4 business opportunities with alpaca products in Benelux

Business opportunities in the Benelux region are diverse and appealing because of its strategic location, strong economy, and favorable business conditions.

Peruvian alpaca fiber is highly esteemed worldwide. According to Peru's Ministry of Agrarian Development and Irrigation (MIDAGRI), Peru leads the world in alpaca fiber production, creating numerous commercial opportunities globally as a result.

Benelux is a political and economic union comprising three neighboring countries in Western Europe: Belgium, the Netherlands, and Luxembourg. The name Benelux comes from combining the first letters of each country: Belgium (BE), the Netherlands (NE), and Luxembourg (LUX).

Photography: Studio Sabático

Exports are a vital part of the economies of the Benelux countries: Belgium, the Netherlands, and Luxembourg. This region is notable for its economic interdependence and strong emphasis on international trade, thanks to its strategic location in Western Europe and advanced infrastructure, including ports and transport networks.

BUSINESS OPPORTUNITIES

Apparel sales in Benelux have a promising future. After reaching USD 1.65 billion in 2022, they are projected to rise to USD 2.44 billion by 2028.

Photography: Studio Sabático

Given the established quality of Peruvian products made from alpaca fiber, lucrative commercial opportunities are waiting to be fully taken advantage of. These opportunities include the following:

Importers are the largest companies with physical stores in Belgium, the Netherlands, or Luxembourg. A key advantage of working with these companies is their strong relationships with Peruvian producers and suppliers, making them valuable partners for international expansion and targeting niche markets in the Benelux region.

In the retail sector, you will discover boutiques offering a variety of alpaca products and derivatives, catering to those seeking distinctive and unique items. According to PROMPERU, in 2021, the Netherlands had 8,561 registered clothing stores, and Belgium had 1,354 textile companies.

E-commerce includes all companies that operate exclusively online. Digital sales have surged significantly in recent years, especially following the COVID-19 pandemic.

Designers are always on the lookout for new materials, including alpaca, as they constantly follow global market trends.

Photography: Studio Sabático

PRODUCTS WITH THE HIGHEST DEMAND

In 2023, PROMPERU reported that Peruvian clothing saw high demand in Belgium. Specifically, wool and fine hair sweaters saw a 57.3 % increase compared to 2022, while shawls, scarves, and wraps also rose by 26 % from the previous year.

In the Netherlands, there has been a notable rise in the demand for woolen sweaters and fine hair sweaters, increasing by 120 % and 82.7 % respectively compared to 2022. Additionally, cardigans made from other types of fine hair saw a significant increase of 159 %.

MARKET SITUATION

Exports play a vital role in the economies of the Benelux countries: Belgium, the Netherlands, and Luxembourg. This region is notable for its strong economic ties and emphasis on global trade, thanks to its strategic position in Western Europe and well-developed infrastructure, including ports and transportation networks.

In 2023, Peru's population reached nearly 30 million people, specifically 29,959,207, as reported by the Commission for the Promotion of Peru for Exports and Tourism (PROMPERU).

ALPACA PRODUCTS: WHAT IS TRENDING?

In the Benelux market, there is a strong preference for alpaca products that use natural materials like natural fibers and dyes.

Another trend emphasizes sustainability with minimal environmental impact. Additionally, many companies are enhancing their production chains by prioritizing fair pricing in manufacturing. They are also focusing on maintaining a balance between high quality and compelling storytelling to meet the growing demand for hand-woven products.

WHAT FACTORS ARE CONSIDERED WHEN SELECTING SUPPLIERS?

Benelux companies prioritize quality and design above all else. This is crucial because when products are crafted from excellent materials that are in high demand, they are more likely to be purchased without hesitation. Consequently, the price of the product should reflect its quality accordingly.

Small and large companies can thrive in a niche market like the Benelux region, making capital not the sole determinant when conducting business there.

The Peruvian alpaca industry is well-positioned to broaden its reach in markets like Benelux, which presents numerous commercial opportunities. Success in this field hinges on innovation, sustainability, and aligning with global consumption trends.

Photography: Studio Sabático

Thumbnail and cover credits: Studio Sábatico