Baked Goods in Peru

Euromonitor International
November 2019
BAKED GOODS IN PERU Passport i

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Health Trend Is Evident in Bread With Increasing Use of Native Seeds, While Convenience
Drives Growth of Packaged Varieties ....................................................................................... 1
the Drive To Consume Fewer Carbohydrates Limits Growth of Baked Goods ......................... 1
Panettone Remains the Most Popular Type of Cake, Particularly During Festive Seasons ..... 2
Competitive Landscape ................................................................................................................ 2
Artisanal Products Continue To Dominate ................................................................................ 2
Panificadora Bimbo Del Perú Retains Its Lead in Baked Goods .............................................. 2
Paneton Clasico D'onofrio Remains the Leading Brand in Packaged Cakes ........................... 2
Category Data .............................................................................................................................. 2
Table 1 Sales of Baked Goods by Category: Volume 2014-2019 ............................. 3
Table 2 Sales of Baked Goods by Category: Value 2014-2019 ................................ 3
Table 3 Sales of Baked Goods by Category: % Volume Growth 2014-2019 ............ 3
Table 4 Sales of Baked Goods by Category: % Value Growth 2014-2019 ............... 4
Table 5 Sales of Pastries by Type: % Value 2014-2019 ........................................... 4
Table 6 NBO Company Shares of Baked Goods: % Value 2015-2019 ..................... 4
Table 7 LBN Brand Shares of Baked Goods: % Value 2016-2019 ........................... 5
Table 8 Distribution of Baked Goods by Format: % Value 2014-2019 ...................... 6
Table 9 Forecast Sales of Baked Goods by Category: Volume 2019-2024 .............. 6
Table 10 Forecast Sales of Baked Goods by Category: Value 2019-2024 ................. 7
Table 11 Forecast Sales of Baked Goods by Category: % Volume Growth
2019-2024 .................................................................................................... 7
Table 12 Forecast Sales of Baked Goods by Category: % Value Growth 2019-
2024 ............................................................................................................. 8

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BAKED GOODS IN PERU

HEADLINES
▪ Baked goods records 7% retail value and 3% retail volume growth to reach PEN9.6 billion and
1 million tonnes in 2019
▪ Bread represents an 81% retail value share of baked goods in 2019
▪ Packaged leavened bread records the strongest retail value growth of 16% to reach PEN405
million in 2019
▪ Average unit prices of baked goods increase by 3% in 2019
▪ Panificadora Bimbo del Perú leads baked goods with a 5% retail value share in 2019
▪ Baked goods is expected to record a current retail value CAGR of 5% (a 3% constant 2019
retail value CAGR) over the forecast period

PROSPECTS

Health Trend Is Evident in Bread With Increasing Use of Native Seeds,

While Convenience Drives Growth of Packaged Varieties
Bread continued to represent the vast majority of sales of baked goods in 2019, with artisanal
products dominating the category, as these products are regarded as fresher as they are baked
on a daily basis. French bread, similar to small baguettes, is the most popular type among
Peruvians. However, other traditional breads are increasing their penetration through
participation in street fairs and partnerships with restaurants. There is a growing preference for
the use of native seeds, including quinoa, kiwicha and chia, which are regarded as natural and
healthy additions to bread. Meanwhile, flat bread is not popular, with only pita bread readily
available, although not in all bakeries. Despite the strong position of unpackaged leavened
bread, packaged varieties achieved strong growth in 2019 as these tend to last longer, avoiding
the need for daily shops. All these trends are set to intensify over the forecast period as
consumers continue to seek healthier options, while many prioritise convenience.

the Drive To Consume Fewer Carbohydrates Limits Growth of Baked

Goods
Although baked goods is set to record reasonable growth over the forecast period, largely
driven by increasing consumption of packaged varieties of bread, many consumers are trying to
switch to a healthier diet, including by reducing their daily intake of carbohydrates. Following a
low carb diet has become popular globally in recent years, and Peru is no exception. An
increasing number of consumers are now consuming desserts only at weekends or on special
occasions, with pastries, for example expected to record a poor retail volume performance over
the forecast period. Although bread will likely perform better, many are also trying to cut down
on their consumption of bread. Many consumers relate bread with high carbohydrate content
and, therefore, with weight gain. However, consumption of bread per capita in Peru is still lower
than the Latin American average, leaving room for reasonable retail volume growth going
forward.

