Ready Meals in Peru

Euromonitor International
November 2019
READY MEALS IN PERU Passport i

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
High Unit Price Is A Barrier for Penetration .............................................................................. 1
Peruvian Tradition Favours Freshly Prepared Meals, With Ready Meals Often Regarded
Unfavourably............................................................................................................................. 1
Dried Ready Meals Are Increasingly Popular With More Options Becoming Available ............ 2
Competitive Landscape ................................................................................................................ 2
New Products and New Manufacturers Enter Ready Meals ..................................................... 2
the 5cina Brand Is Withdrawn ................................................................................................... 2
Underdeveloped Category Due To Poor Reputation ................................................................ 2
Category Data .............................................................................................................................. 3
Table 1 Sales of Ready Meals by Category: Volume 2014-2019 .............................. 3
Table 2 Sales of Ready Meals by Category: Value 2014-2019 ................................. 3
Table 3 Sales of Ready Meals by Category: % Volume Growth 2014-2019 ............. 3
Table 4 Sales of Ready Meals by Category: % Value Growth 2014-2019 ................ 4
Table 5 Sales of Frozen Ready Meals by Ethnicity: % Value 2014-2019.................. 4
Table 6 NBO Company Shares of Ready Meals: % Value 2015-2019...................... 4
Table 7 LBN Brand Shares of Ready Meals: % Value 2016-2019 ............................ 5
Table 8 Distribution of Ready Meals by Format: % Value 2014-2019 ....................... 5
Table 9 Forecast Sales of Ready Meals by Category: Volume 2019-2024 ............... 6
Table 10 Forecast Sales of Ready Meals by Category: Value 2019-2024 .................. 6
Table 11 Forecast Sales of Ready Meals by Category: % Volume Growth
2019-2024 .................................................................................................... 7
Table 12 Forecast Sales of Ready Meals by Category: % Value Growth 2019-
2024 ............................................................................................................. 7

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READY MEALS IN PERU Passport 1

READY MEALS IN PERU

HEADLINES
▪ Ready meals records 26% retail value and 25% retail volume growth to reach PEN59.8 million
and 2,000 tonnes in 2019
▪ Ready meals remains a niche in Peru despite strong growth in 2019 as it is often cheaper to
eat out
▪ Frozen ready meals records the strongest retail value growth of 50% to reach PEN2.1 million
in 2019
▪ Average unit prices of ready meals increase by 1% in 2019
▪ Phoenix Foods leads ready meals with an 11% retail value share in 2019
▪ Ready meals is expected to record a current retail value CAGR of 21% (an 18% constant
2019 retail value CAGR) over the forecast period

PROSPECTS

High Unit Price Is A Barrier for Penetration

Despite strong growth towards the end of the review period, ready meals remained a niche in
2019. Cooking with fresh ingredients, instead of purchasing ready meals, is cheaper in Peru.
Unit price is extremely important, especially for medium and large families, which comprise the
majority of Peruvian households, and is an important barrier for ready meals’ penetration. With
only PEN20.00-25.00, a family of five can afford an entire home cooked meal, while each ready
meal dish could cost up to PEN15.00. It can even be cheaper to eat in small restaurants where
daily lunch specials are offered. A full meal in a small restaurant can be had for as little as
PEN10.00, including appetiser, main course and beverage.
However, given the increasingly hectic lifestyles of urban dwellers in particular, ready meals
are set to become increasingly popular as the one advantage they have for time-strapped
employees is their speed of preparation in comparison to the time needed to prepare one’s own
meal from scratch or even to eat out.

Peruvian Tradition Favours Freshly Prepared Meals, With Ready Meals

Often Regarded Unfavourably
Peruvians tend to cook their meals at home on a daily basis, using fresh ingredients which
they also purchase every day from traditional small grocery retailers or market stalls. More
affluent families purchase weekly from supermarkets or hypermarkets, which have a large
variety of fresh products such as fruit, vegetables, meat, poultry or seafood.
Fresh food is considered healthier, and there are even families who do not like to consume
leftovers, as there is a common perception that these can be unhealthy. In addition, Peruvians
consider that freshly cooked meals have better flavour, with each household enjoying a tradition
as many Peruvian cooks add a personal touch to each dish, adding for example garlic,
coriander, or some hot peppers and making traditional sauces. Many consumers therefore do
not trust ready meals, particularly those that are complete dishes, which are regarded as lacking
freshness. It will doubtless take some time for ready meals to overcome these cultural barriers
and become mainstream items in the lives of Peruvians.

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READY MEALS IN PERU Passport 2

Dried Ready Meals Are Increasingly Popular With More Options

Becoming Available
Dried ready meals recorded strong growth in 2019 as more options became available,
including different kinds of pastas with sauces and flavoured rice. Consumers believe that these
meals become fresh at the moment they are prepared, whilst householders can add special
touches to differentiate them, such as for example natural chili or olive oil. These aspects are
important to Peruvians, who like to add their own personal touches to the meals they prepare.
These trends are set to continue to support strong growth of dried ready meals going forward.

