Food, Beverages and Tobacco in Latin America

December 2022

Ageing, urbanisation and migration continue to be major factors shaping the global population. The number of seniors around the world kept expanding in 2021 and is expected to grow further in the years to 2040. The number of small children is systematically falling globally due to decreasing fertility rates, later marriages and other factors influencing the change in lifestyles. Containment of the pandemic, gradual lift of the restrictions and political unrest encourage greater mobility and migr

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Key Findings

The industry is forecast to record stable long-term growth in Latin America

Latin America’s food, beverages and tobacco industry is poised to record stable growth over the forecast period, supported by expanding exports and the region’s growing importance in global food supply chains. The near-term outlook, however, may be clouded by surging inflation and decelerating economic growth which, in turn, will impede domestic demand and the food industry’s expansion in the region.

Meat production to continue to lead the industry’s future development

Due to the region’s strong livestock sector, meat and meat products will continue to drive the industry’s growth in a number of Latin American countries. Brazil, Mexico and Argentina are forecast to remain the largest meat producers in the region through to 2030. In the near term, soaring food prices may favour poultry and pork instead of more expensive beef.

Soft drinks to remain the largest beverages category, while spirits records the fastest growth

Soft drinks is forecast to remain the largest beverages category over the forecast period, accounting for USD52.2 billion in 2030. Growing consumer concerns over sugar-related health issues such as obesity are expected to elevate demand for low sugar alternatives. Meanwhile, the lifting of lockdown restrictions and opening of social gathering places should help to fuel sales of spirits. As a result, spirits are poised for the fastest growth over the forecast period.

Exports of food and beverages to remain strong

Brazil and Argentina are the main net exporters of food, beverages and tobacco regionally, with their and the majority of Latin American countries’ exports witnessing a considerable increase over the historic period. Meat products, vegetable oils and animal fats continue to be the largest food exports categories in Latin America. Exports are expected to grow further at least over the near term, supported by tightening global food supplies amid the Russian invasion of Ukraine and global rise in food prices, elevating demand for lower-cost produce from Latin American countries.

 

Scope
Key findings
Latin America ’s importance in global food supply to increase over the long term
Surging inflation and adverse climate events cloud near-term growth prospects
Strong livestock sector to support meat production increase
Soft drinks to remain the largest beverages category in Latin America
Brazil to remain the dominant food and beverages producing country in Latin America
Brazil to remain the dominant food and beverages producing country in Latin America
Expanding meat production to drive the industry’s growth
The food industry’s structure across Latin American economies is diverse
Latin America to remain a major producer of soft drinks and beer
International companies to scale up their presence in Latin America
Elevated global demand to fuel growth of Latin American exports
US to remain the major source of regional imports
Brazil : Production context
Brazil : Foreign trade landscape
Argentina : Production context
Argentina : Foreign trade landscape
Mexico : Production context
Mexico : Foreign trade landscape
Colombia : Production context
Colombia : Foreign trade landscape
Peru : Production context
Peru : Foreign trade landscape
Dominican Republic : Production context
Dominican Republic : Foreign trade landscape
Chile : Production context
Chile : Foreign trade landscape
Costa Rica : Production context
Costa Rica : Foreign trade landscape
Panama : Production context
Panama : Foreign trade landscape
Ecuador : Production context
Ecuador : Foreign trade landscape
Puerto Rico : Production context
Puerto Rico : Foreign trade landscape
Uruguay : Production context
Uruguay : Foreign trade landscape
Cuba : Production context
Cuba : Foreign trade landscape
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