With changing lifestyles and growing spending power, packaged soup is a growth segment in Latin America. Emily Woon, senior industry analyst at Euromonitor International, highlights the key market trends and reviews current new product activity.


The market for soup in Latin America is currently going from strength to strength, according to the latest research from Euromonitor International, and current per capita consumption rates suggest there is plenty of room for further growth.


Euromonitor reveals that retail value sales of soup in Latin America reached US$750m in 2006, up 10% on the previous year. Soup sales in Latin America are primarily concentrated in Colombia, Mexico, Brazil and Venezuela, which together accounted for a 70% value share in 2006.


Per capita expenditure on soup in Latin America reached only US$1.30 in 2006, a very low figure in comparison with developed markets such as Western Europe and North America, where consumption is $8.80 and $14.70 respectively.


In per capita consumption terms it may be early days but Euromonitor has identified a number of emerging trends, suggesting good business opportunities in certain segments of the market. Premiumisation, new packaging and functionality are all playing an important role in the region.

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As consumers’ lead increasingly faster-paced lifestyles, consumption of packaged soup is on the increase in Latin America. More consumers have found packaged soup fits in well with their way of life, particularly those in mid and high-income segments.


Among packaged formats, dehydrated soup is the most popular format, particularly among young people regardless of income group. This is largely due to its relatively low price and ease of preparation compared to canned/preserved soup, another popular format, which is most favoured by high-income earners. This is to be expected as canned/preserved soup was the first packaged soup to be introduced in most Latin American markets, and as most of it was imported, it was only affordable to more affluent consumers.


The fastest growing soup segment in the region, however, is instant soup. Retail value sales of instant soup grew by more than 24% during 2005 and 2006, on the back of increased marketing activity promoting it as a snack rather than a meal replacement. For example, in March 2005, Ajinomoto launched Vono in Brazil, a new line of instant soup that contains only 89 calories. Meanwhile in Chile, Nestlé also jumped on the soup-as-a-snack bandwagon by introducing healthier alternatives such as Svelty, an instant soup targeting consumers trying to control their weight.


Aside from new product developments, manufacturers have also invested heavily in advertising to influence consumer eating habits and convey the ease and convenience of instant soup.


Premiumisation, one of the key trends in more developed markets such as Western Europe and North America, is also shaping the soup industry in Latin America. For example in Brazil, while chicken-flavoured soup continued to lead value sales during 2005 and 2006, most new product developments included the addition of premium ingredients to basic soup flavours. For instance, Yoki’s Kitano chicken soups contain speciality pastas, whilst its Pra Mim instant soups targeting single-person households incorporate manioc, also known as cassava.


In Argentina, soups with wild mushroom, shrimp or those based on Mexican recipes, were all very well received by consumers in 2006, indicating a growing sophistication in consumer tastes. On average, these flavours are 8% more expensive than regular flavours such as vegetable. Other than soups with gourmet flavours, there is also an increased demand for cream-based soup, which also has a premium cachet.


Fusion recipes seem to be the winning formula in Chile. Arrocera Tucapel SAIC, a local grain company, introduced Fusion Cuisine, a new line of dehydrated and instant soup based on recipes that combine elements of traditional and modern cuisines to create new eating experiences. This launch allowed the brand to capture a 2% value share in instant soup in 2005, at the expense of the big players, Nestlé and Unilever.


Another interesting trend is the growing demand for single-serve packaging, which is undoubtedly driven by the rise in single-person households, particularly among young and wealthy consumers. This consumer group tends to prefer a light meal in the evening, thus leading to higher demand for single-serve canned/preserved and dehydrated soup.


This type of packaging is also becoming increasingly popular among lower-income consumers for economic reasons. Among the low-income earners in Venezuela, it is common to buy two or three single-serve sachets of dehydrated soup every month. Instead of being eaten as a snack or meal replacement, dehydrated soup is used as a condiment to reinforce the flavour of homemade soups.


As a result of the dynamic performance of the soup sector in Latin America, a number of companies from other packaged food sectors are now entering the market. For example, the Brazilian company Vilma Alimentos has extended its pasta brand to include soups, launching basic chicken, meat and vegetable flavours.