COMPETITIVE LANDSCAPE

New Products and New Manufacturers Enter Ready Meals

Towards the end of the review period, new products entered ready meals, offering innovation
such as frozen ready meals or shelf stable ready meals based on quinoa as well as tamales,
which are now available in metal cans or in stand-up pouches. Interestingly, most manufacturers
are not specifically dedicated to producing ready meals; it is usually an extension of their core
business, such as Pesquera Hayduk, which is mainly dedicated to shelf stable seafood, or
DanPer Trujillo, which originally was an agroindustry player. Pastificio Classico launched a
frozen pasta line in 2018, which can be heated in microwave. This product line includes
traditional and pesto lasagna, as well as ravioli and mushroom pasta, among other options.
They are sold in individual portions within plastic containers, which can be heated in the
microwave in only six minutes. These products are reflecting the increasing pressures in
Peruvians’ lives by offering nutritious meals that can be rapidly prepared and eaten, in either the
home or workplace.

the 5cina Brand Is Withdrawn

The 5cina brand by San Fernando was withdrawn in 2019. This company offered frozen ready
meals with traditional Peruvian recipe dishes such as fried rice (chaufa), meat and rice and
others. Its distribution was limited to modern retailers and its price was relatively high, which
limited greater penetration. The brand lost significant share over the review period due to these
factors and the company decided to withdraw it from circulation in 2019.

Underdeveloped Category Due To Poor Reputation

Ready meals remained a niche in 2019, representing marginal share of overall packaged
food. There are areas of ready meals that have not been explored such as chilled lunch kits,
chilled pizza, chilled ready meals and dinner mixes. The main reason is that manufacturers as
well as retailers consider that there is not enough demand to create products in these
categories. In addition, there is no presence of organic or gluten-free products.
Penetration is also limited because there is no distribution of these products through
traditional channels where the limitation is outlet space and owners prefer to only display
products which are in high demand. In addition, most independent small grocers or market stalls
do not have fridges and cannot carry frozen products.
To compound the difficulties, traditionally fast food is associated with poor quality and ready
meals are regarded as fast food by most consumers. Companies will need to promote their
products as healthy and with traditional flavours, but have so far been reluctant to invest heavily
in marketing due to the limited size of the ready meals category.

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READY MEALS IN PERU Passport 3

CATEGORY DATA
Table 1 Sales of Ready Meals by Category: Volume 2014-2019

tonnes
2014 2015 2016 2017 2018 2019

Shelf Stable Ready Meals 435.2 454.3 471.6 500.0 700.0 914.2
Chilled Lunch Kits - - - - - -
Chilled Pizza - - - - - -
Chilled Ready Meals - - - - - -
Dinner Mixes - - - - - -
Dried Ready Meals 81.2 87.6 185.5 293.2 421.5 560.7
Frozen Pizza 33.3 33.8 34.4 34.9 35.5 36.0
Frozen Ready Meals 20.0 34.5 47.9 46.9 39.2 56.2
Prepared Salads 300.0 321.3 339.8 352.0 369.6 389.5
Ready Meals 869.7 931.5 1,079.2 1,227.0 1,565.8 1,956.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Ready Meals by Category: Value 2014-2019

PEN million
2014 2015 2016 2017 2018 2019

Shelf Stable Ready Meals 12.4 11.9 11.4 12.5 18.1 24.6
Chilled Lunch Kits - - - - - -
Chilled Pizza - - - - - -
Chilled Ready Meals - - - - - -
Dinner Mixes - - - - - -
Dried Ready Meals 1.6 1.8 4.2 6.7 9.9 13.5
Frozen Pizza 1.2 1.3 1.5 1.6 1.7 1.8
Frozen Ready Meals 0.8 1.3 1.5 1.6 1.4 2.1
Prepared Salads 11.7 12.9 14.1 15.2 16.4 17.8
Ready Meals 27.8 29.3 32.7 37.5 47.5 59.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Sales of Ready Meals by Category: % Volume Growth 2014-2019

% volume growth
2018/19 2014-19 CAGR 2014/19 Total

Shelf Stable Ready Meals 30.6 16.0 110.1

Chilled Lunch Kits - - -
Chilled Pizza - - -
Chilled Ready Meals - - -
Dinner Mixes - - -
Dried Ready Meals 33.0 47.2 590.4
Frozen Pizza 1.4 1.5 8.0
Frozen Ready Meals 43.5 23.0 181.2
Prepared Salads 5.4 5.4 29.8
Ready Meals 25.0 17.6 125.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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READY MEALS IN PERU Passport 4

