• The organic segment in Peru is dominated by Pasitificio Attillio Mastromauro Pasta Granoro Srl, with a value share of 49.5% in 2021, followed by Ama Time SPA with a share of 12.5% and Pastificio Riscossa Fili Mastromauro Spa with a share of 9.7%. 
• Peru is forecast to show strong growth from a very small base, ranking 6th globally in terms of projected CAGR for the period 2021-2026.

• Organic products in Peru represent far less than 0.01% of global demand, due to a lack of awareness, a barrier of high unit prices and consequently, low product availability, with a per capita expenditure of just US$0.01 in 2021. 
• With an anticipated market size of US$0.6 mn by 2025, the category is not expected to witness a sharp rise in absolute sales growth over the forecast period. However, as consumers become increasingly aware, and product innovation helps control prices, organic products are expected to witness significant increases in demand over the long term.

• Organic packaged food in Peru witnessed a value decline of -30.2% for the period 2020-2021 to record a market size of US$0.4 million in 2021. The category is expected to grow by 11.8% for the period 2021-22 to reach a value of US$0.5 million. 
• The organic pasta, rice and noodles category declined by -34.6% in 2021, but it predicted to regain momentum to grow by 11.8% in 2022.
• Organic beverages currently have no notable presence in Peru, with little likelihood of a significant upturn over the forecast period 2021-2026.

• Covid-19 has stimulated the demand for products that are boosting the immune system. As such, naturally healthy tea recorded solid growth in both volume and retail value sales terms in 2021, driven by variants including green tea and chamomile tea. 
• Naturally healthy tea is widely preferred as a substitute for coffee by middle and lower-middle-class households with reduced purchasing power as it has a relatively lower price. Moreover, widespread presence of bulk and/or value brands helped households with reduced spending power in 2021.
• Caffeinated products are widely linked with anxiety, and products that provide functional benefits around stress reduction were increasingly prioritised by consumers in 2021, including reduced caffeine beverages.

• As a niche industry in Peru, organic products are highly consolidated, with the market leader recording nearly half of the total value share. The remainder of the market is divided between two mainstream brands and other local players. 
• Pastificio Attilio Mastromauro Pasta Granoro Srl is the top player in organic packaged food in Peru with a value market share of 49.5%  at US$0.2 million in 2021, followed by Ama Time SPA (with 12.5% value market share in 2021) and Pastificio Riscossa Flli Mastromauro Spa (with 9.7% value market share in 2021).
• RAM Industries SA is the most notable local player active in organic packaged food, particularly within organic baby food. The company focuses on using attractive packaging that is colorful and highlights the organic labels. The company's products are available in selected supermarkets with premium positioning to ensure parents are willing to pay extra for its higher quality offering.

• Due to rising health consciousness and growing preference for stress-relieving beverages, a particular segment of consumers is increasingly looking for a broader range of reduced caffeine products, resulting in the portfolio's growth, especially within hot drinks and even in carbonates. The leading brands in decaffeinated instant standard coffee (Altomayo Descafeinado and Nescafé Descafeinado) are expected to strengthen the category with an appropriate portfolio over the forecast period.
• Peruvian consumers continue to look for healthier products due to the rising trend of health and wellness. The better for you reduced sugar beverage category is expected to grow over the forecast period and will continue to have the largest value share in better for you beverages in Peru. Reinforcing the consumer experience by communicating that indulgence is not just about sugar, linking and positioning low sugar beverages to indulgence, could also positively impact the industry going forward.
• During the pandemic, Peruvian consumers demanded products that are both mentally and physically stimulating. Therefore, Energy drinks were in demand during Covid-19 restrictions. However, the current portfolio of energy drinks is not associated with health; therefore, the development of products that are also health-focused could represent a significant growth opportunity over the forecast period.

• The covid-19 pandemic has further boosted Peruvian consumers' rising health and fitness awareness and healthy eating habits. Therefore, health and wellness products are gaining more acceptance in the country. This trend will likely continue over the forecast period, boosting retail sales in the health and wellness category. However, for bottled water, challenges will remain, and the recovery of pre-pandemic volumes will depend on factors, such as the value offer, price and content, as well as distribution and availability at the point of sale.
• The current economic situation in Peru has led to increased price sensitivity in the country, which may force some consumers to search for the best prices and avoid expensive healthier products. Compared to mainstream products, the higher unit price of health and wellness products over the forecast period is a threat. Therefore, higher-value brands should focus on generating a relevant proposition and adapting their portfolios based on price sensitivity.

