Market Insights Consumer Food Oils & Fats

Margarine - South America

South America

Revenue in the Margarine market amounts to €2.90bn in 2024. The market is expected to grow annually by 6.48% (CAGR 2024-2029).
In global comparison, most revenue is generated in China (€4,377m in 2024).
In relation to total population figures, per person revenues of €7.01 are generated in 2024.
In the Margarine market, volume is expected to amount to 1.04bn kg by 2029. The Margarine market is expected to show a volume growth of 2.5% in 2025.
The average volume per person in the Margarine market is expected to amount to 2.26kg in 2024.

Key regions: Philippines, China, United States, South Korea, India

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Comparación de regiones

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Analyst Opinion

The Margarine market within the Oils & Fats sector in South America is experiencing minimal growth, influenced by factors such as changing consumer preferences toward healthier options, competition from butter, and economic challenges affecting purchasing power.

Customer preferences: Consumers in South America are increasingly prioritizing health-conscious choices, contributing to a notable shift away from margarine toward natural alternatives such as butter and plant-based spreads. This trend is influenced by a growing awareness of nutrition and wellness, particularly among younger demographics who favor clean-label products. Additionally, cultural shifts towards traditional cooking methods and recipes are reviving interest in ingredient quality, prompting consumers to seek more authentic, minimally processed options in their diets.

Trends in the market: In South America, the Margarine Market within the Oils & Fats segment is experiencing a significant decline as consumers increasingly gravitate towards healthier options like butter and plant-based spreads. This shift is driven by heightened health awareness and a preference for clean-label products, particularly among younger consumers. Traditional cooking methods are gaining popularity, leading to a renewed focus on ingredient quality and authenticity. For industry stakeholders, these trends may necessitate reformulation strategies, investment in natural alternatives, and marketing initiatives that emphasize transparency and health benefits to remain competitive in a changing landscape.

Local special circumstances: In South America, the Margarine Market within the Oils & Fats segment is influenced by diverse local factors that shape consumer preferences and market dynamics. The region's rich culinary heritage emphasizes the use of traditional fats, with butter and indigenous plant oils gaining popularity due to their cultural significance. Geographically, variations in agricultural production impact the availability of certain oils, prompting consumers to favor locally sourced ingredients. Additionally, regulatory frameworks promoting healthy eating are encouraging manufacturers to innovate towards cleaner labels, aligning products with the region's increasing health consciousness.

Underlying macroeconomic factors: The Margarine Market within the Oils & Fats segment in South America is shaped by macroeconomic factors such as regional economic stability, inflation rates, and trade policies. Economic growth in key countries fosters consumer spending, leading to increased demand for margarine products. Fluctuating commodity prices for fats and oils can impact production costs, influencing retail pricing strategies. Additionally, government policies promoting sustainable agriculture and health initiatives encourage manufacturers to adapt their offerings. The region's integration into global trade networks further allows access to diverse ingredients, enhancing product innovation and competitiveness in the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.