Carbonated soft drinks are growth drivers in Latin America
In Latin America, sales of soft drinks totalled 115 billion litres in 2024. According to Euromonitor, consumption in the region is expected to increase by a further 12 percent to 128 billion litres by 2028.
At 63 billion litres, carbonated soft drinks will account for more than half of soft drinks consumption in Latin America in 2024, followed by bottled water at 33 billion litres and juices at 12 billion litres. According to Euromonitor, consumption of carbonated beverages in Latin America is expected to grow by 9 per cent to 69 billion litres by 2028. The growth rate for bottled water is 14 per cent and for juices 13 per cent by 2028.
In general, carbonated soft drinks are an important driver of market trends in the Latin American market. This region is home to three of the six largest markets in the world for the retail sale of carbonated soft drinks (Brazil, Mexico, Argentina) and the three countries with the highest per capita consumption (Chile, Mexico, Argentina).
After the pandemic-related decline in sales of soft drinks in 2020, Latin America has since seen steady sales growth. Although the momentum is expected to slow in the coming years, the trend remains positive over the forecast period. It is expected that low-sugar carbonated beverages and 100% direct juices will continue to exceed the average consumption of the overall market, as consumers’ health awareness continues to grow. The boom in energy drinks is also expected to continue.
Traditionally, Brazil sees a sharp increase in beverage consumption during the summer. This period lasts from the end of December to the end of March. It is the main holiday season in the South American country and, of course, the carnival season.
Consumer trends in Brazil: wasabi beer, luxury whisky and wine in cans
In terms of beer, there is also an ever-increasing demand for lower-calorie beer varieties, as more and more domestic beer drinkers are seeking to adopt a healthier lifestyle. As a result, many are turning their backs on good old beer and are reaching for low-carb and alcohol-free varieties. There is also an increased demand for beer with special flavours such as wasabi, tomato, pepper and bacon.
According to data from The Wealth Report by Knight Frank, demand among Brazilians for various premium and luxury whiskies is also increasing sharply, with single malt whisky (which is made exclusively from malted barley) set to grow by 582% by 2023.
More and more local consumers are also opting for more natural wines, especially those that do not contain chemical additives and other substances that are harmful to health. The wine market is aware of this and has started to offer more natural options. Winemakers are not only concerned about the health of consumers, but also about the taste of the drink. They believe that wine without additives has a more pronounced flavour.
Most local analysts believe that companies that are able to identify and adapt to changes in their customers’ drinking habits will gain a serious competitive advantage in the Brazilian beverage market in the near future.
However, many factors are important for improving sales and marketing, such as the visual aspect of the product, with a focus on the label and packaging. One example of this is wine in cans, sales of which have increased significantly in Brazil in recent years as more and more domestic customers are looking for new ways to consume their beverages. Other segments of the Brazilian beverage market are also currently seeing growing demand for innovative, unusual packaging.
According to data from the market research institute Kantar, revenues in the beverage sector in Brazil rose by 5% year-on-year to R$1 billion (US$182 million) during the 2024 summer season. This growth is continuing and is also reflected in the increasing demand for machines and equipment for the production, filling and packaging of beverages and liquid food, as presented by the German Engineering Federation (VDMA), the conceptual partner of drinktec. LINK
According to analysts at the Brazilian research agency Buy Co, the country’s beverage sector is constantly growing, with the highest growth rates being observed in the alcoholic beverage segment. The analysts at Buy Co explain this by saying that ‘alcoholic beverages have been part of Brazil ever since the Portuguese set foot on Brazilian soil’.
Currently, the increase in consumption of both alcoholic and non-alcoholic beverages is mainly driven by young customers aged 18-29. The overall growth of the market and consumption is influenced, among other things, by the improvement in the economic situation in Brazil in recent years and a strong trend towards online shopping.
According to analysts at Buy Co, the beverage and food sectors in Brazil generate around R$2.8 billion, with mineral water, coffee, tea, beer, sparkling wine, gin, juice, wine, vodka and whiskey among the best-selling products. It is important to emphasise that the pandemic has changed the way Brazilians consume alcohol, with a particular increase in the consumption of wine and gin during and after the pandemic.
Brazil: a strong market for non-alcoholic beverages and a leading beer market
In Brazil, the market for non-alcoholic beverages has grown strongly in recent years. Among the top 10 global markets for soft drinks, Brazil was ranked sixth in 2024 with 29 billion litres. Euromonitor expects a further 10 percent growth by 2028.
Consumers increasingly prefer beverages based on natural ingredients and without artificial additives. Functional drinks are also becoming increasingly popular, as their ingredients such as vitamins, antioxidants or probiotics are said to offer health benefits. Brazil is known for its rich variety of tropical fruits and natural resources. This is also reflected in the beverage industry, where many local companies offer exotic fruit juices and soft drinks made from local fruits.
Among the top 10 markets for alcoholic beverages, Brazil ranks third behind China and the United States, with nearly 16 billion litres, and ahead of Mexico and Argentina in Latin America. Beer was by far the most popular alcoholic beverage in the country in 2024, with 15 billion litres and a share of over 90 per cent. Craft beers have also gained in popularity in recent years.
