Ken Research announced its
latest publication on, “Energy Drinks Consumption Volume and Growth
Forecast to 2021-Latin America”, offer insights on the
changing trends and key issues within the Latin American Energy Drink market. The publication includes an insightful analysis of volume (M liters)
and growth (Y-o-Y) trends, consumer behavior, packaging trends, leading players
and distribution trends withinLatin American Energy Drink market. The
analysis of the aforementioned trends has been done across seventeen individual
countries in Latin America: Argentina, Bolivia, Brazil, Chile, Colombia, Costa
Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama,
Paraguay, Peru, Uruguay, and Venezuela.
Economic Environment of Latin America
Latin
America comprises of a total of twenty countries including ten republics of
South America, six republics of Central America, Mexico, Cuba, the Dominican
Republic, and Haiti. History of Latin America’s economy can be based at the
three decades after World War II, when it experienced a blooming increasing in
GDP, growing at around 5%. However, the weakness of its economic structure was
revealed in the crisis of the 1980s. This led to various reforms in economic
structure in order to come with a more stable economy which will thrive and
make it significant in international arena.
This
proved useful as Latin America went through a steady growth coming into the 21st
century with average annual growth of 4.2% from 2004 to 2013. However the
bright sunlight seems to be fading quickly, as Latin America is getting trapped
in the darkness of recession. Latin American Economy has went through a near
free fall kind of experience, with contraction in Q3’15 and Q4’15 being quoted
as the sharpest fall in last six years. The overall GDP of the region is
estimated to have decreased 1.2% y-o-y in Q1’16 suggesting overall weakness in
economy. One of the many reasons for this downfall was the dramatic drop in
commodities price, which resulted in sharp decline in export revenues of
commodity-driven Latin American economy.
The three
pillars that form the majority of region’s GDP i.e. Brazil, Ecuador and
Venezuela have been shaken. Brazil, the region’s largest economy, is
experiencing its deepest recession since the 1930s. Ecuador is also suffering
an economic breakdown due to earthquake in April’16. And lastly Venezuela seems
to be engrained in profound political and economic crisis and there is no indication
for this crisis to be over anytime in the near future. Meanwhile, in Mexico,
economic activity is on the up but at a very slow rate. Colombia’s economy,
though not at the heights where it used to be once, is relatively stable. Peru
as a result of its business-friendly economic policy framework is on a growth
cycle moving up at the top of its potential. But the impact of economic
downfall of the major countries is so severe that recession is expected to
deepen this year. As per recent analysis, the region’s economy will contract
0.4% this year, which, if true will lead to the first incident when Latin
America has registered two consecutive years of negative growth after 1982 and
1983.
Brief Overview of the Energy Drinks Market in Latin America
Energy
drinks come under the category of non-alcoholic beverages intended to energize
the consumers mentally & physically.Energy Drinks is the most dynamic
segment of the Soft Drinks market in Latin America with Brazil leading the
energy drinks market in the region capturing around one-half of the global
volume, followed by Argentina and Mexico. Chile and Colombia has also shown
significant volume growth in recent years. Increasing urbanisation and the
expanding middle (more than 50% of Latin American Population) class has been
the main influencing factors of the Latin American Energy Drinks market.
Recently, the market has gained extreme popularity, especially among young
consumers and the producers have also responded in line with the increased
demand through launch of new products with natural ingredients.
Looking at
the current landscape of the Energy Drinks market in Latin America, the market
is dominated by the regular energy drinks segment with approximately 96% market
share, rest captured by the sugar-free segment. Low price along with easy
availability of regular energy drinks helps drive growth of this segment. Red
Bull is the leading brand in the Latin American energy drinks market, followed
by Coca Cola. Regional brands also have strong presence in the market such as
Speed in Argentina and Volt and Vive100 in Colombia. Key distribution channels
through which the Latin American energy drinks are retailed include Off-premise
channels (Hypermarkets & supermarkets, convenience stores etc.) and On-premise
channels (restaurants, bars, pub etc.). The Off-premise channels including the
modern retail channelsdominate the distribution channel, reason being the
presence of a strong retail network in the region.
Major Players in Latin American Energy Drinks Market
Latin
American Energy Drinks Market is becoming highly competitive with increasing
entrance of new leading international and domestic brands in the market. The
leading market players in the market include: Petropolis, Red Bull, Guaraviton
and Coco-Cola.Other prominent vendors in the market include AJEGROUP,
Corporación Lindley, Empresas Polar, Montevideo Refrescos, Quala, Postobon,
Organique, Rad 60, Flash Power, and Flying Horse.
The fierce
market competition has encouraged market players to focus on their pricing
strategy, innovative packaging, product offerings, and distribution strategies.
Latin American Energy Drinks Market Prospects
Over the
review period (2010-2015), the Latin American Energy Drinks market has shown
robust performance in most of the countries. The positive growth trend is
expected to be followed over the years 2016-2021 as well, on account of key
driving factors: rising disposable income & expanding middle class,
modernising retail channels, sudden popularity, busy lifestyles of consumers
etc. The launch of new types of energy drinks and increasing investment in the
market by producers, higher profit margins, is expected
to fuel the Latin American Energy Drink market in coming years.The market
competition, as a result,is expected to intensify even more in future. Modern
distribution channels such as hypermarkets & supermarkets and convenience
stores will continue to expand their operations.
Especially,
Brazil is expected to continue to rule the Latin American Energy Drink market
through rocketing growth in sales volume over coming years. The launch of new
energy drinks in PET bottles and the expanding richer middle class are the key
driving factors in Brazil. Intensive advertisements and innovative packaging by
companies such as Red Bull are targeted to attract the young consumers. Also,
the 2016 Olympics to be held in Brazil is expected to boost the sales growth.
Key Topics Covered in the Report
- Detailed profile of Energy Drink Market in Latin America.
- Overall volume & growth analysis of Energy Drink Market in Latin America
- Country wise volume & growth analysis of Energy Drink Market in Latin America
- Consumer demographics, trends and behaviours
- Key consumer trends which will influence Energy Drink consumption
- Historic and forecast consumption values in the Latin AmericanEnergy Drink Market
- Competitive landscape of the Latin AmericanEnergy Drink Market
- Distribution channels & Packaging landscape of the Latin American Energy Drink Market
To know more on coverage, click on the link below:
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Contact:
Ken
Research
Ankur
Gupta, Head Marketing & Communications
+91-124-4230204
