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

South America Fermented Drinks Market is projected to register a CAGR of 4.1%, during the forecast period, 2020-2025.

Key Highlights

• South America has had associated with fermented drinks as consumers traditionally have made cultured yogurts and probiotics drinks. The fermented drinks are available for sale at open public markets, which is driving the market growth in the region. This trend is likely to propel the fermented food and drink market in other countries, such as Chile, Uruguay, Colombia, and Peru.
• Consumers in South America have a greater understanding of the relationship between diet and health, which is fueling the growth in the industry. Besides, the increasing purchasing power among the middle-class population is triggering the fermented food and drink market growth.

Key Market Trends

Increase in Demand for Functional Beverages

Functional beverages are an important part of the different lifestyles of various diverse cultures. The development of new functional beverages that contain prebiotic ingredients that offer digestive benefits to consumers, is one of the trending innovations of the American region. The growing demand for functional beverages is majorly due to specific nutritional benefits that are available in functional beverages that can positively affect the consumers’ health, which may be difficult to obtain through a regular diet. Increasing consumer focus on health and wellness, intense research activities carried by key players on diet-related disease-prevention methods, and improving the ingredients technology are the key factors driving the functional beverage market.

Brazil Holds the Largest Market Share

The market studied is driven by increasing demand for health and wellness products, coupled with increasing awareness among consumers for functional beverages. In Brazil, where consumers are ditching more and more unhealthy sugar bombs and turning to healthier options, manufacturers are looking this as a huge investment opportunity and aiming at naïve product innovations in the category, which is expected to drive the market growth of the market studied. Furthermore, fermented food and drinks have been incorporated into the formulation of various food products, such as bakery, snack bars, and baby foods. However, fermented food and drink products in the country are majorly available in dairy products, particularly yogurt.

Competitive Landscape

The major manufacturers across the region are focusing more on labeling and brand messaging on the health benefits associated with products, like kombucha, which is driving the market over the coming years in the region. The fermented drinks market in the South American region is dominated by leading players such as Nestle, Medusa Group, s. r. o. (Leblon), and Britvic PLC. Some of the other prominent players include Bacardi Limited, Amyris, Groupe Danone SA, Yakult Honsha Co. Ltd among others. competition levels have recently increased due to the influx of small-scale and domestic players in the fermented beverage industry.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support