Sports drinks are gaining a foothold in Latin America, with growing interest in health and fitness driving sales and distribution. The two largest brands, Gatorade and Powerade, continue to increase sales through dynamic marketing efforts and an already strong positioning as category staples. However, the category remains sensitive to economic disruption, as it is considered niche and non-essential, and the severe economic repercussions of the COVID-19 pandemic are impacting demand in 2020.
This report comes in PPT.
Lifestyle changes within Latin America are providing sports drinks with significant opportunities for growth. Per capita consumption is low, but an evolving fitness culture and the general association of sports drinks with health and wellness has fuelled demand. Health trends and sugar taxes are also boosting sales of reduced sugar sports drinks.
Retail volume of sports drinks in Mexico are more than three times greater than in the second largest market for the category, Peru. Despite recent sugar tax legislation, sports drinks have escaped scrutiny, and in some cases even benefited from it, due to their association with health and fitness. Consumers have begun to reach for sports drinks rather than carbonates or juices.
Sports drinks are regarded as a niche product in the region. When incomes within a country fall, it means fewer sales for the category, as it is considered non-essential. Unsurprisingly, the rapid spread of COVID-19 across Latin America is set to have a major negative impact on demand in markets such as Mexico and Brazil.
Gatorade and Powerade make up the majority of the sports drink market in Latin America. Their combined share has seen consistent growth, with Powerade gaining share at the expense of Gatorade. Regional brands have a foothold in certain countries but have tended to see their shares fall.
Growth will initially be constrained by low consumer confidence in most countries. However, the interest in fitness and health seen in 2019 can be expected to surge in response to the pandemic, to the benefit of sports drinks.
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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