Peru Growing as a Key Market for U.S. Agricultural Trade

U.S. Exports of Ethanol, Dairy, And Meat Grow in Peru’s Market

Peru is becoming an important market for U.S. agricultural exports. In 2023, Peru ranked 28th among U.S. agricultural export destinations, with exports worth $851 million. It is the third-largest market in South America, and the U.S. supplies 14 percent of its agricultural imports.

While U.S. exports to Peru have declined by 17 percent since 2019, the market has grown steadily since the US-Peru Trade Promotion Agreement (PTPA) took effect in 2009.

Market Growth and Key Drivers

Peru has a young, urbanized population, with 79 percent of its 33 million people living in cities. The economy is recovering from COVID-19, with GDP growth projected at 3 percent in 2024. The middle-class population has grown by 26 percent since 2019, increasing demand for processed and convenient food.

Key U.S. Agricultural Exports

• Ethanol: The U.S. is Peru’s top ethanol supplier, with a 90-percent market share in 2023. “A decree from 2005 requires that gasoline contains at least 7.8 percent ethanol,” ensuring ongoing imports.

• Dairy Products: U.S. dairy exports reached $118 million in 2023. Retail dairy sales are expected to grow by 4 percent in 2024.

• Meat Products: U.S. meat exports totaled $82 million, with poultry leading sales. Processed meat demand is increasing in fast food and restaurants.

• Tree Nuts & Pulses: The U.S. supplies 39 percent of Peru’s tree nut imports. Pulses, including legumes, are in demand due to growing health consciousness.

• Beverages & Confectionery: The U.S. exports non-alcoholic beverages and confectionery, though it faces competition from other countries.

Future Outlook

The PTPA agreement has removed 90 percent of tariffs on U.S. agricultural exports, with full tariff elimination by 2026. Peru’s rising demand for healthy and convenient food provides opportunities for U.S. exporters to expand their market share.