Other Hot Drinks in Uruguay

2020 IMPACT

Yerba maté drives volume sales of other hot drinks amidst the global health crisis

Yerba maté is a traditional other plant-based hot drink consumed by the masses in Uruguay. Therefore, the overall performance of the product area, and overall hot drinks, is heavily influenced by that of other plant-based hot drinks.

Canarias continues to dominate other hot drinks thanks to the success of household brand Yerba Canarias

Canarias will continue to dominate retail value sales of other hot drinks in 2020, however will see a slight value share decline. Nonetheless, the company’s products are recognised by the majority of Uruguayans, as Canarias offers the main yerba maté brand, Yerba Canarias, which is available in almost every retail store.

Flavour variations and functional qualities of yerba maté increase in popularity in 2020

Yerba maté consumption has been moving from regular yerba maté to a compound mixture of yerba maté that comes with herbs, however this is targeted at a higher income segment due to its higher price positioning. Nonetheless, the growth of yerba maté mixed with medicinal herbs is being driven by the functional positioning such as: yerba maté for anxiety, to reduce cholesterol, to reduce acid reflux, yerba maté for liver worms, and yerba maté with ginseng and gingko biloba to provide more energy.

RECOVERY AND OPPORTUNITIES

Cash-strapped consumers continue to favour yerba maté as the economy worsens due to its lower price point

The deep-rooted tradition and high popularity of consuming yerba maté is likely to maintain demand in other plant-based hot drinks, as consumers continue to suffer from economic instability and turn to less expensive hot drinks. This will help yerba maté to outperform flavoured powder drinks, although the latter will derive some benefit from the economising trend among consumers in terms of competition with RTD alternatives.

Changing consumption habits potentially poses a threat to other hot drinks

The main threat for hot drinks over the forecast period is the possibility of change in consumer preferences from typical Uruguayan products such as yerba maté, to foreign product areas such as tea or coffee. The growing number of modern specialist coffee stores is driving such a change.

Flavoured powder drinks benefits from recovered purchasing powers and increased on-the-go trends

Over the forecast period, a mild recovery in flavoured powder drinks is expected. The recovery of purchasing powers will lead to a slight increased demand of flavoured milk offerings due to its convenience.