Alcoholic Drinks - Guatemala

The Alcoholic Drinks market in Guatemala has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Guatemalan consumers have shown a growing preference for premium and craft alcoholic drinks. This shift in preference can be attributed to several factors, including increasing disposable income, a desire for higher quality products, and a growing interest in unique and artisanal beverages. As a result, there has been a rise in the consumption of premium spirits, craft beers, and boutique wines in the country.

Trends in the market: One of the major trends in the Guatemalan Alcoholic Drinks market is the increasing popularity of mezcal. Mezcal, a traditional Mexican spirit made from agave plants, has gained a strong following in Guatemala due to its unique flavor profile and cultural significance. The growing demand for mezcal can be attributed to the rising interest in Mexican cuisine and the desire for authentic and exotic drinking experiences. Another trend in the market is the growing popularity of low-alcohol and non-alcoholic beverages. Health-conscious consumers are increasingly looking for alternatives to traditional alcoholic drinks, leading to a rise in the consumption of low-alcohol beers, mocktails, and alcohol-free spirits. This trend is in line with the global shift towards healthier lifestyle choices and the growing awareness of the negative health effects of excessive alcohol consumption.

Local special circumstances: One of the key factors influencing the development of the Alcoholic Drinks market in Guatemala is the country's rich cultural heritage. Guatemala has a strong tradition of producing and consuming traditional alcoholic beverages, such as rum and aguardiente. These traditional drinks hold a significant place in Guatemalan culture and are often consumed during special occasions and celebrations. The continued popularity of these traditional drinks has contributed to the overall growth of the market. Additionally, Guatemala's growing tourism industry has also had a positive impact on the Alcoholic Drinks market. The country's natural beauty, archaeological sites, and vibrant culture attract a large number of international tourists, who often seek out local alcoholic beverages as part of their cultural experience. This has created a demand for a wide range of alcoholic drinks, including traditional spirits and locally produced craft beers, further driving the growth of the market.

Underlying macroeconomic factors: The growth of the Alcoholic Drinks market in Guatemala can also be attributed to favorable macroeconomic factors. The country has experienced steady economic growth in recent years, resulting in an increase in disposable income levels. This has allowed consumers to spend more on discretionary items, including alcoholic beverages. Additionally, the expanding middle class in Guatemala has contributed to the growth of the market, as this demographic segment has more purchasing power and is willing to spend on premium and higher-priced alcoholic drinks. In conclusion, the Alcoholic Drinks market in Guatemala is witnessing significant growth due to changing customer preferences, local special circumstances, and favorable macroeconomic factors. The increasing demand for premium and craft beverages, the popularity of mezcal, the rise of low-alcohol and non-alcoholic options, the country's rich cultural heritage, the growing tourism industry, and the favorable macroeconomic conditions are all contributing 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 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.