PROCESSED FRUIT AND

VEGETABLES IN PERU
Euromonitor International
November 2018
PROCESSED FRUIT AND VEGETABLES IN PERU Passport I

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Processed Fruit and Vegetables Is in An Early Stage of 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 Sales of Processed Fruit and Vegetables by Category: Volume 2013-
2018 ............................................................................................................. 2
Table 2 Sales of Processed Fruit and Vegetables by Category: Value 2013-
2018 ............................................................................................................. 3
Table 3 Sales of Processed Fruit and Vegetables by Category: % Volume
Growth 2013-2018 ....................................................................................... 3
Table 4 Sales of Processed Fruit and Vegetables by Category: % Value
Growth 2013-2018 ....................................................................................... 3
Table 5 Sales of Frozen Processed Vegetables by Type: % Value Breakdown
2013-2018 .................................................................................................... 4
Table 6 NBO Company Shares of Processed Fruit and Vegetables: % Value
2014-2018 .................................................................................................... 4
Table 7 LBN Brand Shares of Processed Fruit and Vegetables: % Value
2015-2018 .................................................................................................... 5
Table 8 Distribution of Processed Fruit and Vegetables by Format: % Value
2013-2018 .................................................................................................... 5
Table 9 Forecast Sales of Processed Fruit and Vegetables by Category:
Volume 2018-2023 ....................................................................................... 6
Table 10 Forecast Sales of Processed Fruit and Vegetables by Category:
Value 2018-2023 .......................................................................................... 6
Table 11 Forecast Sales of Processed Fruit and Vegetables by Category: %
Volume Growth 2018-2023 .......................................................................... 7
Table 12 Forecast Sales of Processed Fruit and Vegetables by Category: %
Value Growth 2018-2023 ............................................................................. 7

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PROCESSED FRUIT AND VEGETABLES IN PERU Passport 1

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
 The large availability of fresh fruit and vegetables limits the development of processed fruit
and vegetables
 Shelf stable tomatoes experiences the fastest growth with a 27% increase in current retail
value sales in 2018
 In 2018, unit prices rise by 3% in current terms
 GW Yichang & Cía SA retains its leadership in 2018 with a 23% value share
 Over the forecast period, processed fruit and vegetables is expected to record a CAGR of 3%
at constant 2018 prices to reach sales of PEN146 million in 2023

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 Passport 2

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 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 of Products Is Not A Key Success 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
2013 2014 2015 2016 2017 2018

Shelf Stable Fruit and 12.3 13.1 13.6 14.1 13.2 13.0
Vegetables
- Shelf Stable Beans 0.1 0.1 0.1 0.1 0.1 0.1
- Shelf Stable Fruit 11.7 12.5 13.0 13.4 12.5 12.2
- Shelf Stable Tomatoes 0.0 0.0 0.0 0.1 0.1 0.1
- Shelf Stable Vegetables 0.5 0.6 0.6 0.6 0.6 0.6
Frozen Processed Fruit 0.1 0.1 0.1 0.1 0.1 0.1
and Vegetables
- Frozen Fruit - - - - 0.1 0.1
- Frozen Processed 0.1 0.1 0.1 0.1 0.1 0.1
Potatoes
- Frozen Processed 0.0 0.0 0.0 0.0 0.0 0.0

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PROCESSED FRUIT AND VEGETABLES IN PERU Passport 3

Vegetables
Processed Fruit and 12.4 13.2 13.7 14.1 13.4 13.1
Vegetables
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Processed Fruit and Vegetables by Category: Value 2013-2018

