Ethyl alcohol market in Peru

Earlier Report Observations

The market volume for ethyl alcohol in Peru fluctuated significantly between 58 million liters and 117 million liters from 2018 to 2023. A sharp peak occurred in 2021, a year marked by continued growth in export value for high-strength ethyl alcohol and increased focus on illicit alcohol consumption, which was estimated to represent about one-third of the total market. Volume then fell back to 72 million liters in 2022, a decline that coincided with a reported 17% drop in the import volume of cream liqueurs.

Consumer behavior evolved during the period, with out-of-home consumption accounting for approximately half of all alcohol intake by 2023, diverging from global trends. This shift, along with changing preferences among younger consumers, supported a market recovery to 109 million liters in 2023. Authorities responded to the persistent illicit trade by enhancing control measures, including training for fiscal police to distinguish genuine products and implementing stricter labeling requirements.

In 2024, the regulatory framework was strengthened further with the approval of Supreme Decree N° 010-2024-PRODUCE, which governs the commercialization and oversight of methanol. The spirits market continued its expansion in value terms, reflecting sustained demand and diversification into imported segments like whiskey and tequila, even as the fight against illegal sales via digital platforms remained a key challenge.

Production ethyl alcohol in Peru

In kind, 2017-2020, K l

Top producers of ethyl alcohol, 2017-2020

World map of production of ethyl alcohol, 2017-2020

Peru's ethyl alcohol production volume increased after a two-year decline. In 2020, production reached 20 217 thousand liters, marking a 5.6% increase compared to the previous year. However, looking at the broader period from 2017 to 2020, production decreased by 27.9%, which translates to an annualized decline rate of 10.3%. The lowest production level was recorded in 2019 at 19 144 thousand liters, with the largest decline of 27.9% also occurring that year.

Annual dynamics of production in Peru in kind, 2017-2020, K l

In value, 2017-2020, K $ US

Peru's ethyl alcohol production value increased after a two-year reduction. In 2020, the output was valued at 13 748 thousand US dollars, showing a robust gain of 15.6% compared to 2019. Over the period from 2017 to 2020, production value decreased by 10.3%, with a compound annual growth rate (CAGR) of -3.6%. The minimum value was recorded in 2019 at 11 892 thousand US dollars, and the largest decline of 17.1% also took place in that year.

Annual dynamics of production in Peru in value, 2017-2020, K $ US

Exports ethyl alcohol from Peru

Exports in kind, M l

After a two-year advance, exported ethyl alcohol volumes from Peru declined. In 2020, Peru exported 138.0 million liters, down by 19.0% from 2019. Over the period from 2017 to 2020, exports increased by 50.7%, with a compound annual growth rate (CAGR) of 14.6%. The maximum value was recorded in 2019 at 170.4 million liters, and the largest increase of 54.7% occurred in 2018.

Annual dynamics of product's exports from Peru in kind, 2017-2020, M l

From 2017 to 2020, the Netherlands, Colombia, and Ecuador were the largest buyers of ethyl alcohol from Peru in terms of volume. The Netherlands accounted for 68.0% of exports in kind, Colombia for 8.0%, and Ecuador for 7.4%. Together, these three countries formed 83.3% of total exports in kind.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Peru in kind, 2017-2020

Exports in value, M $ US

After a two-year rise, ethyl alcohol exports from Peru declined. In 2020, exports amounted to 93.9 million US dollars, constituting a strong drop of 11.3% relative to the prior year. Over the period from 2017 to 2020, exports increased by 87.3%, with a compound annual growth rate (CAGR) of 23.3%. The maximum value was recorded in 2019 at 105.9 million US dollars, and the largest increase of 52.7% occurred in 2018.

Annual dynamics of product's exports from Peru in value, 2017-2020, M $ US

From 2017 to 2020, the Netherlands, Ecuador, and the United Kingdom made the biggest contribution to Peru's ethyl alcohol exports in value terms. The Netherlands accounted for 69.6% of exports in value, Ecuador for 7.6%, and the United Kingdom for 7.3%. Jointly, these three countries accounted for 84.5% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Peru in value, 2017-2020

Imports ethyl alcohol to Peru

Imports in kind, M l

After a two-year increase, ethyl alcohol imports to Peru declined. In 2020, imports amounted to 189.9 million liters, showing a limited decline of 9.5% compared to the previous year. Between 2017 and 2020, imports increased by 4.4%, equating to an annualized growth rate of 1.4%. The maximum value was recorded in 2019 at 209.7 million liters, and the largest increase of 12.6% also occurred in that year.

Annual dynamics of product's imports to Peru in kind, 2017-2020, M l

From 2017 to 2020, the United States was the primary source for imports in kind, accounting for 88.2% of total flows. Other markets formed a long tail of smaller partners, contributing the remaining share.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Peru in kind, 2017-2020

Imports in value, M $ US

In 2020, foreign ethyl alcohol supplies to Peru amounted to 92.0 million US dollars, showing a decline of 5.0% compared to the previous year. The minimum value was recorded in 2018 at 84.8 million US dollars, while the maximum value was recorded in 2019 at 96.9 million US dollars. The largest decline of 9.0% occurred in 2018, and the largest increase of 14.2% took place in 2019.

Annual dynamics of product's imports to Peru in value, 2017-2020, M $ US

From 2017 to 2020, the country structure of imports in value terms was strongly focused on the United States, whose share reached 87.5% of total flows. Other partners accounted for the remaining volume.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Peru in value, 2017-2020