Processed Fruit and Vegetables in Peru

 

 

PROCESSED PROCE SSED FRUIT AND A ND VEGETAB VEG ETAB L ES IN PERU PERU Euromonitor International November 2018

 

PROCESSED FRUIT AND VEGETABLES IN PERU

LIST OF CONTENTS AND TABLES Headlines ..................................................................................................................................... 1  Prospects ..................................................................................................................................... 1  Processed Fruit and Vegetables Is in An Early Stage of o f Development .................................... 1  Peruvians Develop A Tendency To Cook More Elaborate Meals ............................................. 1  Shelf Stable Vegetables Remain Niche Products ..................................................................... 1  Competitive Landscape ..................................................... ................................................................................................................ ........................................................... 1  Fresh Fruit and Vegetables Are the Main Competitors ........................................................ ............................................................. ..... 2  the Shelf Stable Format Dominates .......................................................................................... 2   A Large Variety of Products Is Not A Key Success Factor ....................................................... 2  Category Data .............................................................................................................. .............................................................................................................................. ................ 2  Table 1  Table 2  Table 3  Table 4  Table 5  Table 6  Table 7  Table 8  Table 9  Table 10  Table 11  Table 12 

Sales of Processed Fruit and Vegetables by Category: Volume 20132018 ............................................................. ............................................................................................................. ................................................ 2  Sales of Processed Fruit and Vegetables by Category: Value 20132018 ............................................................. ............................................................................................................. ................................................ 3  Sales of Processed Fruit and Vegetables by Category: % Volume Growth 2013-2018 ....................................................................................... .................................................................................. ..... 3  Sales of Processed Fruit and Vegetables by Category: % Value Growth 2013-2018 ....................................................................................... .................................................................................. ..... 3  Sales of Frozen Processed Vegetables by Type: % Value Breakdown 2013-2018 ............................................................... .................................................................................................... ..................................... 4  NBO Company Shares of Processed Fruit and Vegetables: % Value 2014-2018 ............................................................... .................................................................................................... ..................................... 4  LBN Brand Shares of Processed Fruit and Vegetables: % Value 2015-2018 ............................................................... .................................................................................................... ..................................... 5  Distribution of Processed Fruit and Vegetables by Format: % Value 2013-2018 ............................................................... .................................................................................................... ..................................... 5  Forecast Sales of Processed Fruit and Vegetables by Category: Volume 2018-2023 2 018-2023 ............................................................. ....................................................................................... .......................... 6  Forecast Sales of Processed Fruit and Vegetables by Category: Value 2018-2023 201 8-2023 ................................................................ .......................................................................................... .......................... 6  Forecast Sales of Processed Fruit and Vegetables by Category: % Volume Growth 2018-2023 .......................................................................... .......................................................... ................ 7  Forecast Sales of Processed Fruit and Vegetables by Category: % Value Growth 2018-2023 ............................................................................. ............................................................. ................ 7 

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PROCESSED FRUIT AND VEGETABLES IN PERU

PROCESSED FRUIT AND VEGETABLES IN PERU HEADLINES   During 2018, retail volume sales of processed fruit and vegetables decrease by 2% to 13,000 tonnes, while current retail value sales increase by 1% to reach PEN127 million

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  The large availability of fresh fruit and vegetables limits the development of processed fruit and vegetables

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  Shelf stable tomatoes experiences the fastest growth with a 27% increase in current retail value sales in 2018

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  In 2018, unit prices rise by 3% in i n current terms

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  GW Yichang & Cía SA retains its leadership in 2018 with a 23% value share

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  Over the forecast period, processed fruit and vegetables is expected to record a CAGR of 3% at constant 2018 prices to reach sales of o f PEN146 million in 2023

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PROSPECTS

Processed Fruit and Vegetables Is in An Early Stage of Development Peruvian processed fruit and vegetables is in an early stage of its development, since young people are more willing to try new products and disrupt inherited schemes and beliefs. The trend towards more single- or 2-person households supports the growth of processed fruit and vegetables by making purchases more affordable. Each year, more women join the workforce, and demand products that offer convenience, making the cooking process easier and faster.

