Key Topics Covered in the Report
- Detailed profile of Latin America’sStill Drinks Market
- Value and volume analysis of Latin America’sStill Drinks Market
- Consumer demographics, trends and behaviours
- Historic and forecast consumption in the Latin America’sStill Drinks market
- Major players in the Latin America’sStill Drinks market
- Future Prospects of the Still Drinks Market in Latin America.
Ken Research announced its latest publication on, “Still Drinks Consumption Volume and Growth Forecast to 2021-Latin America”, offering insights on Still Drinks consumption in the Latin America Market. The publication includes an insightful analysis into the operating environment for the Still Drinks market in Latin America. The countries covered in this report are Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, and Venezuela.
The country remains captured in recession since quite a few years. Latin America’s Economy contracted consecutively in the last 2 quarters of 2015 and witnessed the sharpest fall in six years in Q4 which lead to an indication of economic weakness at the beginning of the year 2016. The region’s aggregate GDP is estimated to have decreased 1.2% year-on-year in the first quarter, which continues to suggest overall weakness in the region. However, all economies in Latin America are not operating at the same stage. With some economies managing the region’s recession better than others, and are growing, while others are facing a severe economic deterioration.
Brief Overview of the StillDrinks Market in Latin America
Still Drinks are flavored ready to drink, non-carbonated products, which may be fruit or non-fruit flavored and have a juice content of 0-24.9%. Sugar, artificial flavoring and coloring may be added and which are sweetened non-carbonated water-based flavored beverages.
The global still drinks market has lost its cheap image and is booming because beverage companies are now concentrating on the premium end. The still drinks market is predicted to have a long period of sustained growth as this sector’s image of being made up of cheap, low quality drinks targeting children is being shed rapidly. Although, this category may have matured in the US, it’s very much in its growth stage in the rest of the world.
The still drinks market in Latin America has slowed down in the recent years with many factors contributing to contract consumption in key markets such as Brazil, Mexico and Venezuela. Sugar taxes in Mexico have a direct impact on the final price of such drinks and can negatively affect the sales volume. Both Brazil and Venezuela are facing economic crisis which will lead to a fall in the volume of ready to drink products.
Major Players in Still Drinks Market–Latin America
Low level of penetration in developing regions with significant growth opportunities through innovation and premiumisation apart from its image of a healthy products, has led to a large number of international and local brands entering the still drinks market. Some of the major market players are: Sucos Del Valle do Brasil (Brazil), Coca-Cola (Argentina), Ajecuador (Ecuador), Jugosdel Valle (Mexico), IndustriaLácteaVenezolana CA (Venezuela). These companies had the major market share in the spirit drinks market for their respective Latin American countries.
Fierce competition due to market saturation and low consumer switching cost has emerged as serious challenges to the market players, hence manufacturing companies’ carefully strategize their activities related to shelf placement, brand building, innovation and advertisement through digital platform, campaigns & print media.
Still Drinks Market in Latin America Prospects
In the review period (2010-2015), due to falling commodity prices, particularly oranges, diminishing popularity of still drinks among consumers and lack of marketing strategies as compared to big soft drink companies; the still drinks market, suffered from a strong decline in sales volume with negative CAGR. Over the next five years, 2016-2021, the decline in sales volume is expected to further continue in coming years as well; however the performance of the market is forecasted to be better in the sense that the decline in sales will be less as compared to previous years’ decline.
However with more and more companies entering the premium still drinks products market, there is risk losing the good image of premium products in the eyes of consumer in the coming years, as excessive influx of premium products may confuse the consumers, make premium products trivial and hence finish the interest of brand-conscious consumers in them. Price war as a result of fierce competition has also resulted in declining sales value; hence in coming years, manufacturers’ are expected to strategize upon increasing sales value apart from sales volume. The region has world class iron ore deposits that are being explored substantially.
The various factors contributing toincrease demand from consumers are busy lifestyle, health awareness, fading away of the image of cheap product, low unemployment rates and growth and expansion of the market through premiumisation, innovation & advertisements to overcome the maturity of the market.
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Ankur Gupta, Head Marketing & Communications