Sports Drinks in Brazil

PROSPECTS

Sports drinks struggle to regain consumer interest after the economic crisis

Sports drinks are perceived as a non-essential item, and suffered during the economic crisis, when consumers had to rethink their purchasing decisions. In addition other, more natural options have emerged, thus sport drinks will struggle to recover in the forecast period.

Almost like a medicine: The challenge to expand consumption occasions

Consumers are well aware of sports drinks’ greatest benefit: rehydration. However, consumption occasions for these products have expanded in a manner in which they take on an almost medicinal role: for hangovers, digestive problems and other similar situations.

Craft sports drinks: Can this be the category solution?

Sports drinks has seen little disruptive innovation in the last decade and has seen rising concentration of the competitive landscape. A countertrend has, however, occurred on a small scale – craft products, as has already been seen in beer.

COMPETITIVE LANDSCAPE

Cia Brasileira de Bebidas continues to consolidate its leading position

Through the production and distribution of Gatorade, Cia Brasileira de Bebidas has maintained solid growth and an increasingly strong leadership position. High brand awareness and a presence in all the key distribution channels contribute to its position.

Coca-Cola maintains second position and pursues innovation

In Brazil, Coca-Cola owns two brands in sports drinks – Powerade and I9 Hidrotônico – ranking second and third in terms off-trade volume share, respectively. With a significant distance from the leading player and in a category that continues to shrink, the company has pursued innovation through the acquisition of other brands.

Small players quitting the sports drinks category

With competition increasing and growing concentration among the leading brands – especially Gatorade – small and regional players are quitting the category in order to focus on other products that can offer higher profit margins. An example is Marathon, a brand from GlobalBev in Brazil, which was removed from the market in 2016.

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