Growth - Latin American Snacks
From our calculations, the approximate market sizes for Latin American snacks in the United States were about $519.06 million and $2.35 billion in 2012 and 2018, respectively. Although our calculations should be treated as estimates, the findings indicate that the U.S. market size for Latin American snacks grew exponentially in the years prior to 2019. Below are more details on our triangulation, assumptions, and findings.
Initially, we began the research the growth rate of the United States market size for Latin American snacks prior to 2019 by searching through market research companies such as Mintel, Plunkett Research, MarketsandMarkets, Pew Research, Grand View Research, and MarketDataForecast, among others. We also searched through statistics sites such as Statista and for any academic research on the subject. While there were yearly/historical statistics for the U.S. food and beverage market size and the U.S. snack market size, there was nothing on either the growth rate for the market size for Latin American snacks or the yearly market size for Latin American snacks.
Next, we searched through credible media resources such as Forbes and Reuters and for press releases by sites such as PRNewswire. We also explored credible industry publications such as PackWorld, BakeryandSnacks, Food Navigator USA, and Food Business News, among others. Our aim was to find reports on research on the topic. Again, our efforts were fruitless as our strategy only produced information on the trends in the U.S. Hispanic food and beverage market.
Our third strategy was to find data that we could use to triangulate the required information. Our starting point would have been to use the annual sizes for the Latin American snacks market in the United States to determine the growth rate but, as indicated in a related Wonder brief, there was no readily available information on the subject. We then decided to use the available data points to first calculate the annual market sizes for the Latin American snacks market in order to calculate the growth prior to 2019.
In the course of our research through the aforementioned resources, we found reports providing statistics for the Hispanic food and beverage market size, the U.S. food and beverage store sales, and the U.S. snack market size. We used the data for the Hispanic food and beverage market size because we discovered that the terms 'Hispanic' and 'Latino' are used interchangeably for the United States food industry, which would explain the absence of statistics for the Latin American food and beverage market size. Although the assumptions that the Latin America and Hispanic markets are proportionately equal is not fully accurate, using the statistics for the Hispanic market is the closest we could get to calculating Latin American snack data.
Additionally, the data for sales in food and beverage stores has been used instead of the overall U.S. food and beverage market size because stores would be the most likely channels for selling/buying snacks, and the overall statistics would have been too broad since they include data for products sold at restaurants and groceries.
We chose to calculate and provide the approximate growth rate for the U.S. market size for Latin American snacks from 2012 to 2018 due to the availability of data for the calculation of the market sizes for the two years.
Reports from both Food Navigator USA and Food Business News state that the Hispanic food and beverage market was about $8.2 billion in 2012. According to YCharts, the U.S. food and beverage store sales was $627.34 billion in 2012. We have provided a screenshot of the YCharts statistics since it required setting up an account. According to an analysis by the Canadian Agribusiness department, the U.S. snack industry was worth about US$39.74 billion in 2012.
Therefore, the approximate market share of the snacks' industry in the United States = the U.S. food and beverage store sales / the U.S. snack industry market = US$39.74 billion / $627.34 billion =6.33%.
Then, using the market share for snacks (6.33%) and the overall size of the U.S. Hispanic food and beverage market in 2012 ($8.2 billion), the approximate market size for Hispanic snacks (or Latin American snacks) can be calculated to be about $519,060,000 ($8,200,000,000 x 0.0633).
According to ResearchandMarkets the Hispanic food and beverage market in the United States was $17.5 billion in 2015 growing at a CAGR of 3.8% through 2020. With the assumption that the CAGR remained steady for the entire forecast period, the estimated market size for each year between 2016 and 2018 can be calculated as follows:
2016= 1.038 X $17,500,000,000 = $18,165,000,000
2017= 1.038 X $18,165,000,000 = $18,855,270,000
2018 = 1.038 X $18,855,270,000 = $19,571,770,260
According to Plunkett Research, the U.S. food and beverage store sales was $742.5 billion in 2018. Also, the United States snack industry was worth about $87 billion in 2018, according to Packaging Strategies.
Therefore, the approximate market share of the snacks' industry in the United States = the U.S. food and beverage store sales / the U.S. snack industry market = $87 billion/$742.5 billion X 100= 11.7%, rounded off to 12%.
Then, using the market share for snacks (12%) and the overall size of the U.S. Hispanic food and beverage market in 2018 ($19,571,770,260), the approximate market size for Hispanic snacks (or Latin American snacks) can be calculated to be about $2,348,612,431 ($19,571,770,260 x 0.12).
To calculate the percentage growth of the Latin American snacks market from 2012 to 2018, we take the approximate 2012 market size for Hispanic snacks as the base (100%) figure. Therefore, if $519,060,000 (2012) = 100%, then $2,348,612,431 (2018) would be =
$2,348,612,431/$519,060,000 X 100 = 452.47% overall or28.61% CAGR