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Panettone Remains the Most Popular Type of Cake, Particularly During

Festive Seasons
In packaged cakes, the leading product is panettone, with Peru second in the world in terms
of consumption per capita of this cake. The product is mainly sold in July and December,
associated with tradition and festivities. Peruvians consume panettone with hot chocolate on
Independence Day in July (which is in winter) and with coffee or soft drinks at Christmas, when
it is present on almost all tables for Christmas dinner. The leading brand is Paneton Clasico
D'Onofrio from Nestlé Perú, although its value share of packaged cakes continued to decline in
2019 as private label gained ground, competing through low prices.

COMPETITIVE LANDSCAPE

Artisanal Products Continue To Dominate

Unpackaged bread (both flat and leavened) continued to represent the majority of total baked
goods value sales in 2019, although its share continued to decline. There are over 500 varieties
of bread in Peru, including those prepared with traditional grains such as quinoa or kiwicha as
well as others containing fruit. Even packaged bread manufacturers have extended the variety
of products that they offer in order to gain share, such as Pan Multisemillas y Avena Unión by
Productos Unión or Pan Pita Bimbo Linaza by Panificadora Bimbo del Perú.
Unpackaged pastries are also the most popular. All these goods are mainly sold in
independent bakeries and independent small grocers, as well as by peddlers throughout the
country. On the other hand, in cakes consumers prefer packaged variants as these tend to stay
fresher for longer.

Panificadora Bimbo Del Perú Retains Its Lead in Baked Goods

Panificadora Bimbo del Perú continued to lead baked goods in 2019 due to its capacity to
innovate and develop its wide distribution network. Half of the company is owned by Alicorp, one
of the largest food companies in Peru, which controls the production and supply of wheat flour,
oils and sugar, among other key ingredients, helping to manage catering and costs. The
company launches new products each year to meet demand, such as its whole-wheat sandwich
bread with other grains or its new artisanal bread, which is similar to traditional unpackaged
products.
Its lack of advertising could be a weakness, but it aims to compensate for this by means of
promotions commonly held at points of sale, such as reductions in unit prices or combinations of
products within cakes or pastries.

Paneton Clasico D'onofrio Remains the Leading Brand in Packaged

Cakes
Paneton Clasico D'Onofrio from Nestlé Perú remained the most popular brand of panettone,
which is included in packaged cakes. Consumers perceive this brand as traditional and of the
highest quality, although it has been losing share since 2015 due to the strong marketing efforts
from other brands, such as Todinno from Todinno, as well as from private label products, which
have increased their penetration due to their low prices and good quality.

CATEGORY DATA

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Table 1 Sales of Baked Goods by Category: Volume 2014-2019

'000 tonnes
2014 2015 2016 2017 2018 2019

Bread 910.3 891.2 856.6 880.0 915.8 948.5

- Flat Bread 15.1 15.8 15.7 15.6 16.4 17.1
-- Packaged Flat Bread 1.2 1.4 1.4 1.4 1.6 1.7
-- Unpackaged Flat Bread 13.9 14.4 14.3 14.2 14.8 15.3
- Leavened Bread 895.2 875.4 840.9 864.4 899.5 931.4
-- Packaged Leavened 22.2 23.3 24.1 24.5 27.0 29.5
Bread
-- Unpackaged Leavened 873.0 852.1 816.8 839.8 872.4 901.9
Bread
Cakes 54.0 54.6 55.0 55.2 55.5 56.0
- Packaged Cakes 32.9 33.8 34.4 34.9 35.4 36.0
- Unpackaged Cakes 21.0 20.8 20.6 20.3 20.1 20.0
Dessert Mixes 3.4 3.5 3.6 3.7 3.8 3.9
Frozen Baked Goods - - - - - -
Pastries 24.9 24.7 24.4 24.0 23.5 23.2
- Packaged Pastries 3.1 3.2 3.2 3.3 3.3 3.4
- Unpackaged Pastries 21.8 21.5 21.1 20.7 20.2 19.9
Baked Goods 992.6 974.0 939.6 962.9 998.6 1,031.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Baked Goods by Category: Value 2014-2019