PEN million
2013 2014 2015 2016 2017 2018

Shelf Stable Fruit and 102.3 111.8 119.9 127.3 123.2 124.6
Vegetables
- Shelf Stable Beans 0.6 0.6 0.6 0.7 0.7 0.8
- Shelf Stable Fruit 92.3 100.9 107.6 112.9 106.6 106.1
- Shelf Stable Tomatoes 0.5 0.6 0.7 0.9 1.2 1.5
- Shelf Stable Vegetables 8.9 9.7 11.0 12.8 14.7 16.3
Frozen Processed Fruit 0.7 0.8 0.9 0.9 1.9 2.0
and Vegetables
- Frozen Fruit - - - - 0.9 1.0
- Frozen Processed 0.7 0.8 0.8 0.9 0.9 1.0
Potatoes
- Frozen Processed 0.0 0.0 0.0 0.0 0.0 0.0
Vegetables
Processed Fruit and 103.0 112.6 120.8 128.2 125.1 126.7
Vegetables
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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 -2.0 1.1 5.6

- Shelf Stable Beans 2.3 3.5 18.7
- Shelf Stable Fruit -2.3 0.9 4.8
- Shelf Stable Tomatoes 20.9 22.1 171.1
- Shelf Stable Vegetables 2.7 2.6 13.7
Frozen Processed Fruit and Vegetables 3.4 14.9 100.5
- Frozen Fruit 3.2 - -
- Frozen Processed Potatoes 3.4 4.0 21.7
- Frozen Processed Vegetables 8.0 6.6 37.6
Processed Fruit and Vegetables -1.9 1.2 6.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Sales of Processed Fruit and Vegetables by Category: % Value Growth 2013-
2018

% current value growth

2017/18 2013-18 CAGR 2013/18 Total

Shelf Stable Fruit and Vegetables 1.2 4.0 21.9

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PROCESSED FRUIT AND VEGETABLES IN PERU Passport 4

- Shelf Stable Beans 4.8 6.0 33.7

- Shelf Stable Fruit -0.4 2.8 14.9
- Shelf Stable Tomatoes 26.7 26.8 227.8
- Shelf Stable Vegetables 10.6 12.8 82.5
Frozen Processed Fruit and Vegetables 5.6 22.2 172.5
- Frozen Fruit 4.5 - -
- Frozen Processed Potatoes 6.4 7.1 41.1
- Frozen Processed Vegetables 12.0 9.3 56.2
Processed Fruit and Vegetables 1.3 4.2 23.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 Sales of Frozen Processed Vegetables by Type: % Value Breakdown 2013-

2018

% retail value rsp

2013 2014 2015 2016 2017 2018

Vegetable Mix 61.5 61.2 61.2 60.9 60.5 60.5

Vegetable Soup Mix 12.0 12.1 12.2 12.2 12.2 12.1
Others 26.5 26.7 26.6 26.8 27.4 27.4
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 NBO Company Shares of Processed Fruit and Vegetables: % Value 2014-
2018

% retail value rsp

Company 2014 2015 2016 2017 2018

GW Yichang & Cía SA 27.0 26.4 25.9 24.0 22.5

Negociaciones Horizonte 19.5 19.0 18.7 17.4 16.4
SAC
Valle Fertil SAC 3.7 4.0 4.9 6.0 6.7
Frutos y Especias SAC 8.6 8.2 7.7 6.8 6.0
Comercia SA 5.1 5.2 5.1 4.7 4.4
Molitalia SA 3.5 3.5 3.4 3.1 2.8
Agroindustrias Nobex SA 1.1 1.2 1.3 1.6 1.7
Trijet Corp Sucursal 1.0 0.9 1.1 1.1 1.1
del Perú
Tecnología de Procesos 0.1 0.3 0.5 0.7 0.8
Alimentarios SA
Soraya SAC 0.5 0.5 0.5 0.5 0.5
Axur SA 0.4 0.4 0.4 0.4 0.4
KMC International SAC 0.1 0.1 0.1 0.2 0.2
E Wong SA 0.0 0.0 0.0 0.1 0.2
Supermercados Peruanos SA - - - - 0.2
MG ROCSA SA - - - - -
Other Private Label 11.0 11.0 11.0 12.4 14.7
Others 18.4 19.2 19.5 21.2 21.3
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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PROCESSED FRUIT AND VEGETABLES IN PERU Passport 5

