Sweet Biscuits, Snack Bars and Fruit Snacks in Bolivia

PROSPECTS

Snack bars boosted by rising health awareness and government initiatives

Snack bars continued to record solid growth in both retail volume and current value terms in 2019, with the category benefiting from increasing health awareness as to the importance of a balanced diet. Indeed, ever busier lifestyles mean consumers have less time to eat at home and so are looking for healthy alternatives to eat while on the go as a snack in-between meals or even as an alternative to breakfast.

Fruit snacks hampered by high prices and cautious spending

Although still posting positive results in both retail volume and current value terms, the growth of fruit snacks continued to slow in 2019 as a result of both more cautious consumer spending due to economic deceleration and the lack of a clear marketing message. Indeed, sales are being impacted by the inclusion of dried fruit in snack bars, cookies and trail mixes.

Sweet biscuits dominate thanks to low prices and widespread distribution

Sweet biscuits continued to account for the vast majority of the wider category’s retail value and volume sales in 2019. Sweet biscuits are mostly supplied by local companies, some of which have been acquired by multinationals and which have developed strong distribution networks.

COMPETITIVE LANDSCAPE

Industrias Alimenticias Fagal remains clear leader thanks to low prices and wide range

In 2019, sweet biscuits, snack bars and fruit snacks continued to be led by Industrias Alimenticias Fagal as a result of its dominance in sweet biscuits, by far the largest category. The company, which was founded in 1985 as a baked goods manufacturer, has been owned by multinational Nestlé since 2012.

Arcor strengthens thanks to direct distribution control

Albeit a long way behind the leading player Industrias Alimenticias Fagal, second-ranked Arcor Alimentos Bolivia continued to slowly grow its value share in sweet biscuits in 2019. This can be partly attributed to the company seeking to strengthen its operations in Bolivia by taking control of the distribution of all of its products, with distribution previously having been split between itself and Promotora de Eventos (PROESA).

Domestic products prevail thanks to low prices, with imports challenged by contraband

Domestic brands remained more popular than imported ones in sweet biscuits, snack bars and fruit snacks in 2019. This is because local companies have the advantage of lower operating costs and have focused on innovation and imitating existing products.

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