Table 4 Sales of Ready Meals by Category: % Value Growth 2014-2019

% current value growth

2018/19 2014-19 CAGR 2014/19 Total

Shelf Stable Ready Meals 36.1 14.6 97.6

Chilled Lunch Kits - - -
Chilled Pizza - - -
Chilled Ready Meals - - -
Dinner Mixes - - -
Dried Ready Meals 36.4 52.7 730.6
Frozen Pizza 5.9 8.6 51.0
Frozen Ready Meals 50.0 19.7 146.2
Prepared Salads 8.5 8.8 52.7
Ready Meals 26.0 16.6 115.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 Sales of Frozen Ready Meals by Ethnicity: % Value 2014-2019

% retail value rsp

2014 2015 2016 2017 2018 2019

Italian - - - 2.5 7.5 34.0

Italian - - - 2.5 7.5 34.0
Japanese - - - - 2.0 2.8
Japanese - - - - 2.0 2.8
Thai - - - - 3.5 -
Thai - - - - 3.5 -
Other Ethnicities 100.0 100.0 100.0 97.5 87.0 63.2
Other Ethnicities 100.0 100.0 100.0 97.5 87.0 63.2
Total 100.0 100.0 100.0 100.0 100.0 100.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 NBO Company Shares of Ready Meals: % Value 2015-2019

% retail value rsp

Company 2015 2016 2017 2018 2019

Phoenix Foods SAC 11.6 12.3 15.1 12.9 10.9

Redondos SA 16.5 12.5 9.5 9.8 9.8
Comercia SA 13.9 11.4 10.4 10.5 8.2
Mattson SAC 13.8 12.7 10.9 9.1 7.8
Axur SA 0.8 0.8 0.8 3.6 7.7
ITN SA - 6.2 6.5 6.8 7.2
Hortoplant SAC 6.5 6.4 6.1 5.2 4.6
RAM Industries SAC - - 1.3 2.0 3.3
Molitalia SA 0.4 1.1 1.9 2.6 3.3
DanPer Trujillo SAC - - 1.4 1.9 2.5
Pastificio Classico SAC 0.3 0.3 0.2 1.8 2.1
Pesquera Hayduk SA 2.0 2.6 1.9 1.8 1.6
GW Yichang & Cía SA 2.2 2.3 2.6 1.5 1.1
Inversiones Arezzo SAC 1.4 1.4 1.3 1.1 0.9

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READY MEALS IN PERU Passport 5

E Wong SA 0.5 0.5 0.6 0.7 0.8

Eat in SAC 0.5 1.5 2.3 0.9 0.8
Don Italo SA 1.1 1.1 1.0 0.8 0.7
Molinos del Mundo SAC 0.6 0.7 0.6 0.5 0.4
Supermercados Peruanos SA 0.2 0.2 0.3 0.3 0.4
San Fernando SA 3.7 3.0 1.8 0.2 -
Kraft Foods Perú SA 2.5 - - - -
Private Label 0.3 0.7 1.5 2.0 2.4
Others 21.3 22.4 22.0 24.0 23.4
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 LBN Brand Shares of Ready Meals: % Value 2016-2019

% retail value rsp

Brand (GBO) Company (NBO) 2016 2017 2018 2019

Vitta Phoenix Foods SAC 12.3 15.1 12.9 10.9

Appetit Redondos SA 12.5 9.5 9.8 9.8
La Selecta Comercia SA 11.4 10.4 10.5 8.2
(Corporación Custer
SA)
Mattson Mattson SAC 12.7 10.9 9.1 7.8
Hoja Redonda Axur SA 0.8 0.8 3.6 7.7
Kraft (Kraft Heinz ITN SA 6.2 6.5 6.8 7.2
Co)
Linea Verde Hortoplant SAC 6.4 6.1 5.2 4.6
Nadú RAM Industries SAC - 1.3 2.0 3.3
Molitalia (Empresas Molitalia SA 1.1 1.9 2.6 3.3
Carozzi SA)
Casa Verde DanPer Trujillo SAC - 1.4 1.9 2.5
Il Pastificio Pastificio Classico SAC 0.3 0.2 1.8 2.1
Campomar Pesquera Hayduk SA 2.6 1.9 1.8 1.6
Florida GW Yichang & Cía SA 2.3 2.6 1.5 1.1
Patricia Plevisani Inversiones Arezzo SAC 1.4 1.3 1.1 0.9
Wong E Wong SA 0.5 0.6 0.7 0.8
Come en Casa Eat in SAC 1.5 2.3 0.9 0.8
Don Italo Don Italo SA 1.1 1.0 0.8 0.7
Bella Italia Molinos del Mundo SAC 0.7 0.6 0.5 0.4
Bell's Supermercados Peruanos SA 0.2 0.3 0.3 0.4
San Fernando 5cina San Fernando SA 3.0 1.8 0.2 -
Kraft (Kraft Foods Kraft Foods Perú SA - - - -
Group Inc)
Kraft (Kraft Foods Kraft Foods Perú SA - - - -
Inc)
Kraft (Kraft Heinz Kraft Foods Perú SA - - - -
Co)
Private label Private Label 0.7 1.5 2.0 2.4
Others Others 22.4 22.0 24.0 23.4
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 Distribution of Ready Meals by Format: % Value 2014-2019

