Better For You Packaged Food in Peru

PROSPECTS

New labelling standard is approved on 2018

During 2018, the labelling regulation for food and beverages containing more than one ingredient was approved within the framework of the Healthy Food Law that was originally enacted in 2013. This labelling standard will enter into force in mid-2019 but has been opposed by many packaged food manufacturers claiming that it does not provide enough clarity to consumers.

Focus is turning from reduced fat to reduced sugar

For most local consumers, excess fat can be more harmful to health than excess sugar. In addition, Peruvians are accustomed to consuming food such as breakfast cereals that is high in sugar, believing that most sugar substitutes are full of chemicals and also harmful to health.

Concern for physical appearance is greater than for health

Starting in November, Peruvians, especially women, start thinking about summer (December to April) and therefore they start looking for ways to lose weight so that they feel comfortable in their summer clothes. Therefore, the demand for better for you packaged food rises, especially for those foods that are low in calories, and high in fibre or protein, or processed poultry with a low fat content, in addition to reduced fat dairy options.

COMPETITIVE LANDSCAPE

Distribution of better for you packaged food mainly through modern channel

Better for you packaged food is mainly demanded by mid- to high-income consumers, since it usually carries a higher unit price than regular products, as there are fewer options available since not all manufacturers offer better for you. Therefore, the distribution of the category is mainly through modern grocery retailers, where consumers who make their purchases on a weekly or bi-weekly basis, have a larger budget than those who visit independent small grocers every day or market stalls.

Dairy companies lead better for you packaged food

Grupo Gloria and Laive SA continued to lead better for you packaged food, since reduced fat dairy holds the highest volume share within the overall category. Laive offers the Sbelt brand including reduced fat cheese and reduced fat yoghurt.

Private label records high value growth

Private label is often associated with mass or highly demanded products but this is not the case for better for you packaged food in Peru as its held marginal value share in 2018. However, retailers are now starting to recognise that there is a trend towards being healthier or maintaining adequate weight, and they have developed products with low fat or sugar content.

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