Beer - El Salvador

The Beer market in El Salvador has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, and local special circumstances.

Customer preferences: In El Salvador, customers have shown a growing preference for craft beers and imported beers, as opposed to traditional domestic brands. This shift in preferences can be attributed to a desire for more unique and diverse flavors, as well as a perception of higher quality associated with craft and imported beers. Additionally, there has been a rising interest in low-alcohol and non-alcoholic beer options, reflecting a growing health-consciousness among consumers.

Trends in the market: One of the key trends in the beer market in El Salvador is the increasing popularity of microbreweries. These small-scale breweries offer a wide variety of craft beers, often experimenting with unique ingredients and flavors. The rise of microbreweries has not only contributed to the diversification of the beer market, but has also created opportunities for local entrepreneurs and job creation. Another trend in the market is the growing demand for premium and specialty beers. Consumers are willing to pay a premium for beers that are perceived as more exclusive or high-end, such as limited edition releases or beers aged in barrels. This trend reflects a desire for unique and luxurious experiences among consumers.

Local special circumstances: El Salvador has a strong beer-drinking culture, with beer being a popular beverage choice for socializing and celebrations. The country also has a relatively young population, which contributes to the demand for alcoholic beverages, including beer. Additionally, El Salvador has a warm climate, which further drives the consumption of beer as a refreshing and thirst-quenching beverage.

Underlying macroeconomic factors: The economic growth and increasing disposable income in El Salvador have played a significant role in the development of the beer market. As the economy continues to grow, more consumers have the means to spend on discretionary items, including beer. This has created a favorable market environment for both domestic and imported beer brands. In conclusion, the Beer market in El Salvador is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The shift towards craft and imported beers, the rise of microbreweries, and the demand for premium and specialty beers are shaping the market landscape. Additionally, the strong beer-drinking culture, young population, and economic growth in El Salvador contribute to the market's development.

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.