Market in Brazil should grow more than 16%, reaching US$ 15.3 billion
Valor Econômico
The earnings of the companies of the soft drink sector companies in Brazil may grow more than 16% this year, reaching R$ 26 billion (US$ 15.3 billion). According to a study made by Lafis Consultoria, the good indicators of the work market and income in Brazil will continue fueling the market, in which the "diet" and "light" drinks and the traditional brands tend to gain room. According to the survey, even though soft drinks lose room for they are associated to unhealthy habits of consumption, the sector may try to achieve a larger public in the booming market for low-calorie products. "In that segment, bottled, flavored and aromatized, waters may find fertile ground", says the analyst responsible for the study, Renata Cristina Alves.
Another trend is the migration of the consumption of regional to traditional brands. The national segment of soft drinks - the third largest in the world, only behind the USA and Mexico - is dominated by the large corporations that have seen gains in the market share in the country. According to figures of the Brazilian Association of the Industries of Soft Drinks and Non-Alcoholic Beverages (Abir), Coca-Cola ended 2009 with 56.6% of market share, compared to 56.2% in 2008.
The share of Ambev, on its turn, went from 17.7% to 17.8%, while Schincariol went from 3.4% to 4%. The group of "other" manufacturers was responsible for 22.7% in 2008, and 21.6% in 2009. "Such behavior can be justified, basically, by the fact the large companies are able to compete with the regional brands on the price. In the same respect, taking into account the increased purchasing power of the Brazilian population, the consumers tend to improve their consumption habits, thus preferring the more sophisticated brands", explains the analyst.
Last year, the Brazilian production of soft drinks achieved 14.34 billion liters, which represented an increase of 1.3% compared to 2008, as it is shown in the data of the Abir. The earnings in the sector increased 6.4% to R$ 22.3 billion (US$ 11.3 billion). The per capita consumption of the beverage, on its turn, reached 74.9 liters, compared to the 74.6 registered in the previous year, according to the information of Lafis. This year, the sales should get to 15.37 billion liters, which will represent an increase of 7.2%. For 2011 and 2012, the sales will continue the growth trajectory, expanding 6.4% and 3.6% respectively. "The companies in the sector are doing really well. The saturation of the Brazilian market is far from happening", says Rafael Cintra, analyst of Link Corretora.