Emerging Food and Drinks Markets in Latin America: Fast growth and maturing countries and product markets

Latin America is experiencing wide scale demographic changes and unprecedented levels of urbanization. The region largely suffers from low per capita expenditure with many countries suffering wide scale poverty.
The report provides a scorecard that measures the most promising markets. Some of the top-rated countries are then explored in more depth, providing insight into the opportunities and risks in their food and drinks markets. ‘Emerging Food and Drinks Markets in Business Insights’ is a new management report published by Business Insights that assesses Latin America across 8 food and drinks metrics, including market size, market growth, per capita spend, population, market intensity, commercial infrastructure and social structures. Each market is rated for each individual metric and an overall score produced to allow a final ranking. Key countries are examined in depth to assess the risks and opportunities in their food and drinks markets.
This analysis has enabled Business Insights to analyse market attractiveness and maturity of 8 countries, in order to identity future growth opportunities and risks for food and drinks manufacturers.

Key features of this report

• Gathers and analyzes the most recent data relating to 7 emerging food and drinks markets across 7 different metrics.
• Uses market value data to analyze market size, growth and per capita spend on food and drinks in each country.
• Analyses emerging markets in an overall scorecard, arriving at a list of the most attractive emerging food and drinks markets. Uses population, GNI, GDP and other indicators to come to the overall ranking in the scorecard.
• Explores the top five ranked countries in depth, including regional and country-specific market drivers and key trends within the country's food and drinks market.
• Examines the market value and growth of the dairy, soft drinks, savory snacks and bakery and cereals markets in each of the top five ranked countries in order to pinpoint key opportunities for manufacturers in each category.

Scope of this report

• Provides an easy to understand ranking of 7 emerging food and drinks markets.
• Provides insight to the food and drink manufacturer when deciding to enter a specific emerging food and drinks market.
• Analyzes the key trends being followed in the top five emerging food and drinks markets.
• Analyses the key market drivers of emerging regions and the top five emerging food and drinks market.
• Analyses four specific food and drinks categories in the top five emerging food and drinks markets.

Key findings from this report

? Latin America is experiencing wide scale demographic changes and unprecedented levels of urbanization. The region largely suffers from low per capita expenditure with many countries suffering wide scale poverty.
? Regulatory rules tightened during the recession protect domestic producers and limit potential of new players who do not secure affiliations with local companies.
? Much of Latin America is characterized by a relatively young age profiles. Younger consumers bring many demands but are receptive to new products and marketing, and will challenge traditions more readily.
? Penetration of new technologies is increasing in Latin America but typically remains behind the western world.
? Future market growth is expected to marginally trail that of current levels although by category it is a more positive picture.
? Per capita expenditure growth is mixed throughout the region with pockets of strong growth expected (Peru, Uruguay) but also areas of slower growth in the more mature markets (Brazil and Mexico).

Key questions answered

• What are the most attractive emerging food and drinks markets in Latin America?
• What are the key market drivers in the most attractive emerging and mature food and drinks markets in Latin America?
• Which food and drinks categories are most attractive in Latin America?
• Which trends are most apparent in the most attractive emerging food and drinks markets in Latin America?
• Which of the 8 countries present the most opportunity / risk for food and drinks manufacturers?
• How are leading players in Latin America, driving growth and innovation in their particular categories?
• What 7 metrics have been used in our analysis?



