Latin American consumers, from Brazil to Mexico, Colombia, and Argentina, are buying less Coca-Cola and Pepsi in supermarkets, according to the 2025 Brand Footprint report by Worldpanel by Numerator. This decline, observed across 15 countries, stems from economic pressures like rising inflation and growing health concerns, pushing shoppers toward cheaper, healthier alternatives. Local brands such as Itubaína in Brazil and Red Cola in Mexico are gaining traction, while nutritional labeling laws highlight high sugar content in sodas. Despite the drop, these global giants remain dominant but face challenges adapting to shifting consumer preferences.
Mexico tops soda consumption with 270.9 liters per household annually, compared to 76.6 liters in Brazil. Yet, purchase frequency for Coca-Cola and Pepsi fell by 4.7% and 4.9%, respectively, in 2024, per the report’s Consumer Reach Points (CRP). This reflects a shift in behavior, with families balancing budgets and prioritizing affordable or healthier options.
- Economic factors: Food inflation reduces purchasing power.
- Health awareness: 89% of Latin Americans view sugary drinks negatively.
- Local brand growth: Itubaína surged over 50% in CRP in Brazil.
Rising prices strain consumer budgets
Inflation, particularly in food prices, has hit Latin American households hard, prompting a cutback in purchases of global brands like Coca-Cola and Pepsi, which saw above-average price hikes. Marcela Botana, a consumer habits expert, notes that Latin Americans adeptly adjust spending, often choosing cheaper alternatives. In Brazil, Itubaína, owned by Heineken, jumped over 50% in reach, appealing to cost-conscious shoppers with its competitive pricing and nostalgic charm.
Local brands like Red Cola in Mexico, Cunnington and Pritty in Argentina, and Colombiana in Colombia are also capitalizing on this trend. These more affordable options are gaining shelf space, challenging the dominance of American giants. Repeated purchases suggest these brands are building loyalty, not just one-off trials.
- Red Cola: Gaining popularity in Mexico for lower prices.
- Cunnington and Pritty: Budget-friendly choices in Argentina.
- Colombiana: Growing in Colombia with local appeal.
- Itubaína: A Brazilian standout with strong regional roots.
Health concerns curb soda consumption
Health perceptions are significantly impacting soda sales. A Worldpanel survey found that 89% of Latin Americans see sugary drinks as harmful, with 38% planning to cut back in the near future. This shift is bolstered by nutritional labeling laws highlighting high sugar, salt, and fat content in ultra-processed foods.
In Brazil, mandatory warning labels introduced in 2022 have heightened consumer scrutiny of product labels. Countries like Ecuador, Chile, Peru, Argentina, Colombia, and Mexico have adopted similar measures, such as Ecuador’s “traffic light” system, which uses colors to flag nutritional content. These regulations, per Botana, haven’t stopped soda consumption but have reduced its frequency, with consumers turning to bottled water and isotonic drinks.
- Labeling laws: Implemented in six countries, with five more in progress.
- Consumption impact: Lower frequency of soda purchases.
- Healthier alternatives: Water and isotonic drinks gain popularity.
Local brands rise in popularity
The rise of regional brands reflects both economic pressures and a desire for local identity. In Brazil, Itubaína stands out, blending affordability with cultural appeal. In Argentina, Cunnington and Pritty attract buyers with traditional flavors and lower costs. Colombiana in Colombia and Red Cola in Mexico are following suit, establishing themselves as viable competitors to global giants.
These brands benefit from being seen as closer to consumers, both in price and cultural resonance. Botana emphasizes that their entry into households offers a chance to build lasting relevance in a market long dominated by Coca-Cola and Pepsi. The lack of significant rejection suggests consumers are open to sticking with these options.
Global giants adapt to challenges
Despite the decline, Coca-Cola and Pepsi remain leaders in Latin America, with Coca-Cola topping the 2024 Brand Footprint ranking and Pepsi placing third. To counter challenges, both are innovating with “zero sugar” beverages, smaller packaging, and even returnable bottles to appeal to health-conscious and eco-minded consumers.
- Innovations: Sugar-free drinks and sustainable packaging introduced.
- Market presence: Coca-Cola holds the top spot despite setbacks.
- Resilience: Global brands have strong recovery potential.
These efforts aim to recapture budget-conscious and health-aware consumers. However, competition from local brands demands ongoing adaptation to maintain market share.
Limited impact from external factors
Speculation about boycotts tied to U.S. policies, such as Donald Trump’s tariffs, was explored but lacks strong evidence in Latin America. Botana notes that, unlike in Nordic countries where boycotts of American brands are more noticeable, price remains the primary driver in the region. Among Hispanic consumers in the U.S., rumors about Coca-Cola’s practices caused temporary impacts, but no similar trend is evident locally.
- Boycotts in Latin America: No significant political rejection observed.
- Global contrast: Nordic countries show stronger geopolitical sensitivity.
- Regional focus: Price and health dominate consumer choices.
Outlook for the soda market
The Latin American soda market is at a turning point. Inflation, health awareness, and the rise of local brands create a complex landscape for Coca-Cola and Pepsi. Their enduring popularity and adaptive strategies suggest continued relevance, but the growing preference for affordable, local, and healthier options signals a shift in consumer priorities.
The ability of global giants to navigate these trends will determine their future dominance in an increasingly competitive market. Local brands, meanwhile, are seizing the moment to cement their place in Latin American households.
