Naturally Healthy Beverages in Peru

2020 IMPACT

Pandemic affects category negatively, but NH tea sales improved by boost to immune system

The COVID-19 pandemic impacted the rate of growth in current retail value sales of naturally healthy (NH) beverages negatively in 2020. NH bottled water was especially hard hit by the pandemic and saw a double digit decrease in retail value sales as well as in volume terms as unit prices increased far above inflation for NH soft drinks.

Despite pandemic NH bottled water sees new launches to rival competitors’ pricing strategy in 2020

NH bottled water continued to have the largest value share within NH beverages in 2020 and saw healthy retail value sales growth over most of the review period due to the health and wellness trend. However, this trend was unable to boost sales in 2020 and retail value sales saw a sizeable drop in growth.

Nestlé takes lead from Toscafé due to its brands’ marketing focus on specific consumption moments and Wawasana benefits from relaxation properties in 2020

Towards the end of the review period, Nestlé Perú SA emphasised the nutritional element of its Milo brand by promoting its suitability in lunch boxes through its vitamins, minerals, and malt content. It also introduced its new Ecco barley soft drink with natural ingredients at the end of the review period.

RECOVERY AND OPPORTUNITIES

Promising future for naturally healthy beverages as economy recovers over the forecast period

As Peru plans to roll out its COVID-19 immunisation plan in 2021, life is expected to start normalising again leading to a positive performance in constant retail value terms over the forecast period in naturally healthy beverages. However, recovery in volume terms is expected to lag and growth is only expected to start from 2022 for the rest of the medium term.

NH tea set to see demand grow as products are positioned as being medicinal alternatives

NH tea, on the other hand, is likely to see positive growth in volume terms as well as constant retail value sales over the entire forecast period. Many NH tea products are positioned as being natural or organic medicinal alternatives.

Foodservice outlets likely to produce own NH bottled water over the forecast period

It is likely that many foodservice outlets will choose to manufacture their own premium NH bottled water over the forecast period. This will mainly result from the trend of ‘doing everything yourself’ as well as in an effort to be environmentally conscious and to reduce costs.