The
Brazil flavored and functional water market is characterized by the
presence of a large number of major providers as well as small
domestic players. Nestlé Waters, PepsiCo Inc., Groupe Danone, The
Coca Cola Company, and Mountain Valley Spring Company, LLC are among
the leading global companies operating in the flavored and functional
water market in Brazil. Apart from these, players such as Grupo
Petrópolis, Comexim Ltda., and Agua Via Natural have a strong
presence in this market.
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Transparency
Market Research finds that the competitive rivalry among players is
currently high and is likely to remain so over the course of the
forecast period. “Companies are focused on operational expansion
and product advancement in order to gain competitive advantage,”
the author of the study states.
The
Brazil flavored and functional water market is expected to rise from
a valuation of US$5.0 bn to reach US$9.4 bn by 2024, expanding at a
7.3% CAGR therein.
Vitamins
and Minerals Widely Used Ingredients in Flavored and Functional Water
In
2015, the vitamins and minerals segment accounted for a share of
around 90% in terms of volume. Exhibiting a 7.1% CAGR by volume, the
segment is also projected to emerge as one of the most lucrative
investment options for players in the Brazil flavored and functional
water market. Based on the nature of flavored and functional water,
non-carbonated beverages are likely to retain their dominance in the
market, registering a high growth rate in terms of value as well as
volume.
On
the basis of distribution channel, the retail store segment is
expected to lead the Brazil flavored and functional water market
throughout the forecast period, with e-commerce exhibiting strong
potential. Regionally, south-east Brazil is expected to make a
significant contribution to the revenue of the flavored
and functional water market through 2024, with a 38.2% value
share at the end of the forecast period. On the other hand,
north-east Brazil is anticipated to register a high CAGR of 7.8%
between 2016 and 2024, highlighting the immense potential this region
presents.
Regulatory
Limitations Restricting Market Growth
Carbonated
water, which contains caffeine and phosphoric acid, has been known to
cause digestive problems leading to weight gain and heart burn. As a
result, consumers have been slowly but surely shifting from
sugar-sweetened carbonated drinks to healthier low-calorie beverages.
This has driven companies to focus on the development of flavored and
functional water.
“Consumers
in Brazil have been growing increasingly conscious about their health
and well-being and this is a key factor driving the demand for and
sales of flavored and functional water,” the author of the report
finds.
In
contrast, stringent regulations related to the packaging of flavored
and functional water poses a moderate threat to the market in Brazil.
The Brazilian Association of Technical Norms (ABNT), for instance,
mandates all consumer packaging, including cans or PET bottles, to be
certified. Manufacturers are also individually responsible for the
recycling and disposal of all packages and containers that pose any
environmental threat to the nation. This proves to be a hassle for
most suppliers.
“The
Brazilian Health Surveillance Agency has also laid down certain
regulations for the commercialization of flavored and functional
water, which includes limits for adding certain ingredients such as
sodium, potassium, and magnesium in the composition of flavored
water,” the TMR analyst states.
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