According to the Peru Trade,Tourism and Investment Office in Washington, DC – OCEX, a market that is currently growing at a high rate in the United States is that of sports nutrition products, aimed at consumers who have an active lifestyle.
According to Euromonitor, the market for sports nutrition products in the U.S. exceeded $16 billion in 2015 in sales of cereal bars, protein powders and nutritious pills & drinks.
Previous research indicates that this market will continue growing steadily and sales are expected to reach $20 billion by the year 2020.
Peruvian exporters should take into account the potential of this sector, as they carry a large supply of superfoods that could be well received by the American market.
Within this niche market, the product that generates the most sales is the protein mixable powder for beverages, such as whey powder. These are typically combined with other minerals and vitamins to use in shakes or smoothies.
Protein powders are an integral part of the modern exercise routine. Normally, these products are consumed before exercising, in order to provide energy and resistance, or immediately afterwards, for recovery of the body and to support the growth of muscle mass. These powders represent sales of approximately $5 billion annually, an amount that is expected to grow aggressively within the next few years.
Peruvian Super Foods
A great opportunity has been presented for Peruvian exporters to promote the known benefits of native products that could be added as complementary ingredients or even as a healthier and high-performance alternative.
Some questions that arise are in regards to which products are most valuable to U.S. consumers for their natural content and nutritional value, and what ingredients and combinations should be included in the labels of these products.
Some examples of Peruvian plant native products are: kiwicha, purple corn, maca and aguaymanto (golden berry). Kiwicha is a superfood that can supply the protein profile that the average individual requires. Purple corn carries high antioxidant content, protects against cardiovascular disease, lowers blood pressure and helps control blood sugar levels. Maca, a plant from the highlands of Peru, increases energy levels, raises the resistance and mental clarity of athletes and fights physical as well as mental fatigue. And, aguaymanto has proven to be high in anti-inflammatory, antioxidant and diuretic properties. These products can be sold fresh or in other forms, including powder.
In addition, there are other ingredients available that could be considered beneficial to athletes, including cocoa, yacon, lucuma, cat's claw, sacha inchi, arracacha and green coffee, all of which offer a wide range of benefits valued by athletes.
Because most US buyers are unaware of natural and exotic ingredients such as camu-camu, aguaymanto, yacon, maca and kiwicha, it is important to maximize and promote said products through publications and campaigns. This is to ensure that the consumer is aware of the aforementioned benefits of these Peruvian superfoods and that these are present in their everyday preferences, especially, active people with healthy lifestyles.
Including new products and ingredients within the diet of the consumer requires patience and different marketing resources as it is a gradual process, but over time, consumers will continue learning all about what Peruvian products have to offer. Several famous publications such as Men's Health, Men's Journal and Huffington Post have published different articles highlighting the benefits of Peruvian native products, such as camu-camu, maca and others, generating interest in Peru and all its nutritional, native products can offer.
OCEX Washington, DC
A total of 35 Peruvian suppliers exported chia to the United States in 2016, which represented 237,000 kilograms. While there is a great opportunity to continue increasing its exports to this market, a great option that should be considered is introducing value added chia products.
As explained by the Peru Trade, Tourism and Investment Office in Washington, DC - OCEX Washington, DC, chia is a superfood whose demand in the United States continues to grow, mainly due to its health benefits, which include its richness in nutrients which are important and extremely beneficial for brain activity as well as the development of the human body.
Furthermore, these seeds are an important source of omega-3 fatty acids, protein and dietary fiber, in far more favorable proportions than those found in both cold-water fish (salmon, herring, sardines and tuna), and other vegetables such as flaxseed, nuts and almonds.
Chia seeds are rapidly expanding from coast to coast in the U.S, as it is a product that can be used in a variety of ways, whether it is as a topping on a salad or a healthy addition to a drink, chia seeds perfectly adapt to the daily diet and lifestyle of the American consumer.
According to a recent study by the Natural Marketing Institute, in 2014, 27% of consulted U.S. consumers reported they had heard of chia as a superfood. In present day, it is estimated that this number has increased by 10%, meaning that the public’s knowledge of this product has now reached 37%.
