Other Hot Drinks in Chile

PROSPECTS

Other hot drinks divided between yerba mate and flavoured powders for milk

Other hot drinks is divided into two main types of products: 1) Plant-based hot drinks or more specific to Chile, yerba mate; and 2) Flavoured powder drinks such as chocolate malt or other flavours. This means two very distinct subcategories with consumption occasions and different target consumers.

Consumers want more wholesome diets and fewer supplements

In the meantime, consumers are looking for more wholesome meals with fruit, vegetables, and other nutrient-dense food instead of enriched-only diets. This is happening progressively as consumers are more aware of their diets and move from a calorie-nutrient approach to a more holistic and lifestyle approach to diets.

COMPETITIVE LANDSCAPE

Yerba mate drives the decline of other hot drinks

The economic situation in neighbouring Argentina may be partly to blame for the decline in yerba mate sales over the review period. As fewer Argentinians travel to Chile for holidays and shopping the category faces decline in demand.

Brands still passionately consumed as healthy and lifestyle drinks

Chocolate and malt based hot drinks are positioned as healthier products to aid developing children and are staples for breakfast meals. Parents that are concerned about the nutritional intake of their children might value this positioning, however there is a predominant trend for this product to also be labelled as high in sugar or fat, which creates confusion for parents about what is the healthier option.

Competition from flavoured milks to limit category growth

One important competitor for the other hot drinks category is flavoured milk. The industry has seen development in the form of flavours and variants with strong promotion for high protein content and lactose-free products.

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