Sports Drinks in Brazil

PROSPECTS

Unfavourable economic situation negatively impacts sports drinks

Sports drinks retail volume sales declined for the last four years of the review period, albeit by a single digit in 2016 and 2017. While the product itself already faced some difficulties in appealing to consumers, the unfavourable economic situation made it worse for manufacturers.

Other beverages continue to conquer ground previously occupied by sports drinks

As an increasing number of consumers work on having a healthier lifestyle, their awareness about product composition and what is good or not for their health also increased. In this context, consumers are more and more critical about what they actually consume, carefully reading labels and questioning manufacturers’ high usage of artificial ingredients.

Scepticism over global sports events to boost category sales

As retail sales of sports drinks began to decelerate and decrease since 2014 – the World Cup year for soccer in Brazil – passing through the Olympic Games in 2016, it is not expected that 2018’s World Soccer Cup in Russia will have any influence in terms of change. Although producers of some brands like Gatorade are global sponsors of major events like Libertadores Soccer Cup and came up with communication campaigns related to Champions League in 2017, locally these initiatives are not expected to bring significant results among Brazilians.

COMPETITIVE LANDSCAPE

Cia Brasileira de Bebidas remains the absolute leader

Locally responsible for producing and distributing Gatorade, Cia Brasileira de Bebidas accounted for slightly more than three quarters of retail value sales in 2017. Globally and locally, the brand continues to be the most traditional supplier for professional athletes – although it is still far from the reality of a wide majority of Brazilians.

Local players withdraw from sports drinks

As the competition in sports drinks gets fiercer and more concentrated among major manufacturers, local players withdrew, aiming to invest in other soft drinks categories with higher profit margins. In 2016, GlobalBev left the category with its Marathon mass brand, aiming to better allocate resources in its portfolio.

Specialist sports players might contribute to category’s reinvention

While ready-to-drink sports drinks struggle to keep consumers interested and willing to purchase the products, some manufacturers of sports-specialised brands invest in powder concentrates and gel versions, targeting amateur and professional athletes. Although these products, specifically, still constitute a very specific niche, it might lead towards new formats and product concepts that could awaken consumer interest in the category.

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