A report made by ReadThink in 2015, estimates that in the year 2020, the global market for Chia seeds will have reached $1.1 billion. Additionally, they also predict that U.S. demand will reach over 7,000 tons annually, which really highlights the growing interest among U.S. consumers over this superfood.
(Conference at the Americas Council, New York, February 28th, 2017)
First of all, I would like to summarize very briefly the conceptual premises that Peru must internalize in order to reset its foreign policy design.
The world sails in uncharted waters. Basic assumptions about the international order, global economy, and electoral dynamics in Western democracies are in disarray. The very nature of the international system shaped and led by the US during seven decades, is now challenged by its own political leadership. The backlash against global capitalism stems from the most globalized market economies. Populism appears to prevail in the US and Britain and it gains ground in wealthy European democracies.
Contradictory and disparate signals cloud the already uncertain panorama. Protectionism is signaled as the pathway to prosperity in the US, while China’s leaders call to support open markets and rule-based trade. The US role –essential to face global issues and security threats– is put in doubt by Washington itself.
As the US re-evaluates its fundamental foreign policy principles, leaders in China and Russia reassert and fine-tune their international positions, while Europe’s tentative geopolitical design faces a complex juncture.
Prime Minister Theresa May warned last month, in Davos, that liberalism, free trade and globalization risk being undermined by people from developed countries. Their voters doubt that globalization works for them, and feel mainstream political and business leaders have neglected people’s legitimate concerns. There is a growing perception of a schism between “us” and “them”, between citizens and the political and business elites identified with globalization.
Populist rhetoric transcends the ideological spectrum and mixes anger, frustration, and a sense of insecurity about the future. It appeals to nationalism by nurturing sentiments against immigrants and fears about the outside world. Its parochial, insular, views suggest simplistic and vague solutions to intricate problems. They, thus, spread misconceptions about world affairs and international politics.
The current upheaval is a symptom of a major dysfunction in the vortex of globalization and international relations. Leaders who manage domestic politics cannot monitor or direct a globalized economy. Money has no nationality in a borderless global economy. But political processes remain defined by national policy and local dissatisfaction. A divide grows between transnational forces that champion free trade and capital flow and, on the other hand, companies, unions, and workers bound to the national economy that seek to protect markets.
However, not just darkness but a deeper malaise lies at the heart of the populist revolt. The tacit promise of a global economy is that it will lift living standards for everyone. Its success depends on the prosperity it should spread for everyone. While criticism about policies set by international financial institutions has been present since the turn of the century, the 2008 financial meltdown deepened public mistrust in the global economy’s beneficial consequences.
The costs of massive global financial mismanagement were unfairly distributed. International financial markets failed to prevent the effects of their reckless frenzy, but taxpayers in the US and Europe undertook the burden of the rescue plans implemented to cover banking losses. In contrast, everyday citizens were left to face on their own the challenge of adjusting to the financial crisis. Once the storm settled, some financial leaders received huge dividends and people with lower incomes lost their homes, savings, pensions, or jobs.
Discontent with globalization swiftly mutated into rejection, and became a political force to be reckoned with. In sum, the split between winners and losers of the financial crisis sparked today’s populist backlash against globalization. It also set free the appetite to choose, almost at random, the most convenient culprits.
Political consensus can withstand increasing income inequality if economic and social benefits are spread generally, although they may be distributed in differing proportions. However, public support wanes when costs of economic downturns are distributed unevenly. Nearly a decade after the 2008 financial meltdown in the world’s main market economies, and after all individual efforts made to overcome its dislocating effects, income inequality continues to grow, job markets remain unstable, and, above all, concrete benefits of globalization are not seen clearly by most people, whether they live in Detroit, Brighton, or Madrid. Under those conditions, anti-globalization populism has found the stage ripe.
Populist discontent with the global economy fuels distrust in the international system, and vice-versa. The results of Brexit and the recent presidential election in the US continue to raise doubts, fears, and uncertainty. Ongoing political, social, and economic transitions threaten to erode support for the complex international order in existence.
Paradoxically, public confidence in developed democracies turns against the world order they created, based upon liberal policies, free trade, and multilateral practice. Nation-states are forced to face the challenge and to adjust their foreign policies to this rapidly changing and unpredictable world.
