Foodservice in Latin America: Long-term Opportunities in a Major Growth Region

Economic conditions matter, but foodservice is resilient

The economic climates in key markets are affecting consumer spending, especially in Brazil, Argentina and Venezuela, however foodservice appears to be weathering the storm better than other industries.

Value growth is still strong, even where transactions growth has slowed or halted, suggesting Latin Americans place a high priority on dining out. As demonstrated by Mexico’s “hybrid consumer” movement, they are still willing to spend on high-value dining experiences, even as they cut back in other areas.

Brazil is the Latin American foodservice growth story

Brazil continues to dominate the Latin America growth story, both literally in terms of size and figuratively in terms of focus. The market currently makes up nearly half of all foodservice value in the region, and over 2013-2018 Brazil will contribute more absolute value growth than all other major markets combined.

Diversified expansion, however, is needed

Share in Brazil is growing more and more difficult to earn, and the country’s economic difficulties mean growth has started to lag other markets in the region. To maximise future prospects, operators looking to expand must now invest in other growth markets in addition to Brazil, in order to establish a presence in markets that will pay very high dividends over the long term.

Growth is broad, though moving towards fast food

Latin America will offer average annual growth of at least 3% in all categories over 2013-2018; however fast food will be the highest at 6%. Burger, bakery products, convenience stores, and chicken fast food will be the four highest growth areas in percentage terms.

New flavours, new channels, new experiences

Latin American foodservice consumers are demonstrating growing demand for new foodservice experiences, new flavours and new service channels such as delivery and drive-through. This has led to growth in new cuisines and for new format types, a trend that will only gain momentum over the long term as these markets develop.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings

Why buy this report

• Identify factors driving change now and in the future
• Understand motivation
• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
• Take a step back from micro trends
• Get up to date estimates and comment