Concentrates in Brazil

PROSPECTS

With no category reinvention, concentrates is not expected to recover over the forecast period

After a very brief period of positive volume sales of concentrates during the economic crisis - as these products are usually seen as very affordable - sales have declined again, and no growth is forecast until 2024. Concentrates are seen by many consumers as not healthy and with low added value, while manufacturers have not been investing in category reinvention.

Increasing competition from other soft and hot drinks to pressure manufacturers

The pursuit of healthier lifestyles is nothing new among Brazilians and, although for some consumers these products were not considered essential items during the crisis, slow economic recovery should fuel supressed demand for RTD healthier beverages - including juice, tea and even health supplements.

COMPETITIVE LANDSCAPE

Mondelez Brazil remains category leader, by value, with Tang

In 2019, Mondelez Brazil remained the absolute category leader in value terms, through its brand Tang - often perceived as a category synonym. Over the last year, however, the company has not invested in Tang’s portfolio of powder concentrates, but instead on launching a popsicle under the same brand umbrella.

Small and regional players lose share - some exit the category

Concentrates is very fragmented in Brazil, with small and regional players accounting for a significant portion of value sales in 2019. Due to stronger competition from major manufacturers, however, especially in terms of prices, they have been losing share and are expected to continue to do so over the forecast period.

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