Beer - South America

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

Customer preferences: Customers in South America have shown a strong preference for beer, making it one of the most popular alcoholic beverages in the region. The social and cultural significance of beer in South American countries has contributed to its popularity. In addition, the affordability and wide availability of beer have made it a preferred choice for many consumers.

Trends in the market: One of the key trends in the South American beer market is the growing demand for craft beer. Craft beer breweries have been gaining popularity in the region, offering consumers a wider variety of flavors and styles. This trend reflects a shift towards more sophisticated and diverse tastes among South American consumers. Another trend in the market is the increasing popularity of low-alcohol and non-alcoholic beers. Health-conscious consumers are opting for these alternatives as they seek to reduce their alcohol intake. This trend is also driven by the growing awareness of the negative health effects of excessive alcohol consumption.

Local special circumstances: South America is home to a diverse range of beer styles and traditions. Each country in the region has its own unique beer culture, with local breweries producing beers that reflect their distinct flavors and ingredients. For example, Brazil is known for its light and refreshing lagers, while Argentina is famous for its malty and full-bodied beers. These local special circumstances contribute to the rich and vibrant beer market in South America.

Underlying macroeconomic factors: The growth of the beer market in South America can be attributed to several macroeconomic factors. The region has experienced steady economic growth in recent years, leading to an increase in disposable income among consumers. This has resulted in higher purchasing power and greater spending on discretionary items such as alcoholic beverages. Furthermore, changing demographics in South America have also contributed to the growth of the beer market. The region has a young and growing population, which has led to an increase in the number of legal drinking age consumers. This demographic shift has created a larger consumer base for beer companies to target. In conclusion, the Beer market in South America is experiencing growth due to customer preferences for beer, the emergence of new trends such as craft beer and low-alcohol options, local special circumstances that contribute to a diverse beer culture, and underlying macroeconomic factors such as economic growth and changing demographics.

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.