Carbonates in Brazil is an interesting category as the rate of decline in 2020 presented two different scenarios: a weak drop in demand via off-trade and a much stronger one through the on-trade channel in line with foodservice closures. Off-trade presents not only a recovery in 2021 but a growth curve driven by repressed demand for indulgent products, in addition to the economic impact of COVID-19, with high inflation and unemployment, which has prevented many families from fully enjoying on-trade consumption occasions.
2021 was marked by several brands repositioning their products or investing more heavily in marketing, in particular, Fanta and Coca-Cola Zero, which not only developed new visual identities, but also different recipes with innovative flavours that attempted to address one of the main complaints linked to these products by Brazilian consumers: the taste of sweeteners. Fanta redeveloped its positioning to become more heavily associated with fun, while also launching a new line of “secret” flavours.
According to ABRE (Associação Brasileira de Embalagens), the Brazilian packaging association, in February 2021 the price of packaging increased by 30% across soft drinks, and this figure is likely to continue to rise in the short-term due to the dollar exchange rate, the preference towards exporting and renewed demand. The combination of these factors is placing pressure on overall prices, and considering that demand is lower than production capacity, the price and availability are combining to create an expensive issue.
During the pandemic, carbonates has witnessed polarising trends, between health and indulgence. This has been exacerbated by the repressed demand through on-trade, and overall occasions that are related to relaxation.
The lack of packaging availability for the industry is a major concern for soft drinks players in Brazil. This is not only relevant in the short-term, as the category faces disruption issues due to rising demand, especially for glass bottles, but also in the longer-term.
COVID-19 has changed the relationship between consumers and distribution, not only shifting consumption from on-trade to off-trade, but also the dynamics of where, when, and how to buy. For instance, limited mobility during home seclusion drove up demand for carbonates through e-commerce, with the latter recording double-digit off-trade volume growth in 2021, albeit from a low base.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Carbonates industry in Brazil with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Carbonates industry in Brazil, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Sweetened, non-alcoholic drinks containing carbon dioxide are included here. All carbonated products containing fruit juice (“sparkling juices”) are included here, unless they are tea-based (these are included in carbonated RTD tea) or carbonated Energy drinks, which are included in Energy Drinks. Carbonated bottled water is also excluded. Carbonates are an aggregation of cola carbonates and non-cola carbonates, whether regular or low calorie. Euromonitor International includes both naturally and artificially-sweetened carbonates.See All of Our Definitions
This report originates from Passport, our Carbonates research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!