Consumer Foodservice in Latin America

August 2023

Consumer foodservice in Latin America has been on a clear recovery path since 2021, after the major losses COVID-19 inflicted on it in 2020. However, high inflation is negatively impacting consumers’ purchasing power and therefore also the pace of the recovery. Chained players performed better at the height of the pandemic, thanks to their financial backing and an ability to swiftly adapt to changing conditions. However, independent establishments continue to dominate the industry in the region.

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This report comes in PPT.

Key findings

High inflation slowing the recovery

Consumer foodservice continues to recover from the sales lost in 2020 due to home seclusion and forced closures or eat-in bans in this industry due to COVID-19. However, the post-pandemic period has turned into one of high inflation, with this serving to slow the foodservice recovery in real value sales terms moving into the forecast period.

Leisure foodservice sales most dynamic since the pandemic

Leisure, lodging and travel locations suffered the biggest losses in 2020 of around or close to half their sales, but have since been recording the strongest growth rates in 2021 and 2022. Standalone, which continues to dominate foodservice sales by location, registered the smallest decline in 2020, and has therefore been seeing slower growth rates in the last two years.

Pandemic takes a chunk out of the eat-in share

The shares held by takeaway, home delivery and drive-through all recorded strong growth in 2020, as consumers looked to avoid contact with strangers and eat-in was vetoed in most countries. Although it has since regained share, eat-in is still well down on its pre-pandemic levels, with many consumers sticking with their newfound takeaway/delivery habits.

Positive growth expected for the forecast period

Consumer foodservice will see positive growth throughout the forecast period in Latin America.  All the main channels will enjoy increasing sales, with full-service restaurants remaining the biggest, while self-service cafeterias, the smallest channel, will record the highest CAGR.

Scope
Key findings
While full-service restaurants lead sales in most markets, in Brazil it is cafés/bars
Latin American recovery continues with second strongest growth rate in 2022
Consumer foodservice recovering after losing a third of its sales regionally in 2020
Argentina finally returns to positive foodservice growth in 2021
Limited-service restaurants the best performer over the 2017-2022 period
Eat-in gradually reclaiming some of the share it lost in 2020 due to COVID-19
All the main channels declining over the 2017-2022 period
Slower-than-hoped-for recovery in Brazil due to inflation and altered work regimes
Uber Eats and 99Food leave online ordering in Brazil
Strong recovery being seen in Argentinian consumer foodservice
Although pandemic encouraged concentration, foodservice remains very fragmented
OXXO network of stores continues growing
Brazil and Mexico the biggest markets for the bulk of the top 10 players
McDonald’s and Burger King continue to hold sway in Latin American consumer foodservice
Positive growth expected throughout the forecast period…
…although sales will not reach pre-pandemic levels until 2026
Continued digital development expected to be seen
Argentina: Market Context
Argentina: Competitive and Retail Landscape
Brazil: Market Context
Brazil: Competitive and Retail Landscape
Chile: Market Context
Chile: Competitive and Retail Landscape
Colombia: Market Context
Colombia: Competitive and Retail Landscape
Mexico: Market Context
Mexico: Competitive and Retail Landscape
Peru: Market Context
Peru: Competitive and Retail Landscape

Consumer Foodservice

Consumer foodservice is composed of cafés/bars, full-service restaurants, limited-service restaurants, self-service cafeterias and street stalls/kiosks.

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