Soft Drinks - Brazil

The Soft Drinks market in Brazil has been experiencing significant growth in recent years, driven by changing consumer preferences and local special circumstances.

Customer preferences: Brazilian consumers have shown a growing preference for healthier beverage options, such as low-calorie and natural drinks. This shift in consumer behavior can be attributed to increasing health consciousness and a desire for more nutritious options. Additionally, there has been a rise in demand for functional beverages that offer specific health benefits, such as energy drinks and sports drinks.

Trends in the market: One of the key trends in the Soft Drinks market in Brazil is the increasing popularity of ready-to-drink (RTD) beverages. RTD beverages provide convenience and are often consumed on-the-go, catering to the fast-paced lifestyle of Brazilian consumers. This trend has led to a rise in the demand for packaged beverages, such as bottled water, canned drinks, and tetra packs. Another trend in the market is the growing popularity of flavored drinks. Brazilian consumers are increasingly seeking unique and exotic flavors in their beverages, which has led to the introduction of a wide variety of flavored soft drinks in the market. This trend is particularly evident in the carbonated soft drinks segment, where flavored options have gained significant traction.

Local special circumstances: Brazil is known for its warm climate, which makes soft drinks a popular choice among consumers, especially during the summer months. The country's vibrant culture and festive celebrations also contribute to the high consumption of soft drinks, as they are often consumed during social gatherings and events. Additionally, the growing middle class in Brazil has led to an increase in disposable income, allowing consumers to indulge in soft drinks more frequently.

Underlying macroeconomic factors: The growing Soft Drinks market in Brazil can be attributed to various macroeconomic factors. The country has experienced stable economic growth in recent years, which has resulted in higher consumer spending power. Additionally, Brazil has a large population, providing a substantial consumer base for soft drink manufacturers. The government has also implemented policies to promote investment and business development, creating a favorable environment for the soft drink industry. In conclusion, the Soft Drinks market in Brazil is witnessing significant growth due to changing customer preferences, including a shift towards healthier options and the increasing popularity of RTD beverages and flavored drinks. The local special circumstances, such as the warm climate and cultural traditions, further contribute to the high demand for soft drinks. The underlying macroeconomic factors, including stable economic growth and government policies, also play a crucial role in the market's development.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.