SPORTS NUTRITION IN PERU

Euromonitor International
November 2018
SPORTS NUTRITION IN PERU PASSPORT I

LIST OF CONTENTS AND TABLES

Sports Nutrition in Peru .............................................................................................................................1

ANALYSIS.............................................................................................................................................................1
Headlines ........................................................................................................................................................1
Prospects.........................................................................................................................................................1
Consumers tune into healthy food and exercise ....................................................................................1
Companies are beginning to focus on developing products for a wider consumer base ......................1
New products focus on proteins to meet vegan needs, but come at a cost..........................................1
Competitive Landscape ..................................................................................................................................3
Companies are working on increasing their e-commerce ......................................................................3
Promotion key in the category ................................................................................................................3
International brands continue to lead ....................................................................................................3
DATAGRAPHICS ..................................................................................................................................................4
Market Sizes....................................................................................................................................................4
Sales of Sports Nutrition........................................................................................................................4
Sales Performance of Sports Nutrition ..................................................................................................4
Sales of Sports Nutrition by Category....................................................................................................5
Distribution .....................................................................................................................................................6
Channel Distribution for Sports Nutrition .............................................................................................6
Competitive Landscape ..................................................................................................................................7
Company Shares of Sports Nutrition .....................................................................................................7
Company Share Performance in Sports Nutrition .................................................................................7
Retail Sales Performance by Company ..................................................................................................8
Market Concentration of Sports Nutrition by Company .......................................................................8
Brand Shares of Sports Nutrition...........................................................................................................9
Brand Share Performance in Sports Nutrition.......................................................................................9
Retail Sales Performance by Brand......................................................................................................10
Market Concentration of Sports Nutrition by Brand ...........................................................................10
CONTEXT...........................................................................................................................................................11
International Contex.....................................................................................................................................11
Sports Nutrition Retail Sales by Region ...............................................................................................11
Sports Nutrition in Peru.......................................................................................................................11
FMCG Index...................................................................................................................................................11
Sports Nutrition vs Selected FMCG Industries.....................................................................................11
Socioeconomic Context ................................................................................................................................12
Population Growth Index ....................................................................................................................12
Peru vs Other Geographies..................................................................................................................12

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SPORTS NUTRITION IN PERU PASSPORT 1

SPORTS NUTRITION IN PERU

ANALYSIS

Headlines
 Sports nutrition records retail current value growth of 20% to reach PEN360 million in
2018
 Strong increase in sports nutrition products seen due to consumers’ continuing concern
about health and wellbeing
 Sports non-protein products records the strongest retail current value growth of 22% in
2018
 Omnilife Perú loses value share but maintains its lead in sports nutrition with 21% of
retail value sales in 2018
 Sports nutrition is expected to record a retail value CAGR of 9% at constant 2018 prices
over the forecast period, reaching PEN553 million in 2023

Prospects

Consumers tune into healthy food and exercise

Obesity has increased significantly in Peru in recent years, and consumers are looking for
healthy ways to reduce this problem, amongst them by consuming healthy food and doing
exercise. The number of people engaging in running, going to gyms or playing football is
increasing. Gyms are also increasingly appearing in Peru. Smart Fit, a large gym brand from
Brazil, has entered Peru and is buying gyms from Gold’s Gym and Body Tech. It is expected
to focus on low prices, having a highly competitive membership cost, and its training
systems are well supported technically. The majority of Peruvians declare that living with
stress is greater in Lima than in the provinces and generally greater in urban areas than in
rural areas; this problem represents an opportunity for sports nutrition products because
people are becoming more aware of doing exercise to avoid and control stress problems.

Companies are beginning to focus on developing products for a wider consumer base
Sports nutrition products are focused on prevention and strengthening of the body with
good nutrition, and companies are working to strengthen sales by promoting the
understanding that sports nutrition supplements not only benefit athletes, but also anyone
who wants to ensure proper functioning of the body, better mental concentration, a
stronger immune system and stronger muscles, increased energy and a better metabolism.
They point out such products are often necessary to overcome the deficiency that some
bodies have in absorbing the nutrients from the food they eat. Sports nutrition players are
offering nutritional advice for free and selling protein bars for youngsters to widen the base
of people that care about health and wellbeing.

