Overview

Ecuador’s agricultural sector plays a vital role in its economy and trade relationship with the United States. Ecuador is a major exporter of shrimp, bananas, cocoa, and flowers, and historically maintains an agricultural trade surplus with the United States.  While Ecuador continues to face economic and security challenges, the food processing industry remains a strong performer, offering opportunities for U.S. exporters, especially in supplying intermediate and value-added products. Consumers are increasingly seeking high-quality, functional, and specialty food products, many of which are not produced locally.

Despite a forecasted economic growth rate of only 1.4 percent in 2025, Ecuador continues to offer a promising market for U.S. agricultural and food products. Many U.S. goods remain price competitive, and even when they are more expensive, Ecuadorian consumers often prefer them for their perceived quality. Demand is especially strong for products that local suppliers cannot match such as organic, gluten-free, or fortified food items.

Purchasing power of Ecuador’s population is limited. Still, Ecuador’s dependence on food imports is expected to continue, given that local production does not meet national demand. While the government has adopted measures to limit imports, it has not significantly reduced the country’s reliance on imported agricultural goods.

Agricultural Trade Situation

Bilateral trade in agricultural and related products (including biodiesel, forest, and seafood products) between the United States and Ecuador reached $4.4 billion in 2024. Ecuador saw an increase in sales, while U.S. exports declined. The bilateral trade balance for agricultural and related products favored Ecuador by $3.2 billion, mainly due to shrimp exports, which accounted for 43 percent of U.S. agricultural imports from Ecuador ($3.8 billion). The trade deficit for strictly agricultural products (excluding biodiesel, forest, and seafood products) increased by 67 percent to $1.6 billion, with a four-to-one trade ratio favoring Ecuador.

U.S. exports of agricultural and related products to Ecuador in 2024 totaled $555 million, a 31 percent decrease from 2023.  This decline was driven by Ecuador’s preference for intermediate products from South American competitors, particularly soybean meal. Bulk product imports increased by 22 percent, mainly due to higher imports of wheat and cotton. U.S. imports of intermediate products fell by 43 percent due to reduced demand for soybean meal and distillers dried grains with solubles (DDGs). Consumer-oriented product imports remained nearly unchanged, with only a 1 percent decrease from 2023, despite some categories reaching record levels.

Leading Product Categories

Even while facing economic and political challenges, some U.S. exports have achieved record-high performances in 2024. Most notably, U.S. exports of pet food surged by 71.4 percent. In addition, U.S. exports of distilled spirits increased by 5.4 percent, chocolate and cocoa products increased by 7.2 percent, and processed vegetables rose by 10 percent. Distilled spirits from the United States faced competitive challenges due to tariff reductions for European products under the Ecuador-European Union Free Trade Agreement.

Table 1:  Noteworthy U.S. Agricultural Exports to Ecuador, 2024

Units:  US$ millions
Source:  Global Agricultural Trade System (GATS)

The Most Impacted Products

In 2024, economic, political, and logistical challenges resulted in value decreases for some product categories. The most affected product was soybean meal. In 2023, U.S. soybean meal exports to Ecuador reached a record-high of $455 million; however, in 2024, it decreased 53 percent. This decrease is directly related to an increase in imports from Argentina and Bolivia and stagnation in the shrimp production industry in Ecuador. Other products affected this year were seafood products, sugar, sweeteners & beverage bases, DDGs, vegetable oils, forest products, fresh fruits, poultry meats and products, live animals, and tree nuts.

Opportunities in Ecuador are expected to improve in 2025 for multiple product categories. However, restrictive regulations and import tariffs continue to limit U.S. exports of animal products and fresh fruits.

Food Processing Sector

Ecuador’s food processing industry is one of the most dynamic sectors of its economy. In 2024, it generated approximately $14 billion in net sales and accounted for 56 percent of the country’s manufacturing GDP. In 2023, the food processing sector accounted for $10.2 billion, or 41 percent, of Ecuador’s $24 billion in non-oil export earnings. Younger generations, whose lifestyles are rapidly changing, are driving this growth as they increasingly choose processed foods as part of their daily diets.

The Economist Intelligence Unit projects retail food sales in Ecuador will reach $26.6 billion in 2025. Consumer spending on food, beverages, and tobacco is expected to total $19 billion. These trends present strong opportunities for U.S. suppliers of ingredients, specialty products, and high-value consumer goods.

Leading sub-sectors:

• Meat, meat products, and sub-products

• Seafood and processed aquatic products

• Fish and other processed aquatic products

• Crude and refined animal and vegetable oils 

• Processed dairy products

• Milling and bakery products, noodles, and pasta

• Processed sugar products

• Processed cocoa products, chocolates, and confectionery products

• Various foodstuffs

• Beverage products

• Machinery, equipment, and supplies for agricultural operations

Resources

• Foreign Agricultural Service Import Regulations and Standards Report

• Foreign Agricultural Service Exporter Guide

• Food and Agricultural Import Regulations and Standards (FAIRS)

• U.S. Embassy Commercial Specialist, Bernardo Meitzner – MeitznerBJ@state.gov