Hot Drinks in Argentina
Euromonitor International's Hot Drinks in Argentina market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 64 | Publication date: Oct 2007
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Sales Boosted by Growing Economic Confidence and a Concern for Health
During 2006 the hot drinks market in Argentina saw continued growth, benefiting from a healthy economy and rising disposable incomes. Argentineans consumed hot drinks more often because their higher disposable incomes afforded them greater economic confidence and allowed them to indulge in higher levels of consumption, particularly after years of recovery following the Peso devaluation. In particular, those products with perceived health-promoting qualities experienced increased consumption, as Argentineans became increasingly conscious of their health. Green tea, herbal tea, and flavoured powder drinks enriched with added vitamins performed well because of their positioning as health-promoting products.
Gourmet Coffee Consumption Growing in Argentina
Gourmet coffee, sold in the style of Starbucks coffee shops, is slowly penetrating the market, as consumers become more exposed to international drinking trends and learn more about the products they are consuming. A growing food and drink culture continues to influence the development of various markets, including hot drinks, where distinct coffee blends, espresso and cappuccino are slowly becoming mainstream. Consumers are becoming more interested in sophisticated, high quality products, a fact which in turn reduces the consumption of standard local varieties. In tea, this trend is equally strong, with green and black speciality tea becoming widely accepted. Even products that are considered to be basic, such as yerba mate, are undergoing a similar trend, as consumers are increasingly purchasing flavoured yerba mate, which is considered to be more 'gourmet'.
Multinational Companies Gain Share, Albeit from a Very Low Base
Global companies, such as Nestlé Argentina SA with its Nescafé brand and R & HL SA with its Twinings brand gained share during 2006, mostly as a consequence of consumers wishing to purchase premium brands, which offered high quality and value-added products, such as Nestlé's cappuccino. It must be noted, however, that the share of global companies is still minimal, because local tastes kept the Argentinian market relatively isolated from the rest of the world.
Growth of Independent Stores Slows Down
Independent food stores continued to gain share at the expense of supermarkets/hypermarkets, as they offer a wide variety of hot drinks products at affordable prices. However, the rate at which independent stores grew slowed down primarily because supermarkets/hypermarkets opened new stores and introduced very low prices in conjunction with advertising support and ran promotions with domestic appliances, which drove traffic into the stores.
Strong Growth Ahead
The market for hot drinks is expected to perform very well during the forecast period, with 12% volume growth and 15% value growth. As a consequence of a buoyant economy, consumers will be in a position to indulge themselves with high quality products. A significant hindrance for growth, however, will be the performance of yerba, since this is a mature product that has almost no room to grow, due to its already high penetration rate and frequency of consumption.
Table of contents
HOT DRINKS IN ARGENTINA : MARKET INSIGHT
EXECUTIVE SUMMARY
Sales Boosted by Growing Economic Confidence and a Concern for Health
Gourmet Coffee Consumption Growing in Argentina
Multinational Companies Gain Share, Albeit from a Very Low Base
Growth of Independent Stores Slows Down
Strong Growth Ahead
KEY TRENDS AND DEVELOPMENTS
Changing Consumer Attitudes: Increased Emphasis on Enjoying Life and Self-Indulgence
Growing Food and Drink Culture in Argentina
Distribution Channels in Flux
Hectic Lifestyles Boost Instant Coffee Consumption
Higher Employment Rates Boost On-Trade Consumption
MARKET DATA
Table 1 Sales of Hot Drinks by Sector: Volume 2001-2006
Table 2 Sales of Hot Drinks by Sector: Value 2001-2006
Table 3 Sales of Hot Drinks by Sector: % Volume Growth 2001-2006
Table 4 Sales of Hot Drinks by Sector: % Value Growth 2001-2006
Table 5 Hot Drinks Company Shares by Value 2002-2006
Table 6 Hot Drinks Brand Shares by Value 2003-2006
Table 7 Penetration of Private Label by Sector 2002-2006
