Other Hot Drinks in Mexico

PROSPECTS

Other hot drinks benefits from parents wanting to maximise their children’s milk consumption

Although the review period saw other hot drinks come under increasing scrutiny due to widespread concerns over the high sugar content of many products, much of the demand in the category is in fact based on the desire of parents to support their children’s milk intake. Specifically, flavoured powder drinks are perceived as the ideal vehicle for children to drink milk.

Concerns over high sugar content to continue suppressing the category’s growth potential

Towards the end of the review period, Mexico’s very high rate of childhood obesity came under increasing scrutiny in the media. Indeed, Mexico’s status as one of the countries with the highest rate of obese children in the world has sparked a widespread national debate over the role of food and beverages containing high levels of sugar in contributing to such an unfortunate situation.

Traditional product atole remains a popular beverage in other hot drinks

At the end of the review period, the traditional corn-based beverage atole remained a very popular type of other hot drink in Mexico. Atole is classified under other plant-based hot drinks and remains an important product in all parts of the country.

COMPETITIVE LANDSCAPE

Health and wellness underpins innovation in other hot drinks

With sales of other hot drinks still under pressure due to rising consumer concerns over the high sugar content of these products, leading manufacturers are beginning to respond by launching new versions of their existing products that are lower in sugar. January 2019 for instance saw Mead Johnson launch a new version of its leading brand Choco Milk that contains 50% less sugar.

Variety in terms of flavour remains an important marketing position

With little for the leading brands of flavoured powder drinks to distinguish themselves from their rivals, the leading names in non-chocolate flavoured powder drinks are increasingly offering their brands in a wide range of flavours to capture the attention of consumers. Among the most popular flavours in the category are vanilla, which remains the most popular, as well as strawberry and cinnamon.

Low price remains a major determinant of demand in other hot drinks

Affordability is likely to remain a strong driver of growth in sales of other hot drinks over the forecast period. One factor that has long underpinned sales in the category is that flavoured powder drinks in particular are often very low-priced products that are affordable for a wide range of consumers.

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