Top 5 Lucrative Businesses to Invest in Peru

Investing in the Peruvian market can offer lucrative opportunities for entrepreneurs and business owners. With a growing economy and an ever-expanding population, Peru presents itself as an attractive destination for those looking to start or expand their businesses.

Here are five business sectors that shine bright for their profitability and potential growth in the country.

Agriculture and agribusiness

Investing in Peru’s agricultural sector is a wise move because of its fertile soils and diverse climates, perfect for growing a variety of crops. This sector is not only profitable but also stable. Even during crises like the COVID-19 pandemic, there has been a noticeable boost in profitability, particularly with the surge in blueberry production.

The Ministry of Agrarian Development and Irrigation predicts that Peruvian agricultural exports might top USD 12 billion by 2025, with top products like blueberries, quinoa, and asparagus. Investing in agriculture not only enhances the quality of local and international food but also directly supports families working in the fields, offering them better prospects, and enhancing their living standards.

Furthermore, the government's push for different infrastructure investment projects nationwide, such as the Chancay Mega Port, expansions of the Port of Callao and Lima's international airport, industrial parks, communication routes spanning the country, and initiatives to broaden the energy sources, will further improve the profitability of agricultural and agribusiness projects in the coming years.

Tourism

Tourism is one of the pillars of the Peruvian economy, thanks to the country's cultural, historical, and natural heritage. Destinations such as Machupicchu, Lake Titicaca, the Amazon, and the northern beaches attract millions of visitors every year. Moreover, there is a variety of other destinations and tourist routes brimming with potential.

According to the Ministry of Foreign Trade and Tourism (MINCETUR), tourism contributes significantly to the national GDP and generates employment in various regions of the country. Investing in hotels, restaurants, travel agencies or specialized tourism services can be a profitable option in the long term, especially with the growing demand for authentic and sustainable experiences. Plus, Peru's got a stellar reputation when it comes to food, adding even more appeal to these ventures.

Photographs: Daniel Silva

Technology and startups

The tech scene in Peru is booming thanks to better connectivity and more people getting online. This surge is fueled by the embrace of cutting-edge tools like artificial intelligence and top-notch data management. Lima, in particular, is emerging as a hotspot for startups and tech firms. It is drawing in both local and foreign investors and skilled workers, making it a vibrant hub for innovation.

The high-tech industry has positioned Peru at 65th place in the Global Innovation Index, surpassing countries like Argentina, Panama, Paraguay, Ecuador, Bolivia, and Guatemala. MINCETUR reports that since 2003, investment in Peru’s high-tech sector has reached USD 402 million in foreign investments, creating over 6,000 jobs with the participation of 109 foreign investors.

By the end of 2022, financial or fintech startups stood out as the sectors attracting the most foreign investment in high technology. Additionally, segments like E-Commerce, EdTech, HealthTech, Logistics, and solutions related to food safety gained prominence due to their rapid growth. Investing in technology, software, mobile applications, or digital services can yield significant returns in a market that's continually expanding.

Renewable Energies

Peru is tapping into its abundant natural resources and embracing renewable energies as a clean, sustainable option, aligning to diversify its energy matrix. The country boasts significant potential for growth in this sector, with various renewable energy sources ready for development across its diverse regions. Notably, Peru ranks as the fifth most appealing destination in Latin America for investing in renewable energy, as highlighted by EY.

The country is putting in place policies that encourage and regulate investment in clean energy. This includes projects focusing on solar, wind, hydroelectric, and biomass. Investing in renewable energy not only helps protect the environment but also holds great profit potential as the need for sustainable energy grows.

Manufacturing

Peru boasts a youthful and talented workforce, affordable operating costs, and a prime location that eases entry into global markets. Furthermore, its numerous trade pacts with various nations contribute to a favorable environment for exports.

The manufacturing sector in Peru gets a boost from diverse raw materials and a rising demand at home. It spans various fields like mining supplies, metalworking, packaging, industrial chemicals, and petrochemicals. Investing in Peru means tapping into a great environment for business growth, offering profitable opportunities for expansion locally and worldwide. This not only benefits your business but also contributes to the country's economic progress.

Photographs: Ricardo Zamudio