South America Squash and Syrup Market Outlook, 2028

The South American Syrup and Squash industry is a vibrant and rapidly growing sector that captivates the taste buds of millions across the continent. With its rich cultural heritage, diverse natural resources, and passion for indulging in refreshing beverages, South America has become a hub for the production and consumption of syrups and squashes. The culture surrounding syrup and squash in South America is deeply rooted in the region's history, diversity, and culinary traditions. It reflects a blend of indigenous, European, and African influences, resulting in a rich tapestry of flavours and preparations. Indigenous communities have long used native fruits and plants to create syrups and squashes, often utilising traditional techniques and recipes passed down through generations. Ingredients like passion fruit, guava, cacao, and various berries are commonly used to infuse beverages with distinct tropical and exotic flavours. During the colonial era, European settlers introduced new cultivation methods and ingredients to South America, including sugarcane and citrus fruits. This fusion of Old World and New World ingredients led to the development of unique syrup and squash recipes. Sugarcane, in particular, played a significant role in shaping the sweetening agents used in South American beverages. African influences, brought by enslaved populations during the transatlantic slave trade, also left a lasting impact on South American syrup and squash cultures. African traditions of using herbs, spices, and medicinal plants for flavouring and refreshing drinks greatly influenced the development of unique flavour profiles in the region. South America is renowned for its abundance of natural resources and diverse flora. The region's Squash and Syrup industry benefits from access to a wide array of exotic fruits and plants, such as passion fruit, acai, mango, and cacao, which are used to create unique and tantalising flavours.

According to the research report "South America Squash and Syrup Market Outlook, 2028," published by Bonafide Research, the South America Squash and Syrup market is anticipated to add USD 412.93 Million in market size from 2023–28. South America's rich biodiversity and abundant natural resources contribute to the availability of diverse and unique ingredients for syrup and squash production. The region's tropical climate and fertile soils enable the cultivation of a wide range of fruits and plants, providing ample opportunities for flavour innovation and product differentiation. South America is a popular tourist destination known for its vibrant cultures, picturesque landscapes, and gastronomic experiences. Travellers often seek to explore local flavours and beverages, including syrup and squash-based drinks, as part of their immersive cultural experiences, driving the demand for these products. Continuous innovation in flavours, packaging, and product formulations has contributed to the growth of the market. Producers are introducing new and unique flavours, incorporating functional ingredients, and offering customised options to cater to the evolving preferences of consumers. Based on the flavour types segment, which includes Citrus Fruits (Lime, Lemon, Orange), Berry (Blueberry, Cranberry, Raseberry, Strawberry), Tropical & Exotic Fruits (Mango, Pineapple, Black Current, Apple), Mixed Fruit, Winter Squash (butternut squash, spaghetti squash, acorn squash, kabocha squash, and pumpkin), and Others (Maple Syrup, Black Forest, Vanilla, Peppermint, Caramel, Chocolate, and Elderflowers), in the South America has favourable climatic conditions for growing a variety of citrus fruits, such as oranges, lemons, lemons, and limes. These fruits are widely cultivated in the region, making them readily available and accessible for syrup and squash production. The local availability ensures a steady supply of citrus fruits, driving their market share. Citrus fruits offer versatility in terms of their flavour profiles and mixing potential. They can be used as a base for a wide range of syrup and squash recipes, either as the sole flavour or in combination with other fruits and ingredients. Citrus flavours blend well with various fruits, herbs, and spices, allowing for endless creative possibilities in beverage formulation. Furthermore, Citrus fruits often have well-defined harvest seasons, resulting in a sense of seasonality and anticipation among consumers. This can lead to increased demand for citrus-based beverages during specific periods, further driving their market share. Syrup and squash manufacturers in South America have been introducing a wider range of flavours to attract diverse consumer preferences. In addition to traditional flavours like citrus, passion fruit, and guava, innovative combinations and exotic flavours have gained popularity, providing consumers with unique taste experiences.

