Overview
In 2024, U.S. agriculture exports to El Salvador in the consumer-oriented product category reached a record USD 344 million, a 21.5% increase from 2023 and approximately 20% of the total market. Pork and pork products, poultry and poultry products, condiments/sauces, dairy products, chocolates and cocoa products, food preparations, nuts, non-alcoholic beverages, and confectionery products all posted record imports in 2024. The distribution of consumer-ready foods is carried out through several channels.
Supermarkets, such as Walmart and the leading local chain, Super Selectos, are the primary outlets. Still, a significant amount is also moved through wholesalers, who may be supermarket owners themselves or distributors delivering products to smaller stores. Typically, distributors handle products on an “exclusive” basis, often as representatives for a line of products. Direct sales are common practice; however, having a local distributor facilitates operations and supports client service. Most large importers/distributors are members of the Salvadoran Distributors Association (ADES). ADES manages the relationship of its members with local retailers, wholesalers, and supermarkets.
The Salvadoran market may be significantly larger than portrayed by U.S. export data. A high percentage of El Salvador’s imports of consumer-oriented products are registered as originating from Guatemala. This is because many containers from the United States transit Guatemala’s Atlantic ports. Although they are in transit to El Salvador, customs officials may tally the products as Guatemalan imports.
Consumers are increasingly purchasing groceries in supermarkets and moving away from traditional open-air markets or small, family-run stores, primarily due to the more extensive product offerings. It is estimated that approximately 40% of food sales are generated in supermarkets. Walmart, Super Selectos, and U.S. wholesaler PriceSmart dominate the supermarket industry.
Leading Sub-Sectors
Consumer-Oriented Products
- Confectionery: Chocolates and Cocoa Products
- Processed Foods: Processed Fruit and Vegetables, Breakfast Cereals, Pancake mixes, and Salad dressings
- Animal Feed: Pet Foods (Dog and Cat)
- Condiments and Sauces: Spices, pasta sauce, and chili pepper sauce
- Tree Nuts: Peanuts, Almonds, Walnuts, Mixed nuts
- Dairy Products: Aged Cheese, Processed Cheese, Whey Protein
- Fruit and Vegetables: Apples, Grapes, Stone Fruit (peaches, plums, cherries)
- Meats: Pork Cuts for Hotel/Restaurant/Institutional (HRI) and Retail, Mechanically Deboned Poultry Meat (for sausage manufacturing), Meat, Sausages, Processed Egg products, Poultry Meat
*Selection criteria are based on USDA/FAS Country Strategy Statement (CSS), market surveillance, and suggestions by industry players.
Rice
Overview
El Salvador is not self-sufficient in rice production and must import from other countries, particularly the United States, to meet demand. Local demand is estimated at approximately 120,000 metric tons of rough rice, of which about 20% is covered by local production. Typically, El Salvador imports rough rice to keep rice mills operating throughout the year. However, due to a 2024 Presidential Decree that zeroed import duties and removed non-tariff barriers for basic basket products, including rice, imported South American and Thai milled rice have recently reached local supermarket chains to fulfill local demand. El Salvador has officially abolished the use of a price-band mechanism to assess import duties for basic grains. CAFTA-DR established Tariff Rate Quotas (TRQs) for rice (see Opportunities).
Members of the Salvadoran Rice Millers Association (ASALBAR) are the distributors of both imported and locally processed rice. ASALBAR continues to collaborate with the U.S. Rice Producers Association on a marketing campaign aimed at increasing local consumption of U.S. rice through the USDA Market Access Program (MAP). U.S. rice imports reached USD 29.1 million in 2024.
Best Products
Rough rice, Milled parboiled rice
Opportunities
Rice production continues to decrease in El Salvador and the region. Under CAFTA-DR, tariffs for rice were eliminated in 2024.
Corn
Overview
El Salvador is a significant market for U.S. yellow corn, which is primarily used by the poultry and animal feed industries. The snack processing industry is also a substantial importer of hard-endosperm corn. Imports of yellow corn from the United States account for 90% of local demand, estimated at 490,000 metric tons for the 2023-24 crop year.
Best Products
Yellow corn for animal feed and hard endosperm for snack manufacturing.
Opportunities
Snack food production is at the forefront of the food processing sector. Yellow corn is a main ingredient in the snack manufacturing process. Corn chips, salted peanuts, cheese puffs, and party mixes are some of the most popular items in the local snack sector. The DIANA and Bocadeli snack brands, produced in El Salvador, capture roughly 75% of the snack market and are already exporting products, such as corn chips and nacho tortillas, to ethnic markets in the United States.
The poultry, swine, and dairy sectors are also significant users of yellow corn for feed mix.
El Salvador will liberalize trade in white corn by expanding a TRQ rather than by tariff reductions. White corn was granted a TRQ of 35,000 MT under CAFTA-DR. There is also a growing market for white corn flour, which is used to make tortillas.
Soybeans
Overview
El Salvador does not produce soybean meal; thus, the total demand estimated at 190,000 metric tons in the 2023-2024 marketing year must be met with imports. The poultry, swine, and livestock sectors use the product as feed. Commercial trade is skyrocketing due to the high demand for poultry products. In 2024, soybean meal imports reached USD 493.1 million. El Salvador’s poultry industry is the most developed in the region and a large user of soybean meal.
Best Products
Soybean meal
Opportunities
Dairy production is increasing due to government incentives and sanitary regulations that protect contraband cheese from Nicaragua and Honduras. Soybean meal is a key ingredient in cattle and swine feed mix. CAFTA-DR offers immediate access to U.S. soybean meal with no tariffs or quotas.
Summary
Approximately 2.3 million Salvadorans reside in the United States and annually remit more than USD 8 billion to relatives in El Salvador, equivalent to approximately 25% of the country’s GDP. The remittances, in turn, raise Salvadoran consumers’ disposable income and expenditures. The typical consumer believes U.S. products are of superior quality and is generally willing to pay a premium price. Nevertheless, the relatively high cost of U.S. products can be a constraint to increasing market share and attracting new customers. In addition, while opportunities exist for U.S. suppliers, competition from Central America, Mexico, Chile, and the European Union (EU) is substantial.
In summary, at least 1.2 million consumers, or 20% of the population, are buying U.S. consumer-ready products. Households are continually seeking convenience in food preparation. Boutique-style supermarkets, such as Super Selectos stores, located in upscale neighborhoods within the Greater San Salvador Metropolitan area, cater to the affluent segment of the population. A younger generation entering the labor force is driving growth in retail consumption and increasing the use of eCommerce.
Resources
FAS Contact in El Salvador: Miguel.Herrera@usda.gov