Wine - Costa Rica

Costa Rica, known for its stunning landscapes and vibrant culture, is also experiencing a growing wine market.

Customer preferences: Costa Rican consumers have shown an increasing interest in wine in recent years. Traditionally, Costa Rica has been a beer and rum-loving country, but there has been a shift in consumer preferences towards wine. This can be attributed to several factors, including changing lifestyles, increased exposure to international cuisines, and a growing appreciation for wine as a sophisticated and versatile beverage. Additionally, the influence of global trends and the rise of wine tourism have also played a role in shaping consumer preferences.

Trends in the market: One of the key trends in the Costa Rican wine market is the growing demand for imported wines. While domestic wine production is limited, consumers have developed a taste for wines from renowned wine-producing regions such as France, Italy, Spain, and Chile. This trend can be attributed to the perception of imported wines as being of higher quality and offering a wider variety of flavors and styles. As a result, importers and distributors have been capitalizing on this trend by expanding their portfolios and offering a diverse selection of wines to cater to different consumer preferences. Another trend in the market is the increasing popularity of wine bars and wine tastings. These establishments provide consumers with an opportunity to explore and learn about different wines in a relaxed and social setting. Wine bars often offer a curated selection of wines from around the world, allowing customers to discover new flavors and expand their wine knowledge. This trend is fueled by the growing interest in wine culture and the desire for unique experiences among Costa Rican consumers.

Local special circumstances: Costa Rica's unique geography and climate present both opportunities and challenges for the wine market. The country's tropical climate is not ideal for grape cultivation, limiting the production of domestic wines. However, this has led to a greater emphasis on importing wines from renowned wine-producing regions. Costa Rican consumers have embraced this diversity and have become more adventurous in their wine choices. Furthermore, the rise of wine tourism in Costa Rica has contributed to the development of the wine market. The country's picturesque landscapes and growing reputation as a travel destination have attracted wine enthusiasts from around the world. This has created a demand for wine-related experiences, such as vineyard tours and wine tastings, further fueling the growth of the wine market.

Underlying macroeconomic factors: Costa Rica's growing middle class and increasing disposable income have also played a role in the development of the wine market. As more consumers have the financial means to explore new culinary experiences, they are willing to spend on premium products, including wine. Additionally, the country's growing tourism industry has brought in a diverse range of international visitors who have introduced and popularized wine culture in Costa Rica. In conclusion, the wine market in Costa Rica is experiencing growth due to changing consumer preferences, the influence of global trends, and the rise of wine tourism. Importers and distributors are capitalizing on the demand for imported wines, while wine bars and tastings provide consumers with opportunities to explore and learn about different wines. Despite the challenges posed by the country's climate, Costa Rican consumers have embraced the diversity of imported wines and are becoming more adventurous in their wine choices. The country's growing middle class and increasing disposable income, coupled with the influence of tourism, have also contributed to the development of the wine market 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.