PEN million
2014 2015 2016 2017 2018 2019

Bread 6,284.1 6,480.7 6,384.2 6,729.7 7,267.5 7,802.4

- Flat Bread 121.2 131.8 135.7 140.4 152.4 163.8
-- Packaged Flat Bread 18.9 21.7 23.0 24.2 27.6 31.2
-- Unpackaged Flat Bread 102.3 110.2 112.7 116.2 124.7 132.6
- Leavened Bread 6,162.8 6,348.8 6,248.4 6,589.3 7,115.1 7,638.6
-- Packaged Leavened 225.4 245.2 270.8 297.6 350.1 404.8
Bread
-- Unpackaged Leavened 5,937.4 6,103.6 5,977.6 6,291.7 6,765.0 7,233.8
Bread
Cakes 1,016.6 1,063.6 1,133.3 1,194.9 1,240.7 1,298.8
- Packaged Cakes 634.0 667.1 726.3 779.2 822.2 868.7
- Unpackaged Cakes 382.7 396.6 407.0 415.7 418.5 430.2
Dessert Mixes 62.4 66.5 74.5 81.9 88.2 93.9
Frozen Baked Goods - - - - - -
Pastries 360.0 370.6 377.5 382.1 382.4 384.3
- Packaged Pastries 55.7 59.2 62.5 65.8 68.5 71.2
- Unpackaged Pastries 304.3 311.5 315.0 316.3 313.8 313.1
Baked Goods 7,723.0 7,981.4 7,969.4 8,388.6 8,978.7 9,579.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Sales of Baked Goods by Category: % Volume Growth 2014-2019

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

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Bread 3.6 0.8 4.2

- Flat Bread 4.3 2.4 12.7
-- Packaged Flat Bread 9.6 7.3 42.4
-- Unpackaged Flat Bread 3.8 2.0 10.1
- Leavened Bread 3.6 0.8 4.0
-- Packaged Leavened Bread 9.2 5.9 33.2
-- Unpackaged Leavened Bread 3.4 0.7 3.3
Cakes 1.0 0.7 3.7
- Packaged Cakes 1.8 1.8 9.4
- Unpackaged Cakes -0.6 -1.0 -5.1
Dessert Mixes 2.4 2.9 15.6
Frozen Baked Goods - - -
Pastries -1.2 -1.4 -6.7
- Packaged Pastries 1.3 1.7 9.1
- Unpackaged Pastries -1.6 -1.9 -8.9
Baked Goods 3.3 0.8 3.9
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Sales of Baked Goods by Category: % Value Growth 2014-2019

% current value growth

2018/19 2014-19 CAGR 2014/19 Total

Bread 7.4 4.4 24.2

- Flat Bread 7.5 6.2 35.1
-- Packaged Flat Bread 13.0 10.6 65.2
-- Unpackaged Flat Bread 6.3 5.3 29.5
- Leavened Bread 7.4 4.4 23.9
-- Packaged Leavened Bread 15.6 12.4 79.5
-- Unpackaged Leavened Bread 6.9 4.0 21.8
Cakes 4.7 5.0 27.8
- Packaged Cakes 5.7 6.5 37.0
- Unpackaged Cakes 2.8 2.4 12.4
Dessert Mixes 6.4 8.5 50.4
Frozen Baked Goods - - -
Pastries 0.5 1.3 6.8
- Packaged Pastries 3.9 5.0 27.9
- Unpackaged Pastries -0.2 0.6 2.9
Baked Goods 6.7 4.4 24.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 Sales of Pastries by Type: % Value 2014-2019

% retail value rsp

2014 2015 2016 2017 2018 2019

Others 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 Baked Goods: % Value 2015-2019

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% retail value rsp

Company 2015 2016 2017 2018 2019

Panificadora Bimbo del 3.9 4.3 4.5 4.6 4.6

Perú SA
Nestlé Perú SA 1.9 2.1 2.1 2.0 2.0
Productos Unión 1.3 1.5 1.5 1.5 1.6
Alicorp SAA 0.7 0.7 0.8 0.8 0.8
Gloria SA, Grupo 0.7 0.7 0.8 0.7 0.7
Todinno SAC 0.3 0.4 0.4 0.4 0.4
Productos Extragel 0.2 0.2 0.3 0.3 0.3
Universal SAC
Rolly's Pastelería SA 0.3 0.3 0.3 0.3 0.3
Arcor de Perú SA 0.2 0.3 0.3 0.3 0.3
Kraft Foods Perú SA 0.3 0.3 0.3 0.2 0.2
Cía Nacional de 0.2 0.2 0.2 0.2 0.2
Chocolates de Perú SA
Kerrys SRL 0.1 0.2 0.2 0.1 0.1
Artisanal 86.7 85.5 85.1 84.9 84.7
Private Label 0.6 0.6 0.7 0.7 0.7
Others 2.6 2.8 2.7 3.0 3.1
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 Baked Goods: % Value 2016-2019

