Sports Drinks in Brazil

PROSPECTS

Sports drinks not expected to recover over forecast period

Off-trade volume sales of sports drinks continue to decline in Brazil, although less quickly than over the historical period, when sales were negatively affected by the economic situation. As the Brazilian economy shows timid signs of economic recovery, consumers are less conservative about spending on products that they consider non-essential.

Soft drink or medicine: Challenge to reposition category

Rehydration is, by far, the most important attribute of sports drinks and Brazilians are aware of that. However, with a limited number of Brazilians actually practising sports on a regular basis - the direct target for this product - consumption occasions have evolved mainly towards some kind of medicinal purpose: such as hangovers and digestive issues.

Competition from health supplements set to increase

For the limited portion of Brazilians who actually practise any kind of sport, the preference for clearly positioned health supplements is significant. The popularisation and increasing penetration of specialist stores contributes to promote a culture of health supplements being consumed on a daily basis, with clear claims on health benefits.

COMPETITIVE LANDSCAPE

Cia Brasileira de Bebidas remains absolute category leader

Gatorade, produced and distributed in Brazil by Cia Brasileira de Bebidas, remains the absolute category leader in 2019, with a growing presence in off-trade volume terms. Such consolidation is aligned with the price pressure employed by the manufacturer, inhibiting other players from competing on price.

Small players continue to exit category

With so many positioning challenges and increasing consolidation by the category leader, small players are discouraged from continuing in sports drinks. The aggregation of small players has decreased consistently over the review period, reinforcing the movement to exit the category.

Files are delivered directly into your account within a few minutes of purchase.