Cheese in Peru

Euromonitor International
September 2023
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LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2023 DEVELOPMENTS ............................................................................................................... 1
Fall In Constant Value Sales, As Inflation Still Bites ................................................................. 1
Landscape Remains Highly Concentrated ................................................................................ 1
Hard Cheese More Popular Through Formal Channels ............................................................ 1
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
Limited Constant Value Growth Over Forecast Period ............................................................. 2
Laive Snaps At Gloria’s Heels .................................................................................................. 2
Growing Presence Of Niche, Premium Products ...................................................................... 2
CATEGORY DATA ....................................................................................................................... 2
Table 1 Sales of Cheese by Category: Volume 2018-2023 ...................................... 2
Table 2 Sales of Cheese by Category: Value 2018-2023 ......................................... 2
Table 3 Sales of Cheese by Category: % Volume Growth 2018-2023 ...................... 3
Table 4 Sales of Cheese by Category: % Value Growth 2018-2023 ......................... 3
Table 5 Sales of Spreadable Processed Cheese by Type: % Value 2018-2023 ....... 3
Table 6 Sales of Soft Cheese by Type: % Value 2018-2023 .................................... 4
Table 7 Sales of Hard Cheese by Type: % Value 2018-2023 ................................... 4
Table 8 NBO Company Shares of Cheese: % Value 2019-2023 .............................. 4
Table 9 LBN Brand Shares of Cheese: % Value 2020-2023 ..................................... 4
Table 10 Distribution of Cheese by Format: % Value 2018-2023................................ 5
Table 11 Forecast Sales of Cheese by Category: Volume 2023-2028........................ 6
Table 12 Forecast Sales of Cheese by Category: Value 2023-2028........................... 6
Table 13 Forecast Sales of Cheese by Category: % Volume Growth 2023-2028 ....... 6
Table 14 Forecast Sales of Cheese by Category: % Value Growth 2023-2028 .......... 7

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CHEESE IN PERU
KEY DATA FINDINGS
▪ Retail value sales rise by 5% in current terms in 2023 to PEN1.3 billion
▪ Processed cheese excl spreadable is the best performing category in 2023, with retail value
sales increasing by 7% in current terms to PEN2 million
▪ Gloria SA, Grupo is the leading player in 2023, with a retail value share of 39%
▪ Retail sales are set to rise at a current value CAGR of 4% (2023 constant value CAGR of 1%)
over the forecast period to PEN1.5 billion

2023 DEVELOPMENTS

Fall In Constant Value Sales, As Inflation Still Bites

While current value sales of cheese is expected to grow in 2023, constant value sales are
expected to fall. This weak performance is reflected in the economy, which contracted in the first
half of 2023. An unpopular government, bad weather, high interest rates and inflation are all
constraining consumption, though inflation is easing slightly. With consumers still being price
sensitive, they are prioritising essential dairy products. Consumers are also trading down.

Landscape Remains Highly Concentrated

Gloria and Laive account for the lion’s share of cheese value sales in 2023, accounting over
three-quarters of value share. These two companies have long been the clear leaders, thanks to
their wide portfolios, trusted reputations, competitive pricing strategies and strong presence in
modern and traditional distribution channels. However, both face a significant threat from
smaller artisanal producers, which number in the thousands. Most of these players offer
unpackaged cheese, and many operate on an informal basis. Since the beginning of the
pandemic, many artisanal producers have started selling their cheese via small local grocers
that use social media platforms to promote their offers. This strategy has enabled artisanal
producers to reach more consumers, while the appeal of their unpackaged products – which are
typically 30-40% cheaper than packaged and branded alternatives – has been further
strengthened by increased price-sensitivity arising from high inflation.

Hard Cheese More Popular Through Formal Channels

Hard cheese continues to account for most volume sales through formal channels, though
soft cheese is expected to register higher volume growth in 2023. Peruvians are traditional in
their choice of food, and Peruvian cuisine includes mainly soft white cheese that is called queso
fresco, and is used to prepare sauces, salads and even some soups. However, this form of
cheese is mainly purchased in a loose format, in non-formal stores or even in small local
grocers, including cheese made in non-formal facilities that do not have sanitary registry or
packaging. In terms of hard cheese, Gouda, Edam and Dambo are cheese types that have
gained popularity in recent years, mainly since Laive and Gloria started offering small size
packages that have penetrated traditional channels. Previously these products were only
available via supermarkets and hypermarkets which sliced them and sold them daily in-store-
prepared packages. These cheese types are used to prepare sandwiches or to eat with bread or
crackers. However, cheese is an expensive option compared to other products that are

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traditionally consumed with bread, such as sweet spreads, margarine, ham, egg, or sausage
(hot dog), with this being the main limitation for the development of cheese.

