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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • 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.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • 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.
Market Trends
  • 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.
Competitive Landscape
  • 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.
Prospects And Growth Opportunity
  • 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.
General Health And Wellness Trends
  • 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.
General Economics And Demographic Landscape

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%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

1,643.1

1,738.1

1,814.1

1,921.7

1,999.2

2,081.2

2,166.8

5.4%

4.1%

Organic packaged food and beverages consumption

USD million

0.3

0.3

0.4

0.4

0.4

0.5

0.5

10.1%

11.8%

Organic packaged food consumption

USD million

0.3

0.3

0.4

0.4

0.4

0.5

0.5

10.1%

11.8%

Organic beverages consumption

USD million

0.0

0.0

0.0

0.0

0.0

0.0

0.0

-

-

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

-

-

 

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

30.9

31.4

32.0

32.5

33.0

33.4

33.7

% Middle and upper class of total population

%

25.4

25.9

25.9

25.9

25.9

25.9

25.9

% Population aged 65+

%

7.6%

7.9%

8.2%

8.4%

8.7%

9.0%

9.2%

% Population aged 0-14

%

27.3%

26.4%

25.7%

25.1%

24.7%

24.4%

24.3%

% Population with higher education degrees

%

34.4

34.6

34.8

34.9

35.0

35.1

35.2

Average number of children per household

children

1.2

1.2

1.2

1.1

1.1

1.1

1.1

GDP per capita

USD per capita

6,357.8

6,656.4

6,936.5

7,084.9

7,197.7

7,350.5

7,542.1

Consumer expenditure per capita (US$)

USD per capita

4,249.1

4,412.7

4,564.0

4,721.9

4,801.9

4,903.7

5,033.1

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

1,119.6

1,161.8

1,199.1

1,236.8

1,256.2

1,276.4

1,303.3

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Lima

10.8

Top cities by population (2019)

2

Arequipa

1.1

Top cities by population (2019)

3

Trujillo

1.0

Top cities by population (2019)

4

Chiclayo

0.9

Top cities by population (2019)

5

Piura

0.6

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

InRetail Peru Corp

Top grocery retailers by sales (2019)

2

Cencosud SA

Top grocery retailers by sales (2019)

3

Falabella SACI

Top grocery retailers by sales (2019)

4

Lindley Corp

Top grocery retailers by sales (2019)

5

Supermercados Peruanos SA

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Peru

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

Peru

1

Organic Apples Fresh

432,695

2019

Peru

2

Organic Vinegar and Substitutes

150,000

2019

Peru

3

Organic Pears Fresh

5,307

2019

Peru

Total

Total Organics*

588,002

2018

Peru

1

Organic Peas Fr/Ch

403,459

2018

Peru

2

Organic Apples Fresh

335,576

2018

Peru

3

Organic Pears Fresh

79,086

2018

Peru

4

Organic Vinegar and Substitutes

55,000

2018

Peru

5

Organic Oranges Fr/Dr

23,201

2018

Peru

Total

Total Organics*

908,202

2017

Peru

1

Organic Milk

1,425,594

2017

Peru

2

Organic Apples Fresh

615,094

2017

Peru

3

Organic Oranges Fr/Dr

123,028

2017

Peru

4

Organic Peas Fr/Ch

106,587

2017

Peru

5

Organic Pears Fresh

62,400

2017

Peru

Total

Total Organics*

2,379,923

2016

Peru

1

Organic Peas Fr/Ch

848,652

2016

Peru

2

Organic Apples Fresh

294,867

2016

Peru

3

Organic Oranges Fr/Dr

17,010

2016

Peru

4

Organic Coffee Roast Not Decaf

3,059

2016

Peru

Total

Total Organics*

1,163,588


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

Definitions

Term

Definition

Health and Wellness

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.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

Policy Information

Government Agency(s) / Competent Authority

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

Organic Regulations and/or Standards

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.

Imported Products

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 and Accreditation

Certification:

A list of registered certifiers is available.

Accreditation Method:

Government

Accreditation:

SENASA - PERU

Additional Information

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)