth is increased acceptance and consumption of processed food products, which are now a well-established part of the national food culture due to the changing lifestyles of the new generations.

Domestic food manufacturers rely heavily on local food ingredients. Ecuador’s government is attempting to restrict imports in order to stimulate local production and increased domestic use. The government is also aiming to increase production for regional export. Ecuadorian companies tend to import specialized food ingredients such as flavouring agents, colorants, preserving agents, and emulsifiers. Food processors import these products from the United States and the European Union as Ecuador lacks the means to manufacture these products in sufficient volumes. Ecuador is heavily dependent on imported wheat, soybean oil, and soybean meal. It is also an importer of fish products, crustaceans, and molluscs for further processing and commercialization.

Ecuador’s larger food and beverage processors have achieved a high degree of industrialization and technical sophistication. Small processors rely primarily on less efficient, traditional production methods.

Raw material and food ingredients represent a significant portion of the final purchase price of locally manufactured food products. To maximize returns, local food processors will often seek out more affordable, locally sourced food ingredients. Local food processors tend to purchase directly from foreign suppliers, forgoing the use of brokers. Local companies with low sales volumes often face higher import related costs. To compensate for these expenses, many of these companies source imported food ingredients from wholesalers who act as importers.

Source:  USDA Foreign Agricultural Service www.fas.usda.gov

The Economist Intelligence Unit forecasts retail food sales for 2021 at US$25.4 billion and consumer expenditures for food, beverages, and tobacco at US$15.4 billion.

Source: http://country.eiu.com/Ecuador

For more specific and detailed overviews of food availability and market conditions, please consult the following sources:

WFP Vulnerability and Analysis Mapping (VAM): https://dataviz.vam.wfp.org/

 

For more information on food supplier contact details, please see the following link: 4.10 Supplier Contact List.

Retail Sector

Ecuador Top Five Retailers 

Based on sales parameters, the main supermarket chains in Ecuador, representing approximately 60% of the sector, are La Favorita (Supermaxi), and El Rosado (Mi Comisariato). Tiendas Industriales Asociadas, Mega Santa Maria, and Hipermercados Coral are fast growing medium-sized supermarket chains. These same supermarket chains sell imported food products targeting middle- and high-income consumers.

 Corporación Favorita and Corporación El Rosado have entered grocery retailing as their main operating channel including hypermarkets and supermarkets but also focus on different income segments such as premium, standard and economy. Specific policies implemented by the Superintendencia de Control del Poder del Mercado (a government regulatory body), based on ensuring trade rights and equity conditions of agreement with large chains for domestic products from small and medium manufacturers, have underpinned support for an existing trend towards increasing demand for domestic products in almost all categories, from grocery to also apparel, electronics, appliances leisure and personal goods.

 

Wholesale – CORPORACION FAVORITA

Corporación Favorita, a supermarket wholesaler, as well as it sells other diversity in products. It is located in many of the provinces in the country.

 

 

**For FUEL/PETROLEUM products please see section 3.1 Fuel.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.