Table 8 Sales of Hot Drinks by Distribution Format: % Analysis 2001/2006
Table 9 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2006
Table 10 Forecast Sales of Hot Drinks by Sector: Volume 2006-2011
Table 11 Forecast Sales of Hot Drinks by Sector: Value 2006-2011
Table 12 Forecast Sales of Hot Drinks by Sector: % Volume Growth 2006-2011
Table 13 Forecast Sales of Hot Drinks by Sector: % Value Growth 2006-2011
DEFINITIONS
LOCAL COMPANY PROFILES - ARGENTINA
10 HERMANOS HREñUK SA - HOT DRINKS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Key Facts: 10 Hermanos Hreñuk SA
COMPANY BACKGROUND
PRODUCTION
Summary 2 Production: 10 Hermanos Hreñuk SA 2006
COMPETITIVE POSITIONING
CAFéS LA VIRGINIA SA - HOT DRINKS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Cafés La Virginia SA: Key Facts
Summary 4 Cafés La Virginia SA: Operational Indicators 2003-2005
COMPANY BACKGROUND
PRODUCTION
Summary 5 Cafés La Virginia SA: Production 2006
COMPETITIVE POSITIONING
CORPORACIóN GENERAL DE ALIMENTOS SA - HOT DRINKS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Corporación General de Alimentos SA: Key Facts
Summary 7 Corporación General de Alimentos SA: Operational Indicators 2003-2005
COMPANY BACKGROUND
PRODUCTION
Summary 8 Corporación General de Alimentos SA: Production Statistics 2006
COMPETITIVE POSITIONING
ESTABLECIMIENTO LAS MARíAS SACIFA - HOT DRINKS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Establecimiento Las Marías SACIFA: Key Facts
Summary 10 Establecimiento Las Marías SACIFA: Operational Indicators 2004-2005
COMPANY BACKGROUND
PRODUCTION
Summary 11 Establecimiento Las Marías SACIFA: Production 2006
COMPETITIVE POSITIONING
LLORENTE Y CíA SA, J - HOT DRINKS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 J Llorente y Cía SA: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 13 J Llorente y Cía SA: Production Statistics 2005
COMPETITIVE POSITIONING
MOLINOS RíO DE LA PLATA SA - HOT DRINKS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Molinos Río de la Plata SA: Key Facts
Summary 15 Molinos Río de la Plata SA: Operational Indicators 2003-2005
COMPANY BACKGROUND
PRODUCTION
Summary 16 Molinos Río de la Plata SA: Production 2006
COMPETITIVE POSITIONING
COFFEE IN ARGENTINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 14 Sales of Coffee by Type: Volume 2001-2006
Table 15 Sales of Coffee by Type: Value 2001-2006
Table 16 Sales of Coffee by Type: % Volume Growth 2001-2006
Table 17 Sales of Coffee by Type: % Value Growth 2001-2006
Table 18 Standard vs Coffee Pods 2004-2006
Table 19 Instant Coffee by Speciality Type 2004-2006
Table 20 Coffee Company Shares 2002-2006
Table 21 Coffee Brand Shares 2003-2006
Table 22 Foodservice Sales of Coffee by Distribution Format 2001/2006
Table 23 Forecast Sales of Coffee by Type: Volume 2006-2011
Table 24 Forecast Sales of Coffee by Type: Value 2006-2011
Table 25 Forecast Sales of Coffee by Type: % Volume Growth 2006-2011
Table 26 Forecast Sales of Coffee by Type: % Value Growth 2006-2011
TEA IN ARGENTINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 27 Sales of Tea by Subsector: Volume 2001-2006
Table 28 Sales of Tea by Subsector: Value 2001-2006
Table 29 Sales of Tea by Subsector: % Volume Growth 2001-2006
Table 30 Sales of Tea by Subsector: % Value Growth 2001-2006
Table 31 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2006
Table 32 Tea Company Shares 2002-2006
Table 33 Tea Brand Shares 2003-2006
Table 34 Forecast Sales of Tea by Subsector: Volume 2006-2011
Table 35 Forecast Sales of Tea by Subsector: Value 2006-2011
Table 36 Forecast Sales of Tea by Subsector: % Volume Growth 2006-2011
Table 37 Forecast Sales of Tea by Subsector: % Value Growth 2006-2011
OTHER HOT DRINKS IN ARGENTINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 38 Sales of Other Hot Drinks by Subsector: Volume 2001-2006
Table 39 Sales of Other Hot Drinks by Subsector: Value 2001-2006
Table 40 Sales of Other Hot Drinks by Subsector: % Volume Growth 2001-2006
Table 41 Sales of Other Hot Drinks by Subsector: % Value Growth 2001-2006
Table 42 Other Tea by Type: % Off-trade Volume 2005-2006
Table 43 Other Hot Drinks Company Shares 2002-2006
Table 44 Other Hot Drinks Brand Shares 2003-2006
Table 45 Forecast Sales of Other Hot Drinks by Subsector: Volume 2006-2011
Table 46 Forecast Sales of Other Hot Drinks by Subsector: Value 2006-2011
Table 47 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2006-2011
Table 48 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2006-2011