? Over the last five years healthier lifestyles have made carbonates public enemies due to high sugar content. However, 2019 appears a tipping point for carbonates in the region. As economic conditions improve in Latin America carbonates are expected to recover with consumers looking to indulge. Innovation will be key for brands as consumers look for indulgent drinks that do not compromise their health. Forecast growth will be tied to income growth and price changes.
This report comes in PPT.
Increased awareness regarding the sugar content of regular cola carbonates coupled with label regulations and a regional trend towards health and wellness were the principal drivers behind negative growth. Consumers are increasingly migrating to options with less sugar.
Low calorie carbonates are the silver lining with strong growth over the review period for both multinational brands with reduced calorie/sugar variants and small local brands with natural ingredients. Product variety and availability will be key for low calorie carbonates in the future.
E-commerce is the fastest growing channel in the region in terms of off-trade volume sales but with mixed performance between countries. In the wake of the coronavirus (COVID-19) pandemic, the channel will increase its relevance, but structural and logistical challenges lie ahead.
Price sensitivity to benefit small companies
Small local companies implemented aggressive pricing strategies that allowed them to take share from multinational companies as cash-strapped consumers in countries such as Argentina, Brazil and Mexico continue to value price as a differentiation factor over brand recognition.
Companies across the region have doubled down on reformulation effort to avoid the backlash from regulatory norms against sugar. Sustainability is becoming an important topic as consumers demand less plastic in packaging and more recycling options. Strategies in returnable packaging are also gaining traction in the region.
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.See All of Our Definitions
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