Soup in Costa Rica

2021 DEVELOPMENTS

Soup continues to benefit from demand for convenient at-home meal options

In 2021, demand for soup has continued to be supported by the increased amount of time that consumers have spent at home due to the COVID-19 crisis and developments such as the marked increase in remote working. As a result, local consumers have continued to look for convenient, affordable and flavourful daily food options to prepare at home.

Economic uncertainty increases demand for value-for-money propositions

Brand-recognition (primarily for Maggi and Knorr), point-of-sale availability, traditional flavours (such as chicken and beef) and, in particular, pricing continue to be the primary factors shaping demand for soup in Costa Rica. The general economic uncertainty resulting from the COVID-19 crisis and experienced by the majority of middle- and lower-income local consumers continues to increase the relevance of value-for-money propositions.

Nestlé and Unilever remain dominant

Soup sales in Costa Rica continue to be dominated by the traditional products offered by the international players Nestlé, with its Maggi brand, and Unilever, with its Knorr brand. They continue to benefit from being top-of-mind brands that have wide distribution networks through both modern and traditional store-based grocery retailers.

PROSPECTS AND OPPORTUNITIES

Growing emphasis on added-value products and natural ingredients

Value for money and convenient preparation claims will continue to benefit dehydrated and instant soup products at modern and traditional store-based grocery retailers across the country into the forecast period. These products are targeted at middle- and lower-income consumers looking for appealing and easy-to-prepare formats at very affordable unit prices.

Increasingly specialised value propositions

Fresh and chilled soup options prepared and sold directly by retailers such as high-end supermarkets and convenience stores are set to gain momentum over the forecast period. More specialised value propositions such as soup kits and fresh bone broths are also expected to see significant growth, in particular those capable of adopting differentiation claims such as using pasture-raised meat and/or organic vegetable ingredients, which will be perceived as health foods by a growing range of middle- and higher-income consumers.

Shifts in distribution and growing number of players

Soup is likely to see a shift in the distribution landscape during the forecast period, with the recovery of foodservice dampening demand across grocery retailers, while opening new development opportunities for more specialised value propositions, such as fresh bone broth and products using organic vegetable stock. In this scenario, besides modern grocery retailers’ efforts to keep up with innovation and demand for more convenient and ready-to-eat products, smaller-scale, niche-orientated, local soup manufacturers are likely to find new alternatives across direct online retail platforms.