Fortified/Functional Packaged Food in Peru

PROSPECTS

Fortified/functional is present amongst a variety of product types

Fortified/functional benefits are present in a range of product types, addressing consumers’ demands and at the same time supporting the low growth recorded in 2018. Each year, an increasing number of products emerge to offer specific value because manufacturers look for a way to differentiate themselves from competitors without reducing prices.

Fortified/functional packaged food more focused on children

The most important product included under fortified/functional packaged food is baby food, specifically milk formula, with parents constantly searching for products that promote their children’s development. It is common to find baby food with DHA, vitamins or minerals, available through across a variety of distribution channels.

Vitamins and minerals have become key ingredients in FF packaged food

Vitamins and minerals are the benefits that are most often added to fortified/functional packaged food and are strongly promoted by manufacturers. These additions tend to be highlighted on the front of the product’s packaging, with phrases such as "contains over 10 vitamins and minerals" and in some cases, the products are promoted with advertising on television.

COMPETITIVE LANDSCAPE

Greater competition is expected

Although there is a growing trend to search for products that have additional benefits, such as vitamins, minerals or fibre, demand remained very low in 2018. This is largely because Peruvians believe that the real benefits of a product should come from the main ingredients and not from being specifically added.

Multinational company leads category

The main product within fortified/functional packaged food is FF milk formula, comprised mainly of brands imported and marketed by Mead Johnson Nutrition Peru. However, outside of this product, most of fortified/functional packaged food sold in Peru is manufactured by national companies and it is expected that in the future they will gain share as they are present in growing product categories, such as FF yoghurt, FF breakfast cereal and FF snack bars.

Success tied to offering benefits across a brand’s range of products

The main fortified/functional packaged food brands have to attract consumers in an attempt to associate them with additional benefits, since the concept of quality has evolved and now depends largely on the attributes offered to consumers. Therefore, for example, Gloria, which offers fortified/functional products in yoghurt, baby food and breakfast cereals, has to expand on these benefits to evaporated or drinking milk, amongst others.

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