Beer - LATAM

Globally, beer is the most consumed alcoholic beverage, accounting for approximately 60% of the total volume of the Alcoholic Drinks market. It is often consumed during social activities, such as sporting events, music festivals, and house parties. Due to the COVID-19 restrictions, the subsequent lockdowns, and the cancellation of events, beer volume fell by roughly 8% in 2020, indicating the importance of the sector.

The Beer market is highly competitive. While there are some large global players, there are also a lot of smaller ones competing for their market share. Over the past decade, an increasing number of craft beers and beer-mixed drinks have emerged to meet consumer demand for more diverse options. Non-alcoholic beer is also gaining popularity, which can be attributed to a share of beer consumers that are seeking the experience of drinking a beer while also prioritizing health and avoiding any negative effects of alcohol.

Looking ahead, we anticipate that the Beer market will stabilize following the ease of the COVID-19 restrictions. Furthermore, non-alcoholic beer, as well as beer mixed-drinks and craft beer show a lot of growth potential.

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.