Hard Seltzer - Costa Rica

The Hard Seltzer market in Costa Rica has been experiencing significant growth in recent years.

Customer preferences: Costa Rican consumers have shown a growing interest in healthier beverage options, which has contributed to the rise in popularity of Hard Seltzers. With an increasing focus on health and wellness, consumers are seeking alternatives to traditional alcoholic beverages that are lower in calories and sugar. Hard Seltzers, with their light and refreshing taste, have quickly gained traction among health-conscious individuals who still want to enjoy an alcoholic beverage.

Trends in the market: One of the key trends in the Hard Seltzer market in Costa Rica is the introduction of local flavors and ingredients. Costa Rica is known for its rich biodiversity and tropical fruits, and local brands have capitalized on this by creating Hard Seltzers infused with flavors such as mango, guava, and passion fruit. This not only appeals to local consumers who appreciate the taste of familiar fruits but also attracts tourists who want to experience the flavors of Costa Rica. Another trend in the market is the increasing availability of low-alcohol and non-alcoholic Hard Seltzers. As more consumers are looking for moderation in their alcohol consumption or opting for alcohol-free alternatives, brands have responded by introducing Hard Seltzers with lower alcohol content or completely removing alcohol. This trend aligns with the global movement towards mindful drinking and provides options for those who want to enjoy the taste of a Hard Seltzer without the effects of alcohol.

Local special circumstances: Costa Rica is known for its warm climate and popular tourist destinations, which creates a favorable environment for the consumption of refreshing beverages like Hard Seltzers. The tourism industry plays a significant role in driving the demand for these beverages, as tourists from around the world are exposed to Hard Seltzers and often seek them out during their visits to Costa Rica. Furthermore, the increasing popularity of social media platforms has also contributed to the growth of the Hard Seltzer market in Costa Rica. Influencers and celebrities often promote these beverages on their social media accounts, creating awareness and generating interest among their followers. This has led to a higher level of visibility and desirability for Hard Seltzers among the younger demographic, who are more active on social media platforms.

Underlying macroeconomic factors: Costa Rica has experienced steady economic growth in recent years, which has positively impacted consumer spending power. As disposable incomes increase, consumers are more willing to spend on premium and innovative products like Hard Seltzers. Additionally, the country's stable political environment and growing middle class have created a favorable market for international brands to enter and expand their presence in Costa Rica. In conclusion, the Hard Seltzer market in Costa Rica is developing due to changing customer preferences towards healthier beverages, the introduction of local flavors, the availability of low-alcohol and non-alcoholic options, the country's warm climate and tourism industry, the influence of social media, and the overall economic growth and stability of the country. As these trends continue to shape the market, we can expect further growth and innovation in the Hard Seltzer industry in Costa Rica.

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.