South America Soup Market - Growth, Trends, and Forecast (2018-2023)
The South America soup market is expected to register a CAGR of 3.1% during the forecast period of 2018 to 2023. The market was valued at USD 461.69 million in 2017. Packaged soup requires minimal time and effort to prepare. The demand for convenience foods is one of the key factors driving the growth of the soup market.
Convenience Driving the Market Growth
Several factors are contributing to the rise in demand for soup in South America, including rapid urbanization, busy lifestyles, and a substantial rise in the demand for packaged and ready-to-eat food products. The convenience, along with easy to make food is the biggest appeal for consumers with hectic lifestyles. Growing demand for healthy soups is a big market driver. Manufacturers have started offering a wide range of nutritious, gluten free and vegan products to meet the consumer demand. Players are using innovative packaging and methods to increase the shelf life of the products. Good packaging also offers better protection. The use of stand-up pouches has become popular. Availability of several product varieties in terms of preparation, ingredient, and flavors, along with the expanding sales channels are also boosting the market growth. The South America soup market is likely to witness the demand for microwavable soup in the future.
Convenience Stores are leading the Sales Channels
The convenience stores account for the majority of the sales of soup products in South America, as they form the most easily accessible mode of distribution and they are expected to continue to hold the majority of sales of the South America soup market, during the forecast period. It is followed by hypermarkets and supermarkets. This trend is expected to continue with an expansion of the organized retail sector for groceries, especially in this region.
Preserved Soup Holds the Major Share
By product type, the South American soup market is segmented into preserved soup, chilled soup, dehydrated/dried soup, frozen soup, instant soup, and UHT. Traditionally, soup is one of the major items consumed as an appetizer in South America. People also consume soups for breakfast. By product type preserved or canned soup holds the highest share followed by instant and dehydrated soups in 2016.
Brazil Leading at the Regional Front
Brazil holds the highest market share followed by Argentina. Rest of South America holds around 43% of the market demand. Brazil is expected to register a CAGR of 3.4% during the forecast period. The South American market for soups is well established, with major players, like Nestle and Unilever holding the maximum market share. Companies are coming with new innovative flavors and the inclusion of organically grown ingredients shows a higher growth potential for the market.
The constant efforts of companies to experiment with the taste and flavors of soup are making the soup market highly competitive and dynamic. Innovative packaging and marketing activities form successful growth strategies for the players to consolidate their position in the market. Nestle Brazil accounts for the highest market share in the Brazil Soup market with the launch of new flavors and high promotional activities, brand awareness among consumers and reputation of the company as a supplier of high-quality products contributed significantly to its overall performance.
Major players - ALFONZO RIVAS & CIA CA, B&G FOODS, CAMPBELL SOUP, CIA BRASILEIRA DE DISTRIBUICAO, CONAGRA FOODS, GENERAL MILLS, INDUSTRIAS IBERIA CA, KRAFT HEINZ, LUIS G BONOMI & CIA, MOLINOS RIO DE LA PLATA SA, NESTLÉ, QUALA SA, UNILEVER, among others.
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