Concentrates in Uruguay

2021 DEVELOPMENTS

Declining disposable incomes result in lower demand for concentrates

Towards the end of the review period, volume sales of concentrates showed a moderate decrease. The economic repercussions of the COVID-19 pandemic have led to rising unemployment rates in Uruguay and subsequent declining disposable incomes.

Closure of Argentinian borders ensures a decline in counterfeit items

Prior to the pandemic, concentrates faced a serious threat from the increasing amount of counterfeit items smuggled in from neighbouring countries in the Latin American region. However, due to the closure of the borders between Uruguay and Argentina due to the COVID-19 restrictions, the smuggling of powdered concentrates from Argentina declined.

Mondelez Uruguay SA continues to lead in 2021 despite losing important ground to value-priced brands

The completive landscape of concentrates has continued to intensify in 2021 as players not only compete with fierce pricing but have also focused on innovations surrounding flavours and concentrates conversion ratios. Mondelez Uruguay SA continues to lead with its Tang and Clight brands.

PROSPECTS AND OPPORTUNITIES

Concentrates sales are expected to rebound as long as the economy improves

Concentrates is projected to gain sales share over the forecast period as long as the economy shows a positive development in Uruguay. Consumption will be driven by increasing demand for more affordable powder concentrates aimed at consumers who are struggling to meet basic needs.

Producers must cater to rising health concerns in order to stay relevant

In response to the health crisis, the health and wellness trend is anticipated to gather pace in the coming years which could pose a threat to the growth of concentrates. Powder concentrates are widely perceived to be unhealthy as they contain no real fruit juice and have high levels of sugar, artificial sweeteners, flavourings and colorants.

Liquid concentrates remain niche due to a lack of innovation and advertising

Liquid concentrates will remain a niche product area over the forecast period, suffering from a lack of both new product development and advertising support. Few companies in Uruguay sell liquid concentrates, with the assortment of such products having changed little over the years, and generally attracting the same consumers.