PROSPECTS AND OPPORTUNITIES

Limited Constant Value Growth Over Forecast Period

Cheese will register minimal constant value growth over the forecast period. As long as the
economy remains sluggish, consumers will trade down, and will also purchase cheese through
informal channels, where cheese is considerably less expensive.

Laive Snaps At Gloria’s Heels

Gloria has been the undisputed leader of cheese for years. However, Laive has been closing
the gap over the review period, due to several factors, including offering cheese with a healthy
positioning such as lactose-free. In addition, Gloria has received bad press in recent years, due
to the revelation that its dairy products and in particular its evaporated milk have very low fresh
milk content. In addition, since new regulations have been introduced that require evaporated
milk to contain fresh milk, Gloria has reduced the price it offers to farmers for milk, in what some
commentators believe is an attempt to pressurise government to reverse the regulations
concerning evaporated milk. This negative PR could be a benefit to Laive, as consumers
potentially switch brands.

Growing Presence Of Niche, Premium Products

High income consumers will increasingly be interested in other varieties of cheese, such as
blue cheese, Spanish traditional cheese and cheese flavoured with herbs and spices. More
niche, local and imported brands such as El Artesano de Antaño, La Campesina, Piamonte,
Duman and Chugur should gain from this growing interest.

CATEGORY DATA
Table 1 Sales of Cheese by Category: Volume 2018-2023

'000 tonnes
2018 2019 2020 2021 2022 2023

Cheese 25.9 26.5 33.9 30.6 28.6 28.4

- Spreadable Cheese 1.0 1.1 1.2 1.1 1.1 1.1
- Processed Cheese excl 0.0 0.0 0.0 0.0 0.0 0.0
Spreadable
- Hard Cheese 18.1 18.6 24.9 22.0 20.6 20.8
-- Packaged Hard Cheese 2.2 2.2 3.0 3.0 2.8 2.9
-- Unpackaged Hard Cheese 15.9 16.4 21.9 19.0 17.8 17.9
- Soft Cheese 6.8 6.8 7.8 7.4 6.8 6.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Cheese by Category: Value 2018-2023

PEN million
2018 2019 2020 2021 2022 2023

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Cheese 883.0 932.6 1,229.2 1,152.7 1,211.3 1,267.6

- Spreadable Cheese 30.5 33.3 40.2 38.9 41.5 42.7
- Processed Cheese excl 1.1 1.2 1.4 1.5 1.7 1.8
Spreadable
- Hard Cheese 665.4 707.6 965.2 891.9 945.2 1,000.7
-- Packaged Hard Cheese 88.5 93.1 129.0 134.9 145.4 154.6
-- Unpackaged Hard Cheese 576.9 614.4 836.2 757.0 799.8 846.1
- Soft Cheese 185.9 190.5 222.4 220.5 222.9 222.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Sales of Cheese by Category: % Volume Growth 2018-2023

% volume growth
2022/23 2018-23 CAGR 2018/23 Total

Cheese -0.6 1.9 9.8

- Spreadable Cheese -1.8 1.3 6.6
- Processed Cheese excl Spreadable 0.9 2.1 11.2
- Hard Cheese 0.7 2.8 15.0
-- Packaged Hard Cheese 1.0 5.9 33.0
-- Unpackaged Hard Cheese 0.6 2.4 12.6
- Soft Cheese -4.2 -0.8 -3.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Sales of Cheese by Category: % Value Growth 2018-2023

% current value growth

2022/23 2018-23 CAGR 2018/23 Total

Cheese 4.7 7.5 43.6

- Spreadable Cheese 2.9 6.9 39.8
- Processed Cheese excl Spreadable 6.5 9.4 56.5
- Hard Cheese 5.9 8.5 50.4
-- Packaged Hard Cheese 6.3 11.8 74.8
-- Unpackaged Hard Cheese 5.8 8.0 46.7
- Soft Cheese -0.2 3.7 19.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 Sales of Spreadable Processed Cheese by Type: % Value 2018-2023

