The traditional use of chocolate-based flavoured powder hot drinks is often linked to children’s breakfast with milk, making the category restricted demographic-wise. There is also its use in brigadeiro, covering a much broader demographic spectrum.
In October 2020, Brazil approved a new label legislation, changing how nutritional labels work and are positioned, by standardising sizes in addition to introducing an alert on the front packaging label to highlight if a product is high in sugar or sodium. This change is forcing players to develop new formulations and ingredients to prevent the impact that will likely be felt starting in 2023, when the new legislation comes into force.
Players offering other hot drinks with a health and wellness positioning need to identify ways to further expand their reach and allow the category to gain stronger penetration within hot drinks in Brazil. The first factor that should be addressed is price, which, whilst being significantly lower than rivals coffee and tea, is continuing to rise in line with high inflation rates in 2022 and is likely to continue growing over the forecast period.
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Other Hot Drinks
This is the aggregation of Flavoured Powder Drinks and Other Plant-based Powder Drinks. Products can be served hot or cold, and can be mixed with water, milk, or other liquids. Bottled, ready-to-drink flavoured milk drinks are NOT included here and are included in Passport Packaged Food.See All of Our Definitions
This report originates from Passport, our Other Hot Drinks research and analysis database.
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