Hot Drinks in Peru
Euromonitor International's Hot Drinks in Peru market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 44 | Publication date: Oct 2007
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Coffee margins are diluted in supermarkets/hypermarkets
As with many products of mass consumption in Peru, bodegas and supermarket/hypermarkets represent the major distribution channels, accounting for more than 80% of sales at national level of hot drinks. Margins for manufacturers selling through these outlets are higher than those at supermarkets: those of bodegas are calculated at around 25%, while nominal margins in supermarkets are between 32% and 35%. However, companies must pay fees for their brands to be positioned on the prime shelf spaces in supermarkets, thus margins for producers are lower than in other selling points.
Fruit/herbal tea increasing presence
Consumption of fruit/herbal tea (such as camomile, anisette, boldo, cat’s claw) is increasing. Since 2004 volume sales have grown on a yearly basis so that at the end of the review period the category has seen growth of 5%. This increase is based on the preference of consumers for fruit/herbal drinks instead of black standard tea or coffee due to the fact that they consider them healthier. Demand is concentrated in the city of Lima because generally urban consumers are more health-conscious and aware of new product developments.
Success in domestic market is the next step
Altomayo Peru SA, the major Peruvian coffee export company with more than 40 years in the country, created and developed the Altomayo brand through which it accessed the domestic hot drinks market in 2004. Already, in 2006, this brand is ranked second in the country. Peruvian export companies (Peru is the eighth largest coffee producer in the world) are keen to develop the domestic market further in an effort to diminish the effects of international price fluctuations. This prospect seems more realistic following the stabilisation of prices in Peru in the middle of the review period.
Peruvian coffee, a successful product during 2006
In 2006, Peruvian green coffee was the best selling export of all the different types of coffee products, achieving US$500 million in export value sales. Coffee exports represent 90% of the market. For 2006, production is calculated to be 450,000 tonnes. Peruvian coffee has been gaining international prestige and is now valued at a price just 2% lower than the prices of the leading Brazilian and Colombian coffees. In 2006, prices went up 15% in comparison to the previous year. Coffee production had shown an average annual growth rate of 6% over the review period and Peru is the major producer of organic coffee in the world.
Other plant-based hot drinks control nearly 50% of national production in tea
According to Euromonitor International’s research, under Peruvian State Statistics registrations, other plant-based hot drinks and tea are included in the same category when referring to national production or volume/value sales. This is because both categories shared the same presentations – tea bags – the only industrialised form in which these products are sold. However, according to Euromonitor International’s trade press research, 49% is accounted for by other-plant based hot drinks and 51% by tea in the total production figures as described in State Statistics.
Table of contents
HOT DRINKS IN PERU : MARKET INSIGHT
EXECUTIVE SUMMARY
Coffee margins are diluted in supermarkets/hypermarkets
Fruit/herbal tea increasing presence
Success in domestic market is the next step
Peruvian coffee, a successful product during 2006
Other plant-based hot drinks control nearly 50% of national production in tea
MARKET DATA
Table 1 Sales of Hot Drinks by Sector: Volume 2001-2006
Table 2 Sales of Hot Drinks by Sector: Value 2001-2006
Table 3 Sales of Hot Drinks by Sector: % Volume Growth 2001-2006
Table 4 Sales of Hot Drinks by Sector: % Value Growth 2001-2006
Table 5 Hot Drinks Company Shares by Value 2002-2006
Table 6 Hot Drinks Brand Shares by Value 2003-2006
Table 7 Sales of Hot Drinks by Distribution Format: % Analysis 2001/2006
Table 8 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2006
Table 9 Forecast Sales of Hot Drinks by Sector: Volume 2006-2011
Table 10 Forecast Sales of Hot Drinks by Sector: Value 2006-2011
Table 11 Forecast Sales of Hot Drinks by Sector: % Volume Growth 2006-2011
Table 12 Forecast Sales of Hot Drinks by Sector: % Value Growth 2006-2011
APPENDIX
Production/Imports/Exports
DEFINITIONS
COFFEE IN PERU
Headlines
Trends
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 13 Sales of Coffee by Type: Volume 2001-2006
Table 14 Sales of Coffee by Type: Value 2001-2006
Table 15 Sales of Coffee by Type: % Volume Growth 2001-2006
Table 16 Sales of Coffee by Type: % Value Growth 2001-2006
Table 17 Foodservice Sales of Coffee by Distribution Format 2001/2006
Table 18 Forecast Sales of Coffee by Type: Volume 2006-2011
Table 19 Forecast Sales of Coffee by Type: Value 2006-2011
Table 20 Forecast Sales of Coffee by Type: % Volume Growth 2006-2011
Table 21 Forecast Sales of Coffee by Type: % Value Growth 2006-2011
TEA
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 22 Sales of Tea by Subsector: Volume 2001-2006
Table 23 Sales of Tea by Subsector: Value 2001-2006
Table 24 Sales of Tea by Subsector: % Volume Growth 2001-2006
Table 25 Sales of Tea by Subsector: % Value Growth 2001-2006
Table 26 Tea Company Shares 2002-2006
Table 27 Tea Brand Shares 2003-2006
Table 28 Forecast Sales of Tea by Subsector: Volume 2006-2011
Table 29 Forecast Sales of Tea by Subsector: Value 2006-2011
Table 30 Forecast Sales of Tea by Subsector: % Volume Growth 2006-2011
Table 31 Forecast Sales of Tea by Subsector: % Value Growth 2006-2011
OTHER HOT DRINKS
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 32 Sales of Other Hot Drinks by Subsector: Volume 2001-2006
Table 33 Sales of Other Hot Drinks by Subsector: Value 2001-2006
Table 34 Sales of Other Hot Drinks by Subsector: % Volume Growth 2001-2006
Table 35 Sales of Other Hot Drinks by Subsector: % Value Growth 2001-2006
Table 36 Forecast Sales of Other Hot Drinks by Subsector: Volume 2006-2011
Table 37 Forecast Sales of Other Hot Drinks by Subsector: Value 2006-2011
Table 38 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2006-2011
Table 39 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2006-2011
ALTOMAYO PERU SA
Strategic Direction
Key Facts
Summary 1 Altomayo Peru SA: Key Facts
Summary 2 Altomayo Peru SA: Operational Indicators 2004-2006
Company Background
Production
Competitive Positioning
Summary 3 Altomayo Peru SA: Competitive Position 2006 [retail volume]
INDUSTRIAS ORO VERDE SA
Strategic Direction
Key Facts
Summary 4 Industrias Oro Verde SA: Key Facts
Summary 5 Industrias Oro Verde SA: Operational Indicators 2004-2006
Company Background
Production
Competitive Positioning