2 Chocolate Confectionery in Peru Analysis PDF

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© Euromonitor Internaonal 2021 Page 1 of 3KEY DATA FINDINGSSales boosted by home indulgence trend as consumers stay at home during COVID- 19 lockdown in 2020Chocolate confectionery records 5% current retail value and 2% retail volume growth to reach PEN757 million and 15,600 tonnes in 2020Tablets r...

Description

CHOCOLATE CONFECTIONERY IN PERU - ANALYSIS Country Report | Sep 2020

KEY DATA FINDINGS

Market Sizes

Sales boosted by home indulgence trend as consumers stay at home during COVID19 lockdown in 2020

Sales of Chocolate Confectionery

Chocolate confectionery records 5% current retail value and 2% retail volume growth to reach PEN757 million and 15,600 tonnes in 2020

757

Tablets records highest retail value growth at 10% in current price terms in 2020

Retail Value RSP - PEN million - Current - 2006-2025

Forecast

1,000

Boxed assortments sees highest unit price increase at 7% in 2020 800

Nestlé Perú retains dominant position with 51% current retail value share in 2020 Chocolate confectionery is expected to record a 4% current retail value CAGR (a 1% constant 2020 retail value CAGR) over the forecast period

600

2020 IMPACT

400

Chocolate confectionery sales see increase as COVID-19 encourages home indulgences in 2020

200

General consumption of indulgences was seriously affected by forced social isolation and the decline in expendable income. However, chocolate confectionery overall will remain popular in Peru, and is expected to post better than review period average retail value growth in constant price terms in 2020. More expensive products such as boxed assortments, countlines and seasonal chocolates will struggle as many consumers move towards products with lower unit prices and that can be shared among the whole family, such as tablets and chocolate pouches and bags.

Boxed assortments sales plummet as consumers avoid expensive products in 2020 Mainly, the consumption of chocolate confectionery in Peru is seasonal, increasing during winter months, where it is consumed not only as an indulgence but also to warm the body and obtain energy. Chocolate confectionery is also purchased for special occasions such as birthday parties and for Easter, where there is a custom of giving Eastern Eggs to children. The lack of social occasions to celebrate because of quarantine measures saw retail volume and value sales of boxed assortments and seasonal chocolate decline in constant price terms in 2020, and retailers also avoided purchasing large amounts of these knowing that Peruvians were more focused on purchasing basic food ingredients. Boxed assortments in particular suffered because of its high unit price compared to other products. Per capita chocolate consumption in Peru is lower than in Chile or Argentine, with Peruvians increasingly aware of the risks posed by unhealthy diets. Countlines, the second most popular chocolate confectionery product, sees another fall in retail volume sales in 2020, the fifth consecutive review year of volume sales decline. Consumers associate countlines with high calories content, mainly from sugar and from fat.

0

2006

2020

2025

Sales Performance of Chocolate Confectionery % Y-O-Y Retail Value RSP Growth 2006-2025

5.1% Forecast 30%

20%

10%

0%

-10%

-20%

2006

2020

2025

Nestlé Perú continues to dominate in 2020 thanks to its iconic brand Sublime, despite another year of overall declining share value Nestlé Perú will continue to lead chocolate confectionery sales in 2020 thanks to its iconic brand Sublime which has been known and loved by Peruvians for over 90 years. Sublime constitutes over a third of all chocolate confectionery value sales, and is recognised as the childhood flavour of Peru. Over the past five years, Nestlé Perú has developed the brand, updating the packaging of its Clásico milk chocolate tablet with peanuts product, and expanding from just the traditional format to tablets with almonds, bags, as well as to ice cream. In 2019 the company introduced Sublime Galleta, mixing its milk-peanut chocolate tablet with plain biscuit. Nestlé also focussed on marketing with the relaunch of a successful promotion from the 1990s. The modern version engages the public with contemporary entry means: to participate in the promotion, participants send a WhatsApp message with their identification number and the batch code displayed on each participating product, followed by a photo of the open packaging. There are cash prizes as well as Willy Wonka style chances to visit the manufacturing plant and consume as much chocolate confectionery as possible.