Table 7 LBN Brand Shares of Processed Fruit and Vegetables: % Value 2015-2018

% retail value rsp

Brand (GBO) Company (NBO) 2015 2016 2017 2018

Aconcagua (Corpora GW Yichang & Cía SA 26.4 25.9 24.0 22.5

Aconcagua SA)
Dos Caballos Negociaciones Horizonte 19.0 18.7 17.4 16.4
(Conservera Pentzke SAC
SA)
Valle Fertil Valle Fertil SAC 4.0 4.9 6.0 6.7
Arica (Agrofoods Frutos y Especias SAC 8.2 7.7 6.8 6.0
Central Valley
Chile SA)
A-1 (Corporación Comercia SA 5.2 5.1 4.7 4.4
Custer SA)
Fanny (Empresas Molitalia SA 3.5 3.4 3.1 2.8
Carozzi SA)
Calé Agroindustrias Nobex SA 1.2 1.3 1.6 1.7
Del Monte (Del Trijet Corp Sucursal 0.9 1.1 1.1 1.1
Monte Pacific Ltd) del Perú
Cosecha de Oro Tecnología de Procesos 0.3 0.5 0.7 0.8
Alimentarios SA
Hoja Redonda Axur SA 0.4 0.4 0.4 0.4
Green Food Soraya SAC 0.3 0.3 0.3 0.3
Hunt's (ConAgra KMC International SAC - 0.1 0.2 0.2
Brands Inc)
McCain (McCain Soraya SAC 0.3 0.2 0.2 0.2
Foods Ltd)
El Corte Inglés (El Supermercados Peruanos SA - - - 0.2
Corte Inglés SA)
Hy Top (Private E Wong SA 0.0 0.0 0.1 0.2
Label)
Hunt's (ConAgra KMC International SAC 0.1 - - -
Foods Inc)
Hoja Redonda MG ROCSA SA - - - -
Del Monte (Del Trijet Corp Sucursal - - - -
Monte Foods Co) del Perú
Other Private Label Other Private Label 11.0 11.0 12.4 14.7
(Private Label)
Others Others 19.2 19.5 21.2 21.4
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 Distribution of Processed Fruit and Vegetables by Format: % Value 2013-

2018

% retail value rsp

2013 2014 2015 2016 2017 2018

Store-Based Retailing 100.0 100.0 99.9 99.8 99.8 99.8

- Grocery Retailers 100.0 100.0 99.9 99.8 99.8 99.8
-- Modern Grocery 61.7 61.7 62.3 63.0 64.7 66.5
Retailers
--- Convenience Stores - - 0.8 0.8 1.3 1.6
--- Discounters 1.7 1.2 1.2 1.2 1.2 1.2
--- Forecourt Retailers - - - - - -
--- Hypermarkets 34.6 35.1 35.2 35.8 34.8 34.8

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--- Supermarkets 25.4 25.4 25.2 25.1 27.5 29.0

-- Traditional Grocery 38.3 38.3 37.5 36.9 35.1 33.3
Retailers
--- Food/drink/tobacco 0.9 1.0 1.0 1.0 1.1 1.2
specialists
--- Independent Small 33.2 33.3 32.6 31.9 26.6 24.2
Grocers
--- Other Grocery 4.1 4.0 4.0 3.9 7.4 7.8
Retailers
- Non-Grocery Specialists - - - - - -
-- Health and Beauty - - - - - -
Specialist Retailers
-- Other Foods Non- - - - - - -
Grocery Specialists
- Mixed Retailers - - - - - -
Non-Store Retailing - - 0.1 0.2 0.2 0.2
- Vending - - - - - -
- Homeshopping - - - - - -
- Internet Retailing - - 0.1 0.2 0.2 0.2
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 9 Forecast Sales of Processed Fruit and Vegetables by Category: Volume

