Peru – The Future of Foodservice to 2021

Summary

Peru boasts one of the healthiest and most stable economies in South America, experiencing strong GDP growth since 2010. In 2016, it grew by 4.9% on a per capita basis. The country’s consistently strong economic growth in the last 25 years has been largely driven by the Peruvian government’s stabilization program and comprehensive structural reform plan, which have also resulted in falling unemployment rates, rising disposable incomes, and radically improved standards of living.

Peruvian profit sector saw sales value rise at a CAGR of 3.8% from 2014-2016. This growth is forecast to continue to 2021, at a CAGR of 4.8%, reflecting the wider Peruvian economy’s steady growth. Between 2014 and 2016, growth in all channels was driven to a greater extent by growth in transactions than growth in outlets.

The FSR and QSR channels dominate the Peruvian foodservice profit sector, accounting for 41% and 38% of total sector revenue respectively. Although the majority of revenue across channels is attributable to independent operators, chain operators are forecast to see higher revenue growth to 2021.

Key players in FSR in Peru currently include a number of local and international players, with fragmentation very high and the largest player having just a 2.1% share of the market, and the top five players combined representing just 4.2% of the market. This is expected to diversify further, with players starting to provide more nuanced offers to customers.

In recent years, Peru’s coffee and tea shop channel has experienced strong sales value growth, with revenues rising at a CAGR of 4.0% between 2014 and 2016. Such channel growth is perhaps surprising considering that despite being one of the world’s largest coffee producing countries, consumption has historically been limited to instant coffee inside the home.

At just over PEN1 Billion in 2016, the total revenue of the Peruvian pub, club, and bar channel is relatively small in comparison to other channels. Channel revenue grew at a CAGR of 4.0% between 2014 and 2016; this is forecast to increase to a CAGR of 5.4% to 2021. Growth in the channel is being driven by an increase in average transaction values. The channel is highly fragmented; the majority of outlets are independent, small, and locally run.

The report “Peru – The Future of Foodservice to 2021”, provides extensive insight and analysis of Peru’s Foodservice market over the next five years (2016-2021) and acts as a vital point of reference for operators or suppliers.

In particular, this report provides the following analysis –
– Overview of Peru’s macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on Peru’s foodservice market including GDP per capita, consumer price index, population growth and annual household income distribution.
– Growth Dynamics: In-depth data and forecasts of key channels (QSR, FSR, Coffee & Tea Shops, Pubs, Clubs and Bars) within Peru’s foodservice market, including the value of the market, number of transactions, number of outlets and average transaction price.
– Customer Segmentation: Identify the most important demographic groups, buying habits and motivations that drive out-of-home meal occasions among segments of the Peruvian population.
– Key Players: Overview of market leaders within the four major channels including business descriptions and number of outlets.
– Case Studies: Learn from examples of recent successes and failures within Peru’s foodservice market.

Companies mentioned in this report: Altomayo, Bembos, Burger King, Chili’s, Don Belisario, Dunkin’ Donuts, Juan Valdez, KFC, McDonald’s, Norky’s, Papa John’s, Pizza Hut, Roky’s, Starbucks.

Scope

– Peru’s healthy economic climate is driving investment and aggressive expansion plans by international chains across restaurant channels, with revenue growth among chain operators forecast to outpace that of independents to 2021.
– Peruvian consumers’ growing affluence will increasingly drive them to more experiential, higher cost channels and premium, aspirational concepts and brands such as Starbucks. QSR chains should therefore work harder to cultivate stronger brand awareness and consumer loyalty, or risk losing market share to alternative channels.
– Revenue generated from takeaway transactions is forecast to grow at a significantly faster pace than that generated from dine-in occasions across restaurant channels to 2021. This trend will be most pronounced in the FSR and QSR channels, as young, busy urban consumers increasingly seek out high quality, convenience options from operators.

Reasons to buy

– Specific forecasts of the foodservice market over the next five years (2016-2021) will give readers the ability to make informed business decisions through identifying emerging/declining markets.
– Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR, Coffee & Tea shops, Pubs, Clubs and Bars) will allow readers understand the wants and needs of their target demographics.
– Relevant case studies will allow readers to learn from and apply lessons discovered by emerging and major players within Peru’s foodservice market.