Peru strengthens its global position in cochineal carmine

Published Nov 29, 2021

Tridge summary

Peru contributes to 90% of the global supply of cochineal carmine, with the product being used in cosmetics, food, and beverages, and generating an export market of US $ 50 million. Despite challenges such as oversupply, price speculation, and pandemic-related demand drops, the production of cochineal carmine has seen organic growth. However, the industry faced difficulties due to the pandemic's impact on the importation of necessary supplies and increased export freight rates. The shift towards vegan products, which often use synthetic dyes, has slowed down due to the high cost of these alternatives compared to cochineal carmine. Despite the trend towards natural colorants, the high cost and durability of cochineal carmine are expected to continue driving its demand.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The global consumption of cochineal carmine is 3,000 tons, where Peru occupies 90% of the global supply, and an export market of US $ 50 million destined for the United States, Europe, China and Russia. 2020 was difficult for the production of cochineal carmine, given an oversupply, price speculation in the supply chain and a rise in import freight for inputs. Although the demand for its use in cosmetics and sweets also decreased due to the pandemic, the sausage and dairy sector such as strawberry yogurt drove a balance, achieving that the production of cochineal remains in an organic growth of between 2% and 3 %. Despite these factors, currently the global consumption of cochineal carmine is 3,000 tons, where Peru occupies 90% of the global supply, and an export market of US $ 50 million with important destinations for the United States, Europe, China As it is recalled, towards the end of 2019 there was an oversupply, which generated the lowest price in the last ten years and at ...

Source: Agroexportaciones