Soft Drinks - El Salvador

The Soft Drinks market in El Salvador has been experiencing significant growth in recent years.

Customer preferences: El Salvadorians have shown a growing preference for soft drinks, with an increasing number of consumers incorporating these beverages into their daily routines. This can be attributed to a variety of factors, including the convenience and affordability of soft drinks, as well as their wide availability in the country. Additionally, the younger population in El Salvador has shown a particular fondness for soft drinks, making it a popular choice among this demographic.

Trends in the market: One of the key trends in the soft drinks market in El Salvador is the rising demand for healthier alternatives. As consumers become more health-conscious, they are seeking out beverages that offer nutritional benefits and lower sugar content. This has led to a surge in the popularity of low-calorie and sugar-free soft drinks, as well as natural and organic options. Manufacturers have responded to this trend by introducing a wider range of healthier soft drink options to cater to the changing preferences of consumers. Another trend in the market is the increasing popularity of ready-to-drink (RTD) beverages. These pre-packaged soft drinks offer convenience and portability, making them an attractive option for on-the-go consumers. RTD beverages are particularly popular among busy professionals and students who are looking for quick and easy refreshment options. As a result, manufacturers have been expanding their RTD product offerings to meet the growing demand in this segment.

Local special circumstances: One of the unique aspects of the soft drinks market in El Salvador is the strong presence of local brands. These homegrown companies have gained a loyal customer base by offering products that cater to the specific tastes and preferences of the local population. These local brands often emphasize traditional flavors and ingredients, which resonate with consumers who are seeking a taste of their cultural heritage. The presence of these local brands has contributed to the overall growth of the soft drinks market in El Salvador.

Underlying macroeconomic factors: The growth of the soft drinks market in El Salvador can also be attributed to favorable macroeconomic conditions. The country has experienced stable economic growth in recent years, which has led to an increase in disposable income among consumers. This has translated into higher purchasing power and a greater willingness to spend on non-essential items such as soft drinks. Additionally, the growing tourism industry in El Salvador has also contributed to the demand for soft drinks, as visitors to the country often seek out local beverages as part of their cultural experience.

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.