Ice Cream and Frozen Desserts in Latin America

February 2021

With the loss of impulse and on-the-go consumption occasions during 2020 due to Coronavirus (COVID-19), impulse ice cream saw a marked decline in sales, resulting in a negative performance by the overall market in this year. However, take-home ice cream was able to record positive growth, as more consumption moved into the home environment. An immediate return to positive growth is expected, with the sales increases improving over the course of the forecast period.

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Key Findings

Difficult historic period

Ice cream and frozen desserts had a troubled 2015-2020 period, with Brazil only emerging from recession at its start, Argentina experiencing economic difficulties towards its end, Chile (and other countries) hit by social unrest and the virtual collapse of the Venezuelan market. This meant relatively strong declines in two of the four years before 2020 – and then COVID-19 hit the region. A sales fall of 5% in 2020 and a negative 3% CAGR in 2015-2020 were the result.

Pandemic hits impulse ice cream

Impulse ice cream, which makes up around two thirds of overall market retail value, was unduly hit by the COVID-19 virus and the measures taken to try and contain its spread across the region. Although grocery stores were allowed to remain open, other retail outlets had to close, and people were out and about in public a lot less than usual, significantly reducing consumption occasions for impulse products and therefore also their sales.

Lockdowns drive take-home ice cream sales

On the other hand, take-home ice cream – with consumers spending much more time in their homes than usual due to lockdowns, quarantines and remote working/learning – actually turned in a much better performance than a year earlier during 2020, driven in particular by bulk dairy ice cream.

Swift recovery expected

A regional CAGR of 2% is expected over 2020-2025, with all product areas recording positive CAGRs. Take-home ice cream will continue to see positive growth, while impulse ice cream will return to recording increasing sales from 2022. The much smaller frozen desserts and frozen yoghurt categories will also return to positive growth territory – although the latter’s sales in 2025 will still be only around half those registered in 2019.

 

Introduction

Scope
Key findings

Regional Overview

Latin America the worst performer worldwide
Positive CAGR expected over the 2020-2025 period
Poor weather in Brazil and social unrest in Chile add to COVID-19 woes
Impulse ice cream sales badly affected by the pandemic in 2020
Brazil’s declining impulse ice cream sales make up half of regional losses
Take-home ice cream’s 2020 sales see a slight spike during the pandemic
Traditional grocery retailers still dominate retail sales
Independent small grocers the leading distribution channel

Leading Companies and Brands

High levels of concentration in many countries
Froneri continues gaining share
Costa Rica and Guatemala among the key markets for the top 10 players
Nestlé and Holanda move up the rankings in 2020

Forecast Projections

Decline in sales in 2020 due to the impact of COVID-19
Immediate recovery expected from 2021

Country Snapshots

Argentina: Market Context
Argentina: Competitive and Retail Landscape
Bolivia: Market Context
Bolivia: Competitive and Retail Landscape
Brazil: Market Context
Brazil: Competitive and Retail Landscape
Chile: Market Context
Chile: Competitive and Retail Landscape
Colombia: Market Context
Colombia: Competitive and Retail Landscape
Costa Rica: Market Context
Costa Rica: Competitive and Retail Landscape
Dominican Republic: Market Context
Dominican Republic: Competitive and Retail Landscape
Ecuador: Market Context
Ecuador: Competitive and Retail Landscape
Guatemala: Market Context
Guatemala: Competitive and Retail Landscape
Mexico: Market Context
Mexico: Competitive and Retail Landscape
Peru: Market Context
Peru: Competitive and Retail Landscape
Uruguay: Market Context
Uruguay: Competitive and Retail Landscape
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