South America Instant Beverage Premix Market Outlook, 2028

In South America, with busy lifestyles and an increasing need for quick and easy solutions, instant beverage premixes offer a convenient way to enjoy a variety of beverages without the need for extensive preparation or specialised equipment. They provide a ready-to-use solution that saves time and effort. Furthermore, as disposable incomes rise in South America, consumers have more purchasing power and seek convenient and premium products. Instant beverage premixes offer a range of options to meet different budgets and tastes, allowing consumers to indulge in their favourite beverages without breaking the bank. This increase in disposable income has contributed to the growth of the instant beverage premix market. Moreover, as more people move to urban areas and have less time for traditional beverage preparation, they turn to instant solutions that can be enjoyed at home, in the office, or while travelling. Instant beverage premixes provide a portable and convenient option for consumers to satisfy their beverage cravings on the go. In addition, South America attracts a large number of tourists from around the world. Instant beverage premixes featuring local flavours and cultural specialties have become popular souvenirs for visitors to take home. This drives the demand for unique and region-specific instant beverage premixes, creating a niche market within the tourism industry.

According to the research report, “South America Instant Beverage Premix Market Outlook, 2028” the market is anticipated to add USD 3.17 Billion from 2023 to 2028. The growing interest in plant-based diets and lifestyles is influencing the South American instant beverage premix market. Manufacturers are introducing plant-based alternatives to popular beverages, such as instant plant-based milk powders, vegan hot chocolate mixes, or dairy-free coffee creamer sachets. These options cater to consumers looking for dairy alternatives or seeking a more sustainable and ethical beverage choice. Furthermore, consumers in South America are increasingly conscious of their health and wellness. As a result, there is a growing demand for instant beverage premixes that offer healthier options. Manufacturers are responding to this trend by introducing sugar-free, low-calorie, and natural ingredient-based premixes. They are incorporating functional ingredients such as antioxidants, vitamins, and minerals to enhance the nutritional value of the beverages. Moreover, consumers are increasingly seeking customization options for their instant beverage premixes. Some manufacturers offer DIY blending kits or customizable flavour options, allowing consumers to create their own unique combinations. This trend caters to individuals who prefer a tailored beverage experience and enjoy experimenting with flavours. In addition, subscription-based models are gaining popularity in the South American instant beverage premix market. Manufacturers are offering customizable subscription services, allowing consumers to receive their preferred instant beverage premixes regularly, personalised to their taste preferences and consumption patterns.

The South America region has a significant demand for instant milk products, driven by factors such as changing lifestyles, urbanisation, and the need for convenient and accessible sources of nutrition. Instant milk is particularly popular among households with children, as it provides a convenient and nutritious option for growing children who may require regular milk consumption. Furthermore, many brands offer instant milk products in the South American market, catering to different consumer preferences and needs. These brands may offer different variants, such as full-cream, low-fat, or flavoured instant milk options, to cater to a broader consumer base. Some notable brands in the South American market include Nestlé (Ninho, Nido), Parmalat, Alpura, Santa Clara, and Bonlac. In addition, instant coffee offers convenience and ease of preparation, making it a popular choice for consumers. It eliminates the need for brewing equipment or lengthy brewing processes, allowing individuals to quickly prepare a cup of coffee by adding hot water. This convenience is particularly appealing to busy individuals or those in search of a quick caffeine boost. Furthermore, South America has witnessed a shift in coffee consumption patterns, with an increasing preference for instant coffee among a new generation of coffee consumers. Factors such as changing lifestyles, urbanisation, and time constraints have led to a growing demand for instant coffee as a convenient and quick coffee solution. For instance, some instant coffee brands in the South American market that hold a significant market share include Nescafé (Nestlé), Pilo (JDE Peet's), Três Coraçes, 3in1 (Café Brasileiro), Café do Ponto, Melitta, Santa Clara, Bonka, Suplicy Cafés Especiais, and L'OR (JDE Peet's).

Supermarkets and hypermarkets in South America often compete on pricing, offering competitive rates for instant beverage premixes. Due to their large-scale operations and strong negotiating power, these retailers can secure favourable pricing from suppliers, enabling them to offer attractive deals and discounts to consumers. This competitive pricing strategy makes instant beverage premixes more accessible and affordable to a wider consumer base. For instance, supermarkets and hypermarkets in the South American instant beverage premix market include Carrefour, Grupo Po de Açcar (GPA), Walmart Brasil, Cencosud, Supermercados Dia, Éxito Group, Lder, Tottus, La Anónima, and Jumbo. In addition, online platforms provide a vast selection of instant beverage premixes from various brands and flavours. Consumers can explore an extensive range of options that may not be readily available in physical stores. Online sales channels also allow for easy comparison of products, enabling consumers to make informed decisions and choose the instant beverage premixes that best suit their preferences. For instance, some online sales platforms in South America for instant beverage premixes include MercadoLibre, Amazon, Americanas, Submarino, Shopee, Magazine Luiza, Walmart, Lojas Renner, Ponto Frio, Casas Bahia, and more.

Brazil has the largest population in South America, which provides a substantial consumer base for instant beverage premixes. The country's large market size offers significant opportunities for manufacturers to capture a wide customer base and generate higher sales volume. Furthermore, Brazil is the world's largest producer and exporter of coffee, and coffee is deeply ingrained in the country's culture. Instant coffee is particularly popular in Brazil due to its convenience and quick preparation. The dominance of coffee consumption contributes to the strong presence of instant beverage premixes in the market. Moreover, Brazil is known for its vibrant cultural events and festivities, such as Carnival and regional celebrations. These occasions create opportunities for the sale of instant beverage premixes as consumers seek convenient and enjoyable beverages to share with friends and family during these festivities. In addition, Argentina is a popular tourist destination, and instant beverage premixes provide a convenient option for travellers who want to enjoy their favourite beverages while on the go. Portable and easy-to-use instant beverage premixes allow tourists to experience the flavours and traditions of Argentina without the need for specialised equipment or brewing methods.

Major Companies present in the market:

Nestlé S.A., Starbucks Corporation, General Mills, Inc., Unilever plc, The Coca-Cola Company, The Kraft Heinz Company, PepsiCo, Inc, GlaxoSmithKline plc, Arla Foods amba, JDE Peet's.

Considered in this report

• Geography: South America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Countries covered in the report:

• Brazil
• Argentina
• Colombia

Aspects covered in this report

• South America Instant Beverages Premix market with its value and forecast along with its segments
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Types

• Instant Coffee
• Instant Tea
• Instant Milk
• Instant Health Drinks
• Soups
• Others (mocktail beverages)

By End User

• Commercial
• Residential

By Function

• Plain
• Flavored

By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Sales Channel
• Others (Specialty Stores)

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to ready to Instant Beverage premix industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.