The salty snacks market in Latin America is a very mixed bag. Per capita consumption rates can vary considerably across the region, while preferred snack choices also differ and even consumer habits and drivers can diverge considerably from country to country. But as a whole, the region’s growth in both retail sales and new product activity is outpacing global development, so it is still a market of opportunities as long as national and regional trends can be successfully identified and exploited.
Big differences in Brazilian and Mexican snacking habits
A new report from Innova Market Insights underlines the importance of Brazil as a fast expanding and diversifying market and one that is very much driving salty snacks development in its region. It also highlights some of the important contrasts between Brazil and its neighbors, which can necessitate different approaches to marketing and innovation.
Original consumer research, for example, demonstrates significant differences between Brazil and Mexico. Although taste is the single most important driver of salty snacks purchase in both countries, Brazilian consumers are also likely to appreciate snacks for their nutritional benefits and for their treating nature, while Mexicans appear to value them more as a source of energy and for novelty and excitement, and are also more likely to buy them on impulse (16% vs half this number in Brazil).
Eating occasions can also differ: between-meals occasions are dominant in Brazil, with 50% eating salty snacks in the afternoons and 30% in the evenings but, while afternoon snacking is still the number one occasion in Mexico (44%), 30% of consumers also choose to eat salty snacks at lunchtime (compared with only a tenth of Brazilians).
Variation in the numbers and types of new products
Brazil is very much the main driver of growth in salty snacks NPD in Latin America. Total regional launch numbers rose at a CAGR of almost 20% over 2015-2019 (compared with just under 10% globally), but Brazil’s growth rate amounted to a dynamic 40%. Chile (+15% CAGR) and Colombia (+14% CAGR) are other stand-out markets.
As well as the national disparity in rates of growth, there are also clear differences in the types of products that innovators are targeting in each country. For example, Brazil has by far the largest popcorn market in Latin America and this category accounted for 18% of Brazilian snack launches between 2015 and 2019, compared with 11% in the region as a whole. Brazil also over-indexes in wheat and grain-based snacks, while Colombia and Chile are both very strong in snack mixes (23% and 22% of salty snacks NPD, respectively, compared with 13% region-wide).
Local flavor preferences are evident
When it comes to salty snacks flavors, Latin America also demonstrates some clear differences, both from the global picture and from country to country. For example, citrus flavors are very popular in Latin America (and particularly so in Mexico), but usage varies nationally. In Brazil, for example, lemon is often combined with black pepper, while in Mexico, lemon – and more recently lime – flavors are commonly blended with chili. In Colombia, lemon is just as likely to be used as a stand-alone flavor. Overall, in 2019, lemon was the fourth most popular flavor choice in salty snacks NPD in Latin America, with lime in ninth, but they took only 21st and 26th places, respectively, on a global basis.
Broader themes with universal appeal
Clearly, local understanding is important within the salty snacks markets of Latin America but there are several key themes that are having a more universal impact: i.e. more natural formulations, including the use of varied plant based ingredients; a shifting focus towards added health ingredients and away from fat reduction; and growing segmentation of the market with more hybrids and greater variety in snack mixes. Going forward, texture could be an area ripe for future exploitation by snacks formulators, while sweet & salty flavor blends – so popular in North America – could also extend their reach.
“Latin America: Salty Snacks” is a new report from Innova Market Insights, which brings together consumer research, market sizes, company analysis and a review of new product activity and drivers in order to assess key trends in the market and identify where future opportunities can be found.
All Innova Market Insights material is copyrighted. The terms of use for this resource are contained in our standard Terms and Conditions.
