Spotlight on regional food trends

Health ingredients

Many South American countries suffer from the double burden of obesity and micronutrient deficiencies, meaning fortified, health-promoting foods were strongly appealing even before the coronavirus pandemic

The coronavirus pandemic has brought the link between food and health into even sharper focus and manufacturers can tap into this demand by formulating healthy products for the ‘new normal’

Lockdowns have taken a physical and psychological toll with almost half of Latin Americans saying they have gained weight and many sleeping worse, according to a survey conducted by Americas Market Research 8

51% of Brazilians say they put a higher priority on eating healthily since the COVID-19 outbreak – much higher than the 37% in the US and 35% in Canada - while nearly three-quarters of Peruvians are regularly consuming immune-boosting foods, according to Mintel’s COVID-19 Tracker 9

Global sales in vitamin C, D and other immunity-based dietary supplements have increased since the outbreak, and Latin America has led this growth in sales 10

Beyond supplements, however, consumers are looking for the convenience of everyday food and drink products with immune-boosting benefits. Vitamin and mineral fortification is a common regional brand strategy for product innovation and renovation, and some manufacturers were quick to offer this in the context of COVID-19 In March 2020, major Costa Rican dairy company, Dos Pinos, increased the vitamin and mineral content of its milk and orange juice between 30% and 50% specifically to help people fight coronavirus, without raising the price 11

In addition to vitamins and minerals, other nutrients have room to grow in Latin America’s immune-health category. Protein is known to repair body tissue and help fight viral and bacterial infections while prebiotics, probiotics and fibre are beneficial for the gut microbiome, which is linked to the body’s immune system.12

Snack products are a good fit for immune health nutrients thanks to their one-time consumption. In Colombia, Free Zen makes a dulce de leche-filled, sugarfree cookie with 5 g of protein the brand says helps create defences for the immune system while Brazilian manufacturer B eat makes a Peaceful Night snack mix with 8 g of protein from nuts and seeds that it says has a calming effect before sleep

Sugar reduction

Obesity now affects one in four adults13 in Latin American and governments in the region are encouraging manufacturers to reformulate through mandatory front-of-pack labelling schemes that warn consumers about excessive sugar content (see ‘regulatory landscape’ for more information) The fact that obesity has been identified as a major co-morbidity factor14 for COVID-19 indicates sugar reduction efforts will continue with a renewed priority

Low- and no-sugar claims currently have the strongest influence on purchasing decisions in key global markets including Brazil, according to a survey by Innova Market Insights,15 and the South American sugar substitute market is expected to grow at a compound annual growth rate (CAGR) of 3 23% between 2020 and 2025 16

Significant income disparities in the region mean that value for money remains an important attribute. Many products have a ‘better for you’ positioning, with manufacturers using high intensity artificial sweeteners such as sucralose and aspartame that enable a sugar-free claim while ensuring the product remains affordable

Stevia, which is native to South America, enjoys a natural and healthy image and is often combined with low-cost artificial sweeteners to keep the final product’s price down while allowing for a front-of-pack stevia claim For health and wellness consumers in higher income groups, however, a clean label ingredient list is increasingly important

Native superfoods & ancient grains

Natural, healthy and nutritious, many popular superfoods used around the world are in fact native to South America Chia seeds, quinoa, açaí, and amaranth are now well-known to Western consumers and others are gaining traction

Native superfoods are valued among South American consumers because they bring authenticity to the product, connecting the product with a regional or ethnic identity Manufacturers should search for home-grown superfoods that resonate with consumers in each country, such as açaí in Brazil, maqui berries in Chile, or maca root in Peru

Superfoods and ancient grains are popular in baked goods, breakfast cereals, snack bars and bread – these categories account for 80% of products with quinoa in Latin America, for example17 – but their use is expanding to other categories, including plant-based meat and dairy alternatives, yoghurts and smoothies Dairy alternative drinks made with ancient grains are more widely available in Latin America than in other regions, with quinoa-based product launches in the drinks category doubling from 2013 to 2018 18 Mexican brand Pure Natural Concepts expanded its mango-flavoured quinoa drink to South American markets, such as Uruguay, while Ecuadorian brand Gramolino makes an amaranth flavoured with goldenberries under its Amati brand.

Adding superfoods or ancient grains to indulgent products also adds a health halo Alfajores, for example, are individual cakes covered in chocolate and filled with caramel, hugely popular in Argentina, Uruguay, and Chile Argentinian brand Havanna launched a gluten-free version with sesame, quinoa, chia, poppy, and linseed that it says is ‘naturally light’

Plant-based meat alternatives

South America counts some of the world’s biggest meat-producing countries and traditional diets tend to be meat-heavy From Argentina to Colombia, asado (barbecue) is not just a typical food but a national pastime

Nevertheless, demand for both plant-based meat and dairy alternatives is growing fast as consumers, particularly among higher-income groups, perceive them as important for a healthier and more balanced diet

The Good Food Institute (GFI) sees the biggest plant-based potential in Brazil, which generally tends to be South America’s most dynamic market in terms of food trends The GFI surveyed 9,000 consumers in 2018 and found that nearly 30% were either moving towards reducing consumption of animal products or were already vegetarian 19

Since then, interest in plant-based meat alternatives has grown thanks to several high-profile launches from vegan start-ups, such as Fazenda Futuro and major meat producers Marfrig and JBS, for instance, have both launched meat-free burgers while one of Brazil’s biggest egg producers, Grupo Mantiqueira, launched a vegan egg made from pea protein called N ovo

In addition to plant-based burger patties, brands are developing vegan versions of local favourites to appeal to a wider consumer base Chilean brand Riku makes vegan salchi to prepare typical Chilean completo while Brazil’s Mr Veggy recently launched a jackfruit-based coxinha

Price will be a factor decisive in the category’s potential to expand beyond high earners The Brazilian Institute of Public Opinion and Statistics (IBOPE) found that 60% of respondents would prefer to buy plantbased products if the price were similar to their animal-based equivalents 20

Plant-based dairy

Despite making up just 6% of the world’s population, Latin America accounts for 29% of the global volume of lactose-free dairy products, with Brazil leading the way Between 2015 and 2017, 38% of the world’s low- or no-lactose products were launched in Brazil 21 Traditional dairy products with lactose are perceived as being difficult to digest, and South American plant-based manufacturers can leverage this by communicating about the health benefits of non-dairy alternatives as well as sustainability and taste

Demand for dairy alternatives in South America is set to continue with a predicted CAGR of 5 2% between 2016 and 202522, and traditional dairy producers are increasingly entering the space, such as Chilean brand Quillayes, which launched a vegan cheese line, and Brazilian manufacturer Batavo, which has soy-based milk and drinking yoghurt alternatives

As in other markets, plant-based manufacturers face a pushback from the meat and dairy industries over product names, and regulations prohibiting traditional terms are in progress in various South American countries, including Brazil 23