South America Spreads Market Outlook, 2028

The South American spreads market has experienced significant expansion and evolution in recent years, reflecting the region's increasing economic vitality and consumer demand. This market includes a diverse range of items, such as jams, chocolate spreads, nut butters, and savoury spreads, among others. Spreads have grown in popularity as a breakfast staple, snack accompaniment, or element in culinary creations as South American consumers' preference for easy and versatile food options has grown. Factors such as urbanisation, changing lifestyles, and a growing emphasis on health and wellbeing can all be related to the market's expansion. Furthermore, the rise of e-commerce platforms and an increasing retail landscape have made spreads more accessible and available, further fuelling their market growth. South America is abundant in tropical fruits and nuts, including mangoes, papayas, passion fruit, coconuts, cashews, and Brazil nuts. These fruits and nuts are excellent ingredients for spreads, providing natural and bright flavours that appeal to local tastes. Because the region has such a broad and fresh produce supply, manufacturers may create distinctive and original spreads that cater to the local palate. South American consumers have shown an increased interest in health and wellbeing in recent years, seeking items that correspond to their dietary preferences and lifestyles. Spreads that emphasise natural, organic, and healthier ingredients are in high demand. South America's unique biodiversity, combined with an increasing knowledge of the nutritional benefits of indigenous ingredients, enables producers to create spreads that cater to this health-conscious consumer base, including low-sugar, gluten-free, and vegan spreads. According to the research report, “South America Spreads Market Outlook, 2028", published by Bonafide Research, the market is expected to add USD 1.37 Billion from 2023 to 2028. Natural, minimally processed, and artisanal food products are becoming increasingly popular among South American consumers. This pattern also applies to spreads. Consumers prefer spreads created with high-quality, locally sourced ingredients that have few additives or artificial flavours. Because of their unique flavours and traditional production methods, artisanal spreads, frequently manufactured by small-scale manufacturers or local businesses, are gaining popularity. The gastronomic diversity of South America creates a desire for spreads with distinctive and regional flavours. Unique ingredients and traditional flavour characteristics are being incorporated into manufacturers' spread offerings. Spreads infused with tropical fruits such as guava, passion fruit, or acai, as well as regional ingredients such as dulce de leche (caramelised milk) or mate (a traditional South American tea), are popular among customers. As consumers become more health-conscious, there is a growing demand for spreads with reduced sugar content and those sweetened with natural alternatives. Manufacturers are developing spreads with lower added sugar levels, replacing traditional sweeteners with natural options like stevia, coconut sugar, or fruit extracts. This trend caters to consumers seeking healthier alternatives while still enjoying sweet spreads. South America has a vast and rapidly growing population, with a sizable share dwelling in cities. This urbanisation trend has resulted in changing lifestyles and nutritional choices, as well as an increased demand for ready-to-eat food products such as spreads. The expanding population, combined with urbanisation, produces a big consumer base, which drives the spreads market forward. Food preferences in South America have shifted as a result of globalisation and exposure to Western cultures. This has resulted in the adoption of Western-style breakfast and snacking habits, in which spreads play an important role. The popularity of spreads as a versatile and savoury component or spreadable topping has increased due to the impact of international cuisines such as American, European, and Mediterranean.

Brazil is leading the market of spreads in South America with highest market share, followed by Argentina and Colombia. Brazil has one of the largest economies in South America, characterized by a strong middle class and increasing disposable incomes. The country's economic strength and rising purchasing power have contributed to the growth of the spreads market. Consumers in Brazil have the financial means to afford a variety of food products, including spreads, and are willing to explore new flavors and brands. Brazil boasts a vibrant culinary culture known for its diverse flavors, tropical fruits, and indulgent desserts. Spreads play an integral role in Brazilian cuisine, with popular options like brigadeiro spread, goiabada (guava paste), and doce de leite (dulce de leche). The deep-rooted culinary culture and the incorporation of spreads into traditional Brazilian dishes have fueled the demand and popularity of spreads in the country. Furthermore, Bread is a staple food in Brazil, consumed daily by a large portion of the population. Spreads are commonly used to enhance the flavor of bread, creating a natural synergy between the two. The high bread consumption in Brazil has created a strong market for spreads, as consumers seek tasty and diverse options to pair with their bread. Based on product type, the market is segment into spreadable fats (butter, margarine & cheese), fruit jam & preserve spreads, nut Based spreads, chocolate spreads, savory spreads, and honey based spreads. The spreadable spreads are widely consumed by South American consumers and is dominating the market as well. Butter holds a special place in South American cuisine due to its rich, creamy flavor and smooth texture. Many consumers perceive butter as a premium option, particularly for indulgent or special occasions. Its natural, unprocessed qualities and the association with homemade or artisanal cooking contribute to its popularity. Butter's distinct taste and texture make it a preferred choice for those seeking a traditional and authentic culinary experience. Spreadable fats have a long-standing culinary tradition in South America. Butter and margarine, the most common spreadable fats, have been widely used in the region for decades. They are considered essential ingredients in traditional recipes and are deeply ingrained in South American culinary culture. As a result, spreadable fats have a strong foothold in the market, with consumers accustomed to their taste and texture. Based on End-Use segment, market is bifurcated into household and commercial. The household segment is leading market of spreads in South America with highest market share. During the forecast period the commercial segment is expected to grow positively with significant CAGR of the market in South America. The distribution channel of the market includes hypermarket / supermarket, convenience store, online, others (foodservice & direct sales). The market is mainly dominated by supermarket/ hypermarket. Supermarkets and hypermarkets stock a large range of products, including spreads, giving customers a variety of options. These retail formats cater to a wide range of consumer tastes by offering a variety of brands, flavours, and types of spreads at one location. The large product selection guarantees that customers can easily identify their favourite spreads, making it a popular channel for purchasing spreads. Supermarkets and hypermarkets are designed to make life easier for customers. They provide a one-stop shopping experience for customers, allowing them to find all of their grocery needs, including spreads, under one stop solution. Customers save time and effort because they may find a range of spreads as well as other food items in a single spot. some of the main supermarket/hypermarket chains in South America that distribute spreads includes, Carrefour, Walmart, Éxito, Cencosud, La Anónima, Tottus.

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Manmayi Raval

Research Consultant

Major companies present in the market: The Kraft Heinz Company, The Hershey Company, Ferrero SpA , Unilever PLC, Nestlé S.A., Hormel Foods Corporation, Mondel?z International, Inc., General Mills, Inc., Hero Group, Dr. Oetker. Considered in this report • Geography: South America • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • South America Spreads market with its value and forecast along with its segments • Country-wise Spreads market analysis • On-going trends and developments • Top profiled companies • Strategic recommendation

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Countries Covered in the report: • Brazil • Argentina • Colombia By Product Type • Spreadable Fats (Butter, Margarine & Cheese) • Fruit Jam & Preserve Spreads • Nut Based Spreads • Chocolate Spreads • Savory Spreads • Honey Based Spreads By End-Use • Household • Commercial By Nature • Conventional • Organic / Plant Based By Distribution Channel • Hypermarket & Supermarket • Convenience Store • Online • Others (Foodservice & Direct Sales) 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, analysing 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 Spreads 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.