Soft Drinks in Latin America

March 2024

While the pandemic, when it first hit the region, resulted in a slight decline in off-trade volume sales of soft drinks and a steep fall in on-trade volumes in Latin America in 2020, both channels have since been recording positive growth, including in 2023. With Latin America having the biggest regional carbonates market, this category dominates sales and plays a major role in the overall soft drinks performance, which is expected to be a positive one over the forecast period.

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Key findings

Carbonates the major driver of soft drinks in Latin America

Latin America has the biggest regional market for off-trade volume sales of carbonates, with the second and third biggest country markets in Mexico and Brazil (behind only the US), and the top three countries in per capita terms in Chile, Mexico and Argentina. Since the pandemic-affected year of 2020, carbonates have been recording healthy off-trade volume growth.

New MexBeb association to spearhead the drive towards a circular economy

The National Association of Soft Drink and Carbonated Water Producers (ANPRAC) has become the Mexican Beverage Association (MexBeb). MexBeb aims to drive several industry goals to 2030, including increasing water use efficiency, reducing carbon footprint, expanding the offering of low-calorie products, and promoting a circular economy.

E-commerce share remains limited in Latin America

Small local grocers continue to be the most important distribution channel in most countries in Latin America as well as the region as whole. Discounters and atacarejo outlets have been benefiting from the high inflation putting pressure on households’ purchasing power in recent years. E-commerce remains a minor channel for retail sales of soft drinks in Latin America.

Sugar tax introduced in Colombia

The Colombian government introduced a new 10% “health tax” on food and drink products that have high levels of sugar. The tax is slated to see further rises of 5% in each of 2024 and 2025, as the country looks to tackle its increasing obesity problem. Black warning octagons had already been compulsory on the packaging of unhealthy products for a number of years.

Scope
Key findings
Strong soft drinks sales and per capita growth for Latin America in 2023
Positive, if gradually declining, growth rates expected in the coming years
Latin America has the biggest regional market for carbonates off-trade volumes
Shake-up of the Mexican non-alcoholic drinks industry
Energy drinks recording dynamic growth in Brazil over 2018-2023
Carbonates account for the bulk of new sales in Latin American soft drinks over 2018-2023
Premium and craft carbonates gaining ground in Mexico, but old favourites still hold sway
Small local grocers lead distribution of soft drinks in Latin America
Supermarkets and hypermarkets the second and third biggest channels
Competitive landscapes tend to be concentrated at a national level in Latin America
The Coca-Cola Co remains a strong leading player in Latin American soft drinks
Mexico the major market for more than half of the leading players
The Coca-Cola Co dominates the top five brands in soft drinks in Latin America
Positive but slightly slowing off-trade volume growth expected over the forecast period
Further development of zero- and reduced-sugar products expected to be seen
Argentina: Market Context
Argentina: Competitive and Retail Landscape
Bolivia: Market Context
Bolivia: Competitive and Retail Landscape
Brazil: Market Context
Brazil: Competitive and Retail Landscape
Chile: Market Context
Chile: Competitive and Retail Landscape
Colombia: Market Context
Colombia: Competitive and Retail Landscape
Costa Rica: Market Context
Costa Rica: Competitive and Retail Landscape
Dominican Republic: Market Context
Dominican Republic: Competitive and Retail Landscape
Ecuador: Market Context
Ecuador: Competitive and Retail Landscape
Guatemala: Market Context
Guatemala: Competitive and Retail Landscape
Mexico: Market Context
Mexico: Competitive and Retail Landscape
Peru: Market Context
Peru: Competitive and Retail Landscape
Uruguay: Market Context
Uruguay: Competitive and Retail Landscape

Soft Drinks

This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.

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