Soft Drinks - Nicaragua

The Soft Drinks market in Nicaragua has been experiencing steady growth in recent years.

Customer preferences: Nicaraguan consumers have shown a growing preference for soft drinks, with an increasing demand for a variety of flavors and types. Carbonated soft drinks remain popular, but there is also a rising interest in healthier options such as fruit juices and herbal drinks. This shift in consumer preferences can be attributed to a greater awareness of health and wellness, as well as a desire for more natural and organic products.

Trends in the market: One of the key trends in the Soft Drinks market in Nicaragua is the increasing popularity of locally sourced and produced beverages. Nicaraguan consumers are becoming more conscious of supporting local businesses and products, and this trend is reflected in the soft drinks market. Local brands are gaining traction and are able to offer unique flavors and ingredients that cater to the preferences of the Nicaraguan consumers. This trend is also driven by the desire for authenticity and a connection to the local culture. Another trend in the market is the growing demand for ready-to-drink beverages. Convenience is an important factor for consumers, and ready-to-drink soft drinks provide a quick and easy option for on-the-go consumption. This trend is particularly prominent among younger consumers who lead busy lifestyles and value convenience.

Local special circumstances: Nicaragua's warm climate and tropical environment make it an ideal market for soft drinks. The hot weather encourages the consumption of refreshing beverages, and soft drinks serve as a popular choice for quenching thirst and providing a cooling effect. The availability of a wide range of fruits and flavors also contributes to the popularity of soft drinks in Nicaragua.

Underlying macroeconomic factors: Nicaragua has experienced steady economic growth in recent years, which has contributed to the expansion of the Soft Drinks market. As disposable incomes increase, consumers have more purchasing power and are able to spend on non-essential items such as soft drinks. Additionally, the growing tourism industry in Nicaragua has also played a role in the development of the soft drinks market. Tourists, both domestic and international, contribute to the demand for soft drinks, especially during peak travel seasons. In conclusion, the Soft Drinks market in Nicaragua is experiencing growth due to changing customer preferences, including a shift towards healthier options and a preference for locally sourced products. The market is also influenced by trends such as the demand for ready-to-drink beverages and the country's warm climate. The underlying macroeconomic factors, including economic growth and the growing tourism industry, further contribute to the development of the soft drinks market in Nicaragua.

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.