To what extent can the US government redefine its international commitments remains to be seen, but the political will to persist in a course of undefined global retrenchment is evident. Intense nationalism –both political and economic– and lagging confidence in global involvement is a combination of instability for the US.
Likewise, Britain’s complex divorce process from the EU entails not just untried but confusing perspectives. The future international role of the “Global Britain” envisioned by its Prime Minister is only barely sketched out.
In this international context, Peru –and other emerging states– must take into account these phenomena, so as to set a tentative course. It must evaluate available options to readjust its foreign policy in regional, extra-regional, and multilateral arenas, within the framework of a geopolitical redesign still in the making.
Peru’s government has put in motion initiatives to improve significantly bilateral relations with neighboring countries and regional powers, amidst elections and signs of political tensions in the region. Venezuela’s humanitarian crisis and corruption scandals complicate Latin-America’s political landscape. The corruption network that is being unveiled already is damaging the fabric of political institutions throughout the region.
The network’s international scope and massive volume are unprecedented. Its tentacles spread across boundaries, party lines, and different governmental levels, including certain former heads of state. As the extent of organized bribery and graft becomes more known, confidence in public institutions erodes. Current governments are, thus, pressed to obtain tangible anti-corruption results to recover legitimacy. Governmental response to prevent further deterioration of public trust is crucial because emerging economies need strong democratic values.
Thus, the region faces an onerous double-bind: the grand flux of the global paradigm and, more immediately, the political turntable tackling widespread corruption demands. Both problems involve redefining relations among the emerging regional power, Brasil, and all its neighboring countries. This is the particular context we face today in South-America.
Current conditions undermine efforts to find common ground to respond jointly to the turbulent global geopolitical challenges. However, they demand an urgent answer: an unprecedented push to strengthen and to deepen effective regional integration processes. The goal is to develop a collective vision to face effectively readjustments in extra-regional spaces, focusing in particular at changes to come in Asia Pacific and Europe.
At this stage, Peru aims to consolidate the Pacific Alliance –an integration scheme formed with Chile, Colombia, and Mexico–, as well as to re-launch the Inter-American system when we host in Lima the Americas Summit in April 2018.
Peru also faces the challenge of continuing to carry out an active role in the integration of the Asia Pacific region, after having hosted in November the last APEC Summit. We will intensify our links with the region’s main powers: the US, China, Russia, Japan, Korea, and Australia.
At the same time, as Brexit’s effects in Europe and the EU unfold, Peru must identify opportunities to bolster cooperation with the more relevant European actors: Germany, Spain, Britain, and France.
Peru is also committed to continue working to become a full-member of the OECD, despite the current controversy about the rules and prospects of globalization and the resurgence of protectionism. It therefore remains engaged in modernizing state functions and economic regulations in accordance with OECD’s standards.
In this unpredictable scenario, Peru needs to contribute to the re-design and consolidation of multilateral institutions. The current multilateral model rests on weakened entities that must rebuild effective global governance. The leadership of UN Secretary General Antonio Guterres is a key starting point to attain that goal. His views are clearly aligned with the principles that guide Peru’s foreign policy.
Consequently, the country’s current candidacy for a seat at the Security Council demonstrates its political will to take on the responsibility to help maintain international peace and security, amidst the ongoing diverse crisis in the unprecedented systemic break-down we now face.
In sum, pervasive questioning of globalization and the current international order reveals widespread rejection of basic assumptions that, in the long run, have proven to be dysfunctional.
The multiple electoral revolts respond to real populist impulses, of a vague and varying ideological nature, that question the existing international system. However, the backlash will clash with reality and with opposing forces that continue to support a liberal international order. The crisis thus provides opportunities for a creative diplomacy that faces challenges through calibrated action instead of defensive reflexes.
The international position Peru has undertaken during President Kuczynski’s first semester in office allows us to seek viable conditions to find the best options for our nation among the opportunities that arise in periods of transition and change.
Thank you very much.
Peru’s Minister of Foreign Affairs Ana Maria Sanchez reaffirmed the country’s willingness to support the implementation of a new strategic vision for the Organization of American States (OAS).
