Soft Drinks - Costa Rica

The Soft Drinks market in Costa Rica is experiencing significant growth and development, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Costa Rica are shifting towards healthier beverage options, leading to a rise in demand for low-sugar and natural drinks. Consumers are becoming more health-conscious and are actively seeking out products that are perceived to be better for their overall well-being. This has resulted in a surge in the popularity of natural fruit juices, flavored water, and functional beverages. Additionally, there is a growing demand for carbonated soft drinks with reduced sugar content and zero-calorie options. Trends in the market are also contributing to the development of the Soft Drinks industry in Costa Rica. The rising popularity of functional beverages, such as energy drinks and sports drinks, can be attributed to the active and health-conscious lifestyle of the population. These beverages are often marketed as providing hydration, energy, and performance-enhancing benefits, which resonate with consumers who are looking for a quick and convenient way to meet their nutritional needs. Local special circumstances, such as the tropical climate in Costa Rica, play a role in shaping the Soft Drinks market. The hot and humid weather creates a high demand for refreshing beverages that can help quench thirst and provide relief from the heat. This has led to the popularity of carbonated soft drinks, bottled water, and fruit juices, which are widely consumed to stay hydrated and cool down. Underlying macroeconomic factors also contribute to the growth of the Soft Drinks market in Costa Rica. The country's stable economic conditions and increasing disposable incomes have allowed consumers to spend more on non-essential items, including beverages. This has resulted in a higher consumption of soft drinks, as people have more purchasing power to indulge in their favorite beverages. In conclusion, the Soft Drinks market in Costa Rica is developing due to changing customer preferences towards healthier options, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. As consumers become more health-conscious and seek out natural and low-sugar beverages, the demand for these products is on the rise. Additionally, the tropical climate and increasing disposable incomes contribute to the growth of the Soft Drinks industry 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 Non-Alcoholic Drinks, 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 Non-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. The market is updated twice a year.