Beer - Puerto Rico

The Beer market in Puerto Rico has been experiencing steady growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Puerto Rican consumers have shown a growing preference for craft beers and imported brands. This shift in consumer behavior can be attributed to an increasing interest in unique and high-quality products. Craft beers offer a wide range of flavors and styles, appealing to consumers who are looking for a more diverse and personalized drinking experience. Additionally, imported brands are often associated with higher quality and prestige, attracting consumers who are willing to pay a premium for these products.

Trends in the market: One of the notable trends in the Puerto Rican beer market is the rise of microbreweries. These small-scale breweries are gaining popularity among consumers who appreciate the craftsmanship and innovation behind their products. Microbreweries often experiment with different ingredients and brewing techniques, creating unique and limited-edition beers that cater to niche markets. This trend has not only contributed to the diversification of the beer market but has also fostered a sense of community and local pride. Another trend in the Puerto Rican beer market is the increasing demand for low-alcohol and non-alcoholic beers. Health-conscious consumers are seeking alternatives to traditional alcoholic beverages, and breweries have responded by introducing a variety of low-alcohol and non-alcoholic options. These products are often marketed as healthier alternatives, appealing to consumers who want to enjoy the taste of beer without the negative effects of alcohol.

Local special circumstances: The beer market in Puerto Rico is influenced by the island's unique cultural and social dynamics. Puerto Ricans have a strong sense of national identity and take pride in their local products. This has created a demand for beers that reflect the island's culture and traditions. Breweries have responded by incorporating local ingredients and flavors into their products, creating beers that are distinctly Puerto Rican. This localization strategy has resonated with consumers, who appreciate the connection between their beer and their cultural heritage.

Underlying macroeconomic factors: The growth of the beer market in Puerto Rico can also be attributed to favorable macroeconomic conditions. The island has experienced a period of economic stability and increasing disposable income, allowing consumers to spend more on discretionary items such as beer. Additionally, the tourism industry plays a significant role in driving the demand for beer in Puerto Rico. The island attracts a large number of international visitors who often seek out local beers as part of their cultural experience. In conclusion, the Beer market in Puerto Rico is evolving to meet the changing preferences of consumers. The rise of craft beers, microbreweries, and low-alcohol options reflects a desire for unique and high-quality products. Local special circumstances, such as the island's cultural pride and favorable macroeconomic conditions, further contribute to the growth of the market. As the market continues to develop, breweries in Puerto Rico will need to innovate and adapt to meet the evolving demands of consumers.

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.