Energy Drinks in Latin America

January 2020

Energy drinks in Latin America is one of the fastest growing soft drinks categories globally, and the fastest growing in Latin America. The popularity of this drink is based on the affordability of brands such as Vive 100 and Volt, which have opened a new generation to the benefits of these beverages at a lower cost. The category is expected to grow as prices continue to fall compared to other categories, and consumers’ lifestyles become busier.

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Key Findings

Low unit prices continue to motivate energy drink sales

Across Latin America, the average unit price of energy drinks fell by an annual average of 5% over 2014-2019. This positively impacted the category in all markets better in terms of volume sales than value sales, although the region experienced growth in both data types.

Mexico continues to lead energy drinks consumption

Due to the mass-market availability of affordable brands, many Mexicans who lead busy lives have been able to afford frequent consumption of energy drinks for the benefits they are perceived to offer.

Sugar taxes have only a moderate impact on growth in energy drinks

The most successful brands in energy drinks have positioned themselves as using natural ingredients, while a niche low-calorie energy drink market is beginning to emerge in Latin America. Despite increasing anti-sugar legislation, energy drinks have fared well, even though their sugar content tends to be high.

Energy drinks expected to continue to grow

With the exception of a few countries (Brazil, Argentina, Colombia) affordable energy drinks are expected to continue their growth in the forecast period, driven by busier lifestyles and continued fierce competition, which will maintain strong sales of affordable products.

Category leaders under pressure from imported brands

Most Latin American country have a local brand of energy drink. In the review period, these brands, which are often the category leaders in their respective countries, began to yield market share to new players, and this is expected to continue.

Scope
Key findings
Latin America has introduced a new consumer base to the category
Energy drinks is currently the fastest growing category in Latin America
Mexico makes up a quarter of the region’s energy drink sales value
Mexico leads sales, while Peru sees the fastest volume growth
Mexico’s growth in consumption is also highest in the region
Energy drinks consumption widens in terms of drinking occasions
Consumers are interested in function and natural ingredients
Smaller grocers and supermarkets continue to be drivers of growth
Supermarkets take share from small grocers in larger economies
Energy drinks are highly fragmented by manufacturer
Some clear winners over the review period
Brands tend to be highly localised by country
Monster and Red Bull have the greatest reach
The category is seeing changes in the brand rankings
Brands will aim for growth by crossing borders
Mexico and Brazil will be the largest markets in 2024
The category will continue to be highly evolving
Price and income will have the largest impacts on future growth
Potential countries for introducing affordable energy drinks
Guatemala: market context
Guatemala: competitive and retail landscape
Mexico: market context
Mexico: competitive and retail landscape
Brazil: market context
Brazil: competitive and retail landscape
Colombia: market context
Colombia: competitive and retail landscape
Chile: market context
Chile: competitive and retail landscape
Peru: market context
Peru: competitive and retail landscape
Argentina: market context
Argentina: competitive and retail landscape
Ecuador: market context
Ecuador: competitive and retail landscape
Dominican Republic: market context
Dominican Republic: competitive and retail landscape
Costa Rica: market context
Costa Rica: competitive and retail landscape
Bolivia: market context
Bolivia: competitive and retail landscape
Uruguay: market context
Uruguay: competitive and retail landscape

Soft Drinks

This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.

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