South America Mate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Mate market in South America is estimated to grow at a CAGR of 4.4% during the forecast period (2020 - 2025).

Emerging export potential for the North American and European markets along with a stabilized demand from Syria and Chile, and a revival in the regional domestic demand, have given a boost to the yerba mate market in South America, in recent years. Furthermore, the development of several initiatives by INYM, aided by burgeoning demand for the caffeine-induced flavorful beverage as a viable alternative to coffee in the export markets, have acted as a stimulus to the production of mate in the region.

In terms of production, Brazil was the largest market for yerba mate in the region in 2019, followed by Argentina. The country produced a total of 546,618.0 metric tons of yerba mate in 2018. Although the largest producer in the region, Brazil witnessed a diminishing trajectory in product levels as it produced a total of 630.5 thousand metric tons in 2016, which stands in stark contrast to the production level in 2018. The production level in Argentina, on the other hand, has been rising steadily, reaching 302.1 thousand metric ton in 2018.

Key Market Trends

Emerging Export Potential Driving Production

Burgeoning demand for mate in the United States and European countries, such as France Germany, and Spain, besides Syria and Turkey in the Middle East, has been witnessed in recent years, that can be primarily attributed to the perceived benefits of mate to conventional drinks like tea and coffee. As per studies conducted by the University Cardiology Foundation in Brazil, regular mate consumption has been observed to establish a correlation with increased energy levels, increased antioxidants, and lower cholesterol levels. According to UN Comtrade's statistical database, South America, together with the Caribbean Aggregation, exported a total of 80,411.0 metric tons of mate in 2019, as against 66,093.0 metric tons in 2017. Moreover, the emerging demand in the international markets, especially Europe, is also dominated by a growing inclination towards exotic foreign beverages complementing drinks with added health benefits like no other. For instance, Spain imported 1,313.0 metric tons of mate in 2017, which rose by 28.86% to 1,692.0 metric tons in 2019.

Brazil - The Largest Mate Producing Country

According to the Food and Agriculture Organization's statistics, Brazil produced a total of 546,618.0 metric tons of mate in 2018, as compared to 302,099.0 metric tons in Argentina, during the same year, thus, ranking Brazil as the largest producer of mate in the region as well as globally. However, the production level has declined considerably from 630,556.0 metric tons in 2016, primarily due to the significant fall in the area harvested, which stood at 74,943.0 hectares in 2016, when compared to 71,979.0 hectares in 2018. Due to the sprouting global demand for yerba mate, global giants are eyeing to capitalize on the untapped market space with innovative products sourced from the Brazilian farms. For instance, Coca-Cola Brazil launched its new product range of yerba mate pods under the Leao brand in 2019, with the ingredients sourced specifically from farms in southern Brazil. Such developments are further expected to boost the production of yerba mate in Brazil, in the coming years.

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