The Brazilian Soft Drinks Market: What Consumers Drink and Why?




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Product Synopsis

This report provides the results for the Soft Drinks market in Brazil from Canadean's unique, highly detailed study of consumers' Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as retailer choices in organized sector. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level.

Introduction and Landscape

Why was the report written?

Marketers in the Soft Drinks market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Soft Drinks market they account for, and which consumer trends drive their behavior.

What is the current market landscape and what is changing?

As consumer confidence increases with economic recovery, consumer trends will be directly affected. Since the global financial crisis of 2008-2009 the organized retail market has been characterized by an increase in the amount of discounted and own-brand products. Consumers have traded down in more essential product categories such as Bottled Water and Juices, while consumption has declined in product categories such as Sparkling Soft Drinks, Concentrates, Functional Drinks, Smoothies, and Ready to Drink products. However, the Brazilian economy has recovered quickly, and as economic and market recovery continues over 2012, consumption patterns will record a positive trend in both the medium and heavy frequency bands and the amount of non-users should decrease.

What are the key drivers behind recent market changes?

Consumers' uptake of products and the influence of consumer trends are fundamental causes of change in markets - making knowing what these trends are and the extent of their influence crucial. The survey-based data provided in this report examines over 20 consumer trends that affect the market and examines the share of consumption across 26 consumer groups. This data provides a detailed insight into exactly who the consumer is and just how much impact the latest consumer trends are having.

What makes this report unique and essential to read?

The data provided is unique in the market as it tracks consumer behavior through to its actual value impact on a product market. This provides readers with a unique data analysis of the market, allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviors.

Key Features and Benefits

  • Consumer data, based upon proprietary surveys and then consumer group tracking and modeling for the following specific categories: Bottled Water, Sparkling Soft Drinks, Concentrates, Functional Drinks, Smoothies, Juices, and Ready To Drink Tea and Coffee.
  • Detailed consumer segmentation covering over 26 consumer groups, 20 consumer trends, and consumption frequency for each product category.
  • Consumer penetration for brands and private labels, based upon the original survey and then subsequent consumer tracking and modeling.
  • Unique retailer choice data at the product category level in organized sector, based upon the original survey and then subsequent consumer tracking and modeling.

Key Market Issues

  • Consumer segment analysis reveals that Brazil's Better Off income group accounts for nearly one-third of the total soft drinks market in value terms. Rising wage levels and new job opportunities created by Brazil's increasing integration with the global economy has increased both the size and spending power of middle income groups in the country.
  • Consumption frequency analysis reveals that over half of Brazilian Early Young Adults don't consume Concentrates, a strong reduction from the next youngest age group, Tweens and Early Teens, where only 25% of consumers are non-users. Consequently, marketing planners will need to design their campaigns for Soft Drink Concentrates to account for this decline in consumption.
  • Consumption frequency analysis reveals that non-users of Ready to Drink Tea and Coffee account for between 60%-85% of consumers among the different age categories in Brazil. This low penetration means that suppliers need to carefully target those that do consume Ready to Drink Tea and Coffee or take action to increase the number of consumers.

Key Highlights

  • Market value analysis reveals that Sparkling Soft Drinks, Juices, and Bottled Water together account for more than 80% of the total market by value in Brazil. Ready to Drink Tea and Coffee is the smallest soft drinks segment.
  • Brand analysis reveals that private labels have more than25% penetration in the Smoothies market in Brazil compared to less than 2% penetration in Sparkling Soft Drinks, where private labels compete against strong international brands such as Coca-Cola and Pepsi. 
  • Consumer survey results suggest the fast pace of modern life and consumers' wish to express individuality and personality are key determinants for the consumption of soft drinks in Brazil.