Beer - Cuba

The Beer market in Cuba has been experiencing significant growth in recent years.

Customer preferences: Cuban consumers have shown a growing interest in beer, with an increasing number of people choosing it as their preferred alcoholic beverage. This shift in preferences can be attributed to several factors. Firstly, beer is seen as a refreshing and enjoyable drink, especially in the hot and tropical climate of Cuba. Secondly, the younger generation is increasingly adopting Western lifestyles and tastes, which includes a preference for beer over traditional drinks such as rum. Lastly, the growing tourism industry in Cuba has also contributed to the rise in beer consumption, as tourists often choose beer as their beverage of choice while visiting the country.

Trends in the market: One of the key trends in the Cuban beer market is the emergence of craft breweries. These small, independent breweries produce beer in limited quantities and often focus on unique flavors and high-quality ingredients. Craft beer has gained popularity among beer enthusiasts who appreciate the variety and craftsmanship that goes into each brew. This trend reflects a global movement towards artisanal and locally-produced goods, as consumers seek out unique and authentic experiences. Another trend in the Cuban beer market is the increasing availability of imported beers. As the country opens up to foreign investment and trade, Cuban consumers now have access to a wider range of international beer brands. This has led to a diversification of beer options and a greater exposure to different beer styles and flavors from around the world. The availability of imported beers has also created opportunities for local distributors and retailers to cater to the growing demand for these products.

Local special circumstances: Cuba has a long-standing tradition of rum production, and rum has historically been the preferred alcoholic beverage in the country. However, the increasing popularity of beer among Cuban consumers has led to a shift in the market dynamics. While rum still holds a special place in Cuban culture, beer is now gaining ground as a popular choice for social gatherings and everyday consumption. This shift in consumer preferences has created opportunities for both local and international beer producers to tap into the Cuban market.

Underlying macroeconomic factors: The Cuban economy has been undergoing gradual liberalization and opening up to foreign investment in recent years. This has led to an increase in disposable income and a growing middle class, which in turn has fueled the demand for consumer goods, including beer. Additionally, the growth of the tourism industry has brought in more foreign visitors to the country, further driving the demand for beer. These macroeconomic factors have created a favorable environment for the development and expansion of the beer market in Cuba. In conclusion, the Beer market in Cuba has been experiencing significant growth due to changing customer preferences, emerging trends such as craft breweries and imported beers, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, it presents opportunities for both local and international beer producers to capitalize on the growing demand for beer in Cuba.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

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 (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level 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 Alcoholic Drinks 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.