Soft Drinks - Peru

The Soft Drinks market in Peru has been experiencing significant growth in recent years, driven by changing consumer preferences and local special circumstances. Customer preferences have shifted towards healthier options, leading to increased demand for low-sugar and natural beverages. Additionally, the growing middle class and urbanization in Peru have contributed to the expansion of the soft drinks market.

Customer preferences: Peruvian consumers are increasingly opting for healthier beverage options, reflecting a global trend towards wellness and nutrition. This has led to a rise in demand for low-sugar and natural soft drinks. Consumers are becoming more conscious about their sugar intake and are actively seeking alternatives that offer the same taste and refreshment without the negative health impacts. As a result, companies in the soft drinks market have been introducing new products with reduced sugar content and natural ingredients to cater to this demand.

Trends in the market: One of the key trends in the soft drinks market in Peru is the growing popularity of functional beverages. Functional beverages are drinks that offer additional health benefits beyond basic nutrition. These can include energy drinks, sports drinks, and beverages fortified with vitamins and minerals. The demand for these products has been driven by the increasing awareness of health and wellness among consumers, as well as the desire for convenience and on-the-go consumption. Another trend in the market is the rising popularity of premium and artisanal soft drinks. Peruvian consumers are willing to pay a premium for high-quality, unique, and locally-produced beverages. This trend has created opportunities for small and medium-sized companies to enter the market and offer innovative and differentiated products. Artisanal soft drinks often emphasize local ingredients and traditional recipes, appealing to consumers looking for authentic and distinctive flavors.

Local special circumstances: Peru's growing middle class and urbanization have played a significant role in the development of the soft drinks market. As more Peruvians enter the middle class, their disposable incomes have increased, allowing them to spend more on non-essential goods, including soft drinks. Urbanization has also contributed to the growth of the market, as urban areas tend to have a higher concentration of supermarkets, convenience stores, and restaurants where soft drinks are readily available.

Underlying macroeconomic factors: Peru's stable economic growth and improving living standards have provided a favorable environment for the soft drinks market to thrive. The country has seen steady GDP growth in recent years, which has positively impacted consumer purchasing power. Additionally, the government's efforts to attract foreign investment and promote business-friendly policies have encouraged the expansion of multinational soft drink companies in Peru. This has led to increased competition and innovation in the market, benefitting both consumers and producers. In conclusion, the Soft Drinks market in Peru is experiencing growth due to changing customer preferences, including a shift towards healthier options and an increasing demand for functional and premium beverages. The growing middle class and urbanization in Peru, along with favorable macroeconomic factors, have also contributed to the expansion of the market.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.