Report Highlights

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Table of Contents
Emerging Food and Drinks Markets in Latin America
Executive summary 10
Macro overview 10
Country attractiveness 11
Category analysis 12
Chapter 1 Introduction 14
The aim of this report 14
Countries covered 14
Overall picture/overview 15
Country attractiveness - definitions and methodology 15
Clarification of specific metrics 16
Methodology for the scoring system 17
Category review/overview 18
Chapter 2 Macro overview 20
Summary 20
Introduction 20
Market drivers 21
Latin America – Retail landscape 24
By country 26
Economic landscape 29
Social demographic landscape 33
Technological landscape 37
Current market growth 40
Current category growth 41
Current per capita expenditure 42
Country overview 43
Argentina 43
Brazil 44
Chile 44
Colombia 45
Mexico 45
Peru 46
Uruguay 46
Venezuela 47
Common trends influencing the market 48
Health & wellness 48
Urbanization 49
Environment 49
Changing life roles 50
Saving time and convenience 50
Quality and value 50
Chapter 3 Country attractiveness 54
Summary 54
Introduction 54
Final country overview 55
The high scorers 57
Market intensity and size 57
Market growth and infrastructure 58
Population, per capita spend and social structures 59
Country analysis 60
Market maturity and attractiveness 60
Per capita spend versus population 61
Market size versus per capita spend on food and drinks 62
Growth of the food and drinks market versus per capita spend on food and drinks 63
Growth of the key food and drinks market versus market intensity 64
Market growth versus commercial infrastructure 65
Country analysis 67
Low risk, high market attractiveness 67
Low risk, low market attractiveness 68
High risk, low market attractiveness and high risk, high market attractiveness 69
Country analysis - Conclusions 69
Chapter 4 Category analysis 72
Summary 72
Introduction 72
Alcoholic drinks 73
Market size and growth 73
Per capita expenditure 76
Category size and growth 78
Retail distribution 80
Major players 81
Major brands 83
Soft drinks 85
Market size and growth 85
Per capita expenditure 87
Category growth and size 90
Market distribution 92
Major players 93
Major brands 95
Bakery & cereals 96
Market size and growth 96
Per capita expenditure 98
Category growth and size 100
Market distribution 102
Major Players 103
Dairy 104
Market size and growth 104
Per capita expenditure 106
Category growth and size 108
Market distribution 110
Major players 111
Confectionery 114
Market size and growth 114
Per capita expenditure 115
Category growth and size 117
Market distribution 119
Major players 120
Major brands 121
Savory snacks 122
Market size and growth 122
Per capita expenditure 123
Category growth and size 125
Market distribution 127
Major players 128
Chapter 5 Conclusions 132
Introduction 132
Country attractiveness 132
Market attractiveness 132
Risk versus reward 133
Category specific analysis 134
Alcoholic drinks 134
Soft drinks 134
Bakery and cereals 135
Dairy 135
Confectionery 136
Savory snacks 136
Index 137
List of Figures
Figure 2.1: Gini coefficient by country (%), 2008 22
Figure 2.2: Overall share of retail channels in Latin America (%), 2003-8 24
Figure 2.3: Share of retail channels in Latin America by country (%), 2008 27
Figure 2.4: GDP ($bn), 2008 and GDP growth in Latin America (%), 2003-8 31
Figure 2.5: GDP per household ($bn), 2008 vs GDP per household growth in 32
Figure 2.6: Population in Latin America countries (m), 2008 33
Figure 2.7: Population growth in Latin America (%), 2003-8 37
Figure 2.8: Internet users as % of total population, 2008 38
Figure 2.9: Number of TV sets per 100 people in Latin America versus GDP, by country, 2003-8 39
Figure 2.10: Mobile phone ownership per 100 people in Latin America by country, 2008 40
Figure 2.11: Historic and forecast country market growth (%), 2003-13 41
Figure 2.12: Historic and forecast product market growth (%), 2003-13 42
Figure 2.13: Per capita expenditure ($), 2008 versus per capita expenditure growth (%), 2003-08 43
Figure 3.14: Population size versus per capita spend on key food and drinks ($), 2008 61
Figure 3.15: Food and drinks market size (score), 2008 versus per capita expenditure on food and drinks (score), 2008 63