% retail value rsp

2018 2019 2020 2021 2022 2023

Cream Cheese 80.4 80.5 80.5 80.6 80.6 80.6

Reconstituted Cheese 19.5 19.5 19.5 19.4 19.4 19.4
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

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Table 6 Sales of Soft Cheese by Type: % Value 2018-2023

% retail value rsp

2018 2019 2020 2021 2022 2023

Andino 11.2 11.2 11.3 11.3 11.2 11.2

Fresco 48.7 48.7 48.2 48.4 48.3 48.3
Mozzarella 2.5 2.5 2.5 2.5 2.5 2.6
Paria 18.8 18.8 18.9 18.8 18.8 18.7
Tilsit 14.8 14.8 14.9 14.4 14.4 14.4
Others Cheese 4.1 4.2 4.3 4.6 4.8 4.8
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 7 Sales of Hard Cheese by Type: % Value 2018-2023

% retail value rsp

2018 2019 2020 2021 2022 2023

Dambo 12.9 13.0 13.0 12.9 12.9 12.9

Edam 46.0 46.0 45.9 45.9 45.8 45.8
Gouda 29.3 29.3 29.6 29.7 29.8 29.9
Parmesan 5.5 5.5 5.5 5.4 5.4 5.4
Others Cheese 6.3 6.3 6.0 6.1 6.0 5.9
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 8 NBO Company Shares of Cheese: % Value 2019-2023

% retail value rsp

Company 2019 2020 2021 2022 2023

Gloria SA, Grupo 39.5 41.1 40.5 39.4 39.1

Laive SA 36.6 37.2 37.2 38.2 38.6
Sociedad Suizo Peruana de 2.8 2.4 2.6 2.8 2.9
Embutidos SA
Lacteos Piamonte SAC 1.7 1.3 1.5 1.5 1.5
Delice SAC 1.8 1.4 1.4 1.4 1.3
Mondelez Perú SA 0.8 0.8 0.8 0.9 0.9
Plantas Lecheras Unidas SA 0.3 0.2 0.3 0.3 0.3
E Wong SA 0.1 0.1 0.2 0.2 0.2
Lactalis Peru SAC 0.0 0.1 0.1 0.1 0.1
Kraft Foods Perú SA - - - - -
Private Label 0.2 0.3 0.3 0.3 0.3
Others 16.1 15.0 15.1 15.0 14.8
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

Table 9 LBN Brand Shares of Cheese: % Value 2020-2023

% retail value rsp

Brand (GBO) Company (NBO) 2020 2021 2022 2023

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Bonlé Gloria SA, Grupo 40.9 40.3 39.2 38.9

Laive Laive SA 36.3 36.3 37.8 38.5
Milkunz Sociedad Suizo Peruana de 2.4 2.6 2.8 2.9
Embutidos SA
Piamonte Lacteos Piamonte SAC 1.3 1.5 1.5 1.5
Philadelphia (Kraft Mondelez Perú SA 0.8 0.8 0.9 0.9
Heinz Co)
Untadeli Delice SAC 0.8 0.7 0.7 0.6
Delice Delice SAC 0.6 0.6 0.6 0.6
Plusa Plantas Lecheras Unidas SA 0.2 0.3 0.3 0.3
Gloria Gloria SA, Grupo 0.2 0.2 0.2 0.2
Crystal Farms (Post E Wong SA 0.1 0.2 0.2 0.2
Holdings Inc)
Bazo Velarde Laive SA 0.9 0.9 0.4 0.1
Président (Lactalis, Lactalis Peru SAC 0.1 0.1 0.1 0.1
Groupe)
Queso Crema Delice Delice SAC 0.1 0.1 0.1 0.1
Light
Philadelphia (Kraft Kraft Foods Perú SA - - - -
Foods Group Inc)
Philadelphia (Kraft Kraft Foods Perú SA - - - -
Heinz Co)
Private label Private Label 0.3 0.3 0.3 0.3
Others Others 15.0 15.1 15.0 14.8
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 10 Distribution of Cheese by Format: % Value 2018-2023