% retail value rsp

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

Bimbo (Grupo Bimbo Panificadora Bimbo del 2.9 3.1 3.0 3.0
SAB de CV) Perú SA
D'onofrio (Nestlé SA) Nestlé Perú SA 2.0 2.0 1.9 1.9
Unión Productos Unión 1.5 1.5 1.5 1.6
Gloria Gloria SA, Grupo 0.7 0.8 0.7 0.7
Keke Pyc (Grupo Panificadora Bimbo del 0.7 0.8 0.7 0.7
Bimbo SAB de CV) Perú SA
Paneton Bimbo Panificadora Bimbo del 0.5 0.5 0.5 0.5
(Grupo Bimbo SAB de Perú SA
CV)
Sayon Alicorp SAA 0.4 0.5 0.4 0.4
Negrita Alicorp SAA 0.3 0.3 0.4 0.4
Todinno Todinno SAC 0.4 0.4 0.4 0.4
Universal Productos Extragel 0.2 0.3 0.3 0.3
Universal SAC
Paneton Rolly's Rolly's Pastelería SA 0.3 0.3 0.3 0.3
(Grupo Bimbo SAB de
CV)
Arcor (Arcor SAIC) Arcor de Perú SA 0.3 0.3 0.3 0.3
Royal (Mondelez Kraft Foods Perú SA 0.3 0.3 0.2 0.2
International Inc)
Paneton Winters Cía Nacional de 0.2 0.2 0.2 0.2
(Grupo Nutresa SA) Chocolates de Perú SA
Kerry Kerrys SRL 0.2 0.2 0.1 0.1
Bimbo Artesano Panificadora Bimbo del - - 0.2 0.1
(Grupo Bimbo SAB de Perú SA
CV)
Paneton Buon Natale Nestlé Perú SA 0.1 0.1 0.1 0.1
(Nestlé SA)

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Royal (Kraft Foods Kraft Foods Perú SA - - - -

Inc)
Artisanal Artisanal 85.5 85.1 84.9 84.7
Private label Private Label 0.6 0.7 0.7 0.7
Others Others 2.9 2.8 3.1 3.3
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 Baked Goods by Format: % Value 2014-2019

% retail value rsp

2014 2015 2016 2017 2018 2019

Store-Based Retailing 100.0 100.0 99.9 99.9 99.9 99.9

- Grocery Retailers 100.0 100.0 99.9 99.9 99.9 99.9
-- Modern Grocery 20.7 21.3 22.0 22.4 22.6 22.7
Retailers
--- Convenience Stores - 0.3 0.3 0.3 0.4 0.4
--- Discounters 0.2 0.3 0.7 0.9 0.9 1.0
--- Forecourt Retailers 0.5 0.5 0.5 0.5 0.5 0.5
--- Hypermarkets 11.7 11.9 12.0 12.1 12.2 12.2
--- Supermarkets 8.3 8.4 8.4 8.5 8.6 8.6
-- Traditional Grocery 79.3 78.7 78.0 77.5 77.3 77.2
Retailers
--- Food/drink/tobacco 24.0 24.0 24.0 24.0 24.1 24.1
specialists
--- Independent Small 44.9 44.3 43.6 43.1 42.9 42.7
Grocers
--- Other Grocery 10.4 10.4 10.4 10.4 10.3 10.3
Retailers
- Non-Grocery Specialists - - 0.0 - - -
-- Health and Beauty - - - - - -
Specialist Retailers
-- Other Foods Non- - - 0.0 - - -
Grocery Specialists
- Mixed Retailers - - - - - -
Non-Store Retailing - 0.0 0.1 0.1 0.1 0.1
- Vending - - - - - -
- Homeshopping - - - - - -
- Internet Retailing - 0.0 0.1 0.1 0.1 0.1
- 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 Baked Goods by Category: Volume 2019-2024

'000 tonnes
2019 2020 2021 2022 2023 2024

Bread 948.5 977.3 1,001.9 1,021.8 1,036.7 1,047.7

- Flat Bread 17.1 17.7 18.3 18.8 19.2 19.5
-- Packaged Flat Bread 1.7 1.9 2.0 2.2 2.3 2.4
-- Unpackaged Flat Bread 15.3 15.8 16.2 16.6 16.9 17.1
- Leavened Bread 931.4 959.6 983.6 1,003.0 1,017.5 1,028.2
-- Packaged Leavened 29.5 32.0 34.3 36.6 38.6 40.5

