Overview

Peru’s food processing industry is one of the national economy’s most dynamic sectors, representing nearly 28% of the industrial GDP, worth $9.1 billion at the end of 2021.  The development of the food retail and food service sectors is driving growth.  Food product manufacturers source both domestic and imported product ingredients and equipment.  Locally processed food products cover 70% of the market demand.

The U.S.-Peru Trade Promotion Agreement increased bilateral trade of agricultural products from $1.46 billion in 2009 to $3.5 billion in 2021, an increase of 139%.  Tariffs on agricultural products have been eliminated on 90% of U.S. exports, with the remaining tariffs to be phased out by 2026.  As a result, the United States was Peru’s second largest agricultural product supplier in 2021, accounting for 16% of market share.

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 increased product lifespan.  Peru’s growing middle class is now willing to pay slightly higher prices for higher quality products.

According to Peru’s Ministry of Foreign Trade, in 2021, the country was the world leader in exports of blueberries, asparagus, grapes, and quinoa, and the second worldwide exporter of fresh avocados, processed squid, canned artichokes, frozen fruits, and peeled chestnuts.

At last count, there are approximately 3,000 food processing companies in Peru.  This industry generates more than 342,000 jobs, representing 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 ingredients, high technology equipment, and machinery for processing and packaging purposes.  Suppliers may 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 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.

Agrobusiness and fertilizers are related to the food processing industry.  It is worth noting that the shortage of fertilizer has become the main short-term problem in Peruvian agriculture.  The Russian invasion of Ukraine aggravated the shortage in Peru since Peruvians import 80% of their fertilizer.  The resultant price increase has impacted medium-sized farming operations the most.  In response, the Peruvian government has assigned $95 million to purchase fertilizer, primarily for medium-scale farmers.

Table 1: Market Size for Food Processing Equipment

Food Processing Equipment	2018	2019	2020	2021
Total Exports	12.8	15.7	16.07	16.90
Total Imports	330.0	310.1	317.54	334.05
Imports from the U.S.	43.9	45.1	46.18	48.58
Total Market Size	317.4	327	334.84	399.53

Unit: USD millions

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

Data Source: Global Trade Atlas

Table 2: Leading Product Imports Within Sector (2021)

HTS Code	Description
842129	Filter/Purify Machine & Apparatus for Liquid NESOI*
841869	Refrigerating/Freezing Equipment NESOI
841989	Machinery for Material Treatment by Temp Control NESOI
842240	Packing or Wrapping Machinery, NESOI
842290	Parts for Machines for Dishwashing, Packing, etc.
843360	Machinery for Clean/Sort/Grading Eggs/Fruit/Ag. Produce
841950	Heat Exchange Units, Industrial Type
842230	Machinery for Filling, Closing Bottles, etc.
841981	Machinery etc. for Making Hot Drinks. Cooking. Heating
844130	Machinery for Making Cartons, Boxes, Case, Tube, Drum
844120	Machines for Making Paper Bags etc. Or Envelopes
843890	Parts of Machines NESOI Prep Food, Drink

*Not elsewhere specified or indicated

Challenges

prefer to buy fresh produce in traditional markets

hold 25% of the retail food market share in Lima and 16% in the provinces

food brands are appearing in the market at very low prices

competition from neighboring countries.

Challenges

Key Industry Events

Big Iron Farm Show:  September 13-15, 2022, Fargo, North Dakota.

ExpoAlimantaria, Peru 2022: September 21-23, 2022, Lima, Peru.

Expo International: October 23-26, 2022, Chicago, Illinois.

Imternational Production & Processing Expo (IPPE): January 24-26,2023 Atlanta, Georgia.

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) (Manufacturers’ Chamber)

Los Laureles 365, San Isidro. Lima 27

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

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