In spite of rising costs and prices in recent years, sales of dairy products and alternatives have continued to grow in real value terms in Latin America. The essential nature of products like cheese has helped maintain demand for them, while sales of baby food have been boosted by a return to normal working habits post-pandemic. The high inflation has seen volume sales struggle in recent years, but the forecast period is expected to see positive growth in both volume and value terms.
This report comes in PPT.
At a time when many countries in the region were facing high inflation, pushing up costs for industry suppliers and players and therefore also end prices for consumers, volume sales were struggling at the end of the 2018-2023 period, although dairy products and alternatives was still managing to record positive value growth.
The addition of components such as protein, creatine or BCAAs to dairy products is increasingly common in Brazil. Pioneered in flavoured milk drinks by Danone’s YoPRO, other players have since been adding their own protein-enhanced products, meeting the demand for healthier indulgence as well as diversifying the dairy industry in Brazil.
Plant-based dairy ripe for development
Albeit from small bases, plant-based dairy has been recording strong growth in a number of markets in Latin America. In Colombia, for example, plant-based milk has long since moved beyond soy drinks to take in products based on almonds, oats, rice, coconut etc. Burgeoning health and sustainability trends should help drive further growth across the region, although the price differential to cow’s milk-based products remains a potential stumbling block.
Players reformulating products due to on-pack labelling regulations
Black octagons or seals as on-pack warning labels about the high salt, sugar or fat content in packaged food products are being seen in an increasing number of countries in the region. This is leading industry players to utilise new ingredients or formulas to avoid them, boosting the number of products available with reduced or even zero levels of these contents.
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