Soft Drinks - Chile

The Soft Drinks market in Chile has been experiencing significant growth in recent years.

Customer preferences: Chilean consumers have shown a growing preference for healthier and more natural beverage options. This has led to an increased demand for low-sugar and sugar-free soft drinks, as well as beverages made with natural ingredients. Additionally, there has been a shift towards functional drinks that offer added health benefits, such as fortified with vitamins and minerals.

Trends in the market: One of the key trends in the Soft Drinks market in Chile is the rising popularity of bottled water. As consumers become more health-conscious, they are opting for water as a healthier alternative to sugary beverages. This trend has been further fueled by the increasing availability of bottled water in various formats, such as flavored and sparkling options. Another trend in the market is the growing demand for ready-to-drink (RTD) coffee and tea. Chileans are increasingly seeking convenient and on-the-go beverage options, and RTD coffee and tea perfectly fit this need. These beverages offer a quick caffeine fix and are often marketed as energy-boosting options.

Local special circumstances: Chile's growing middle class and rising disposable incomes have played a significant role in the development of the Soft Drinks market. As consumers have more purchasing power, they are able to afford a wider range of beverage options. This has led to an increase in the consumption of premium and imported soft drinks, as well as the emergence of niche and artisanal brands in the market. Furthermore, Chile's favorable climate for agriculture has allowed for the production of a variety of fruits, which are often used as ingredients in soft drinks. This has led to the availability of a wide range of fruit-flavored soft drinks, catering to the local taste preferences.

Underlying macroeconomic factors: Chile's stable economy and favorable business environment have attracted foreign investment in the Soft Drinks market. This has led to the entry of international beverage companies, bringing with them their global brands and expertise. These companies have been able to leverage their resources and distribution networks to expand their market share in Chile. Additionally, Chile's growing tourism industry has contributed to the growth of the Soft Drinks market. As more tourists visit the country, there is an increased demand for soft drinks in hotels, restaurants, and other hospitality establishments. This has created opportunities for both domestic and international soft drink manufacturers to expand their presence in the market. In conclusion, the Soft Drinks market in Chile is experiencing growth due to changing customer preferences towards healthier and more natural beverage options, as well as the increasing demand for convenience and on-the-go options. The favorable macroeconomic factors and local special circumstances, such as the growing middle class and favorable climate for agriculture, have further contributed to the development of the market.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.