Within this framework, Sanchez expressed the need to make changes in the political and administrative sphere in order to yield positive results in the region in terms of democracy, human rights, security and comprehensive development.
“OAS needs us to reinforce significant aspects of our social coexistence such as democracy, greater respect for human rights, more tolerance, more security, more social inclusion,” she said during her speech at the 45th OAS General Assembly held in Washington, D.C.
“Present and Future of the OAS” is the theme for the June 15-16 event.
Sanchez noted the economic and investment achievements of Peru, which consolidate growth and modernization of productive capacity and employment, despite the slowdown recorded in the last years.
She emphasized Peru’s willingness to continue promoting cooperation and opening of markets in order to export products.
She also reiterated the government’s support to the future OAS Human Rights Convention for Older Persons, whose negotiations concluded a few weeks ago and that has become the new agreement on human rights for this important sector of people.
“It promotes social inclusion for older persons in the Americas,” the Chancellor affirmed.
The government official thinks it is necessary that OAS constituent bodies have a coherent vision of the fight against terrorism concerning the procedures the Inter-American Commission on Human Rights (IACHR) continues to admit against Peru on this matter.
She went on to add how important it is to have this body composed of outstanding jurists.
The country is expected to organize important events, which will address public safety in America in order to seek greater hemispheric cooperation in the fight against such crime.
She spoke about the importance of hosting the Fifth Meeting of Ministers Responsible for Public Security in the Americas –to be held in Arequipa–whose objective is to promote coordination among countries in the fight against organized crime and better information platforms against that crime.
On the other hand, the ordinary session of the Inter-American Drug Abuse Control Commission (CICAD) will be held in Trujillo, which will showcase results of the eradication and productive reconvention process.
Peru's economy grew by 4.25% in April driven by mining, fishing, manufacture and accumulated 69 months of continuous growth, informed INEI (National Institute of Statistics and Informatics).
From January to date, accumulated GDP growth averages 2.39%. In the last 12 months, the economy expanded by 1.74%.
The Head of INEI Alejandro Vilchez said the GDP achieved in April is the highest in the last 13 months. The result was driven by the higher domestic and foreign demand for some primary products, such as commodities: cotton, sugar and gold.
It should be noted, this year the economy grew by 1.68% in January, 0.94% in February and 2.68% in March.
He said the recovery of mining, manufacturing and fishing sectors contributed with 60% of the productive activity growth. Most of the sectors registered positive results, except agriculture and construction, he indicated.
In the analyzed month, fishing grew by 154.03% mainly because of the anchovy season opening. Unload increased from 338,000 tonnes to 1,376,000 in April 2015.
Likewise, the unloading of species addressed to consumption either fresh (81.2%) and canned (52.8%) also contributed to the result.
Metal mining and hydrocarbons production grew by 9.25% and accumulated two months of positive results, since it was favored by new mining projects.
In April, metal mining subsector rose by 18.15%. It is the highest rate since February 2008 (86 months), which registered a growth of 20.1%. Whereas, hydrocarbons subsector reduced by 17.11% due to a lower natural gas liquid output (-23.7%), crude oil (-13.4%) and natural gas (-8.2%).
After 11 months of unfavorable results, this sector grew by 6.1%.
Construction and services
The sector decreased by 8.57% mainly because of a reduction in the execution of public works, such as road construction, maintenance and reparation, among others.
Nonetheless, the telecommunications sector showed a positive result by growing 6.3%. This was possible due to increases in people attending cinemas, TV shows production (17.1%), internet and cable (15.5%), as well as telephony services (7.4%).
Restaurants and lodging
The restaurants and lodging sector rose by 2.79% in comparison with the same month in 2014. This was possible thanks to a higher demand for lodging (3.99%) and restaurants (2.62%) subsectors.
The increase of the livestock output (5.61%) was due to a higher production of poultry, eggs, pork and fresh milk.
(Andina) The Minister of Foreign Trade and Tourism, Magali Silva, informed that international tourist arrivals grew 8.4% to 1,13 million visitors in first fourth-month period of the year, compared to the same period last year.
