Sugar confectionery is facing challenging times in Latin America, with a difficult economic situation in several countries, growing consumer health concerns, and new laws that affect sugar consumption. Companies must use innovative strategies to keep on growing in this environment, launching products that provide sensory experiences, products with portable packaging to consume anywhere and at any time, and products that offer permissible indulgence.
This report comes in PPT.
Brazil and Argentina were both plagued by economic difficulties over the review period. Growth in confectionery depends on consumers having spare disposable income, and a recession that consumers feel in their wallets is therefore going to have a direct impact on sales.
Arcor is one of the world’s leading producers of sugar confectionery, and exports to most countries in Latin America. It benefits significantly from offering a range of brands in the low- and mid-priced segments. The company has wide distribution and invests heavily in new products, and in marketing and promotional activities.
Traditional grocery retailers will remain a dominant presence, although supermarkets, hypermarkets and convenience stores are likely to make gains as they expand. In some countries, the most important channel is street kiosks (included in “other grocery retailers”), which benefit from impulse sales.
Warning labels on packaging and a general trend towards health and wellness mean that consumers are increasingly aware of the nutritional risks of sugar confectionery. Some governments have prohibited any marketing to children or the sale in schools of any product which is high in sugar, sodium, calories or saturated fat.
Consumers are limiting the consumption of sugar in order to reduce weight, to improve their appearance or for health-related reasons. Producer strategies to face health concerns include offering sensory experiences and permissible indulgence products (eg reduced sugar and functional benefits).
In packaged food we consider two aspects of food sales: 1) Retail sales. 2) Foodservice. Retail sales is defined as sales through establishments primarily engaged in the sale of fresh, packaged and prepared foods for home preparation and consumption. This excludes hotels, restaurant, cafés, duty free sales and institutional sales (canteens, prisons/jails, hospitals, army, etc). Our retail definition EXCLUDES the purchase of food products from foodservice outlets for consumption off-premises, eg impulse confectionery bought from counters of cafés/bars. This falls under foodservice sales. For foodservice, we capture all sales to foodservice outlets, regardless of whether the products are eventually consumed on-premise or off-premise. Foodservice sales is defined as sales to consumer foodservice outlets that serve the general public in a non-captive environment. Outlets include cafés/bars, FSR (full-service restaurants), fast food, 100% home delivery/takeaway, self-service cafeterias and street stalls/kiosks. Sales to semicaptive foodservice outlets are also included. This describes outlets located in leisure, travel and retail environments. 1) Retail refers to units located in retail outlets such as department stores, shopping malls, shopping centres, super/hypermarkets etc. 2) Leisure refers to units located in leisure establishments such as museums, health clubs, cinemas, theatres, theme parks and sports stadiums. 3) Travel refers to units located in based in airports, rail stations, coach stations, motorway service stations offering gas facilities etc. Beyond the scope of the foodservice research are captive foodservice units that serve captive populations around institutions such as hospitals, schools, and prisons. This is also known as institutional sales.See All of Our Definitions
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!