The Coronavirus pandemic has radically transformed the economic and consumer landscape of Latin America. It has changed the way consumers live, work and shop. Increased time at home, price-sensitive consumers, a focus on mental wellbeing and sustainability, as well as reliance on e-commerce are all themes discussed in this report. This “new normal” will present packaged food companies with significant challenges but also opportunities for innovation and growth.
This report comes in PPT.
Restrictions on foodservice outlets, increased working/learning from home and a lack of disposable income will continue to shift meal occasions into the home. This translates to more time dedicated to breakfasts, a heightened need for convenience in preparing lunch and dinner, and an entirely new generation of “chefs” to support and inspire.
Health has become a holistic concept. While functional foods that support immune health offer potential, so do those that bring enjoyment through permissible indulgence or that foster emotional wellbeing by helping to support the community.
Latin America will not experience a full economic recovery, and its biggest losers will be the region’s lower middle classes, who are in danger of falling into poverty. Reduced disposable income and increased unemployment mean that a segment of consumers will prefer value for money options, private label, and economy products. Discounters in the region will also be set for growth.
E-commerce in Latin America has expanded more in 2020 than was forecast for the next decade. Consumers increasingly value the ability to shop from home while social distancing, and the migration to digital will remain. Packaged food companies should embrace digital culture for e-commerce and marketing.
Latin America is the region of the world most affected by the pandemic economically. Therefore, identifying new export markets will provide opportunities for growth. And although many consumers will prefer local products, others will look to replace international travel with imported food.
In packaged food we consider two aspects of food sales: 1) Retail sales. 2) Foodservice. Retail sales is defined as sales through establishments primarily engaged in the sale of fresh, packaged and prepared foods for home preparation and consumption. This excludes hotels, restaurant, cafés, duty free sales and institutional sales (canteens, prisons/jails, hospitals, army, etc). Our retail definition EXCLUDES the purchase of food products from foodservice outlets for consumption off-premises, eg impulse confectionery bought from counters of cafés/bars. This falls under foodservice sales. For foodservice, we capture all sales to foodservice outlets, regardless of whether the products are eventually consumed on-premise or off-premise. Foodservice sales is defined as sales to consumer foodservice outlets that serve the general public in a non-captive environment. Outlets include cafés/bars, FSR (full-service restaurants), fast food, 100% home delivery/takeaway, self-service cafeterias and street stalls/kiosks. Sales to semicaptive foodservice outlets are also included. This describes outlets located in leisure, travel and retail environments. 1) Retail refers to units located in retail outlets such as department stores, shopping malls, shopping centres, super/hypermarkets etc. 2) Leisure refers to units located in leisure establishments such as museums, health clubs, cinemas, theatres, theme parks and sports stadiums. 3) Travel refers to units located in based in airports, rail stations, coach stations, motorway service stations offering gas facilities etc. Beyond the scope of the foodservice research are captive foodservice units that serve captive populations around institutions such as hospitals, schools, and prisons. This is also known as institutional sales.
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