While sales of dairy products and alternatives have continued to grow in real value terms in Latin America in recent years, they have been declining in volume terms, given the difficult economic backdrop, including high inflation, in a number of countries in the region. Along with labelling regulations, introduced to highlight products high in fat, sugar or salt, changing consumer trends will likely increasingly favour healthier variants of staples like milk and cheese.
This report comes in PPT.
With many countries in the region facing high inflation, pushing up costs for industry suppliers and players, and therefore also end prices for consumers, volume sales have been struggling in recent years, even if dairy products and alternatives were still managing to record positive growth in real value terms.
The scrapping in late 2023 of the Precios Justos programme by the new president in Argentina saw small local grocers begin to claw back some share from their modern grocery retailer counterparts in 2024; with private label expected to fill some of the void of cheaper products due to the removal of this scheme, which guaranteed shoppers basic items at lower prices.
Argentina was seeing very strong growth in plant-based cheese in the last two years, boosted by NotCo’s Not Cheese alternative to mozzarella and Not Cream Cheese alternative to spreadable dairy cheese new lines as well as Mastellone’s new spreadable classic and cheddar options under its La Serenísima brand, which are made with coconut oil and almond paste.
The consensus is that more indulgent products will still continue to be bought, but that the on-pack warning labels about high salt, sugar or fat content in packaged food products in a number of countries across the region will see industry players continue to utilise new ingredients or reformulate their products to avoid the need to carry these labels on more everyday items.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!