Based on the report, the South American market is segmented into three countries, including Brazil, Argentina, and Colombia. Among them, Brazil is dominating the market in 2022. Brazil has the largest population in South America, providing a significant consumer base for syrup and squash products. The sheer size of the market presents ample opportunities for manufacturers and enables economies of scale, attracting investments and driving market growth. Brazilian manufacturers have been at the forefront of innovation in the syrup and squash markets. They continuously introduce new flavours, unique combinations, and product variations to cater to evolving consumer preferences. This commitment to innovation has helped Brazilian brands gain a competitive edge and establish a strong presence in the market. Brazil has made significant investments in creating a strong infrastructure to support the growth of the food and beverage industry, particularly the syrup and squash sectors. Because of the country's well-established logistical networks, distribution channels, and manufacturing capabilities, efficient production, distribution, and market penetration are possible. Based on the product types segment, which includes syrup and Squash, in South America, the Syrup market is large and has the highest market share. Syrup offers versatility in terms of its applications. It can be used not only in beverages but also in desserts, cocktails, and various culinary recipes. This versatility expands the potential market for syrup, making it a more widely used product compared to squash, which is primarily consumed as a drink. Syrup-based beverages have a long-standing tradition and cultural significance in South America. In countries like Brazil, Argentina, and Uruguay, syrups are often used to flavour water, creating refreshing and flavorful drinks. This beverage culture and tradition contribute to the higher market share of syrup in the region.

Based on the types, which include added sugar and non-added sugar, non-added sugar will grow at the highest CAGR rate. There is a growing trend of health-conscious consumers in South America who are increasingly mindful of their sugar intake. As awareness about the health risks associated with high sugar consumption spreads, consumers are actively seeking alternatives that offer reduced or no added sugar. Non-added sugar syrups cater to this demand and provide a healthier option for consumers. Furthermore, South America is facing a significant burden of diabetes and obesity, which has prompted individuals to adopt healthier lifestyles and dietary choices. Non-added sugar syrups and squash offer a way to enjoy flavoured beverages without contributing to blood sugar spikes or excessive calorie intake. This aligns with the needs of individuals managing or preventing these conditions, driving the growth of the non-added sugar segment. Furthermore, Governments and health organisations in South America are implementing regulations and public health campaigns to address the issues of obesity and excessive sugar consumption. These efforts include labelling requirements, sugar taxes, and awareness campaigns. Such measures encourage consumers to opt for products with reduced or no added sugar, bolstering the growth of the non-added sugar segment. Regular types of syrup and squash have the highest market share, rather than blended types of flavours, due to Regular syrup and squash flavours, such as citrus, passion fruit, and guava, have long been ingrained in South American culinary traditions. These flavours have become familiar and widely accepted by consumers, leading to their continued popularity and higher market share. Consumers often prefer the original, authentic taste of traditional flavours over blended or mixed combinations. Based on the end user, which includes commercial and residential, in South America, the commercial segment is leading the market. South America has a thriving foodservice and hospitality industry, which includes restaurants, cafes, hotels, bars, and catering services. These establishments rely on syrup and squash products for their beverage offerings. The commercial segment caters to the high demand for syrups and squashes in these settings, driving its leadership in the industry. Furthermore, to meet the demands of the commercial sector, syrup and squash manufacturers focus on efficient packaging and distribution systems. Bulk packaging formats, such as large containers or bag-in-box options, are designed for easy handling and storage in commercial settings. The optimised supply chain ensures timely delivery and uninterrupted availability, further reinforcing the commercial segment's leading position. Based on the distribution channel, it includes the supermarket, convenience store, online, and others (specialty store, direct sale). Hypermarkets and supermarkets are leading the syrup and squash markets.

Companies covered in this Report:

The Coca-Cola Company, Nestlé S.A., Kerry Group plc, Britvic PLC, The Hershey Company, Grupo Arcor, PepsiCo, Inc. and The Kraft Heinz Company.

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 syrup and Squash market with its value and forecast along with its segments
• Country-wise syrup and Squash market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• Brazil
• Argentina
• Colombia

By Product Type

• Syrup
• Squash

By Types

• Added Sugar
• Non added Sugar
By End User

• Residential
• Commercial

By Flavour Types

• Citrus Fruits (Lime, Lemon, Orange)
• Berry (Blueberry, Cranberry, raspberry, strawberry)
• Tropical & Exotic Fruits (Mango, Pineapple, Black Current, Apple,)
• Mixed Fruit
• Winter Squash (butternut squash, spaghetti squash, acorn squash, kabocha squash, and pumpkin)
• Others (Maple syrup, Black Forest, Vanilla, Peppermint, Caramel, Chocolate, Elderflowers)

By Nature Types

• Regular
• Blended

By End user

• Residential
• Commercial

By Distribution channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Online
• Other Distribution Channel (Speciality store, direct sale)

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 Skincare 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.

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