Soft Drinks in Peru
Euromonitor International's Soft 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: 96 | Publication date: Apr 2008
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
Asian speciality drinks; Bottled water; Carbonates; Concentrates; Fruit/vegetable juice; Functional drinks; RTD coffee; RTD tea
Executive summary
New product developments and health concerns are key to growth
Peruvian companies are expanding their brand portfolios, offering new product developments suitable for different occasions and away from the typical carbonates. In the near past, soft drinks were mainly restricted to carbonates, but in less than a decade market drivers have turned from price sensitivity to health concerns as a fundamental issue to expanding sales. Companies have realized that customers are avid to try new options of soft drinks for different consuming situations at acceptable prices. The soft drinks market started taking off in Peru with carbonates, and was propelled by the low prices of Kola Real, offered by Ajeper SA, the domestic operation division of Peruvian Ajegoup, in the mid 1990s, but then bottled water and fruit/vegetable juice started developing, and those products have been gaining popularity due to consumer demand for natural, healthier and practical beverages. Today fruit/vegetable juice, functional drinks and bottled water have the most promising growth prospects, since Peruvian consumers are looking for enjoyment, functionality and health benefits when choosing their soft drinks.
Carbonates: An “effervescent” affair?
Carbonates is the largest category in the Peruvian soft drinks industry overall. However, when compared to recently successful fruit/vegetable juice, bottled water, and functional drinks, carbonates is only showing modest growth. Is it the most promising for Peruvian NAD companies? Certainly not, and the reason is that, as in the rest of the world, Peruvian consumers are demanding healthier products. Carbonates are now perceived as unhealthy. In contrast, sectors like fruit/vegetable juice and bottled water are becoming the bigger beneficiaries of this change in perception of what a healthy product is. The key is the return to simplicity. Peruvians are concerned about their wellness, and they think that the simpler, the better. Carbonates are no longer as “effervescent” as they used to be, but it does not mean they are bad business; players in this category will simply have to be more creative in adapting their products to the new paradigm.
B-brands explosion boosts consumption in emerging sectors
In the late 1990s, Peruvian carbonates were the most expensive in the region because manufacturers were targeting the high-income segment of the population. Ajeper SA took advantage of this situation by offering its Kola Real at very low prices in an attempt to attract those who wanted to drink a “coke,” but could not afford it. Consumers reacted quickly, and Kola Real was quickly able to conquer a significant portion of market volume share over Inca Kola and Coca-Cola, historically the two most important soft drinks in Peru. Soon after, Ajeper repeated the same strategy with its bottled water brand, Cielo, with successful results. The lesson for big players was not to underestimate the emerging sectors of the population because if they did, they risked being eliminated. Most recently, the purchasing power of the population has risen because of the good economic situation the country is going through. Today B-brands in carbonates are not as popular as they were in the past, but new categories of soft drinks for Peruvians, such as energy drinks and sports drinks – which are more expensive than carbonates – still have low market penetration in emerging sectors, and hence they constitute a another potential opportunity for manufacturers. Many have already made a play in that direction, and competition has pushed down prices and expanded coverage as well.
Bodegas remains the most important channel, but modern retail outlets are becoming increasingly important
Modern retail outlets, mainly supermarkets/hypermarkets, still have low market penetration in Peru, even though they have aggressive expansion plans. Of course, bodegas cannot compete in price with modern outlets, but for many Peruvians they are more comfortable than supermarkets or modern convenience stores, which is a concept that is almost null in Peru since, as, strictly speaking, convenience stores are limited to locations in gas stations. Bodegas sell 60% of total groceries in Peru, and even if modern outlets expanded, the retail dominance of bodegas would not be easy to overcome. However, the numbers of modern outlets are expected to more than double in the forecast period, and total investments will exceed US$700 million in that period. Bodegas are part of Peru’s culture, and they have a function in daily life, but much of future NAD growth will come from the new retail projects.
Functional drinks to see the best performance in the forecast period
Peruvians did not start drinking functional drinks until relatively recently and this category was relatively unknown before the 1990s. However, at the start of the review period it became clear that an unsatisfied need was just waiting to be fulfilled – what with university students staying out late at night, athletes looking to quench their thirst and people in general wanting an opportunity to take better care of themselves. The improving economic situation in Peru further boosted the demand and enabled manufacturers to risk offering more of these new alternatives. By the end of the review period, functional drinks was not the most significant category in terms of size, but its popularity was taking off, and it is expected to be the fastest-growing soft drinks product in the forecast period.
Table of contents
SOFT DRINKS IN PERU : MARKET INSIGHT
EXECUTIVE SUMMARY
New product developments and health concerns are key to growth
Carbonates: An “effervescent” affair?
