Hard Seltzer - Uruguay

The Hard Seltzer market in Uruguay has been experiencing significant growth in recent years.

Customer preferences: Uruguayans have shown a growing interest in healthier beverage options, which has contributed to the rise in popularity of Hard Seltzers. With an increasing focus on health and wellness, consumers are seeking low-calorie and low-sugar alternatives to traditional alcoholic beverages. Hard Seltzers, with their lower calorie and sugar content compared to other alcoholic drinks, have gained traction among health-conscious consumers in Uruguay. Additionally, the refreshing and light nature of Hard Seltzers appeals to those looking for a lighter and more refreshing drinking experience.

Trends in the market: One of the key trends in the Hard Seltzer market in Uruguay is the introduction of local and regional flavors. While international brands initially dominated the market, local players have started to emerge with unique flavors that cater to the preferences of the Uruguayan consumers. This trend has allowed local brands to gain a competitive edge by offering flavors that resonate with the local culture and taste preferences. Furthermore, the use of natural ingredients and flavors has become a prominent trend, as consumers increasingly prioritize products that are perceived as more natural and authentic. Another trend in the market is the expansion of distribution channels. Initially, Hard Seltzers were primarily available in specialized liquor stores and bars. However, as the demand for these beverages has grown, they have become more widely available in supermarkets, convenience stores, and online platforms. This increased accessibility has contributed to the market's growth by reaching a larger consumer base.

Local special circumstances: Uruguay has a strong drinking culture, with a preference for beer and wine. However, the growing popularity of Hard Seltzers indicates a shift in consumer preferences towards lighter and healthier options. This shift can be attributed to changing lifestyles, increased health consciousness, and the influence of global trends. Furthermore, Uruguay's warm climate and beach culture make Hard Seltzers an appealing choice for consumers seeking a refreshing and low-alcohol beverage option.

Underlying macroeconomic factors: Uruguay's stable economy and growing middle class have played a significant role in the development of the Hard Seltzer market. As disposable incomes rise, consumers have more purchasing power and are willing to spend on premium and innovative products like Hard Seltzers. Additionally, the country's relatively young population, with a higher proportion of millennials and Generation Z, is more open to trying new and trendy beverages. This demographic factor has contributed to the market's growth as younger consumers are more likely to embrace new drinking trends. In conclusion, the Hard Seltzer market in Uruguay is experiencing growth due to changing consumer preferences towards healthier and lighter alcoholic beverages. The introduction of local flavors, expansion of distribution channels, and underlying macroeconomic factors have all contributed to the market's development. As consumer demand continues to evolve, it is expected that the Hard Seltzer market in Uruguay will continue to expand and diversify in the coming years.

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.