Peru Coffee Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

Report on Peru Coffee Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

 Introduction to Peru Coffee Market

A coffee bean is a seed of the coffee plant seed that comes from a specific type of berries. The two most economically important coffee beans are

Arabica: The most commonly produced coffee bean which accounts for more than 60% of the world’s overall coffee production and comes in varieties such as Typica, Caturra, Bourbon, and Blue Mountain.

Robusta: This is the second largest produced coffee in the world and contains almost double the caffeine than Robusta. Being extremely tolerant of its environment, it is practically immune from disease because of the high caffeine content that acts as a means of self-defense and provides a stronger resistance towards diseases.

Market Dynamics:

  • Peru, the tenth largest producer of coffee in the world, tops the organic coffee market with its $100 million in sales.
  • Factors that have shaped the Peru Coffee Market.
  • In the early 2000’s, the Organic and Fair Trade certification allowed the coffee industry to regain its former competitiveness. In 2013, the growing industry was hit by the coffee rust (a disease in which a Roya plant fungus destroyed most of the Arabica plants) that originated in Central America. It had a huge impact on the overall productivity and lead to an additional cost on plan replacement that affected many small coffee growers.
  • The recovery was slow and the export prices declined for four straights year from approximately $1.82 per pound to $1.31 per pound in 2017. However, the year 2017-18 showed growth which was backed by the many initiatives taken by the coffee growers such as adopting new methods and planting new varieties of coffee.
  • Coffee growers have sought to produce the 100% Arabica coffee variety by planting new types of Arabica varieties and incorporating new growing methods
  • Another challenge to the industry has been the absence of a centralized authority, as a result, there is weak coordination between relevant agencies that can promote and evaluate standards, national branding, and cohesiveness.
  • In general, there is no national or standard coffee supply chain at work where we could define a limited set of organizations or companies

The major Opportunity that it has is that the Global organic coffee market may to grow at a CAGR of close to 13% during the forecast period, 2017-2021.

 

.Market Segmentation:

  • Peru majors in the production of Arabica coffee seeds dominated by varieties of typica (70% of national production) and caturra (20 %)
  • Coffee is one of the most essential agricultural export for the country, comprising 17% of Peru’s total agricultural exports accounting for 1 billion US dollars in annual revenue. More than 90% of the 220,000 coffee growers are small producers who depend on coffee for their livelihood. Exports to countries like Germany, Belgium, and the United States account for approximately 96% of its 4.2 million bags of coffee production (measured in 60 kg bags) with these three comprising 60% of the buying market. Domestic consumption amounts to approximately 4% of Peruvian coffee production, of which half is consumed in instant soluble form.
  • The coffee growers may be classified into organized or non-organized groups. Where the non-organized growers produce conventional coffee and have access to market through exporters or brokers, on the other hand, organized growers produce conventional, organic, fair-trade and specialty coffee, and access the market by dealing directly with importers.

 

Key Players:

CENFROCAFE is one of the major cooperatives with more than 80 farm associations as well as 6 dry mill processing and finishing associations. The coffee marketed through CENFROCAFE is 92% organic and 100% certified as Fair Trade. This has resulted in improved quality, and greater demand for Peruvian coffee in the international market, at competitive rates.

  • Foreign demand for specialty coffee has encouraged the smaller growers to attain a specialized certification. Following are some of the standard certifications that include
  • Fair Trade: Fair Trade Labeling Organizations International (FLO)
  • Organic: USDA’s National Organic Program (NOP), Organic Crop Improvement Association (OCIA) etc.
  • Sustainable Coffee: Rainforest Alliance Peru coffee
  • Café Practice: Starbucks

 

The report contains a comprehensive analysis on:

  • Peru coffee Market Segments
  • Peru coffee Drivers, Restraints and Opportunities
  • Peru coffee Size & Forecast 2016 to 2022
  • Supply & Demand Value Chain
  • Peru coffee Market Current Trends
  • Competition & Major Companies
  • Technology and R&D Status
  • Porters Five Force Analysis
  • Strategic and Critical Success Factor Analysis of Key Players

 

Report Highlights:

  • Detailed Historical Overview (Market Origins, Product Launch Timeline, etc.)
  • Consumer and Pricing Analysis
  • Market dynamics of the industry
  • In-depth Market Segmentation
  • Historical and Projected Market Sizing in terms of volume and value
  • Recent market trends and Impact Factors
  • R&D Status and Technology Overview
  • Extensive Industry Structure Coverage

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