Organic Packaged Food in Peru

PROSPECTS

Consumers believe organic to be contradictory to packaged food

Studies conducted by universities show that local consumers associate organic with vegetables such as lettuce or tomatoes, but not with bread or meat. Therefore, the concept that Peruvians have of what organic represents is contradictory to what organic packaged food can actually offer.

Availability of organic products is limited

In Peru, organic packaged food was only offered by two product types in 2018; prepared baby food and pasta. There is very low participation in both of these categories, with only hypermarkets offering organic packaged food at the end of the review period.

Peruvian consumers are highly price sensitive

Despite lack of knowledge, the main threat to greater penetration of organic packaged food in Peru is the high unit price. Most brands are imported since the small category size does not make local production profitable, creating limited availability of organic products.

COMPETITIVE LANDSCAPE

Organic packaged food unattractive for national manufacturers

On a national level, only RAM Industries SA produces organic food, specifically in prepared baby food but at a high price, so its distribution remained extremely limited in 2018. The other available product, organic pasta, is imported and in small quantities, and offered by the likes of Pastificio Classico SAC and Adrimpex.

Distribution solely through hypermarkets

Organic packaged food was only distributed through hypermarkets in 2018. Some unpackaged organic produce (not included in this report) is available through small market fairs conducted over the weekends in some high-end neighbourhoods.

Focus on young consumers could be winning strategy

A successful strategy would be to focus on young professionals as well as in 1- to 2-people households where there are lower budget constraints. In addition, young consumers with access to the internet and have greater knowledge of the concept of organic packaged food and its benefits to health, are willing to pay a premium price for these products.

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