Beer - Central America

The Beer market in Central America has been experiencing significant growth in recent years.

Customer preferences: In Central America, beer is a popular alcoholic beverage of choice among consumers. The region has a long-standing beer culture, with locals enjoying a cold beer with friends and family in social gatherings and celebrations. The preference for beer can be attributed to its refreshing taste, affordability, and wide availability.

Trends in the market: One of the key trends in the Central American beer market is the increasing demand for craft beer. Craft breweries have gained popularity in the region, offering consumers a variety of unique and flavorful beer options. This trend can be attributed to changing consumer preferences, with individuals seeking more artisanal and high-quality products. Craft beer also appeals to a younger demographic who are willing to pay a premium for a differentiated drinking experience. Another trend in the Central American beer market is the growing popularity of light and low-alcohol beers. Health-conscious consumers are increasingly opting for lighter beer options that have lower calorie and alcohol content. This trend is in line with global consumer preferences for healthier choices and reflects a shift towards more mindful drinking habits.

Local special circumstances: Central America is known for its warm climate and tropical landscapes, making it an ideal market for beer consumption. The region's tourism industry also plays a significant role in driving beer sales, as tourists often seek to indulge in local beverages and experience the culture. Additionally, Central American countries have a strong tradition of beer consumption during festivals and holidays, further boosting market demand.

Underlying macroeconomic factors: The economic growth and stability in Central America have contributed to the development of the beer market. As disposable incomes rise, consumers have more purchasing power to spend on discretionary items such as beer. Furthermore, the region's growing middle class has led to an increase in consumer spending on leisure activities, including dining out and socializing, which drives the demand for beer. In conclusion, the Beer market in Central America is experiencing growth due to customer preferences for refreshing and affordable alcoholic beverages. The increasing demand for craft beer and lighter beer options reflects changing consumer preferences and a focus on health-conscious choices. The region's warm climate, tourism industry, and cultural traditions also contribute to the growth of the beer market. The macroeconomic factors of economic growth and a rising middle class further support 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 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.