Wine - Central America

The Wine market in Central America has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in Central America have been shifting towards more sophisticated and diverse wine options. Traditionally, Central American consumers have favored beer and spirits, but there has been a notable increase in the demand for wine. This can be attributed to a growing middle class, increasing disposable income, and a desire for new and unique experiences. Wine is seen as a symbol of luxury and sophistication, appealing to consumers who are looking to elevate their social status and indulge in a more refined drinking experience. Trends in the wine market in Central America are closely aligned with global trends. One notable trend is the growing popularity of organic and natural wines. Consumers are becoming more health-conscious and environmentally aware, leading to a greater demand for wines that are produced using sustainable and organic methods. This trend is driven by a desire for healthier and more environmentally friendly products, as well as a preference for wines that reflect a sense of authenticity and craftsmanship. Another trend in the Central American wine market is the increasing popularity of sparkling wines. Sparkling wines, such as Prosecco and Champagne, are no longer reserved for special occasions but are now being enjoyed by consumers on a more regular basis. This trend can be attributed to the perception of sparkling wines as celebratory and festive, as well as their versatility in pairing with a wide range of cuisines. Local special circumstances also play a role in the development of the wine market in Central America. One such circumstance is the region's proximity to major wine-producing countries, such as Argentina and Chile. This proximity allows for easier access to a wide variety of wines, as well as lower transportation costs. Additionally, Central America has a growing tourism industry, with an increasing number of international visitors. These tourists often bring with them a taste for wine, further driving the demand for wine in the region. Underlying macroeconomic factors also contribute to the growth of the wine market in Central America. Economic stability and increasing disposable incomes have allowed consumers to allocate more of their budget towards luxury goods, including wine. Furthermore, the region's growing middle class has led to a larger consumer base with the means to afford and appreciate wine. In conclusion, the wine market in Central America is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As consumers in the region become more sophisticated and health-conscious, demand for diverse and high-quality wines is expected to continue to rise. This presents opportunities for both domestic and international wine producers to tap into the growing Central American market.

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.