Wine - El Salvador

El Salvador, a small country in Central America, is experiencing a growing trend in its wine market. Customer preferences are shifting towards wine as a popular choice for social gatherings and special occasions. This can be attributed to several factors, including changing consumer tastes, increasing disposable income, and the influence of global wine trends.

Customer preferences: In recent years, there has been a noticeable shift in customer preferences towards wine in El Salvador. Traditionally, beer and rum were the preferred alcoholic beverages in the country. However, wine is now gaining popularity among consumers, particularly the younger generation. This can be attributed to changing consumer tastes and a growing interest in exploring different flavors and experiences. Wine is seen as a sophisticated and trendy choice, often associated with celebrations and special occasions.

Trends in the market: One of the key trends in the wine market in El Salvador is the increasing demand for imported wines. Consumers are becoming more knowledgeable about different wine regions and grape varieties, and are seeking out international brands. This trend can be attributed to the influence of global wine trends and the desire to experience wines from renowned wine-producing countries such as France, Italy, and Chile. Another trend in the market is the rise of wine tourism. El Salvador has a growing wine tourism industry, with vineyards and wineries offering tours and tastings. This trend is driven by the desire for unique experiences and the opportunity to learn about the wine-making process. Wine tourism also contributes to the overall growth of the wine market by creating awareness and generating interest among consumers.

Local special circumstances: El Salvador has a unique climate and geography that contribute to the development of its wine market. The country's volcanic soil and warm climate create favorable conditions for grape cultivation. This has led to the establishment of vineyards and wineries in different regions of the country. Local wine producers are capitalizing on these natural advantages to produce high-quality wines that cater to the preferences of the local market.

Underlying macroeconomic factors: The growth of the wine market in El Salvador can also be attributed to underlying macroeconomic factors. The country has experienced steady economic growth in recent years, resulting in an increase in disposable income. As a result, consumers have more purchasing power and are willing to spend on premium products such as wine. Additionally, the expanding middle class in El Salvador has contributed to the growth of the wine market, as this segment of the population has the financial means to afford wine and is interested in exploring new tastes and experiences. In conclusion, the wine market in El Salvador is experiencing a positive trend driven by changing customer preferences, the influence of global wine trends, and favorable local circumstances. The increasing demand for imported wines and the rise of wine tourism are key trends in the market. Furthermore, the unique climate and geography of El Salvador, coupled with favorable macroeconomic factors, contribute to the growth of the wine market in the country.

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.