Brazil Carbonated Soft Drinks Market Report 2023

Overview

• What you need to know
• Key issues covered in this Report
• Definition

Executive Summary

• Market overview
• Analyst outlook
  • Figure 1: Analyst outlook for the carbonated soft drinks category, September 2023
• Challenges
• After new guidelines on the consumption of artificial sweeteners, CSD brands have to plan a response
• Brazilians are not loyal to new flavors, but unusual flavors are a source of interest
• Partnerships with retailer loyalty programs can stimulate family consumption and build consumer loyalty
• Opportunities
• Mood-enhancing benefits can engage consumers in the category
• CSDs with extra caffeine may attract men
• Mixing categories should guide innovations in CSDs

Market Drivers

• WHO publishes a new guideline advising against the consumption of sweeteners, especially aspartame
• Inflation continues to impact CSD prices, especially for in-house consumption
• Reform can introduce new tax on CSDs

Key Players

• Creations, Coca Cola’s innovation hub, launches three new flavors
  • Figure 2: Coca-Cola Movement, co-created with singer Rosalía
  • Figure 3: Coca-Cola Ultimate, launched in partnership with the game League of Legends
• • Figure 4: Coca-Cola Y3000, co-created with the help of AI
• Heineken’s premium CSD Clash’D hits the market
  • Figure 5: Clash’D premium CSD range
• Guaraná Antárctica reinforces its position as a comfort drink for Brazilians
  • Figure 6: Foodtruck that distributed pizzas and guaraná in Antárctica’s action on Avenida Paulista
  • Figure 7: Campaign film
• Fruki Bebidas inaugurates new factory and launches line of flavored carbonated water
  • Figure 8: Água da Pedra’s flavored sparkling water line
• Case study
• Coca-Cola’s Creations platform engages consumers, reversing disconnection with the brand
• • Figure 9: Coca Cola Starlight, the first launch of the Creations platform in Brazil

CSDs Consumption and Frequency

• As consumption of diet/zero CSDs falls, brands will have to choose their strategy on artificial sweeteners
  • Figure 10: CSDs consumption and frequency – Selected items, 2023
• • Figure 11: Launches of CSDs containing artificial sweeteners, Brazil, 2020-22
  • Figure 12: Coca-Cola’s global position on aspartame
• • Figure 13: CSDs that highlight the absence of aspartame
  • Figure 14: CSDs sweetened with natural ingredients
• Consumption of carbonated juices is growing among AB consumers and local fruit flavors could increase interest in the segment
  • Figure 15: CSDs consumption and frequency – Selected item, by socioeconomic group, 2023
• • Figure 16: Carbonated juices with typical local fruits from different countries
• Carbonated teas can boost communication and healthier perception
  • Figure 17: CSDs consumption and frequency – Selected item, 2023
• • Figure 18: Carbonated teas with healthy attributes

Reasons for Drinking Less CSDs

• Brands should educate consumers about healthy sugar consumption and highlight healthy attributes of CSDs
  • Figure 19: Reasons for drinking fewer CSDs, 2023
• • Figure 20: CSDs that combine sugar and other sweet ingredients
  • Figure 21: CSDs that use a combination of sugars and sweeteners, avoiding warning labels
• CSDs with prebiotics/probiotics could gain ground by offering greater gastric comfort for women
  • Figure 22: Reasons for drinking less CSDs – Selected item, by gender, 2023
• • Figure 23: Carbonated soft drinks with probiotics
• Mood-boosting benefits may curb migration to other categories of non-alcoholic beverages
  • Figure 24: Interest in CSDs – Selected item, by selected reason for drinking fewer CSDs, 2023
• • Figure 25: CSDs with ingredients that boost the mood and emotional wellbeing

Consumption Changes due to Economy

• CSDs and indulgent dishes combos can drive consumption in foodservice
  • Figure 26: Consumption changes due to economy, 2023
• • Figure 27: Guaraná Antérctica campaign, 2023
• • Figure 28: Coca-Cola and Domino’s Pizza combos
  • Figure 29: Promotion of the Fanta brand in partnership with the Croasonho chain
• Loyalty programs can offer discounts for families
  • Figure 30: Consumption changes due to economy – Selected item, by parental status, 2023
• • Figure 31: Mix of drinks offered at a discount to a specific user in the Pão de Açúcar Mais program

Behavior toward CSDs

• CSDs can double down on indulgence with flavors reminiscent of classic sweets
  • Figure 32: Behavior toward CSDs, 2023
• • Figure 33: CSDs with famous candy flavors
• Brands may invest in caffeinated versions to attract men
  • Figure 34: Behavior toward CSDs – Selected items, by gender, 2023
• • Figure 35: CSDs with added caffeine

Interest in CSDs

• The addition of nutrients adds a benefit to the purchase of CSDs and may justify the purchase of a superfluous item
  • Figure 36: Interest in CSDs – Selected item, 2023
• • Figure 37: Carbonated soft drinks with added vitamins
• Special editions of CSDs will continue to be on the rise, giving consumers “permission” to try a temporary flavor
  • Figure 38: Interest in CSDs – Selected item, 2023
• • Figure 39: Limited-edition CSDs

Opinions on CSDs

• Blurring the boundaries between drinks in the CSD category could bring innovation to the Brazilian market
  • Figure 40: Opinions on CSDs, 2023
• • Figure 41: CSDs that mix product concepts
  • Figure 42: CSDs reminiscent of alcoholic beverages
• Nostalgic packaging can stimulate consumption among older adults
  • Figure 43: Opinions on CSDs – Selected item, by age group, 2023
• • Figure 44: CSDs with nostalgic elements

Appendix – Abbreviations

Appendix – Market Size and Market Share

• Market size
  • Figure 45: Sales by value in the CSDs category, Brazil, 2014-23
  • Figure 46: Sales by volume in the CSDs category, Brazil, 2014-23
• Market share
  • Figure 47: Market share by company, by value, Brazil, 2021-22
  • Figure 48: Market share by company, by volume, 2021-22