% retail value rsp

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2014 2015 2016 2017 2018 2019

Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0

- Grocery Retailers 100.0 100.0 100.0 100.0 100.0 100.0
-- Modern Grocery 81.3 81.6 81.9 82.1 82.1 82.4
Retailers
--- Convenience Stores - 0.1 0.1 0.1 0.1 0.2
--- Discounters - 0.0 0.0 0.1 0.1 0.1
--- Forecourt Retailers - - - - - -
--- Hypermarkets 46.3 46.5 46.6 46.7 46.7 46.9
--- Supermarkets 35.0 35.0 35.1 35.2 35.2 35.2
-- Traditional Grocery 18.7 18.4 18.1 17.9 17.8 17.6
Retailers
--- Food/drink/tobacco - - - - - -
specialists
--- Independent Small 16.1 15.8 15.7 15.6 15.5 15.3
Grocers
--- Other Grocery 2.6 2.6 2.4 2.4 2.3 2.3
Retailers
- Non-Grocery Specialists - 0.0 0.0 - - -
-- Health and Beauty - - - - - -
Specialist Retailers
-- Other Foods Non- - 0.0 0.0 - - -
Grocery Specialists
- Mixed Retailers - - - - - -
Non-Store Retailing - 0.0 0.0 0.0 0.0 0.0
- Vending - - - - - -
- Homeshopping - - - - - -
- Internet Retailing - 0.0 0.0 0.0 0.0 0.0
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 9 Forecast Sales of Ready Meals by Category: Volume 2019-2024

tonnes
2019 2020 2021 2022 2023 2024

Shelf Stable Ready Meals 914.2 1,169.0 1,465.2 1,802.7 2,180.3 2,592.7
Chilled Lunch Kits - - - - - -
Chilled Pizza - - - - - -
Chilled Ready Meals - - - - - -
Dinner Mixes - - - - - -
Dried Ready Meals 560.7 700.6 832.4 950.5 1,052.4 1,137.5
Frozen Pizza 36.0 36.5 36.9 37.4 37.7 38.1
Frozen Ready Meals 56.2 69.2 82.0 93.5 102.2 108.9
Prepared Salads 389.5 411.5 435.8 463.3 493.0 720.9
Ready Meals 1,956.7 2,386.7 2,852.3 3,347.4 3,865.7 4,598.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Sales of Ready Meals by Category: Value 2019-2024

PEN million
2019 2020 2021 2022 2023 2024

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Shelf Stable Ready Meals 24.6 31.7 39.9 49.3 59.9 71.4
Chilled Lunch Kits - - - - - -
Chilled Pizza - - - - - -
Chilled Ready Meals - - - - - -
Dinner Mixes - - - - - -
Dried Ready Meals 13.5 17.0 20.2 23.2 25.8 28.0
Frozen Pizza 1.8 1.8 1.8 1.9 1.9 1.9
Frozen Ready Meals 2.1 2.6 3.1 3.6 4.0 4.2
Prepared Salads 17.8 18.9 20.0 21.3 22.7 33.3
Ready Meals 59.8 71.9 85.1 99.3 114.2 138.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Sales of Ready Meals by Category: % Volume Growth 2019-2024

% volume growth
2019/20 2019-24 CAGR 2019/24 Total

Shelf Stable Ready Meals 27.9 23.2 183.6

Chilled Lunch Kits - - -
Chilled Pizza - - -
Chilled Ready Meals - - -
Dinner Mixes - - -
Dried Ready Meals 24.9 15.2 102.8
Frozen Pizza 1.3 1.1 5.9
Frozen Ready Meals 23.1 14.1 93.6
Prepared Salads 5.6 13.1 85.1
Ready Meals 22.0 18.6 135.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 12 Forecast Sales of Ready Meals by Category: % Value Growth 2019-2024

% constant value growth

2019/2020 2019-24 CAGR 2019/24 Total

Shelf Stable Ready Meals 28.7 23.7 190.0

Chilled Lunch Kits - - -
Chilled Pizza - - -
Chilled Ready Meals - - -
Dinner Mixes - - -
Dried Ready Meals 25.2 15.6 106.5
Frozen Pizza 2.3 1.8 9.2
Frozen Ready Meals 25.0 15.2 103.0
Prepared Salads 5.9 13.3 87.0
Ready Meals 20.2 18.3 132.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

© Euromonitor International