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Bread
-- Unpackaged Leavened 901.9 927.6 949.3 966.5 978.9 987.7
Bread
Cakes 56.0 57.0 58.2 59.7 61.2 63.0
- Packaged Cakes 36.0 36.9 37.9 39.0 40.3 41.7
- Unpackaged Cakes 20.0 20.1 20.3 20.6 20.9 21.3
Dessert Mixes 3.9 4.0 4.1 4.3 4.4 4.5
Frozen Baked Goods - - - - - -
Pastries 23.2 23.1 23.1 23.2 23.3 23.5
- Packaged Pastries 3.4 3.4 3.5 3.5 3.6 3.7
- Unpackaged Pastries 19.9 19.7 19.6 19.7 19.7 19.8
Baked Goods 1,031.6 1,061.4 1,087.4 1,108.9 1,125.6 1,138.7
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Sales of Baked Goods by Category: Value 2019-2024

PEN million
2019 2020 2021 2022 2023 2024

Bread 7,802.4 8,105.2 8,367.1 8,584.6 8,756.1 8,892.7

- Flat Bread 163.8 171.1 177.4 183.3 188.4 193.0
-- Packaged Flat Bread 31.2 34.1 36.8 39.4 41.7 44.0
-- Unpackaged Flat Bread 132.6 137.0 140.6 143.9 146.7 149.0
- Leavened Bread 7,638.6 7,934.1 8,189.7 8,401.2 8,567.7 8,699.7
-- Packaged Leavened 404.8 449.2 491.5 528.4 561.4 593.6
Bread
-- Unpackaged Leavened 7,233.8 7,484.9 7,698.2 7,872.9 8,006.3 8,106.2
Bread
Cakes 1,298.8 1,333.6 1,375.9 1,421.7 1,472.0 1,526.8
- Packaged Cakes 868.7 897.6 930.7 966.5 1,005.5 1,047.5
- Unpackaged Cakes 430.2 436.0 445.2 455.2 466.5 479.3
Dessert Mixes 93.9 98.0 102.2 106.3 110.7 115.2
Frozen Baked Goods - - - - - -
Pastries 384.3 379.3 377.1 377.1 378.6 381.3
- Packaged Pastries 71.2 72.2 73.4 74.7 76.1 77.7
- Unpackaged Pastries 313.1 307.2 303.7 302.4 302.6 303.6
Baked Goods 9,579.4 9,916.2 10,222.2 10,489.7 10,717.5 10,916.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Sales of Baked Goods by Category: % Volume Growth 2019-2024

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

Bread 3.0 2.0 10.5

- Flat Bread 4.0 2.7 14.4
-- Packaged Flat Bread 8.9 6.9 39.4
-- Unpackaged Flat Bread 3.4 2.2 11.5
- Leavened Bread 3.0 2.0 10.4
-- Packaged Leavened Bread 8.3 6.5 37.2
-- Unpackaged Leavened Bread 2.9 1.8 9.5
Cakes 1.7 2.4 12.5
- Packaged Cakes 2.4 3.0 15.7
- Unpackaged Cakes 0.6 1.3 6.7
Dessert Mixes 2.8 3.0 15.7

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Frozen Baked Goods - - -

Pastries -0.5 0.2 1.0
- Packaged Pastries 1.4 1.7 8.9
- Unpackaged Pastries -0.8 -0.1 -0.3
Baked Goods 2.9 2.0 10.4
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 12 Forecast Sales of Baked Goods by Category: % Value Growth 2019-2024

% constant value growth

2019/2020 2019-24 CAGR 2019/24 Total

Bread 3.9 2.7 14.0

- Flat Bread 4.5 3.3 17.8
-- Packaged Flat Bread 9.3 7.1 40.9
-- Unpackaged Flat Bread 3.3 2.4 12.4
- Leavened Bread 3.9 2.6 13.9
-- Packaged Leavened Bread 11.0 8.0 46.7
-- Unpackaged Leavened Bread 3.5 2.3 12.1
Cakes 2.7 3.3 17.6
- Packaged Cakes 3.3 3.8 20.6
- Unpackaged Cakes 1.4 2.2 11.4
Dessert Mixes 4.5 4.2 22.7
Frozen Baked Goods - - -
Pastries -1.3 -0.2 -0.8
- Packaged Pastries 1.4 1.8 9.1
- Unpackaged Pastries -1.9 -0.6 -3.0
Baked Goods 3.5 2.6 14.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

© Euromonitor International