• The organic segment in Peru is dominated by RAM Industries SAC, with a value share of 71.6% in 2019, followed by Pastificio Riscossa Fili Mastromauro Spa with a share of 7.1% and Pasitificio Attillio Mastromauro Pasta Granoro Srl with a share of 5.4%. The large gap in market shares is in part due to the weak demand for organic products, deterring manufacturers' entry and leading to a shallow level of competition.
• Despite a small market size, Peru is forecasted to show strong growth, ranking at 11th globally in terms of forecast growth, with a value CAGR of 8.4% for the period 2019-2024.

• 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 US$0.01 in 2019.
• With an anticipated market size of US$0.6 mn by 2024, the category is not expected to witness a sharp rise in growth over the forecast period 2019-2024. 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 growth of 15.0% for the period 2018-2019 to record a market size of US$0.4 mn in 2019.
• Growth in organic packaged food was led by organic baby food, which recorded value growth of 17.0% in 2019
• As organic beverages are currently not present in Peru, with no likelihood of presence over the forecast period 2019, organic products in Peru are comprised only of packaged foods.

• The organic products market in Peru is still in its early stages, with consumers still not convinced of the benefits of consuming organic products. Currently, Peru does not have an official organic certification authority leading to consumers being uneducated about organic products.
• Peruvian consumers associate organic products with tomatoes, lettuce and other vegetables, but not with meat or bread. Currently, the concept of what a number of Peruvians consider as organic is contradictory to what organic packaged food actually can offer.
• In Peru, organic packaged food was only available within two product categories, prepared baby food and pasta. Furthermore, these categories have little participation from retailers, with only hypermarkets offering organic packaged food so far. For the short term, it is unlikely that other product types would manage to enter Peru, as demand is low due to a lack of understanding.

• RAM Industries SA is the only player of organic packaged food on a national level, 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 elective supermarkets with premium positioning to ensure parents are willing to pay extra for a higher quality product. The company also operates in one other category, organic pasta, for which small quantities are imported and sold by Pastificio Classico SAC and Adrimpex.
• While being a niche industry in Peru, organic products are highly consolidated, with the market leader recording nearly three fourth of the total value share, while the rest is divided between two mainstream brands and a few local players.

• Currently, the majority of consumers in Peru have an inaccurate perception of organic products, with associations made only to fruits and vegetables, while organic products span a variety of categories. The majority of consumers in Peru still require a significant amount of education on organic products and their potential benefits. Currently, the primary consumer segment for organic products is the wealthy, affluent Peruvians who have access to information from other cultures, where organic food is of greater importance. In the event of promotions on the health benefits of organic products by manufacturers or by the government, there is likely to be an increase in organic product demand in Peru.
• Although Peruvian consumers have a low level of awareness on the importance of organic products, the main threat to the demand is the high unit price. The majority of brands are imported, as the low level of demand does not allow for local production to be profitable. However, it is not viable to expect the category to witness a rapid expansion in size as consumers are highly price-sensitive and are unwilling to pay a significant difference in price for a benefit that they cannot understand.
• A successful strategy to boost demand for organic products is expected to be through focusing on young professionals as well as single to two-person households, which usually have lower budget constraints. Moreover, young consumers with access to the internet and with greater knowledge on the value addition of organic packaged food to health are willing to pay a premium price for these products, which could help drive an ideal customer profile for organic packaged food in Peru.

• Currently, consumers in Peru are not keen on organic offerings. There is a very niche market for organic products, serving the health-conscious, educated and affluent Peruvians. Organic baby food is the primary category in organic packaged food, with roughly four-fifths of the value contribution, while organic rice, pasta and noodles have also managed to witness a substantial increase in the period 2014-2019.

Economy:

• The economy of Peru is expected to accelerate in 2020. The recovery of exports and operation of one of its new mines is expected to help improve growth. Real GDP increased by 2.1% in 2019, post gains of 4.0% in 2018.
• The real value of final private consumption witnessed an increase of 3.8% in 2018 but slowed down to 2.9% in 2019. However, consumption is expected to rise with an increase in employment and the availability of financing.
• The economy is predicted to expand in the coming years, with real GDP growth averaging around 3.7% for the period 2021-2027.

 Population demographics:

• The population of Peru reached 32.5 million in 2019, an increase of 6.1 million since 2000. However, the rate of growth is witnessing a slowdown, with the population expected to reach about 36 million by 2030.
• The median age reached 30.3 years in 2019, increasing by 7.7 years since 2000. The indicator is expected to rise to 34.3 years by 2030.
• Fertility has reduced by more than half since 1980, falling from 5 births per female in 1980 to 2.2 by 2019. The rate of decline is expected to slow down, with the fertility rate reaching 2.0 by 2030.
   

Income & expenditure:

• The savings ratio in Peru was low, representing 2.5% of disposable income in 2019. This indicator is expected to fall to 2.3% by 2020.
• Consumer expenditure per capita in 2018 reached US$4,722, with gains of 2.2% expected in 2020. A growing middle-class drives spending and the categories with the highest share of consumer expenditure for the period 2020-2030 are expected to be communications and leisure and recreation.
• Disposable income per capita reached US$4,782 in 2019, with a growth of 1.8% expected in real terms for 2020. For the period 2020-2030, disposable income is expected to witness a cumulative increase of 40.7% in real terms, growing at an annual average rate of 3.5%.

Top 5 Cities By Population

Top 5 Grocery Retailers By Sales

Top 5 Export Commodities To Peru

Authorized Government Agency(s):

The National Agricultural Sanitary and Phytosanitary Service (Servicio Nacional de Sanidad Agraria; SENASA) is the national competent authority to implement and supervise the national control system.
Its Farming, Livestock and Food Safety Inputs Office is responsible for registration and supervision of organic certification.

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

Link to download all four documents; .pdf; in Spanish.

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.

Products must  orginate in a third country whose competent authority assesses that they have been produced using methods such as those in Peru’s regulations; or be in accordance with CAC/GL of the Codex Alimentarius; or comply with all the provisions of Peru’s regulations. Imports must be accompanied by an original transaction certificate.

Certification:

A list of registered certifiers is available.

Accreditation Method:

Government

Accreditation:

SENASA - PERU

USDA's GAIN Report Peru Exporter Guide (2020)
USDA's GAIN Report Food Processing Ingredients (2018)
USDA's GAIN Report Food Service - Hotel Restaurant Institutional (2019)
USDA's GAIN Report Peru Food and Agricultural Import Regulations and Standards - Narrative (2017)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2020)
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)