Executive Summary

Aug 2018
Prospects
Healthier and different kinds of cheese seen in Guatemala

Cheese is usually a traditional category with very little innovation. However, different health trends taking in fat-free and lactose-free products, for example, have begun to be seen in some categories, such as soft cheese with products like San Julián Lactose-Free Panela.

Packaged cheese is more prevalent

Packaged cheese is much more common in Guatemala than unpackaged cheese. There are some artisanal sales of cheese in Guatemala, but usually only among neighbours.

Traditional grocery retailers is the most important distribution channel

Independent small grocers, within tradition grocery retailers, is the most important distribution channel for cheese in Guatemala. There is very strong penetration of outlets, in both urban and rural areas of the country, which usually sell small, affordable cheese packs, benefiting price-sensitive consumers with restrictive budgets.

Competitive Landscape
Fábrica de Productos Lácteos Parma leads cheese in 2018

Domestic company SA Fábrica de Productos Lácteos Parma has a large product portfolio and is the only company that sells cheese in all the different categories. The company has positioned itself in Guatemala among the best quality brands.

Advertising campaigns

Advertising campaigns for cheese in 2017/2018 utilised television advertisements, printed media, social media, competitions and point-of-sale tastings. Fábrica de Productos Lácteos Parma is among the strongest companies investing in marketing campaigns.

Domestic brands are more prevalent

Domestic brands, such as Parma, Superior, Ilgua and Trebolac, lead cheese in Guatemala. The brands have strong distribution and affordable prices, alongside cheese with flavours that are preferred by Guatemalans.

Prospects
New packaging brings dynamism to drinking milk products

In 2018, several brands began to introduce new flexible packaging for shelf stable milk, such as Dos Pinos and Foremost. This packaging is much more affordable than the traditional Tetra Pak, allowing shelf stable milk to offer more competitive prices and capture Guatemala’s largest consumer base in the lower-to-middle economic stratum where consumers are very price-sensitive and continuously look to save money due to their tight budgets.

Controversial milk products

In Guatemala, there are some brands that are positioned as milk but are generating controversy because they are not 100% milk, but actually “combined dairy products”, also called dairy formulas. This means that they are made from milk components with the addition of other ingredients such as water and vegetable fats, making them cheaper than milk.

Different types of milk

Both fresh and shelf stable milk are embraced by consumers although the shelf stable option is considered more convenient. Fresh milk needs refrigerated storage, which deters many consumers from purchasing it, even though it is actually cheaper than long-life options.

Competitive Landscape
Nestlé Guatemala SA leads drinking milk products

Nestlé Guatemala SA is the owner of the Nido and Anchor brands, with which it leads drinking milk products in Guatemala. The company has a wide product portfolio of powder milk in different packages and sizes that allow it to reach a wide consumer base.

Advertising campaigns

Drinking milk products is a mature category that competes for sales among consumers who are price-sensitive and willing to switch between brands if they perceive small price differences. Marketing campaigns are therefore not very strong, as companies focus on offering competitive prices.

New product launches

New product launches were seen in drinking milk products in 2017-2018, the most important being the new plastic bag packaging from Dos Pinos and Foremost for their shelf stable milk. SA Distribuidora Dos Pinos, the dominant player in shelf stable milk, also launched Dos Pinos 1% Skimmed Milk.

Prospects
Yoghurt begins to enter the traditional channel

Yoghurt is not considered a traditional product in Guatemala. However, it saw consistent strong growth over the review period.

How yoghurt is consumed

Yoghurt in Guatemala is consumed in a variety of ways. It is commonly eaten during breakfast, often with a fresh fruit topping, or included in smoothies.

Unpackaged yoghurt poses no threat

Sales of unpackaged yoghurt are negligible in Guatemala. There are several artisanal producers that sell their products on a smaller scale, focusing on farmers’ markets or home delivery.

Competitive Landscape
Danone Guatemala leads yoghurt and sour milk products

Danone Guatemala Ltd has several leading brands, including Danone, Activia, Vitalinea and Oikos. Its brands are all positioned as healthy yoghurt and offer value-added benefits such as being sugar-free, helping digestion, and providing more protein per serving.

New product launches

As yoghurt continues to see fast growth, new product launches are common. In July 2017, SA Industrias Lácteas launched Gaymont Jr, a smaller yoghurt for children that also contains breakfast cereals.

Price segments of yoghurt

During the review period, there was growing differentiation between price bands in yoghurt. Products with a more premium positioning include Greek versions, imported brands, some fruited brands, and most yoghurt with a functional positioning.

Prospects
Cream is the largest product category

Other dairy is a small and mature category in Guatemala. There are several categories, such as condensed milk, that only have a small number of players, and none has shown any innovation in several years.

Distribution

Independent small grocers is the most important distribution channel for other dairy in Guatemala, especially by selling cream, a product that is considered a staple among homes in all economic strata of the country. The strong penetration that these products have, in both urban and rural areas of the country, allows them to reach consumers easily.

Coffee whiteners registers the strongest growth in 2018

Coffee whitener products in Guatemala are only available in powder format which does not require refrigeration, thus catering to a wide consumer base. There is a wide range of international brands such as Coffee Mate and Borden.

Competitive Landscape
Nestlé Guatemala SA leads other dairy

International company Nestlé Guatemala SA continued to be the leading player of other dairy in 2018. It dominates both condensed milk (Ideal and La Lechera) and coffee whiteners (Coffee Mate).

Domestic and international brands prevail in different categories

Domestic brands are more prevalent in staple products such as cream, where there are strong brands such as Parma and Superior and many artisanal brands with limited distribution, although this makes cream highly fragmented. International brands are more prevalent in other categories such as condensed milk and coffee whiteners, where there is no domestic production.

Prices

The majority of brands in other dairy are standard brands such as Parma, Superior, Coffee Mate and La Lechera. Prices are very competitive among these products since consumers easily switch between brands when they wish to save money.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Guatemala with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Dairy industry in Guatemala, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Guatemala market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Dairy in Guatemala?
  • What are the major brands in Guatemala?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Butter and Spreads

Cheese

Drinking Milk Products

Other Dairy

Yoghurt and Sour Milk Products

Packaged Food in Guatemala - Industry Overview

EXECUTIVE SUMMARY

Rising demand for convenience fuelling demand for packaged food
Continued growth expected over coming years
Marketing campaigns
Differences in traditional and modern grocery retailers
Forecast performance

FOODSERVICE

Sales to Foodservice
Domestic companies lead foodservice sales
Retail leaders also strong foodservice providers
Strong growth expected in foodservice
Category Data
Table 1 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 4 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023

MARKET DATA

Table 5 Sales of Packaged Food by Category: Volume 2013-2018
Table 6 Sales of Packaged Food by Category: Value 2013-2018
Table 7 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 8 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 9 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 10 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 11 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 12 Penetration of Private Label by Category: % Value 2013-2018
Table 13 Distribution of Packaged Food by Format: % Value 2013-2018
Table 14 Distribution of Packaged Food by Format and Category: % Value 2018
Table 15 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 16 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 17 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 18 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 1 Research Sources