EUROMONITOR - MACA

Naturally Healthy Beverages in Peru

HEADLINES

• Naturally healthy beverages records value growth of 11% in 2015 to reach n/s519 million

• The health trend in the country encourages consumers to migrate from carbonates and artificial juice to more natural and healthy options in 2015

• NH hot drinks represents a 79% retail value share of naturally healthy beverages in 2015

• NH fruit/herbal tea records the highest retail value growth of 17% in 2015

• Industrias Alimenticias Cusco leads with a 24% value share

• Natural healthy beverages is expected to record a value CAGR of 7% at constant 2015 prices over the forecast period

TRENDS

• The health trend in Peru is becoming stronger year after year, due to an increase in the rates of obesity among children and adults. Consumers are looking for healthier beverages options combined with better eating habits and physical activity. Naturally healthy beverages represented 25% of total retail value sales of HW beverages in 2015 and the most important category within NH was NH hot drinks, which accounted for 79% of category retail value sales.

• NH fruit/herbal tea recorded the fastest retail value growth of 17% in 2015 and it is expected to enjoy a positive performance over the forecast period.

• NH superfruit juice had not been developed in Peru by the end of the review period, although consumers are eager to know more about the properties of certain fruit and are likely to embrace the industrialisation of these ingredients in order to have healthier and functional products. Products such as golden berry or Peruvian berry are becoming popular for their high vitamin C content, while other fruits such as cocona, yacon and camu camu are also popular. However industrialisation of these products is limited, leading to low volume sales.

• The majority of NH RTD brands are domestic, although international brands can also be found, with innovative blends such as blueberry white tea or pomegranate green tea. Traditional flavours such as green tea, black tea, peach or lemon are preferred by consumers and their prices are accessible thanks to Ajeper with its Free Tea brand, which entered the category with affordable prices. Reduced sugar versions of NH RTD tea are available, however not all brands have this type of product and by the end of the review period none had launched a product sweetened with stevia.

• Naturally health beverages are not perceived as helpful in addressing health conditions, although they are considered a better option for health due to their natural ingredients. Reduced sugar beverages definitely do not aggravate conditions such as diabetes and allow the consumer to have a sweet beverage without the risk of jeopardising their health.

• Naturally healthy beverages, such as NH 100% juice, which require a cooled distribution chain and to be refrigerated at the point of sale are mostly offered in supermarkets and hypermarkets, although some mid-size independent grocers are beginning to have the conditions needed to store the product efficiently. Other naturally healthy beverages, such as NH bottled water and NH RTD tea are sold across distribution channels, because they do not require special storage conditions. These products are available in supermarkets, hypermarkets, independent small grocers and stalls, among others, throughout the country. This wide distribution network ensures widespread penetration and availability.