Sports and Energy Drinks in Latin America

October 2017

Sports and energy drinks is a USD4 billion market in Latin America. The region contains some markets with the highest consumption rates in the world as well as others in which the category is highly immature. Growing incomes and an increasing interest in functional benefits are boosting sales, which are on track to see strong growth in the years ahead.

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Latin America is a large market for functional soft drinks

The market for sports and energy drinks in Latin America is worth USD4 billion at retail. It continues to grow strongly, with category expansion expected everywhere except for Venezuela, as increasing numbers of Latin Americans look for drinks with functional benefits. Consumption is moderate, with large amounts of growth potential still remaining in the future.

Growth is spread throughout the region, but Mexico is the most important market

Mexico is the largest market for sports and energy drinks in the region and will continue to be so in the future, as strong growth as expected in the upcoming years. Peru, Guatemala and Chile are some of the other countries that have shown rapid growth in the recent past and should continue to do so in the future.

International brands Gatorade and Powerade dominate the sports drinks subcategory

PepsiCo’s Gatorade and Coca-Cola’s Powerade have most of the region’s sports drinks sales between them. Aggressive marketing on the part of Powerade has allowed it to steal share away from its larger rival, especially in Mexico, but Gatorade retains well over half the market at a regional level. The only country where one of the two brands is not dominant is Peru, where Aje’s Sporade is the leading brand.

The energy drinks subcategory is expanding its consumption base

A market traditionally dominated by high-priced imports such as Red Bull, energy drinks is diversifying its consumption base through the release of new and more affordable products from local companies such as Aje and Quala. The established leaders are losing share, but seeing their actual sales relatively unaffected as the local brands target new consumers rather than current drinkers of imported brands.

Introduction

Scope
Key findings

Regional Overview

Sports and energy drinks is a USD4 billion market in Latin America
Growth has been strong through the last decade
Energy drinks consumption is low in most of the region
Sports drinks consumption, meanwhile, is quite high
Coconut water blocks category expansion in Brazil
Mexico leads the region by some distance
Mexico also leads the region in growth
Income and population growth are key for sports drinks
Energy drinks are much less reliant on income growth
Falling unit prices have been a key to energy drinks growth
Mexico leads regional growth in both subcategories
Supermarkets and independent grocers are the most important channels
Key takeaways: Sports and energy drinks in Latin America

Leading Companies and Brands

Highly consolidated market is dominated by a handful of companies
PepsiCo’s lead slips but remains large
Mexico is the key geography for almost all major regional companies
Top brands stay consistent but are losing share
Gatorade remains in the lead in sports drinks
Trouble in Brazil, Mexico and Venezuela for Gatorade
Energy drinks is much more complex
Red Bull retains its base as the subcategory expands

Forecast Projections

Mexico and Peru are the key drivers of volume growth
The two subcategories are not growing evenly in most markets
Strong growth rates throughout most of the region

Country Snapshots

Mexico: Market Context
Mexico: Competitive and Retail Landscape
Brazil: Market Context
Brazil: Competitive and Retail Landscape
Chile: Market Context
Chile: Competitive and Retail Landscape
Peru: Market Context
Peru: Competitive and Retail Landscape
Argentina: Market Context
Argentina: Competitive and Retail Landscape
Colombia: Market Context
Colombia: Competitive and Retail Landscape
Venezuela: Market Context
Venezuela: Competitive and Retail Landscape
Guatemala: Market Context
Guatemala: Competitive and Retail Landscape
Dominican Republic: Market Context
Dominican Republic: Competitive and Retail Landscape
Costa Rica: Market Context
Costa Rica: Competitive and Retail Landscape
Ecuador: Market Context
Ecuador: Competitive and Retail Landscape
Bolivia: Market Context
Bolivia: Competitive and Retail Landscape
Uruguay: Market Context
Uruguay: Competitive and Retail Landscape
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