Peru

Business Opportunities in Peru for UK Exporters

1. Introduction & Snapshot
Peru, located on the western coast of South America, is a rapidly growing economy with a population of over 34 million. Known globally for its rich mineral resources, diversified agriculture, and emerging services sector, Peru offers UK exporters a unique combination of natural wealth and economic opportunity.
The country has strengthened its trade relations with the UK through the UK–Andean Trade Agreement, providing preferential access to a market that is increasingly open to foreign investment. For UK businesses, Peru presents opportunities in mining technology, agribusiness, infrastructure, and premium consumer goods.
2. Economic Overview
Peru’s GDP in 2023 was approximately USD 260 billion, with projected growth of 3–4% per year over the medium term. Key economic characteristics include:
Mining dominance: Peru is one of the world’s top producers of copper, gold, silver, and zinc, accounting for a significant portion of national exports.
Agricultural diversification: Exports of avocados, grapes, asparagus, and quinoa have grown strongly, driven by global demand.
Services and tourism: Tourism contributes significantly to GDP, particularly in cities like Lima and Cusco.
Peru has been investing in infrastructure and digital connectivity, supporting economic diversification and offering opportunities for foreign partners.
3. Trade Relations with the UK
Peru and the UK have maintained strong trade links, facilitated by the UK–Andean Trade Agreement.
UK exports to Peru: Machinery, chemicals, pharmaceuticals, construction equipment, and education services.
UK imports from Peru: Copper, gold, agricultural products (e.g., avocados, coffee, asparagus), and fish products.
Bilateral trade volume: Approximately £1.2 billion annually, with significant scope for expansion, especially in high-tech, renewable, and professional services sectors.
The Peruvian government actively encourages foreign investment in mining, renewable energy, agribusiness, and infrastructure, creating a welcoming environment for UK exporters.
4. Market Opportunities
Mining & Minerals
Peru’s mining sector represents a core opportunity for UK companies. The country is a top global producer of copper, gold, and zinc, and demand exists for:
Mining machinery and automation
Environmental and safety technologies
Project management and consultancy services
The government is focused on responsible and sustainable mining, so UK expertise in ESG compliance and clean technology is particularly valuable.
Agribusiness & Food Processing
Peru is a leading exporter of fresh and processed food, including avocados, asparagus, grapes, and coffee. Opportunities exist for UK companies in packaging, cold chain logistics, agricultural machinery, and food safety solutions.
Infrastructure & Construction
Peru has invested heavily in roads, ports, airports, and energy infrastructure. Projects include improvements to the Port of Callao and urban transport in Lima. UK firms can provide:
Engineering consultancy
Smart infrastructure solutions
Project management and financing
Renewable Energy & Sustainability
Peru is pursuing renewable energy expansion, particularly in hydroelectric, solar, and wind projects. UK companies offering energy efficiency solutions, project development expertise, and green technologies have strong potential.
Healthcare & Education
Peru’s growing middle class is increasing demand for healthcare services, medical devices, and vocational training. UK companies can contribute with:
Telemedicine and hospital management solutions
Educational partnerships with universities and vocational schools
English-language training programs
Consumer Goods & Premium Products
Peru’s urban population, particularly in Lima, Arequipa, and Trujillo, is increasingly receptive to premium foreign goods. Opportunities exist for:
Food and beverage products (e.g., whisky, gin, confectionery)
Personal care and fashion
Household goods and lifestyle products
5. Regulatory & Business Environment
Peru has made significant strides in improving its investment climate, though some challenges remain:
Ease of Doing Business: Mid-range globally, with strengths in credit access and investor protection, but some bureaucracy persists.
Import regulations: The UK–Andean agreement reduces tariffs on many products, but compliance with sanitary and phytosanitary standards is crucial.
Taxation: Corporate tax is moderate; incentives exist for renewable energy and mining projects.
IP protection: Peru enforces intellectual property rights; however, local enforcement varies.
Partnering with local distributors, agents, or joint ventures often simplifies market entry and regulatory compliance.
6. Cultural & Consumer Insights
Business culture in Peru is formal, relationship-focused, and hierarchical. Key considerations include:
Face-to-face meetings are preferred for negotiation and trust-building.
Punctuality and professionalism are valued, though relationships often take precedence over contracts in early stages.
Spanish is essential for most business interactions; bilingual staff are advantageous.
Consumer behaviour:
Urban middle-class consumers are quality-conscious and aspirational, seeking international brands.
Rural populations are price-sensitive, particularly for basic goods.
Digital adoption is growing, with e-commerce and social media increasingly influencing purchasing decisions.
7. Challenges & Risks
Key challenges for UK exporters include:
Regulatory complexity: Obtaining permits and approvals can be time-consuming.
Infrastructure gaps: Inland transport costs are higher outside major cities.
Political risk: Policy changes can affect foreign investment priorities.
Competition: Regional competitors and established international suppliers dominate certain sectors.
Mitigation strategies include leveraging local partners, professional advisors, and government trade support.
8. Case Study: UK Success in Peru
UK firms have found success by aligning with Peru’s core economic strengths:
Mining technology providers have supported Peruvian copper and gold operations with advanced equipment and ESG-compliant solutions.
Agritech companies have modernised fruit and vegetable production, improving yields and export quality.
Education and training providers have partnered with universities to deliver vocational programs and English-language instruction.
These successes highlight that sector alignment and local collaboration are critical for UK exporters in Peru.
9. Practical Entry Tips for UK Exporters
Engage with trade associations and DBT: Key for networking, regulatory guidance, and market intelligence.
Focus on high-value sectors: Mining, agribusiness, renewable energy, education, and premium consumer goods.
Build local partnerships: Distributors, agents, or joint ventures simplify regulatory navigation.
Target urban centres: Lima, Arequipa, and Trujillo are main hubs for distribution and consumer engagement.
Plan logistics: Inland transport requires careful cost management.
10. Conclusion
Peru is a strategically positioned market for UK exporters, offering opportunities across mining, agribusiness, renewable energy, healthcare, and premium consumer goods.
While challenges such as bureaucracy, infrastructure gaps, and political fluctuations exist, careful planning, sector-specific strategies, and strong local partnerships can unlock substantial returns. For UK businesses seeking a market that combines natural resource strength with growing consumer demand, Peru represents a compelling destination.