New products focus on proteins to meet vegan needs, but come at a cost
Being vegan is fashionable and more people are joining this trend globally. In Latin
America, Mexico has the largest number of vegans, followed by Brazil and then Peru. In
recent years a number of vegan restaurants have appeared in Lima, a trend that is gradually
increasing.

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SPORTS NUTRITION IN PERU PASSPORT 2

New products in sports nutrition are made from soya and other vegetables for vegans
and for those who look for organic products. Companies know that the raw material suero
de leche (whey) used to make proteins from milk is going to increase their costs, but rather
than reduce product quality they increase the proteins’ final prices. Consumers are
expected to switch to other products in the future due to these price increases.

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SPORTS NUTRITION IN PERU PASSPORT 3

Competitive Landscape

Companies are working on increasing their e-commerce

Despite the internet retailing channel still being small, companies are working on
developing this channel, especially through their web pages. Consumers who prefer e-
commerce are those who know what brands they want and are loyal to them. Consumers
seeking advice or information about brands or the functionality of certain product prefer to
go to the outlet to talk with a sales consultant.

Promotion key in the category

Companies were launching promotions in the category in 2018. There are two types of
consumers: one group is well informed and loyal to their brands and the other group is less
well informed and trying many brands to look for effectiveness. Generally, promotions are
focused on educating people about wellbeing. They offer discounts to people who ask
questions about products. Companies also participate in sports competitions like the Inka
Challenge, which is an obstacle race where they give samples or offer some product
tastings. These promotions are communicated by social media or web pages.

International brands continue to lead

The leading company Omnilife Perú owns recognised brands such as Magnus in the non-
protein product category and has a strong direct selling network. The number two company
is Lab Nutrition and the number three player is Sanexim, which has Nutripoint outlets. Both
companies their have own outlets, offer their products through gyms and delivery and offer
e-commerce via their web pages. Outlets of sports nutrition companies are also increasing
and this expansion is expected to continue.

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SPORTS NUTRITION IN PERU PASSPORT 4

DATAGRAPHICS

Market Sizes
Sales of Sports Nutrition
Retail Value RSP - PEN million - Current - 2004-2023

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

Sales Performance of Sports Nutrition

% Y-O-Y Retail Value RSP Growth 2004-2023

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

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SPORTS NUTRITION IN PERU PASSPORT 5

Sales of Sports Nutrition by Category

Retail Value RSP - PEN million - Current - 2018 Growth Performance

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

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SPORTS NUTRITION IN PERU PASSPORT 6

Distribution
Channel Distribution for Sports Nutrition
Retail Value RSP 2018 and Percentage Point Growth - 2013-2018

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

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SPORTS NUTRITION IN PERU PASSPORT 7

Competitive Landscape
Company Shares of Sports Nutrition
% Share (NBO) - Retail Value RSP - 2018

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

Company Share Performance in Sports Nutrition

% Share (NBO) - Retail Value RSP - 2009-2018

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SPORTS NUTRITION IN PERU PASSPORT 8

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

Retail Sales Performance by Company

Retail Value RSP (NBO) - PEN million 2018 - % CAGR 2013-2018

120

OTHERS
100

80
OMNILIFE PERÚ S AC
LAB NUTRITION CORP S AC

60
S ANEXIM S AC

40
FUXION BIOTECH S AC

20

COMPLEMENTOS NUTRICIONALES DEL PERÚ S AC

0
0% 10% 20% 30% 40% 50%

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

Market Concentration of Sports Nutrition by Company

% Share (NBO) - Retail Value RSP - 2009-2018

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

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SPORTS NUTRITION IN PERU PASSPORT 9