She highlighted the rise in the number of Chilean arrivals to the country, which has reached 50,821 so far this year, up 16.4% against the previous year. This way, Chile has positioned as the main source market for tourists, accounting for 31.9% of total arrivals.
"We are seeing the fruits of the promotion campaign undertaken in main cities of Chile and the border region, which has reversed the negative trend from last year," he said.
The growth of Latin American tourist arrivals stood out in the first quarter with Ecuador (10.9%), Argentina (8.4%), Mexico (8.2%), Colombia (7.4%) and Brazil (3.7%) as the most prominent examples.
Germany and Spain results also excelled, since the number of international tourist arrivals to Peru from those countries increased by 6.9% and 6.4%, respectively.
Our main markets in Latin America, which accounted for 54.6% of total arrivals in the first four months of the year, maintained a significant growth led by Chile (16.4%).
As for Asia, South Korea posted a sustained growth of 59%, higher than the first quarter’s accumulated average. This market’s presence is maintained in major international events.
In Europe, Italy and the United Kingdom stood out as Peru’s main tourist markets with growth rates of 9.3% and 6.3%, respectively, followed by France, Germany and Spain, where the advertising campaign Peru Land of Hidden Treasures is being developed.
The US market accounted for 14% of total arrivals between January and April, and it is the second largest source market for tourists to Peru.
(Andina) Peru will host this year's Smithsonian Folklife Festival under the name Peru Pachamama, an event that will showcase the country as a tourist and cultural destination, Foreign Trade and Tourism Minister Magali Silva said.
The Peru program will feature projects, organizations, and groups whose cultural expressions highlight these social, cultural, and economic exchanges.
The event will take place Wednesday, June 24, through Sunday, June 28, and Wednesday, July 1, through Sunday, July 5. It will be located on the National Mall in front of the Smithsonian’s National Museum of the American Indian, located in Washington D.C.
Folklife Festival Smithsonian celebrates diverse cultures of the United States and the world. Opened in 1967, it brings cultural representatives and artists together to celebrate diversity of cultural traditions. It is produced by Smithsonian Center for Folklife and Cultural Heritage.
"The festival will focus on archeology, tradition and crafts. Visitors will appreciate the full extent of knowledge and expertise of local communities who use traditional culture both to honor their ancestors and reinterpret their heritage," the Peruvian minister stated.
"Peru Pachamama" will feature more than 150 exponents of Peruvian culture that will highlight diversity and vitality of communities inside and outside the country. Musicians, dancers, artists, artisans and cooks will be brought together to show how Peruvians maintain and adapt their traditional culture.
Attendees will learn about 12 different Peruvian communities from 10 regions of Peru, including the O'eswachaka Bridge, whose knowledge and expertise in construction were included in the UNESCO's Representative List of Intangible Cultural Heritage of Humanity, and the Caballito de Totora boats hand-made by fishermen from totora reeds in Huanchaco, La Libertad.
At the festival, cooks from different regions will showcase specialties from their communities and will talk about ingredients, preparation, and contexts of the dishes.
For instance, Paucartambo locals will prepare "meriendas" (snacks), Huanchaco fisherman will dry "charqui de raya" (stingray jerky), and craftsmen from Ayacucho will be cooking guinea pig, among other things.
(Andina) Peru will expand above 5% in 2016 thanks to the construction of relevant infrastructure projects, such as the Lima Metro Line 2 and the Gasoducto Sur Peruano (Peru’s Southern Gas Pipeline), the Deputy Minister of Economy Enzo Defilippi forecasted.
“[…] we must construct, and this influences on the domestic demand,” he pointed out.
The Deputy Minister indicated the Lima Metro Line 2 involves an investment worth US$6.783 billion.
Likewise, throughout previous months the government has unlocked infrastructure project investments worth US$1.051 billion, which will contribute a 0.54 percentage point to GDP in 2015.
He indicated the unlocked amount comprises five projects: Lima Metro Line 2, Arequipa-based Majes Siguas II and the optical Fiber National Backbone, among others.
The investment of a total five projects amount US$8.019 billion; US$1.051 of which are to be executed this year.
It must be noted the Majes Siguas II project will allow opening up 38,500-hectare farmland to boost the country’s development by generating hydropower and 200,000 new jobs.