Peruvian Grapes Enter the Japanese Market with Great Potential

Published 2023년 3월 28일

Japan has authorized imports of Peruvian grapes, the world’s largest exporter. As of March 23, Peruvian grapes will enjoy duty-free access to the Japanese market under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Table grape exports from Peru have constantly grown over the past years, reaching the highest value ever recorded with USD 1.36 billion in 2022, displacing Chile as the leading global supplier of grapes. For the ongoing 2022/23 campaign, exports are expected to reach 73 million boxers or around 598 thousand mt, which would represent an increase of 13% from the previous record-breaking year. Thus, the aces to the Japanese market will enhance Peru’s table grape export volume, but more importantly, it will bring a wider grape variety and availability to the Japanese market.

According to the Peruvian Ministry of Agrarian Development and Irrigation (MIDAGRI), from 23 March 2023, table grape exports to Japan will start for the first time after several years of negotiation. According to the ministry, several business meetings have already taken place between Japanese importers and Peruvian exporters to explore the different trade opportunities. The Japanese market access authorization opens up a market of 125 million consumers for Peruvian grape exports. The ministry has estimated that the potential value of this market could reach USD 17 million in the first year alone. Additionally, Peruvian table exports will be able to offer 26 different grape varieties to the Japanese market.

Access to the Japanese market seems to be another achievement of the Peruvian grape industry after reaching a historically high-value export of USD 1.36 billion in the calendar year 2022, a YoY increase of 8.9%. According to the 2022/2023 campaign’s prediction, Peru will be the leading global exporter in volume and value, surpassing Chile, which enjoyed this position for many years. According to the National Agricultural Health Service (SENASA), Peru is projected to exceed the exports of 600 million mt of grapes during the 2022/23 campaign by reaching the 73 million boxes sent.

Source: Tridge

According to information from the Association of Table Grape Producers of Peru (PROVID), as of Week 6, exports had already reached 62 million boxes or around 500 thousand mt, representing an increase of 2.6% from the previous 60.4 million boxes dispatched in the same period of the previous campaign. PROVID also reported that the estimated potential for the first year of Peruvian grapes in the Japanese market would be around USD 17 million, with great potential to increase this value over the following years.

The Japanese grape import market has gradually increased to meet the soaring demand of Japanese consumers for different types of grapes. In 2020, imports of fresh grapes reached their maximum value of USD 132.5 million for a volume of 44.3 thousand mt. However, since 2021, grape imports in Japan have decreased, driven by high freight costs and the weakening of the yen. In 2022, imports of fresh grapes in Japan accounted for USD 103.5 million in value with a volume of 33.5 thousand mt, a 12% YoY decrease.

Source: Tridge

Due to the Japanese government measures and consumers’ risk-averse behaviors since COVID-19 that limited economic activity, imports of fresh table grapes to Japan continued to decrease in 2022. As a result, Chile and New Zealand were the only supplying countries that increased their exports to Japan. In fact, Chile became the leading grape supplier to Japan for the first time, as the US decreased its export value by 43% and 42% by volume, while Chile increased its exports by 30% and 25%, respectively.

However, since H2 of 2022, Japan has given signs of reopening trade activities for the fruit and vegetable sector, and it is expected that in 2023, imports of fresh table grapes will resume in volume at pre-pandemic levels. It is also expected that all the main grape suppliers to Japan will recover their export volumes. However, this year, the leading global grape supplier will compete in the market.

Peruvian grapes will bring wider availability throughout the year in the Japanese market, but most importantly, it will bring 26 different grape varieties. The main varieties sent by Peru will be Sweet Globe, Red Globe, and Allison, which are already expected in the Japanese market.