Alcoholic Drinks - Costa Rica

The Alcoholic Drinks market in Costa Rica is experiencing significant growth and development.

Customer preferences: Costa Rican consumers have shown a growing preference for premium and craft alcoholic beverages. This shift in preference can be attributed to the increasing disposable income and changing lifestyles of the population. Consumers are becoming more willing to spend on high-quality and unique products, seeking out new flavors and experiences. This has led to a rise in the demand for artisanal beers, small-batch spirits, and boutique wines. Additionally, there is a growing interest in organic and sustainable alcoholic drinks, as consumers become more conscious of their health and the environment.

Trends in the market: One of the key trends in the Costa Rican alcoholic drinks market is the increasing popularity of craft beer. Microbreweries and brewpubs have gained momentum, offering a wide range of flavors and styles to cater to the evolving taste preferences of consumers. The craft beer trend is driven by the desire for local and authentic products, as well as the growing beer culture in the country. Furthermore, the market is witnessing a surge in the demand for premium spirits, including whiskey, gin, and tequila. This can be attributed to the rising affluence of the middle class and their willingness to explore and experiment with different alcoholic beverages.

Local special circumstances: Costa Rica is known for its tourism industry, attracting millions of visitors each year. This has a significant impact on the alcoholic drinks market as tourists often seek out local and traditional beverages as part of their cultural experience. The country's rich biodiversity and agricultural resources have also contributed to the development of unique alcoholic drinks, such as fruit-infused spirits and tropical cocktails. Additionally, the government has implemented policies to promote the local production of alcoholic beverages, creating opportunities for domestic producers to thrive and cater to both local and international markets.

Underlying macroeconomic factors: Costa Rica has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. This has positively influenced the alcoholic drinks market, as consumers have more purchasing power to indulge in premium and high-quality beverages. Additionally, the country has a relatively young population, which tends to be more open to trying new products and flavors. Furthermore, the government has implemented measures to attract foreign investment in the alcoholic drinks industry, creating a favorable business environment for both local and international players.

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.