Market Trends of South America Ready to Drink Beverages Industry
This section covers the major market trends shaping the South America Ready to Drink Beverages Market according to our research experts:
Increasing Demand for Natural/Organic Beverages
Due to growing consumer knowledge of mindful living and wholesome products, they are becoming more health conscious. Customers are turning away from harmful items as obesity-related conditions including high blood sugar, high blood pressure, and heart disease is becoming more prevalent. As a result, organic and natural products have emerged as the most favored category in the recent past. Ready-to-drink beverages with additional health claims such as organic, sugar-free, dairy-free, and gluten-free, are now widely accessible owing to their widespread acceptance by health-conscious consumers. Also, key brands are directing their efforts towards product innovation to launch clean-label RTD beverages to cater to evolving taste preferences. For instance, in April 2021, Honest Tea, a wholly-owned subsidiary of The Coca-Cola Company, expanded its bottled beverage portfolio with the launch of a new organic drink named Honest Yerba Mate, which contains 13g of sugar and 60 calories per 16oz can. It is a traditional caffeinated South American drink, which is brewed from the leaves and stems of the yerba mate plant.
Energy Drink is Fastest growing Segment
The demand for energy drinks has been primarily driven by the rise in fitness enthusiasts, who are actively involved in various physical training programs and sports activities. Energy drinks are widely popular among youngsters due to their claims to improve performance, endurance, and alertness. Further, vitamin-infused functional beverages are consumed to prevent the risk of heart disease and cancer. Therefore, the proliferation of athleisure trends and active participation in various sports such as football, tennis, and basketball, among others are accelerating the sale of energy drinks in the South America market. In response to rising consumer demand, key companies are also focusing on product diversification in terms of packaging and formulation. For instance, in December 2021, TNT energy drinks, a Brazilian brand launched new packaging, much more attractive, and colorful, featuring the concept of street art, and highlighting graffiti. The product packaging also glows when exposed to black light. Further, key brands are investing in advertisement campaigns, celebrity endorsement, and sports event sponsoring agreements to increase product visibility and facilitate brand communication with target consumer groups, which is anticipated to push the demand for energy drinks in the South America market.
