After seeing declining sales due to the pandemic in 2020, Latin America enjoyed three years of solid growth until 2024, when the increase in sales dipped at a regional level, negatively impacted by the shrinking of the Argentinian market due to the tough economic climate in this country. However, positive growth is expected across the region from 2025, boosted by Latin America housing two of the three biggest carbonates country markets globally in Mexico and Brazil.
This report comes in PPT.
While Mexico and Brazil continued to power ahead in 2024 in terms of both off- and on-trade sales, the soft drinks market in Argentina registered marked declines in both volume and value terms in this year. Austerity measures implemented by the new president as well as still sky-high inflation were significantly impacting consumers’ purchasing power in Argentina in 2024.
Small local grocers continue to lead distribution in many markets across Latin America, including its biggest in Mexico. However, supermarkets/hypermarkets dominate sales in Brazil, the number two market, and, in combination, also outsell small local grocers in Argentina, although the latter was regaining some share in 2024 in this country with the scrapping of the Precios Justos price control programme, which had tended to favour modern grocery retailers.
Health and wellness continues to play a key role in soft drinks product innovation in Mexico. New product launches emphasise the functionality of specific ingredients, and have included more specific claims that target certain audiences, eg Volt Pink, an energy drink with collagen and aloe vera that is targeted at female consumers. Other popular claims in 2024 have included extra hydration, natural ingredients, and fortification with vitamins.
Some products (eg energy drinks, carbonates with added sugar, industrialised juices) in the Brazilian market could be impacted in the coming years by proposals to implement a so-called sin tax in 2025. This would see taxes on basic and natural foods reduced and taxes increased on overprocessed foods and other products considered to carry health risks.
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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