Sugar Confectionery in Bolivia

2021 DEVELOPMENTS

Sugar confectionery sees a comeback in 2021, after decimated impulse and on-the-go sales in 2020

Sugar confectionery is seeing a rebound in 2021, after all sub-categories bar one (namely medicated confectionery) fell into negative figures in 2020. The declines seen in 2020 were due to limited mobility reducing on-the-go and impulse purchases and, as such, the relaxing of restrictions in 2021 is re-stimulating sales.

Influx of cheap imported products creates fragmentation

In an ongoing trend already witnessed in 2020, volume growth in sugar confectionery is also being supported by a proliferation of cheap products, which particularly appeal to price-sensitive consumers who are even more budget-conscious following the pandemic. This is resulting in consumers trading down and, in turn, slower price developments.

Arcor maintains its lead in fragmented category, thanks to strong packaged food background

Arcor Alimentos Bolivia SA is maintaining its company lead in the fragmented category of sugar confectionery in 2021, supported by a wide portfolio of well-positioned brands including second-placed Frutales, along with Mogul, Rellenos Arcor and Butter Cream, among others. The player also benefits from having a growing portfolio of packaged food and beverages, which it leveraged to negotiate better brand positioning at points of sale for its sugar confectionery.

PROSPECTS AND OPPORTUNITIES

Post-pandemic boost set to continue, with innovation in flavours leading the trends

It is expected that sugar confectionery will see another boost in 2021-2022, as pre-pandemic lifestyles gradually resume, before falling back down to historical growth figures for the remainder of the forecast period. These boosts to sales will come from impulse purchases, mainly by younger consumers, once they are able to be out and about again, from going to school to mixing with their friends without limitations.

Middle-class consumers support impulse purchases in confectionery

Bolivia is an expanding market for sweets, given the expansion of its middle-class consumers in recent years, which have a greater disposable income than seen in previous generations. This upcoming generation tends to purchase sugar confectionery more often, due to being more confident making impulse purchases.

Influx of Asian brands slows down, benefitting domestic economy brands

As noted in trends regarding cheap foreign products, the event of the pandemic restricted and slowed down imports and sugar confectionery of Asian origin decreased significantly. In turn, this boosted sales of domestic economy brands, which were able to appeal to the same consumer audience.