Peruvians Develop A Tendency To Cook More Elaborate Meals The country has experienced a gastronomic boom with the emergence of highly-recognised chefs, many restaurants, and cooking programmes on television. This has awakened in consumers the desire to cook more elaborate dishes to pamper themselves or the family. The preparation of these dishes requires a greater variety of ingredients, and even the use of products that were previously not required as often, such as peas, mushrooms, peaches or peeled tomatoes to make sauces.

Shelf Stable Vegetables Remain Niche Products Shelf stable vegetables are commonly used by people with higher purchasing power because they are expensive products, whether they are imported canned goods, usually peas, corn or mixed vegetables, or national products, including pickled onions, peppers or hearts of palm. The products manufactured in Peru are packaged mainly in glass and are perceived as foods for special occasions. Given the high prices and the target consumer base, the distribution of shelf stable vegetables is mainly through modern retailers and some gourmet stores.

COMPETITIVE LANDSCAPE

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PROCESSED FRUIT AND VEGETABLES IN PERU

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Fresh Fruit and Vegetables Are the Main Competitors Consumers perceive that fresh fruit and vegetables are better than processed products since they retain all their nutritional properties and flavours. At the same time, fresh products are cheaper and seem more convenient for large families, being available through both modern and traditional channels. Peru is among the top 10 largest producers of fruit and vegetables in the world, making a large variety of products available. For example, there are over 3,000 varieties of potato. Consumers know how to recognise good quality in fresh products, preferring seasonal ingredients to ensure a better taste in their dishes.

the Shelf Stable Format Dominates The lack of freezers in Peruvian households and the limited lim ited number of brands available mean that frozen products represent only a small portion of overall processed fruit and vegetables. Moreover, most stores in the traditional retailing channel do not have freezers and therefore only carry shelf stable products which are expensive, alongside fresh fruit and vegetables. Within shelf stable products, processed fruit dominates sales. Half peaches are the most common preserved fruit bought by Peruvians, since they are considered a healthy dessert, and similar to the natural fruit, despite the high sugar content. They are consumed all year long but mainly in December, and benefit from a wide distribution network, being available through traditional and modern channels, thanks to the shelf stable presentation in metal cans.

 A Large Variety Variety of Products Is Not A Key Key Success Factor Factor

The leading company is GW Yichang & Cía SA which imports the Aconcagua brand. The brand offers half peaches in metal cans and small plastic jars. The company also distributes fruit cocktail and pineapple, but peaches are the favourite, by far. This shows that the leading company does not have a wide portfolio of products but enough to successfully compete since processed fruit and vegetables is dominated by shelf stable fruit. On the other hand, Valle Fertil SAC, a local company, offers high-quality processed vegetables including palmetto, asparagus, peppers, artichokes and mushrooms, among others, but still has a small value share since these products are only consumed by higher-income households, with distribution only through modern retailers and gourmet stores.

CATEGORY DATA Table 1

Sales of Processed Fruit and Vegetables by Category: Volume 2013-2018

'000 tonnes

Shelf Stable Fruit and Vegetables - Shelf Stable Beans - Shelf Stable Fruit - Shelf Stable Tomatoes - Shelf Stable Vegetables Frozen Processed Fruit and Vegetables - Frozen Fruit - Frozen Processed Potatoes - Frozen Processed

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2013

2014

2015

2016

2017

2018

12.3

13.1

13.6

14.1

13.2

13.0

0.1 11.7 0.0 0.5 0.1

0.1 12.5 0.0 0.6 0.1

0.1 13.0 0.0 0.6 0.1

0.1 13.4 0.1 0.6 0.1

0.1 12.5 0.1 0.6 0.1

0.1 12.2 0.1 0.6 0.1

0.1

0.1

0.1

0.1

0.1 0.1

0.1 0.1

0.0

0.0

0.0

0.0

0.0

0.0

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PROCESSED FRUIT AND VEGETABLES IN PERU

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Vegetables Processed Fruit and Vegetables Source:

