A sequel to The Super Mario Bros Movie will have the opportunity to explain where Princess Peach came from before the Mushroom Kingdom, and there are a few ways the film could go about this. Peach's story was set up in the 2023 Illumination movie, where she told Mario that she arrived in the Toads' kingdom through a warp pipe when she was only a baby. This was her first memory, so Peach had no idea where she lived before. Still, some hints in Super Mario lore, as well as The Super Mario Bros Movie, provide enough foundation off of which to build some theories.

https://screenrant.com/super-mario-movie-2-peach-origin-theories/