% retail value rsp

2018 2019 2020 2021 2022 2023

Retail Channels 100.0 100.0 100.0 100.0 100.0 100.0

- Retail Offline 99.5 99.1 97.4 97.0 96.7 96.3
-- Grocery Retailers 99.5 99.1 97.4 97.0 96.7 96.3
--- Convenience Retail 1.3 1.3 0.9 1.0 1.1 1.2
---- Convenience Stores 1.3 1.3 0.9 1.0 1.1 1.2
---- Forecourt Retailers - - - - - -
--- Supermarkets 21.7 22.0 22.4 22.2 22.5 23.0
--- Hypermarkets 30.2 30.6 29.1 29.8 29.9 29.8
--- Discounters 0.3 0.3 0.3 0.4 0.4 0.4
--- Warehouse Clubs - - - - - -
--- Food/drink/tobacco - - - - - -
specialists
--- Small Local Grocers 46.0 44.8 44.7 43.7 42.8 42.0
-- Non-Grocery Retailers - - - - - -
--- General Merchandise - - - - - -
Stores
--- Apparel and - - - - - -
Footwear Specialists
--- Appliances and - - - - - -
Electronics Specialists
--- Home Products - - - - - -
Specialists
--- Health and Beauty - - - - - -
Specialists
--- Leisure and - - - - - -

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Personal Goods
Specialists
--- Other Non-Grocery - - - - - -
Retailers
-- Vending - - - - - -
-- Direct Selling - - - - - -
- Retail E-Commerce 0.5 0.9 2.6 3.0 3.3 3.7
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 11 Forecast Sales of Cheese by Category: Volume 2023-2028

'000 tonnes
2023 2024 2025 2026 2027 2028

Cheese 28.4 28.4 28.5 28.7 29.0 29.3

- Spreadable Cheese 1.1 1.1 1.0 1.0 1.1 1.1
- Processed Cheese excl 0.0 0.0 0.0 0.0 0.0 0.0
Spreadable
- Hard Cheese 20.8 20.9 21.1 21.3 21.5 21.8
-- Packaged Hard Cheese 2.9 2.9 2.9 3.0 3.0 3.1
-- Unpackaged Hard Cheese 17.9 18.0 18.2 18.3 18.5 18.7
- Soft Cheese 6.5 6.4 6.4 6.4 6.4 6.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 12 Forecast Sales of Cheese by Category: Value 2023-2028

PEN million
2023 2024 2025 2026 2027 2028

Cheese 1,267.6 1,284.2 1,301.9 1,320.7 1,340.1 1,359.4

- Spreadable Cheese 42.7 42.8 42.9 43.1 43.4 43.8
- Processed Cheese excl 1.8 1.8 1.8 1.9 1.9 1.9
Spreadable
- Hard Cheese 1,000.7 1,020.3 1,037.5 1,054.8 1,071.3 1,087.1
-- Packaged Hard Cheese 154.6 158.7 162.6 166.4 170.1 173.7
-- Unpackaged Hard Cheese 846.1 861.5 875.0 888.4 901.2 913.4
- Soft Cheese 222.5 219.4 219.6 220.9 223.5 226.6
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 13 Forecast Sales of Cheese by Category: % Volume Growth 2023-2028

% volume growth
2023/24 2023-28 CAGR 2023/28 Total

Cheese 0.0 0.6 3.3

- Spreadable Cheese -1.1 -0.2 -1.0
- Processed Cheese excl Spreadable 0.1 0.4 1.8
- Hard Cheese 0.7 0.9 4.8
-- Packaged Hard Cheese 1.0 1.3 6.5
-- Unpackaged Hard Cheese 0.7 0.9 4.5
- Soft Cheese -2.2 -0.1 -0.7

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Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 14 Forecast Sales of Cheese by Category: % Value Growth 2023-2028

% constant value growth

2023/2024 2023-28 CAGR 2023/28 Total

Cheese 1.3 1.4 7.2

- Spreadable Cheese 0.3 0.5 2.6
- Processed Cheese excl Spreadable 1.8 1.4 7.2
- Hard Cheese 2.0 1.7 8.6
-- Packaged Hard Cheese 2.6 2.4 12.4
-- Unpackaged Hard Cheese 1.8 1.5 8.0
- Soft Cheese -1.4 0.4 1.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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