Soft Drinks - South America

The Soft Drinks market in South America has been experiencing significant growth in recent years. Customer preferences in the region have shifted towards healthier beverage options, with consumers becoming more conscious about their health and wellness. As a result, there has been a growing demand for low-sugar and natural ingredient drinks. This shift in preferences has led to an increase in the consumption of bottled water, flavored water, and natural fruit juices. Additionally, there has been a rise in the popularity of functional beverages such as energy drinks and sports drinks, as consumers seek beverages that provide specific health benefits. One of the key trends in the South American Soft Drinks market is the increasing popularity of local and regional brands. Consumers are showing a preference for products that are produced locally, as they perceive them to be more authentic and of higher quality. This trend has created opportunities for local players to gain market share and compete with international brands. In response, multinational companies are increasingly focusing on developing products that cater to the specific tastes and preferences of the South American market. Another trend in the market is the growing demand for ready-to-drink (RTD) beverages. Busy lifestyles and the convenience factor have led consumers to opt for pre-packaged drinks that can be consumed on the go. This has resulted in a rise in the consumption of canned and bottled soft drinks, as well as RTD coffee and tea. Manufacturers are capitalizing on this trend by introducing new flavors and packaging formats to attract consumers. Local special circumstances in South America also play a role in shaping the Soft Drinks market. For example, the region has a large young population, which is a key consumer group for soft drinks. Additionally, South America has a diverse climate, with some countries experiencing hot and humid weather year-round. This creates a high demand for refreshing beverages, such as carbonated soft drinks and iced teas. Underlying macroeconomic factors have also contributed to the growth of the Soft Drinks market in South America. Rising disposable incomes and urbanization have led to an increase in consumer spending on beverages. Furthermore, the expanding middle class in the region has resulted in a larger consumer base for soft drink manufacturers. In conclusion, the Soft Drinks market in South America is experiencing growth due to shifting customer preferences towards healthier options, the popularity of local and regional brands, the demand for ready-to-drink beverages, local special circumstances, and underlying macroeconomic factors. Soft drink manufacturers in the region need to adapt to these trends and cater to the specific needs and preferences of South American consumers in order to capitalize on the growing 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.