Overview

Peru’s food processing industry is one of the national economy’s most dynamic sectors, representing over 28% of the industrial GDP. The U.S. PTPA has increased bilateral trade of agricultural products from US$1.5 billion in 2009 to US$ 4 billion in 2020, an increase of 175%. Tariffs on agricultural products have been eliminated on almost 90% of U.S. exports, with remaining tariffs to be phased out by 2026. The U.S. was the second largest agricultural product supplier for Peru in 2020, accounting for 17% of market share.

U.S.-origin food processing ingredient exports to Peru totaled $174 million in 2020, a decrease of 15% from 2019. The drop is due mostly to a drop in wheat exports, which were down 56% in 2020 with respect to 2019. However, the growth in exports of other categories reduced the loss in market share. Key categories that contributed to growth in 2020 were powdered milk, almonds, flour, pellets of meat, animal or vegetable fats, and enzymes. Food product manufactures source both domestic and imported ingredients to meet consumer demand for quality food at affordable prices. These manufacturers are successfully tailoring products to meet different segments of consumer demand.

The growing reputation of Peru’s culinary culture has marked an increase in non-perishable foods produced and packaged locally. This new trend is expanding the use of native Peruvian ingredients, such as fruits, peppers, and Andean cereals, increasing the attraction and marketability of products. Consumers are slowly shifting towards packaged and prepared foods, as there is a decreased risk of contamination and an increase of product lifespan. Peru’s growing middle class is now willing to pay slightly higher prices for higher quality products. Foods such as cheese, oils, fats, spreads, and baked goods are also benefiting from this shift in consumers’ preferences. According to the Ministry of Production, the food industry would register its highest growth rate of the last six years, driven mainly by the significant growth of fishing, as well as prepared animal feed and mill products.

According to the Ministry of Foreign Trade, Peru is the world’s top exporter of blueberries, asparagus, and quinoa and the second worldwide exporter of tangerines and scallops. Non-traditional products that reached an export record in 2019 include grapes, blueberries, avocado, frozen squid, fresh mangoes, mandarin, and shrimps. The largest export markets were the United States and Germany.

There are some 3,000 companies in Peru engaged in food processing. This industry generates more than 342,000 jobs, a figure that represents 22% of the Economically Active Population (EAP) occupied in the manufacturing sector and 2% of the national occupied EAP.

Opportunities

Best prospects include U.S. food ingredient and high technology equipment and machinery for processing and packaging purposes. Suppliers may choose to focus on providing products to the following segments: baked goods, dairy products, dried processed food, processed meat and seafood, cookies and snack bars, sauces, dressings and condiments, breakfast cereals, and beer. Prospects are also strong for various types of food-processing machinery, including for: temperature treatment, refrigeration and sugar manufacture; filling, closing, sealing and labeling bottles, cans, bags or other containers; encapsulating bottles, jars, tubes and similar containers; aerating beverages, dairy machinery, and heat exchange units; as well as for other packing or wrapping purposes. Peruvians prefer durable, high-quality U.S. technologies for closing, sealing, and labeling equipment and rigid containers.

Challenges

• Consumers prefer to buy fresh produce in traditional markets
• Supermarkets hold 25% of the retail food market share in Lima and 16% in the provinces
• Local food brands are appearing in the market at very low prices
• Stiff competition from neighboring countries

There was no interruption in the production of food and beverages (specifically water and non-alcoholic beverages) during the government’s COVID-19 restrictions in 2019-2020.

 

Unit: USD millions

Total Market Size = (Total Local Production + Imports) - Exports

Data Source: Global Trade Atlas

 

Table: Leading Product Imports Within Sector (2020)

*Not elsewhere specified or indicated

Key Industry Events

International Production & Processing Expo IPPE:  January 25-27, 2022, Atlanta, Georgia

 

ExpoAlimentaria Peru 2021:  Sep. 30 - Oct. 08, 2021. Virtual Show organized by ADEX

Resources

Ministerio de la Producción (Ministry of Production)

Calle Uno Oeste 60 Urb. Corpac. Lima 27, Tel.: (511) 616-2222

Sociedad Nacional de Industrias (SNI) (Manufacturer’s Society)

Los Laureles 365, San Isidro. Lima 27

Tel.: (511) 616-4444, E-mail: contactenos@sni.org.pe