Soft Drinks - Paraguay

The Soft Drinks market in Paraguay has been experiencing significant growth in recent years. Customer preferences have shifted towards healthier beverage options, leading to an increased demand for low-sugar and natural drinks. Additionally, the market has been influenced by local special circumstances and underlying macroeconomic factors.

Customer preferences: In Paraguay, customer preferences have shifted towards healthier beverage options. Consumers are becoming more health-conscious and are actively seeking out drinks that are low in sugar and artificial ingredients. This trend is in line with global market preferences, as consumers worldwide are increasingly choosing healthier alternatives to traditional soft drinks. As a result, there has been a surge in demand for natural and organic drinks in Paraguay.

Trends in the market: One of the key trends in the Soft Drinks market in Paraguay is the rising popularity of functional drinks. These drinks are formulated with added vitamins, minerals, and other beneficial ingredients that cater to specific health needs. Functional drinks, such as energy drinks and sports drinks, have gained traction among consumers who are looking for beverages that provide an extra boost of energy or aid in post-workout recovery. This trend is driven by the growing health and wellness trend among consumers in Paraguay. Another trend in the market is the increasing availability of ready-to-drink (RTD) beverages. RTD beverages offer convenience and are gaining popularity among busy consumers who are looking for on-the-go options. This trend is in line with global market trends, as RTD beverages have become increasingly popular worldwide. The convenience factor of RTD beverages is particularly appealing to consumers in urban areas who have a fast-paced lifestyle.

Local special circumstances: Paraguay has a strong culture of yerba mate consumption, which has influenced the Soft Drinks market. Yerba mate is a traditional South American drink that is made from the leaves of the yerba mate plant. It is commonly consumed in Paraguay and is considered a social beverage. The popularity of yerba mate has led to the development of a variety of yerba mate-based soft drinks in the market. These drinks offer a unique flavor profile and cater to the local taste preferences.

Underlying macroeconomic factors: The Soft Drinks market in Paraguay is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. As a result, consumers have more purchasing power and are able to afford a wider range of beverages, including premium and imported soft drinks. This has contributed to the growth of the market and the diversification of product offerings. In conclusion, the Soft Drinks market in Paraguay is developing in response to changing customer preferences, local special circumstances, and underlying macroeconomic factors. Consumers are increasingly choosing healthier options, such as low-sugar and natural drinks. The market is also influenced by the popularity of functional drinks and the availability of RTD beverages. Additionally, the strong culture of yerba mate consumption and the country's economic growth further contribute to the development of the market.

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.