Other Hot Drinks in Peru

2020 IMPACT

Preference for sweet products continues to determine consumer tastes

Peruvians generally prefer sweet tastes, resulting in the most popular types of other hot drinks being those with a “chocolatey” flavour and high levels of added sugar. Producers in the category usually focus on targeting children, teenagers and young adults and these are also the consumer groups which are perceived to be the most health conscious.

Nestlé brands not strongly affected by digital-only marketing

Brands such as Milo, Nesquik, Chocolisto, Kiwigen will continue to see strong performances in 2020 due to their well-established presence in traditional grocery retailers and modern grocery retailers. Nestlé, which continues to lead the category in 2020 with well-known brands Milo, Ecco and Nesquik, is generally deprioritising marketing for other hot drinks.

Traditional continues to drive sales despite boost for modern channels

Traditional grocery retailers will remain the main sales driver for other hot drinks in 2020, holding more than fourth fifths of the category even with a small decrease in share. The lost shares have been propelled towards modern grocery retailing (with hypermarkets and supermarkets seeing double digit growth and convenience stores seeing triple digit growth).

RECOVERY AND OPPORTUNITIES

Indulgence and health trends create opportunity for development in children’s products

Over the forecast period, it is expected that the separate trends towards indulgent and healthy products will continue to grow, particularly in the aftermath of COVID-19, which will lead to consumers will being more health conscious. These trends have already been influencing manufacturers over the review period, with brands such as Nestlé seeking to emphasise the nutritional elements, such as added vitamins, minerals and malt, in their advertising.

Growth of modern channel spurs manufacturers to develop marketing strategies

Due to the increased share of modern grocery retailers during 2020, manufacturers are likely to place more focus in their sales strategies on modern grocery retailers. These channels are typically large chains that are more adaptable to abrupt market changes than smaller traditional grocery retailers, thus it is important for companies to have good presence in these channels.

Sales of other plant-based hot drinks set to be boosted through health benefits and affordability of barley drinks

Other plant-based hot drinks is expected to grow over the forecast period and remain a significant category in Peru. This can mainly be attributed to the traditional popularity of a wide range of plant-based hot drinks in the country and the rise of the health and wellness trend.