Brand Shares of Sports Nutrition

% Share (LBN) - Retail Value RSP - 2018

Ma gnus 11.6% Bra nd % S ha re

BioP ro 9.1% Ma gnus 11.6

P owe r Ma ke r 8.0% BioP ro 9.1

P owe r Ma ke r 8.0
Mus cle Te ch 7.6%
Mus cleTech 7.6
Optimum Nutrition 5.5%
Optimum Nutrition 5.5
MET-Rx 3.9%
MET-Rx 3.9
Mus cle me ds 2.9%
Mus cle me ds 2.9
Dyma tize 2.9%
Dym a tize 2.9
S yntra x 2.7%
Syntra x 2.7
Muta nt 2.3%
Muta nt 2.3
Ultima te Nutrition 2.2%
Ultima te Nutrition 2.2
Unive rs a l Fa t Burne r 1.8% Unive rs a l Fat Burne r 1.8
Ovo P owe r 1.4% Ovo P owe r 1.4
P rote in 1.4% P rote in 1.4
Extre me Ovo 1.3% Extreme Ovo 1.3

Te a tino 1.2% Teatino 1.2

Hydroxycut 1.1% Hydroxycut 1.1

MP 1.1% MP 1.1

Whe y 1.0% Whe y 1.0

Others 31.1
Othe rs 31.1%

Incre a s ing s ha re De cre a s ing s ha re No cha nge

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

Brand Share Performance in Sports Nutrition

% Share (LBN) - Retail Value RSP - 2009-2018

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SPORTS NUTRITION IN PERU PASSPORT 10

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

Retail Sales Performance by Brand

Retail Value RSP (LBN) - PEN million 2018 - % CAGR 2013-2018

200

OTHERS

150

100

50
MAGNUS

OPTIMUM NUTRITION

0
0% 10% 20% 30% 40% 50% 60% 70%

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

Market Concentration of Sports Nutrition by Brand

% Share (LBN) - Retail Value RSP - 2009-2018

Bra nds 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Top 3 Bra nds 45.7 43.8 44.5 43.7 45.0 41.2 39.1 36.9 35.1 28.8
Others 54.3 56.2 55.5 56.3 55.0 58.8 60.9 63.1 64.9 71.2

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

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SPORTS NUTRITION IN PERU PASSPORT 11

CONTEXT

International Contex
Sports Nutrition Retail Sales by Region Sports Nutrition in Peru
USD million - Constant - 2018 Retail Value RSP - USD million - Constant - 2004-2023

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

FMCG Index
Sports Nutrition vs Selected FMCG Industries

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

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 SPORTS NUTRITION IN PERU PASSPORT 12

Socioeconomic Context
Population Growth Index Peru vs Other Geographies
Population Growth Index 2001-2030 Rank out of 210

Households with a Disposable Income Households with a Disposable Income Number of Internet Subscribers Number of Mobile Internet
Over USD25,000 - Peru Over USD25,000 - Lima Subscribers
Actua ls - '000 - 2017 Actua ls - '000 - 2017 Actua ls - '000 - 2017 Actua ls - '000 - 2017
1,565 1,029.9 22,993.3 20,647
6 1 s t pe rce ntile 95th pe rce ntile 82nd pe rce ntile 8 1 s t pe rce ntile

His toric Growth His toric Growth His toric Growth His toric Growth
2012-2017 CAGR 2012-2017 CAGR 2012-2017 CAGR 2012-2017 CAGR
6.5% 9.5% 59.5% 93.2%
67th pe rce ntile 87th pe rce ntile 77th pe rce ntile 89th pe rce ntile

Fore ca s t Growth Fore ca s t Growth Fore ca s t Growth Fore ca s t Growth

2017-2022 CAGR 2017-2022 CAGR 2017-2022 CAGR 2017-2022 CAGR
5.7% 6% 5.6% 5.6%
7 1 s t pe rce ntile 77th pe rce ntile 33rd pe rce ntile 27th pe rce ntile

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

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