Spirits - El Salvador

El Salvador, a small country in Central America, has seen significant development in its Spirits market in recent years. This growth can be attributed to a combination of factors, including changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in El Salvador have shifted towards premium and craft spirits. Consumers are increasingly seeking unique and high-quality products, rather than mass-produced and generic spirits. This trend is driven by a growing middle class with higher disposable incomes and a desire for more sophisticated and elevated drinking experiences. Additionally, the younger generation is more open to trying new and innovative spirits, leading to an increased demand for craft and artisanal products. One of the key trends in the Spirits market in El Salvador is the rise of local distilleries and the production of artisanal spirits. These distilleries are focusing on creating unique and high-quality products that showcase the country's local ingredients and traditions. This trend is in line with the global movement towards supporting local businesses and embracing artisanal craftsmanship. As a result, consumers in El Salvador are increasingly choosing locally produced spirits over imported brands. Local special circumstances also play a role in the development of the Spirits market in El Salvador. The country has a rich cultural heritage and a long history of producing traditional spirits, such as rum and aguardiente. These spirits have deep roots in the local culture and are often associated with celebrations and social gatherings. As a result, there is a strong demand for these traditional spirits, both domestically and internationally. The production and consumption of these spirits contribute to the overall growth of the market. Underlying macroeconomic factors, such as economic stability and increasing tourism, have also contributed to the development of the Spirits market in El Salvador. The country has experienced steady economic growth in recent years, leading to a rise in disposable incomes and consumer spending. This has created a favorable environment for the spirits industry to thrive. Additionally, El Salvador has seen an increase in tourism, with more visitors seeking authentic experiences and local products. This has further fueled the demand for locally produced spirits. In conclusion, the Spirits market in El Salvador is developing due to changing customer preferences towards premium and craft spirits, the rise of local distilleries and artisanal production, local special circumstances such as cultural traditions, and underlying macroeconomic factors such as economic stability and increasing tourism. These factors have created a dynamic and growing market for spirits in El Salvador.

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.