12.4

13.2

13.7

14.1

13.4

13.1

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Table 2

Sales of Processed Fruit and Vegetables by Category: Value 2013-2018

PEN million

Shelf Stable Fruit and Vegetables - Shelf Stable Beans - Shelf Stable Fruit - Shelf Stable Tomatoes - Shelf Stable Vegetables Frozen Processed Fruit and Vegetables - Frozen Fruit - Frozen Processed Potatoes - Frozen Processed Vegetables Processed Fruit and Vegetables Source:

2013

2014

2015

2016

2017

2018

102.3

111.8

119.9

127.3

123.2

124.6

0.6 92.3 0.5 8.9 0.7

0.6 100.9 0.6 9.7 0.8

0.6 107.6 0.7 11.0 0.9

0.7 112.9 0.9 12.8 0.9

0.7 106.6 1.2 14.7 1.9

0.8 106.1 1.5 16.3 2.0

0.7

0.8

0.8

0.9

0.9 0.9

1.0 1.0

0.0

0.0

0.0

0.0

0.0

0.0

103.0

112.6

120.8

128.2

125.1

126.7

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Table 3

Sales of Processed Fruit and Vegetables by Category: % Volume Growth 2013-2018

% volume growth 2017/18

2013-18 CAGR

2013/18 Total

Shelf Stable Fruit and Vegetables - Shelf Stable Beans - Shelf Stable Fruit - Shelf Stable Tomatoes - Shelf Stable Vegetables Frozen Processed Fruit and Vegetables

-2.0 2.3 -2.3 20.9 2.7 3.4

1.1 3.5 0.9 22.1 2.6 14.9

5.6 18.7 4.8 171.1 13.7 100.5

- Frozen Fruit - Frozen Processed Potatoes - Frozen Processed Vegetables Processed Fruit and Vegetables

3.2 3.4 8.0 -1.9

4.0 6.6 1.2

21.7 37.6 6.1

Source:

Table 4

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Sales of Processed Fruit and Vegetables by Category: % Value Growth 20132018

% current value growth

Shelf Stable Fruit and Vegetables

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2017/18

2013-18 CAGR

2013/18 Total

1.2

4.0

21.9

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PROCESSED FRUIT AND VEGETABLES IN PERU

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- Shelf Stable Beans - Shelf Stable Fruit - Shelf Stable Tomatoes - Shelf Stable Vegetables Frozen Processed Fruit and Vegetables - Frozen Fruit - Frozen Processed Potatoes - Frozen Processed Vegetables Processed Fruit and Vegetables Source:

4.8 -0.4 26.7 10.6 5.6 4.5 6.4 12.0 1.3

6.0 2.8 26.8 12.8 22.2 7.1 9.3 4.2

33.7 14.9 227.8 82.5 172.5 41.1 56.2 23.0

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Table 5

Sales of Frozen Processed Vegetables by Type: % Value Breakdown 20132018

% retail value rsp

Vegetable Mix Vegetable Soup Mix Others Total Source:

2014

2015

2016

2017

2018

61.5 12.0 26.5 100.0

61.2 12.1 26.7 100.0

61.2 12.2 26.6 100.0

60.9 12.2 26.8 100.0

60.5 12.2 27.4 100.0

60.5 12.1 27.4 100.0

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Table 6

NBO Company Shares of Processed Fruit and Vegetables: % Value 20142018

% retail value rsp Company GW Yichang & Cía SA Negociaciones Horizonte SAC Valle Fertil SAC Frutos y Especias SAC Comercia SA Molitalia SA  Agroindustrias Nobex SA Trijet Corp Sucursal del Perú Tecnología de Procesos  Alimentarios SA Soraya SAC  Axur SA KMC International SAC E Wong SA Supermercados Peruanos SA MG ROCSA SA Other Private Label Others Total Source:

2013

2014

2015

2016

2017

2018

27.0 19.5

26.4 19.0

25.9 18.7

24.0 17.4

22.5 16.4

3.7 8.6 5.1 3.5 1.1 1.0

4.0 8.2 5.2 3.5 1.2 0.9

4.9 7.7 5.1 3.4 1.3 1.1

6.0 6.8 4.7 3.1 1.6 1.1

6.7 6.0 4.4 2.8 1.7 1.1

0.1

0.3

0.5

0.7

0.8

0.5 0.4 0.1 0.0 11.0 18.4 100.0

0.5 0.4 0.1 0.0 11.0 19.2 100.0

0.5 0.4 0.1 0.0 11.0 19.5 100.0

0.5 0.4 0.2 0.1 12.4 21.2 100.0

0.5 0.4 0.2 0.2 0.2 14.7 21.3 100.0

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PROCESSED FRUIT AND VEGETABLES IN PERU

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LBN Brand Shares of Processed Fruit and Vegetables: % Value 2015-2018

% retail value rsp Brand (GBO)

Company (NBO)

2015

2016

2017

2018

 Aconcagua (Corpora  Aconcagua SA) Dos Caballos

GW Yichang & Cía SA

26.4

25.9

24.0

22.5

Negociaciones Horizonte

19.0

18.7

17.4

16.4

(Conservera Pentzke SA) Valle Fertil  Arica (Agrofoods Central Valley Chile SA)  A-1 (Corporación Custer SA) Fanny (Empresas Carozzi SA) Calé Del Monte (Del Monte Pacific Ltd) Cosecha de Oro

SAC Valle Fertil SAC Frutos y Especias SAC

4.0 8.2

4.9 7.7

6.0 6.8

6.7 6.0

Comercia SA

5.2

5.1

4.7

4.4

Molitalia SA

3.5

3.4

3.1

2.8

Agroindustrias Nobex SA Trijet Corp Sucursal del Perú Tecnología de Procesos  Alimentarios SA Axur SA Soraya SAC KMC International SAC

1.2 0.9

1.3 1.1

1.6 1.1

1.7 1.1

0.3

0.5

0.7

0.8

0.4 0.3 -

0.4 0.3 0.1

0.4 0.3 0.2

0.4 0.3 0.2

Soraya SAC

0.3

0.2

0.2

0.2

-

-

-

0.2

E Wong SA

0.0

0.0

0.1

0.2

KMC International SAC

0.1

-

-

-

-

-

-

-

11.0

11.0

12.4

14.7

19.2 100.0

19.5 100.0

21.2 100.0

21.4 100.0

Hoja Redonda Green Food Hunt's (ConAgra Brands Inc) McCain (McCain Foods Ltd) El Corte Inglés (El Corte Inglés SA) Hy Top (Private Label) Hunt's (ConAgra Foods Inc) Hoja Redonda Del Monte (Del Monte Foods Co) Other Private Label (Private Label) Others Total Source:

Supermercados Peruanos SA

MG ROCSA SA Trijet Corp Sucursal del Perú Other Private Label Others Total

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Table 8

Distribution of Processed Fruit and Vegetables by Format: % Value 20132018

% retail value rsp

Store-Based Retailing - Grocery Retailers -- Modern Grocery Retailers --- Convenience Stores --- Discounters --- Forecourt Retailers --- Hypermarkets

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2013

2014

2015

2016

2017

2018

100.0 100.0 61.7

100.0 100.0 61.7

99.9 99.9 62.3

99.8 99.8 63.0

99.8 99.8 64.7

99.8 99.8 66.5

1.7 34.6

1.2 35.1

0.8 1.2 35.2

0.8 1.2 35.8

1.3 1.2 34.8

1.6 1.2 34.8

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PROCESSED FRUIT AND VEGETABLES IN PERU

--- Supermarkets -- Traditional Grocery Retailers --- Food/drink/tobacco specialists --- Independent Small Grocers --- Other Grocery Retailers - Non-Grocery Specialists -- Health and Beauty Specialist Retailers -- Other Foods NonGrocery Specialists - Mixed Retailers Non-Store Retailing - Vending - Homeshopping - Internet Retailing - Direct Selling Total Source:

Passport

25.4 38.3

25.4 38.3

25.2 37.5

25.1 36.9

27.5 35.1

29.0 33.3

0.9

1.0

1.0

1.0

1.1

1.2

33.2

33.3

32.6

31.9

26.6

24.2

4.1

4.0

4.0

3.9

7.4

7.8

-

-

-

-

-

-

-

-

-

-

-

-

100.0

100.0

0.1 0.1 100.0

0.2 0.2 100.0

0.2 0.2 100.0

0.2 0.2 100.0

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Table 9

Forecast Sales of Processed Fruit and Vegetables by Category: Volume 2018-2023

'000 tonnes

Shelf Stable Fruit and Vegetables - Shelf Stable Beans - Shelf Stable Fruit - Shelf Stable Tomatoes - Shelf Stable Vegetables Frozen Processed Fruit and Vegetables - Frozen Fruit - Frozen Processed Potatoes - Frozen Processed Vegetables Processed Fruit and Vegetables Source:

2018

2019

2020

2021

2022

2023

13.0

12.9

13.1

13.4

13.7

14.1

0.1 12.2 0.1 0.6 0.1

0.1 12.1 0.1 0.6 0.1

0.1 12.3 0.1 0.7 0.1

0.1 12.5 0.1 0.7 0.1

0.1 12.7 0.1 0.8 0.2

0.1 13.0 0.2 0.8 0.2

0.1 0.1

0.1 0.1

0.1 0.1

0.1 0.1

0.1 0.1

0.1 0.1

0.0

0.0

0.0

0.0

0.0

0.0

13.1

13.1

13.3

13.6

13.9

14.2

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Table 10

Forecast Sales of Processed Fruit and Vegetables by Category: Value 20182023

PEN million

Shelf Stable Fruit and Vegetables - Shelf Stable Beans

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2018

2019

2020

2021

2022

2023

124.6

125.3

128.5

132.5

137.3

143.1

0.8

0.8

0.8

0.8

0.8

0.8

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PROCESSED FRUIT AND VEGETABLES IN PERU

- Shelf Stable Fruit - Shelf Stable Tomatoes - Shelf Stable Vegetables Frozen Processed Fruit and Vegetables - Frozen Fruit - Frozen Processed Potatoes - Frozen Processed Vegetables Processed Fruit and Vegetables Source:

Passport

106.1 1.5 16.3 2.0

105.1 1.8 17.6 2.1

106.6 2.2 19.0 2.2

108.8 2.5 20.4 2.2

111.6 2.9 22.0 2.3

115.2 3.3 23.8 2.4

1.0 1.0

1.0 1.0

1.0 1.1

1.1 1.1

1.1 1.2

1.1 1.2

0.0

0.0

0.1

0.1

0.1

0.1

126.7

127.4

130.7

134.8

139.7

145.6

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Table 11

Forecast Sales of Processed Fruit and Vegetables by Category: % Volume Growth 2018-2023

% volume growth

Shelf Stable Fruit and Vegetables - Shelf Stable Beans - Shelf Stable Fruit - Shelf Stable Tomatoes - Shelf Stable Vegetables Frozen Processed Fruit and Vegetables - Frozen Fruit - Frozen Processed Potatoes - Frozen Processed Vegetables Processed Fruit and Vegetables Source:

Table 12

2018/19

2018-23 CAGR

2018/23 Total

-0.4 2.2 -0.7 18.6 2.7 3.7 3.5 3.7 9.0 -0.4

1.6 2.1 1.3 14.9 6.5 3.7 3.7 3.6 9.5 1.7

8.5 10.8 6.4 99.9 37.3 20.1 19.8 19.4 57.4 8.6

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Forecast Sales of Processed Fruit and Vegetables by Category: % Value Growth 2018-2023

% constant value growth

Shelf Stable Fruit and Vegetables - Shelf Stable Beans - Shelf Stable Fruit - Shelf Stable Tomatoes - Shelf Stable Vegetables Frozen Processed Fruit and Vegetables - Frozen Fruit - Frozen Processed Potatoes - Frozen Processed Vegetables Processed Fruit and Vegetables Source:

2018/2019

2018-23 CAGR

2018/23 Total

0.5 2.1 -1.0 20.8 8.1 3.6 3.0 3.9 9.1 0.6

2.8 2.3 1.7 16.9 7.9 3.7 3.3 3.9 9.6 2.8

14.8 11.8 8.6 118.3 46.2 20.2 17.5 21.0 58.2 14.9

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