Figure 3.16: Food and drinks market growth (score), 2003-2008, versus per capita expenditure on food and drinks (score), 2008 64
Figure 3.17: Food and drinks market growth (score), 2003-2008, versus market intensity (score), 2008 65
Figure 3.18: Market growth versus commercial infrastructure (%), 2008 66
Figure 3.19: Overall market risk versus reward, 2008 67
Figure 4.20: Alcoholic drinks market value by country ($m), 2008 74
Figure 4.21: Alcoholic drinks market value ($m), 2008, versus 75
Figure 4.22: Alcoholic drinks market value ($m) versus per capita expenditure ($), 2008 76
Figure 4.23: Alcoholic drinks per capita expenditure ($), 2008 versus market value CAGR (%), 2008-2013 78
Figure 4.24: Share of alcoholic drinks market value by category (%), 2005 and 2009 79
Figure 4.25: Alcoholic drinks category value ($m), 2008 versus category value CAGR (%), 2008- 2013 80
Figure 4.26: % share of alcoholic drinks distribution, 2008 81
Figure 4.27: Soft drinks market value by country ($m), 2008 85
Figure 4.28: Soft drinks market value ($m), 2008 versus CAGR (%), 2008-2013 87
Figure 4.29: Soft drinks market value ($m) versus per capita expenditure ($), 2008 88
Figure 4.30: Soft drinks per capita expenditure ($), 2008 versus market value CAGR (%), 2008- 2013 89
Figure 4.31: Share of soft drinks market value by category (%), 2005 and 2009 91
Figure 4.32: Soft drinks category value ($m), 2008 versus category value CAGR (%), 2008-2013 92
Figure 4.33: % share of soft drinks distribution, 2008 93
Figure 4.34: Bakery & cereals market value by country ($m), 2008 96
Figure 4.35: Bakery & cereals market value ($m), 2008 versus CAGR (%), 2008-2013 97
Figure 4.36: Bakery & cereals market value ($m) versus per capita expenditure ($), 2008 99
Figure 4.37: Bakery & cereals per capita expenditure ($), 2008 versus market value CAGR (%), 2008-2013 100
Figure 4.38: Share of bakery & cereals market value by category (%), 2005 and 2009 101
Figure 4.39: Bakery & cereals category value 2008, ($), versus category value CAGR 2008-13, (%) 102
Figure 4.40: % share of bakery and cereals distribution, 2008 103
Figure 4.41: Dairy market value by country ($m), 2008 105
Figure 4.42: Dairy market value ($m), 2008 versus CAGR (%), 2008-2013 106
Figure 4.43: Dairy market value ($m) versus per capita expenditure ($), 2008 107
Figure 4.44: Dairy per capita expenditure ($), 2008 versus market value CAGR (%), 2008-2013 108
Figure 4.45: Share of dairy market value by category (%), 2005 and 2009 109
Figure 4.46: % share of Dairy distribution, 2008 110
Figure 4.47: Confectionery market value by country ($m), 2008 114
Figure 4.48: Confectionery market value ($m), 2008 versus CAGR (%), 2008-2013 115
Figure 4.49: Confectionery market value ($m) versus per capita expenditure ($), 2008 116
Figure 4.50: Confectionery per capita expenditure ($), 2008 versus market value CAGR (%), 2008- 2013 117
Figure 4.51: Share of confectionery market value by category (%), 2005 and 2009 118
Figure 4.52: Confectionery category value ($m), 2008 versus category value CAGR (%), 2008- 2013 119
Figure 4.53: % share of confectionery distribution, 2008 120
Figure 4.54: Savory snacks market value, ($m), by country 122
Figure 4.55: Savory snacks market value ($m), 2008 versus CAGR (%), 2008-2013 123
Figure 4.56: Savory snacks market value, ($m) versus per capita 124
Figure 4.57: Savory snacks per capita expenditure ($), 2008 versus market value CAGR (%), 2008-2013 125
Figure 4.58: Share of savory snacks market value by category (%), 2005 and 2009 126
Figure 4.59: Savory snacks category value ($m), 2008 versus category value CAGR (%), 2008- 2013 127
Figure 4.60: % share of savory snacks distribution, 2008 128
List of Tables
Table 1.1: Table metrics and their weightings 15
Table 3.2: Final country rankings 56
Table 4.3: Share of the alcoholic drinks market by company (%), 2008 82
Table 4.4: Alcoholic drinks major brands (%), 2008 84
Table 4.5: Soft drinks major players (%), 2008 94
Table 4.6: Soft drinks major brands (%), 2008 95
Table 4.7: Bakery & cereals major players (%), 2008 104
Table 4.8: Dairy major players (%), 2008 113
Table 4.9: Confectionery major players (%), 2008 121
Table 4.10: Savory snacks major players (%), 2008 129


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