Chocolate Confectionery in Latin America

February 2021

Chocolate confectionery has been struggling in 2020, hit by quarantines and closures as well as the loss of impulse and on-the-go consumption occasions due to Coronavirus (COVID-19). Some of this has been offset by increasing at-home consumption, helping products such as tablets, countlines and chocolate pouches and bags to perform well. However, seasonal chocolate and boxed assortments have been severely hit by an Easter spent in lockdown and the loss of many gifting occasions.

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This report comes in PPT.

Key Findings

Chocolate as a treat for homebound consumers

Certain chocolate products – tablets, countlines, pouches and bags – were in demand among consumers during 2020 as consumers looked for affordable treats whilst spending much longer than normal at home, due to lockdowns/quarantines and remote working/learning.

Pandemic hits sales of some products

At an overall market level, however, chocolate confectionery sales were in decline in 2020, hit by the major falls seen in categories like boxed assortments, seasonal chocolate and chocolate with toys. These products tend to have higher prices, not ideal with consumers struggling financially due to the pandemic and generally prioritising more essential purchases. They were also suffering from reduced gifting occasions as well with COVID-19 hitting the region around Easter time.

Boxed assortments set to rebound

Boxed assortments will see a strong rebound in 2021 and, like chocolate with toys, will record positive growth throughout the forecast period. Products in the market will also benefit from the return of more impulse sales as people’s habits return to normal in the post-pandemic period. Consumers will be commuting to work again and people will also be travelling once more, increasing the need for on-the-go snacking.

Healthy growth rates expected

A regional CAGR of 3% is expected over 2020-2025, with all product areas recording positive CAGRs. Boxed assortments will be most dynamic, albeit partly down to its strong rebound in 2021 after the sharp decline in 2020. A number of countries in the region are introducing on-pack warning systems to highlight products with high levels of potentially harmful content. While this could put some pressure on players to develop healthier products, it is not expected to have a major impact on chocolate confectionery over the forecast period.

Scope
Key findings
Latin America recording the worst performances globally
Rebound expected in 2021 after the decline seen in 2020
Collapse in seasonal chocolate and boxed assortments sales
Turnaround in tablets performance in 2020
Brazilian losses undermine the overall region’s performance
Pandemic has a mixed impact on chocolate confectionery in 2020
Independent small grocers still the main distribution channel
E-commerce records explosive growth in Latin America in 2020
High levels of concentration in the major markets
Mars continues to record steady growth in Latin America
Brazil and Mexico are key markets for the top 10 players
Carlos V and Snickers continue to climb the rankings
Chocolate confectionery to rebound with positive growth from 2021
Boxed assortments firmly back on a growth path from 2021
Argentina: Market Context
Argentina: Competitive and Retail Landscape
Bolivia: Market Context
Bolivia: Competitive and Retail Landscape
Brazil: Market Context
Brazil: Competitive and Retail Landscape
Chile: Market Context
Chile: Competitive and Retail Landscape
Colombia: Market Context
Colombia: Competitive and Retail Landscape
Costa Rica: Market Context
Costa Rica: Competitive and Retail Landscape
Dominican Republic: Market Context
Dominican Republic: Competitive and Retail Landscape
Ecuador: Market Context
Ecuador: Competitive and Retail Landscape
Guatemala: Market Context
Guatemala: Competitive and Retail Landscape
Mexico: Market Context
Mexico: Competitive and Retail Landscape
Peru: Market Context
Peru: Competitive and Retail Landscape
Uruguay: Market Context
Uruguay: Competitive and Retail Landscape

Packaged Food

In packaged food we consider two aspects of food sales: 1) Retail sales. 2) Foodservice. Retail sales is defined as sales through establishments primarily engaged in the sale of fresh, packaged and prepared foods for home preparation and consumption. This excludes hotels, restaurant, cafés, duty free sales and institutional sales (canteens, prisons/jails, hospitals, army, etc). Our retail definition EXCLUDES the purchase of food products from foodservice outlets for consumption off-premises, eg impulse confectionery bought from counters of cafés/bars. This falls under foodservice sales. For foodservice, we capture all sales to foodservice outlets, regardless of whether the products are eventually consumed on-premise or off-premise. Foodservice sales is defined as sales to consumer foodservice outlets that serve the general public in a non-captive environment. Outlets include cafés/bars, FSR (full-service restaurants), fast food, 100% home delivery/takeaway, self-service cafeterias and street stalls/kiosks. Sales to semicaptive foodservice outlets are also included. This describes outlets located in leisure, travel and retail environments. 1) Retail refers to units located in retail outlets such as department stores, shopping malls, shopping centres, super/hypermarkets etc. 2) Leisure refers to units located in leisure establishments such as museums, health clubs, cinemas, theatres, theme parks and sports stadiums. 3) Travel refers to units located in based in airports, rail stations, coach stations, motorway service stations offering gas facilities etc. Beyond the scope of the foodservice research are captive foodservice units that serve captive populations around institutions such as hospitals, schools, and prisons. This is also known as institutional sales.

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