B-brands explosion boosts consumption in emerging sectors
Bodegas remains the most important channel, but modern retail outlets are becoming increasingly important
Functional drinks to see the best performance in the forecast period
MARKET DATA
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2002-2007
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2002-2007
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2002-2007
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2002-2007
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2007
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2007
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2007
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2007
Table 9 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2002-2007
Table 10 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2002-2007
Table 11 Off-trade Sales of Soft Drinks by Sector: Value 2002-2007
Table 12 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2002-2007
Table 13 Company Shares of Off-trade Soft Drinks (as sold) by Volume 2003-2007
Table 14 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2004-2007
Table 15 Company Shares of Off-trade Soft Drinks (RTD) by Volume 2003-2007
Table 16 Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2004-2007
Table 17 Company Shares of Off-trade Soft Drinks by Value 2003-2007
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2004-2007
Table 19 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2007
Table 20 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2007-2012
Table 21 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2007-2012
Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2007-2012
Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2007-2012
Table 24 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2007-2012
Table 25 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2007-2012
Table 26 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2007-2012
Table 27 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2007-2012
CORP JOSÉ R LINDLEY SA
Strategic Direction
Key Facts
Summary 1 Corp José R Lindley SA: Key Facts
Summary 2 Corp José R Lindley SA: Operational Indicators
Company Background
Production
Competitive Positioning
Summary 3 Corp José R Lindley SA: Competitive Position 2007
AJEPER SA
Strategic Direction
Key Facts
Summary 4 Ajeper SA: Key Facts
Summary 5 Ajeper SA: Operational Indicators
Company Background
Production
Competitive Positioning
Summary 6 Ajeper SA: Competitive Position 2007
CARBONATES IN PERU
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 28 Low Calorie Carbonates by Subsector 2003-2007
Table 29 Off-trade Sales of Carbonates by Subsector: Volume 2002-2007
Table 30 Off-trade Sales of Carbonates by Subsector: Value 2002-2007
Table 31 Off-trade Sales of Carbonates by Subsector: % Volume Growth 2002-2007
Table 32 Off-trade Sales of Carbonates by Subsector: % Value Growth 2002-2007
Table 33 On-trade vs Off-trade Sales of Carbonates: Volume 2002-2007
Table 34 On-trade vs Off-trade Sales of Carbonates: Value 2002-2007
Table 35 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2002-2007
Table 36 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2002-2007
Table 37 Company Shares of Carbonates by Off-trade Volume 2003-2007
Table 38 Brand Shares of Carbonates by Off-trade Volume 2004-2007
Table 39 Company Shares of Carbonates by Off-trade Value 2003-2007
Table 40 Brand Shares of Carbonates by Off-trade Value 2004-2007
Table 41 Forecast Off-trade Sales of Carbonates by Subsector: Volume 2007-2012
Table 42 Forecast Off-trade Sales of Carbonates by Subsector: Value 2007-2012
Table 43 Forecast Off-trade Sales of Carbonates by Subsector: % Volume Growth 2007-2012
Table 44 Forecast Off-trade Sales of Carbonates by Subsector: % Value Growth 2007-2012
FRUIT/VEGETABLE JUICE IN PERU
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 45 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2003-2007
Table 46 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2004-2007
Table 47 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2003-2007
Table 48 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2004-2007
Table 49 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2007-2012
Table 50 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2007-2012
Table 51 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2007-2012
Table 52 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2007-2012
BOTTLED WATER IN PERU
Headlines
Trends
Competitive Landscape
Prospects
Sector Appendix
Table 53 Sales of Bottled Water to the Institutional Channel 2003-2007
Sector Data
Table 54 Brand Shares of Bottled Water by Off-trade Volume 2004-2007
Table 55 Company Shares of Bottled Water by Off-trade Value 2003-2007
Table 56 Brand Shares of Bottled Water by Off-trade Value 2004-2007
Table 57 Forecast Off-trade Sales of Bottled Water: Volume 2007-2012
Table 58 Forecast Off-trade Sales of Bottled Water: Value 2007-2012
Table 59 Forecast Off-trade Sales of Bottled Water: % Volume Growth 2007-2012
Table 60 Forecast Off-trade Sales of Bottled Water: % Value Growth 2007-2012
FUNCTIONAL DRINKS IN PERU
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 61 Off-trade Sales of Functional Drinks by Subsector: Volume 2002-2007
Table 62 Off-trade Sales of Functional Drinks by Subsector: Value 2002-2007
Table 63 Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2002-2007
Table 64 Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2002-2007
Table 65 Company Shares of Functional Drinks by Off-trade Volume 2003-2007
Table 66 Brand Shares of Functional Drinks by Off-trade Volume 2004-2007
Table 67 Company Shares of Functional Drinks by Off-trade Value 2003-2007
Table 68 Brand Shares of Functional Drinks by Off-trade Value 2004-2007
Table 69 Forecast Off-trade Sales of Functional Drinks by Subsector: Volume 2007-2012
Table 70 Forecast Off-trade Sales of Functional Drinks by Subsector: Value 2007-2012
Table 71 Forecast Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2007-2012
Table 72 Forecast Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2007-2012
CONCENTRATES IN PERU
Headlines
Trends
Competitive Landscape
Prospects
Sector Appendix
Summary 7 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format
Sector Data
Table 73 Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2002-2007
Table 74 Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2002-2007
Table 75 Off-trade Sales of Concentrates by Subsector: Value 2002-2007
Table 76 Off-trade Sales of Concentrates by Subsector: % Value Growth 2002-2007
Table 77 Company Shares of Concentrates by Off-trade Value 2003-2007
Table 78 Brand Shares of Concentrates by Off-trade Value 2004-2007
Table 79 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2007-2012
Table 80 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2007-2012
Table 81 Forecast Off-trade Sales of Concentrates by Subsector: Value 2007-2012
Table 82 Forecast Off-trade Sales of Concentrates by Subsector: % Value Growth 2007-2012
APPENDIX
Table 83 Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2002-2007
Table 84 Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2002-2007
Table 85 Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2003-2007
Table 86 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 2004-2007
Table 87 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2007-2012
Table 88 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2007-2012
DEFINITIONS
Summary 8 Research Sources