Economy: 

• The economy of Peru will continue to expand in 2022. Real GDP is expected to increase by 3.2% in 2022, post a rebound of 13.3% in 2021.
• The economy is predicted to continue on its growth trajectory in the coming years, with real GDP growth averaging around 3.3% for the period 2022-2030.
• The real value of final private consumption witnessed an increase of 13.7% in 2021, but it is expected to slow down to 3.4% in 2022.

Population demographics: 

• The population of Peru reached 33.3 million in 2021, an increase of 0.3 million compared to 2020. The population is expected to increase at a similar rate, adding 0.3 million people per year through 2025 to reach 34.5 million.
• The median age reached 31.4 years in 2021, increasing by 6 years since 2010. The indicator is expected to rise to 34.3 years by 2030.
• Population over 65 is expected to increase from 3 million in 2021 to 3.4 million in 2025. 

Income & expenditure: 

• The savings ratio in Peru is low, representing 3.3% of disposable income in 2021. This indicator is expected to fall to just 1.5% by 2030. 
• Consumer expenditure per capita in 2021 reached US$4,178, with gains of 2.5% expected in 2022. 
• Disposable income per capita reached US$4,277 in 2021, with a growth of 2.3% expected in real terms for 2022. For the period 2020-2030, disposable income is expected to witness a cumulative increase of 37.2% in real terms, growing at an annual average rate of 3.2%.

[1] Health and Wellness Definition: Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products. The above definition and more can be referenced from the definitions table at the end of the report.

Top 5 Cities By Population

Top 5 Grocery Retailers By Sales

Top 5 Export Commodities To Peru

Note : Total organics is the sum of all exports in a particular year   

Authorized Government Agency(s):

Ministry of Agrarian Development and Irrigation (MIDAGRI)
National Agricultural Health Service (SENASA) 
General Directorate of Agricultural Inputs and Agrifood Safety
Subdirectorate of Organic Production

Agency(s) Contact Information:

SENASA - PERU Headquarters
Av. La Molina Nº 1915
Lima 12
La Molina, Lima-Perú Central
Phone: (51)-(1)-313 3300 Ext. 1400
Fax: (51)-(1)-340 1486
Website

Subdirección de Producción Orgánica
Director: Dr. Jorge Leonardo Jave Nakayo
Email: jjave@senasa.gob.pe or organicos@senasa.gob.pe
Organic information

Name(s) of Regulation and/or Standard:

The legal framework is given by the technical regulation for ecological products of 2003 (Resolución Ministerial No. 0076-2003-AG)

The Supreme Decree No. 044-2006-AG approved the Technical Regulation for Organic Products. The Supreme Decree No. 061-2006-AG establishes the National Register of Organic Certification of Organic Production.

In January 2008 law No. 29196 Promotion Act for the Production of Organic/Ecological Products was passed.

Supreme Decree No. 010-2012-AG. - Approves the Regulation of Law No. 29196 - Law on Promotion of Organic Production and Ecological

Use this link to search for regulatory documents; in Spanish.

National Seal of Organic Production announced in 2021. Supreme Decree Number 0177-2021
Supreme Decree No.2-2020 amends the regulations of Law No. 29196 and approves the Regulation on Certification and Supervision of Organic Production. 
Supreme Decree No. 011-2021 approves the National Concerted Plan for the Promotion of Organic or Ecological Production.

There is still an ongoing process to develop and change the legislation especially for the introduction of alternative certification systems.

Date of Implementation: 2003

Regulation and/or Standard Scope:

This technical regulation defines and regulates the production, processing, labeling, certification and commercialization of products, including plants, animals, apiculture, and wild products, named organic, biological as well as all its inflections and derivations, which from now on will be known generically as organic products.  Group certification is included in the standards and control system. Peru recognizes Participatory Guarantee Systems that sell organic products direct to customers. Farmers and the administration of the Participatory Guarantee System must be approved and registered by SENASA.

Foreign organic products must comply with the requirements of the regulation and be certified by an authorized certification body.  Imports must be accompanied by an original transaction certificate. 

Certification:

List of certification bodies and also the list of participatory guarantee systems for organic production (in Spanish).

Link for the procedures for authorization and audits of certification bodies and participatory guarantee systems, evaluation of organic production inspectors, supervision of operators, inspection for the trade of organic productions

Accreditation Method:

Government

Accreditation:

SENASA - PERU

U.S. International Trade Administration

USDA's GAIN Report Peru Exporter Guide (2022)
USDA's GAIN Report Retail Foods (2021)
USDA's GAIN Report Food Processing Ingredients (2021)
USDA's GAIN Report Food Service - Hotel Restaurant Institutional (2021)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2022)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2022)
USDA's GAIN Report Peruvian Food Retail Market Continues to Grow (2019)
USDA's GAIN Report Retail Foods Convenience trend driving opportunities in Peru's market (2018)