Spreads in Costa Rica

TRENDS

In 2017, in spite of its maturity, spreads continued to be driven by the offer of higher quality products and the rising penetration of imported and artisanal local brands, which appealed to both mid- and higher-income consumers. Claims such as reduced sugar and a higher fruit content continued to gain relevance as a broader range of mid-income buyers started to become more aware about the health benefits of reducing their daily sugar intake. In addition, the category witnessed the rising offer of honey, chocolate and nut spreads, which continued to gain ground among mid-income consumers looking for indulgence and/or functional ingredients, as well as more affordable prices, as is the case with Wal-Mart’s Great Value private label chocolate and nut spreads.

COMPETITIVE LANDSCAPE

The local company Productos Ujarrás maintained its leading position in spreads in 2017 with a 44% retail value share, benefiting from the popularity of its jams and preserves, particularly among lower- and mid-end consumers. The company also continued to profit from widespread availability and affordable unit prices. The rest of the category remained relatively fragmented, with mass players such as El Angel and the retailer Wal-Mart each accounting for an 18% value share, also benefiting from widespread availability, brand recognition and competitive unit prices which appeal to lower- and mid-end consumers. The remaining share was split between a high number of players, which often focus on niche groups of local consumers through offering value-added products. No major changes in share among the main players were seen over 2016/2017.

PROSPECTS

Over the forecast period spread manufacturers will likely focus on targeting a wider base of mid- and higher-end consumers by offering added-value and higher quality products, for example with more fruit and less sugar. As a growing number of mid- and upper-income consumers become more aware about the health benefits of reducing their sugar intake, it is likely that manufacturers will also offer a wider range of sugar-free and reduced-sugar variants, while demand for natural seed and nut-based spreads should also gain traction among similar health-conscious consumers.

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