This market is set to grow with the rising income, growing urbanization, as well as the increasing interest in the functionality of these drinks. The sports and energy drinks market is currently valued at $4 billion in Latin America, and while there are some countries in the region that have the highest consumption of energy drinks in the world, there are many such places where there is an immense opportunity as the category is highly immature. Moreover, given its stronghold of the market, Coca-Cola is in a favorable position to increase prices of its products periodically to compensate for the low volume growth.Ģ. Moreover, migration to cities and a growing middle class, present opportunities for the improvement of this market, projected to grow at a CAGR of 6% over the next three years. While soft drink consumption falls in the developed markets, Latin America continues to remain as a bright spot, where the consumption is expected to grow with the modernization of retail channels and stabilizing economies. The beverage company holds a value share of more than 50% in the segment, a gain of 3% since 2010.

What is more surprising is that the bulk of this growth ($14 billion) is expected from the sparkling beverages market, which is Coca-Cola’s core area. There is a $30 billion opportunity for Coca-Cola in the categories it operates in over the 2017 to 2020 period, at a CAGR of 7%. Is Coca-Cola Stock A Better Pick Than Its Sector Peer?.Here’s What To Expect From Coca-Cola’s Q4.Is The K-Cup Pod Maker A Better Pick Over Coca-Cola Stock?.

Coca-Cola Q1 To Benefit From Pricing Actions.What’s Next For Coca-Cola Stock After An Upbeat Q1?.Coca-Cola And CL Stock May Offer Little Returns In The Next Three Years.The charts have been made using our new, interactive platform. We have a $48 price estimate for Coca-Cola, which is slightly higher than the current market price. Below we’ll highlight certain factors that will continue to help the company perform strongly in Latin America. Subsequently, Coca-Cola was forced to rethink its business plan in the region, which coupled with stabilizing economies and more business-friendly governments have resulted in an improved performance from the region in 2017. Moreover, the softness in the economy prompted the governments to raise taxes, including for the food and beverage industry, which hampered the purchasing power of consumers. The high levels of inflation, as well as currency depreciation, was forcing the company to continually raise the prices of its products, which consequently, had a negative impact on its growth.

However, the company had been facing a challenging time as a result of the macroeconomic weakness in the region. Latin America has a vibrant food and beverage industry with a retail value of $90 billion, with The Coca-Cola Company (NYSE:KO) having a 48% value share in the beverage market.

Coca cola bcg matrix 2017