© Euromonitor Internaonal 2021

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RECOVERY AND OPPORTUNITIES

Sales of Chocolate Confectionery by Category

Overall domestic recovery will stimulate chocolate confectionery growth over the forecast period Over the medium term the Peruvian economy should expand solidly, driven by strong domestic demand and continued foreign sales of commodities, and chocolate confectionery will see modest growth though perhaps not to the level seen over the review period. Employment growth, relatively low inflationary pressures and rising wages will stimulate private final consumption. Real GDP will bounce back to record growth in 2021 and continue to grow over the forecast period. In particular, tablets, chocolate with toys, and other chocolate confectionery associated with value for money will enjoy success over the forecast period, with a mix of increasing unit prices and increasing public demand spurring the different products on.

Retail Value RSP - PEN million - Current - 2020

Growth Performance

Chocolate Pouches and Bags 60.6

Boxed Assortments 44.7

Chocolate with Toys 23.8

Countlines

187.0

Seasonal Chocolate 13.1

Tablets 400.4

Other Chocolate Confectionery

Tablets lead retail value sales as unit prices creep up

27.1

Enduringly popular tablets dominates cholate confectionery value sales in Peru, benefitting from relatively low unit prices at the start of the review period, and continuing to enjoy consumer trust. Over the forecast period, tablets will see its unit price increase more than any other chocolate confectionery, helping it post strong current retail value sale CAGRs in current price terms despite no notable increase in volume sales. With economic uncertainty in Peru, chocolate with toys may see an increase in popularity as consumers opt for small gifts for children, utilising the chocolate plus gift options as a single purchase to replace more expensive alternatives. In fact, only chocolate with toys is expected to outperform tablets’ expected current value CAGR, thanks to its leading volume sales CAGR over the forecast period.

-25%

CHOCOLATE CONFECTIONERY

756.5

CURRENT YEAR % GROWTH

0% % CAGR 2015-2020

15% % CAGR 2020-2025

Competitive Landscape Company Shares of Chocolate Confectionery % Share (NBO) - Retail Value RSP - 2020 Nestlé Perú SA

50.8%

Cía Nacional de Chocolat...

9.9%

Molitalia SA

9.7%

Arcor de Perú SA

5.6%

Mondelez Perú SA

3.7%

Perufarma SA

3.4%

LS Andina SA

1.9%

Copafe SA

1.6%

The importance of this trend is reflected in the growing presence of brands, mainly domestic, which offer chocolate confectionery with 55% cocoa content at prices which are lower than those over the previous two years. It is expected that this niche will continue to expand over the forecast period as these products are considered healthier, with lower fat and sugar content.

Fábrica de Chocolates La...

1.0%

GW Yichang & Cía SA

1.0%

Laive SA

0.6%

Celis Bustamante Lily Pa...

0.4%

Summary 1 Other Chocolate Confectionery by Product Type: 2020

Di Perugia SAC

0.4%

Labocer SA

0.2%

Others

9.9%

High cocoa content to become more popular as consumer knowledge continues to develop Premium chocolate and chocolate confectionery with high cocoa content is becoming increasingly popular. Some consumers are demonstrating greater knowledge and now associate quality with cocoa content. Premium chocolates are also associated with lower sugar content and some health benefits because they are rich in antioxidants, iron, magnesium. These premium products are primarily distributed through modern retailers as supermarkets and hypermarkets, being purchased mainly by consumers from medium and high socioeconomic levels, due to the increased cost.

Product type Tablets Countlines Chocolate Pouches and Bags Boxed Assortments Other Chocolate Confectionery Source : Euromoni tor Internati onal from official statisti cs, trade as soci ations, trade pres s, company rese arch, store checks, trade intervie ws, trade source s

© Euromonitor Internaonal 2021

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Brand Shares of Chocolate Confectionery % Share (LBN) - Retail Value RSP - 2020 Sublime

36.1%

Triangulo D'onofrio

7.6%

Princesa

4.5%

Cua Cua

2.9%

Cañonazo

2.8%

Montblanc

2.6%

Vizzio

2.0%

Fino's

1.9%

Mecano

1.8%

Chin Chin

1.5%

Snickers

1.5%

M&M's

1.5%

Hershey's

1.5%

Kinder Sorpresa

1.4%

Sapito

1.4%

Costa

1.1%

Tuyo

1.1%

Beso de Mosa

1.1%

La Ibérica

1.0%

Others

24.6% 5-Year Trend

Increasing share

© Euromonitor Internaonal 2021

Decreasing share

No change

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