Sweet biscuits, which still dominate overall sales, have been experiencing an unexpected spike in demand in 2020 with consumers looking for treats and tasty snacks during periods of home seclusion due to Coronavirus (COVID-19). Fruit snacks were continuing to see growth in 2020, appealing to consumers looking for convenient and healthy snacks. However, protein/energy bars and fruit and nut bars were going into reverse in 2020 as people had less call for on-the-go products.
Sweet biscuits, which dominate overall market sales in the region, were enjoying a sales spike in 2020, with more consumption occasions moving into homes with people locked down or quarantining and working/learning remotely. This was helping drive the overall market performance in 2020, after growth rates had dipped into negative territory in a number of years during the historic period.
Snack bars had been recording disappointing performances in recent years, which did not change in 2020, with a drop in demand among consumers for on-the-go snacks during the pandemic. However, sales will rebound from 2021, particularly for protein/energy bars, which had already been recording dynamic growth prior to 2020, with fruit and nut bars also set for strong growth. Protein/energy bars were also being hit by the closure of gyms and fitness centres during 2020.
Fruit snacks are products that fit very well with the burgeoning health trend in Latin America. They offer consumers convenient naturally healthy snacks, with further growth expected as health and wellness becomes ever more important.
A 2% CAGR is expected over 2020-2025. Snack bars and fruit snacks will record more dynamic 4% CAGRs, but the more mature sweet biscuits will also register a positive 2% CAGR over the forecast period. New legislation is expected to be approved in 2021 by ANVISA in Brazil for new labelling in a traffic light format, indicating low (green), medium (yellow) or high (red) content of potentially harmful nutrients, such as sugar. Similar systems are either already in place or in the pipeline in other Latin American countries. This could put pressure on players in the region to develop more low-sugar or all-natural products in this market.
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