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Argentine soft drinks market ranks top in Latin America for consumption levels

Press Release   •   Nov 04, 2013 17:04 GMT

The Argentine soft drinks market has evolved greatly over the past few years, with the broadening range of alternatives continuing to erode the share of carbonates.

The move towards healthier beverages is boosting flavoured water and fruit/vegetable juice in Argentina, turning these into very dynamic and innovative marketplaces.

Flavoured water brands are positioned as natural beverages with no preservatives or artificial sweeteners; they have reduced sugar content and contain still mineral/mineralised water with juice.

As a result, manufacturers are focusing their new launches on products with more natural ingredients, added vitamins and minerals, as well as on products with lower sugar content.

According to a recent market report, 'Soft Drinks in Argentina,' Argentina ranks top within Latin America for soft drink use, at an average consumption of 131 litres of soft drinks per capita per year.

There is a clear preference for colas, which represent 62.4% of total soft drink consumption, of which only 15.41% were "light" drinks.

There is a very strong carbonated table water consumption tradition in Argentina, comprising mainly home delivery of refillable soda siphons. It is estimated there are more than 1,500 soda siphon players nationwide.

In general, the segment keeps decreasing due to a negative image behind the quality of the soda siphons, and due to a lack of investment within the industry.

On-premise consumption slows down in all categories compared to 2011, due to the economic crisis. Consequently, more affordable packs emerged in bars and restaurants, as well as returnable bottles in carbonates.

The economic crisis has encouraged more consumers to stay at home, and spending less money on restaurants and bars.

If the unofficial inflation estimates are correct, expectations of high inflation will continue eroding consumer purchasing power, undermining spending mainly for on-the-go consumption, and on-premise consumption as well.

Therefore, consumption within the Argentine soft drinks market is projected to see a further slowdown in its growth in constant value terms in 2013.

For more information on the Argentine soft drinks market, see the latest research: Soft Drinks Market Research

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