2018-2023

'000 tonnes
2018 2019 2020 2021 2022 2023

Shelf Stable Fruit and 13.0 12.9 13.1 13.4 13.7 14.1
Vegetables
- Shelf Stable Beans 0.1 0.1 0.1 0.1 0.1 0.1
- Shelf Stable Fruit 12.2 12.1 12.3 12.5 12.7 13.0
- Shelf Stable Tomatoes 0.1 0.1 0.1 0.1 0.1 0.2
- Shelf Stable Vegetables 0.6 0.6 0.7 0.7 0.8 0.8
Frozen Processed Fruit 0.1 0.1 0.1 0.1 0.2 0.2
and Vegetables
- Frozen Fruit 0.1 0.1 0.1 0.1 0.1 0.1
- Frozen Processed 0.1 0.1 0.1 0.1 0.1 0.1
Potatoes
- Frozen Processed 0.0 0.0 0.0 0.0 0.0 0.0
Vegetables
Processed Fruit and 13.1 13.1 13.3 13.6 13.9 14.2
Vegetables
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Sales of Processed Fruit and Vegetables by Category: Value 2018-
2023

PEN million
2018 2019 2020 2021 2022 2023

Shelf Stable Fruit and 124.6 125.3 128.5 132.5 137.3 143.1
Vegetables
- Shelf Stable Beans 0.8 0.8 0.8 0.8 0.8 0.8

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- Shelf Stable Fruit 106.1 105.1 106.6 108.8 111.6 115.2

- Shelf Stable Tomatoes 1.5 1.8 2.2 2.5 2.9 3.3
- Shelf Stable Vegetables 16.3 17.6 19.0 20.4 22.0 23.8
Frozen Processed Fruit 2.0 2.1 2.2 2.2 2.3 2.4
and Vegetables
- Frozen Fruit 1.0 1.0 1.0 1.1 1.1 1.1
- Frozen Processed 1.0 1.0 1.1 1.1 1.2 1.2
Potatoes
- Frozen Processed 0.0 0.0 0.1 0.1 0.1 0.1
Vegetables
Processed Fruit and 126.7 127.4 130.7 134.8 139.7 145.6
Vegetables
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Sales of Processed Fruit and Vegetables by Category: % Volume

Growth 2018-2023

% volume growth
2018/19 2018-23 CAGR 2018/23 Total

Shelf Stable Fruit and Vegetables -0.4 1.6 8.5

- Shelf Stable Beans 2.2 2.1 10.8
- Shelf Stable Fruit -0.7 1.3 6.4
- Shelf Stable Tomatoes 18.6 14.9 99.9
- Shelf Stable Vegetables 2.7 6.5 37.3
Frozen Processed Fruit and Vegetables 3.7 3.7 20.1
- Frozen Fruit 3.5 3.7 19.8
- Frozen Processed Potatoes 3.7 3.6 19.4
- Frozen Processed Vegetables 9.0 9.5 57.4
Processed Fruit and Vegetables -0.4 1.7 8.6
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 12 Forecast Sales of Processed Fruit and Vegetables by Category: % Value

Growth 2018-2023

% constant value growth

2018/2019 2018-23 CAGR 2018/23 Total

Shelf Stable Fruit and Vegetables 0.5 2.8 14.8

- Shelf Stable Beans 2.1 2.3 11.8
- Shelf Stable Fruit -1.0 1.7 8.6
- Shelf Stable Tomatoes 20.8 16.9 118.3
- Shelf Stable Vegetables 8.1 7.9 46.2
Frozen Processed Fruit and Vegetables 3.6 3.7 20.2
- Frozen Fruit 3.0 3.3 17.5
- Frozen Processed Potatoes 3.9 3.9 21.0
- Frozen Processed Vegetables 9.1 9.6 58.2
Processed Fruit and Vegetables 0.6 2.8 14.9
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

© Euromonitor International