There have been mixed performances among the leading markets in Latin America, with Brazil and Mexico continuing to record positive growth in 2022, but Argentina, after a slight recovery in 2021 from the steep decline in 2020, back to seeing falling sales in 2022. Inflation is hitting the Argentinian economy hard, although it is also a growing concern in most other markets. A number of countries are also bringing in new regulations for food products that are high in sugar, salt or fat.
This report comes in PPT.
Although regional growth was positive in 2022, the inflationary environment globally has been making life difficult for both industry players and local consumers in Latin America. While Brazil and Mexico, the two biggest markets, were recording positive growth in 2022, Argentina, being particularly hard hit by inflation, was back in decline, with consumers already struggling with their budgets due to the economic impact of the various COVID-19 restrictions in recent years. However, while price sensitivity has been rising, consumers were still keen to treat themselves to their favourite little indulgences, including sweet biscuits.
A number of countries in the region have introduced or are considering the implementation of regulations aimed at helping combat obesity, particularly among children, by alerting consumers to food products that are high in sugar, fat or salt, as well as to possibly restrict children’s access to such products. This could see product reformulations or greater prevalence of “mini” pack sizes to help with portion control.
While the percentage of retail value sales accounted for by e-commerce has been steadily increasing in recent years, it still remains relatively low overall in the region, and is still below 1% in some countries. Nevertheless, it is expected to continue gaining in importance. It will be helped by developments like Empório Nestlé – an online store for Nestlé products in Brazil, offering more than 1,500 types of products from the company as well as from partner brands.
Sweet biscuits, snack bars and fruit snacks will continue to see positive growth in Latin America over the forecast period, with healthy sales gains expected in all the major markets. Sweet biscuits will continue to dominate sales, although protein/energy bars will register the strongest CAGR over 2022-2027.
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