Paraguay Emerging Industries 2026
Green energy, carbon credits, creative economy, and food manufacturing - four sectors where Paraguay has natural advantages that are still underdeveloped.
2.5%
Creative Sector GDP
7.2%
Food Manufacturing GDP
100%
Electricity from Renewables
50K+
Creative Sector Jobs
Quick Answer
Paraguay has four emerging industries with significant growth potential. Green production leverages the country's 100% renewable electricity grid for energy-intensive processing and green hydrogen. Carbon credits draw on 17.8M hectares of forest and Law 7190/2023. Creative industries contribute 2.5% of GDP with film, gaming, and music sectors. Food manufacturing represents 7.2% of GDP with beef, essential oils, and yerba mate as key exports. All sectors can access Law 60/90 and Maquila incentives.
See Green ProductionGreen Production
Paraguay generates approximately 100% of its electricity from renewable sources - primarily the Itaipú and Yacyretá hydroelectric dams. This creates a unique advantage for energy-intensive industries seeking renewable energy certification and low electricity costs.
- Surplus capacity: Paraguay exports significant surplus hydroelectric power, meaning new industrial projects can access abundant renewable electricity
- Green hydrogen: The government has expressed interest in developing a green hydrogen industry leveraging the renewable grid. Commercial-scale projects are in early planning stages
- Bioeconomy: Agricultural feedstocks (soy, corn, cotton, canola) support bioplastics, biofuels, and biochemicals production. REDIEX identifies this as a strategic growth area
- Sustainable certifications: Companies producing with 100% renewable energy can certify their products for sustainability-conscious export markets (EU, US, Japan)
The combination of low-cost renewable energy and agricultural feedstock creates competitive conditions that few countries can match.
Carbon Credits
Paraguay enacted Law 7190/2023 creating the National Carbon Credit Registry (Registro Nacional de Créditos de Carbono), providing a legal framework for carbon credit projects.
- Forest carbon: 17.8 million hectares of forest coverage (44% of territory) creates significant carbon sequestration potential. Reforestation programs add to this capacity.
- Hydroelectric credits: Surplus renewable electricity generation may qualify for carbon offset credits under international standards
- National registry: Law 7190/2023 provides domestic legal certainty for carbon credit ownership and trading
- International standards: Projects can also register through Verra (VCS) or Gold Standard for international market access
- Avoided deforestation: REDD+ programs can generate credits by preventing deforestation in high-risk areas
The carbon credit sector complements forestry investment - reforestation projects generate both timber revenue and carbon credit income from the same activity.
Creative Industries
Creative industries contribute approximately 2.5% of Paraguay's GDP and employ over 50,000 people. The sector spans film, music, design, and digital content.
- Film production: 7+ Paraguayan feature films have received international recognition and festival screenings. The sector is small but has demonstrated artistic quality
- Video game development: Several active studios are producing games for domestic and international markets. Low labor costs and growing technical talent support the sector
- Music and design: Paraguayan folk and contemporary music has a distinctive cultural identity. Design and craft sectors leverage Guaraní cultural heritage
- Fintech: Over USD 500 million in fintech investments have flowed into Paraguay, creating a digital infrastructure that supports creative economy platforms
Government support includes cultural programs through CONACULTA and creative economy initiatives through MIC. The sector benefits from Paraguay's competitive cost structure for digital services.
Food Manufacturing
Food manufacturing represents 7.2% of Paraguay's GDP and is one of the most established sectors for value-added investment.
- Beef processing: Paraguay is a top 10 global beef exporter. The country has a large cattle herd and growing processing capacity. Export markets include Chile, Russia, and the EU
- Essential oils: Paraguay is a historic producer of petitgrain oil (from bitter orange trees) and other essential oils for the global fragrance and cosmetics industry
- Yerba mate: Paraguay is a major producer and consumer of yerba mate, with export potential to growing international markets
- Sesame and specialty crops: Organic and conventional sesame, chia, and stevia for export to health-conscious markets
- Processed foods: Canned goods, oils, and packaged foods for Mercosur distribution
Regulatory framework: DINAVISA provides food safety certification. ANMAT mutual recognition with Argentina simplifies food exports to that market. Food manufacturers can access the Maquila regime for export-oriented processing.
Incentives for Emerging Sectors
All four emerging sectors can access the standard Paraguay incentive framework:
- Law 60/90: Tax exemptions on incorporation, customs duties on capital goods, foreign exchange taxes, and dividend taxes for up to 10 years
- Maquila regime: 1% tax on value added for export-oriented production in food manufacturing, bioeconomy, and creative content
- Industrial parks: Infrastructure with energy, water, and waste treatment in designated zones
- Carbon credits (Law 7190/2023): Specific to green production and forestry - national registry for carbon credit projects
- Cultural programs: CONACULTA support for creative industries through grants, training, and promotional programs
See the investment incentives guide for full details on each program and how to apply.