Wine - Guatemala

The Wine market in Guatemala has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Guatemalan consumers have been increasingly embracing wine as a popular alcoholic beverage of choice. This shift in preferences can be attributed to several factors. Firstly, there has been a growing interest in wine culture and appreciation, with more consumers seeking to explore and experiment with different varieties and flavors. Additionally, wine is often perceived as a more sophisticated and elegant option compared to other alcoholic beverages, making it appealing to consumers who value quality and exclusivity.

Trends in the market: One of the key trends in the Guatemalan wine market is the increasing demand for imported wines. Consumers are becoming more knowledgeable about different wine regions and are seeking out wines from renowned wine-producing countries such as France, Italy, Spain, and Chile. This trend is driven by a desire for authenticity and a belief that imported wines offer superior quality and taste. As a result, importers and distributors have been expanding their portfolios to include a wider range of international wine brands to cater to this growing demand. Another trend in the market is the rise of wine tourism. Guatemala, with its beautiful landscapes and favorable climate, has become an attractive destination for wine enthusiasts. Wineries and vineyards are capitalizing on this trend by offering tours, tastings, and other wine-related experiences. This not only boosts domestic wine consumption but also attracts international tourists who are interested in exploring the local wine scene.

Local special circumstances: One of the unique aspects of the Guatemalan wine market is the strong influence of traditional alcoholic beverages. While wine consumption is on the rise, it still faces competition from local drinks such as rum and aguardiente. These traditional beverages have a long-standing cultural significance and are deeply ingrained in Guatemalan social gatherings and celebrations. As a result, wine producers and importers need to navigate this cultural preference and find ways to position wine as a complementary option rather than a direct substitute.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the wine market in Guatemala. The country's improving economic conditions and rising disposable incomes have allowed more consumers to afford and indulge in premium wine products. Additionally, globalization and increased international trade have made it easier for wine producers and importers to access the Guatemalan market and offer a wider variety of wines at competitive prices. Furthermore, changing demographics, such as a growing middle class and an increasing number of young professionals, have created a larger consumer base with a greater willingness to explore and experiment with different alcoholic beverages. In conclusion, the Wine market in Guatemala is experiencing growth due to changing customer preferences, including a growing interest in wine culture and an increasing demand for imported wines. The rise of wine tourism and the influence of traditional alcoholic beverages also contribute to the market's development. Underlying macroeconomic factors, such as improving economic conditions and changing demographics, further support the growth of the wine market in Guatemala.

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.