Beer - Nicaragua

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

Customer preferences: Nicaraguans have shown a growing preference for beer as their alcoholic beverage of choice. This can be attributed to factors such as the refreshing and sociable nature of beer, its availability in a variety of flavors and styles, and its relatively affordable price compared to other alcoholic beverages. Additionally, the younger population in Nicaragua has been more open to experimenting with different beer brands and flavors, contributing to the overall growth of the market.

Trends in the market: One of the key trends in the beer market in Nicaragua is the increasing popularity of craft beer. Craft breweries have been gaining traction in the country, offering unique and locally brewed beers that cater to the preferences of beer enthusiasts. This trend can be attributed to the growing interest in artisanal and locally sourced products, as well as the desire for more diverse and flavorful beer options. Another trend in the market is the rising demand for low-alcohol and non-alcoholic beers. Health-conscious consumers are seeking alternatives to traditional beer that offer lower calorie content and reduced alcohol levels. This trend aligns with the global shift towards healthier lifestyles and the increasing awareness of the negative effects of excessive alcohol consumption.

Local special circumstances: Nicaragua's tourism industry has played a significant role in driving the growth of the beer market. The country has become a popular tourist destination, attracting visitors from around the world. As a result, there has been an increased demand for beer, both from tourists and locals. This has led to the expansion of breweries and the introduction of new beer brands to cater to the diverse preferences of the consumer base.

Underlying macroeconomic factors: The steady economic growth in Nicaragua has contributed to the development of the beer market. As the country's economy improves, consumers have more disposable income to spend on leisure activities, including dining out and socializing. This has created a favorable environment for the growth of the beer market, as consumers are more willing to spend on alcoholic beverages. Additionally, the government's efforts to promote tourism and attract foreign investment have also had a positive impact on the beer market. These initiatives have resulted in increased tourism and business activities, leading to a higher demand for beer. In conclusion, the Beer market in Nicaragua is experiencing growth due to changing customer preferences, emerging trends in the market, local special circumstances such as the tourism industry, and underlying macroeconomic factors. The increasing popularity of craft beer and the demand for low-alcohol and non-alcoholic options are driving the market forward. With the country's steady economic growth and government support for tourism, the beer market in Nicaragua is expected to continue its upward trajectory.

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.