Yoghurt and Sour Milk Products in Guatemala

2021 DEVELOPMENTS

Retail sales growth loses some ground to foodservice in 2021

Much like cheese, yoghurt and sour milk products is expected to record robust growth in current value terms in 2021, albeit at a slower rate than that seen in 2020. Retail volume growth is also likely to be slower as foodservice recovers some sales lost during lockdown when horeca establishments remained closed.

Danone Guatemala is expected to retain the lead in 2021 due to active sales representatives in key modern grocery retailers

Danone Guatemala Ltd is expected to retain a healthy lead in yoghurt and sour milk products in 2021 with its well-known Danone, Oikos and Vitalinea brands. Oikos, which is protein-rich with a thick creamy texture that makes it ideal as a cooking ingredient, has benefited from the growing popularity of Greek yoghurt in Guatemala.

Independent small grocers gain ground in 2021, reflecting more localised shopping patterns

Although store-based retailing is expected to continue to represent all sales of yoghurt and sour milk products in Guatemala in 2021, independent small grocers is expected to gain ground as a result of more localised shopping habits during the pandemic. Forecourt retailers will also benefit from some return to on-the-go consumption as lockdown restrictions ease.

PROSPECTS AND OPPORTUNITIES

Growing competition with snacks and low refrigeration rates may hamper yoghurt over the forecast period

Over the forecast period, yoghurt may be hindered by increased competition from other snacking products, including soft drinks, which are considered viable alternatives by many consumers. The relatively high price and limited availability of yoghurt is likely to exacerbate this.

Convenient positioning of yoghurt as a breakfast and lunch option will boost performance over the forecast period

Despite facing challenges from snacking products and limited penetration of refrigerators in the country, nevertheless, many Guatemalans will continue to value yoghurt as a convenient and healthy breakfast or snacking option for children and office workers in the years ahead. The immune-boosting properties of live yoghurt may also prove popular in the wake of the COVID-19 pandemic as local consumers seek to improve their health and wellbeing.

Companies with local production plants may gain more share over the forecast period

Distribuidora Dos Pinos is expected to perform well in yoghurt and sour milk products over the forecast period thanks to its new production plant, which is set to expand the company's ability to penetrate dairy categories other than yoghurt, such as powder milk and ice cream. This development eliminated the supply issues that challenged imported brands, and Distribuidora Dos Pinos will seek to capitalise on this advantage in the coming years.