Alcoholic Drinks - South America

The Alcoholic Drinks market in South America has been experiencing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this development. Customer preferences in South America have shifted towards premium and craft alcoholic beverages. Consumers are increasingly seeking unique and high-quality products, which has led to a rise in the demand for premium spirits, craft beers, and artisanal wines. This shift in preferences can be attributed to factors such as changing lifestyles, increasing disposable incomes, and a growing appreciation for quality and craftsmanship. Trends in the market reflect this shift towards premium and craft beverages. The region has seen a surge in the number of microbreweries, distilleries, and boutique wineries, catering to the demand for specialty alcoholic drinks. These smaller, niche producers are able to offer a wide variety of flavors and styles, appealing to consumers who are looking for something different from the mass-produced offerings of larger brands. Additionally, there has been an increase in the consumption of spirits such as whiskey and gin, driven by a growing interest in cocktail culture and mixology. Local special circumstances in South America have also played a role in the development of the Alcoholic Drinks market. The region is known for its rich cultural heritage and diverse culinary traditions, which has influenced the local drinking culture. For example, countries like Argentina and Chile have a strong wine culture, with a long history of wine production and consumption. This has led to a strong domestic wine industry and a preference for wine among consumers. Similarly, countries like Brazil and Peru have a tradition of producing and consuming traditional spirits such as cachaça and pisco, respectively, which have gained popularity both domestically and internationally. Underlying macroeconomic factors have also contributed to the growth of the Alcoholic Drinks market in South America. Economic stability and rising disposable incomes have allowed consumers to spend more on discretionary items such as alcoholic beverages. Additionally, changing demographics, including a growing middle class and urbanization, have created new opportunities for market expansion. As more people move to urban areas and adopt Western lifestyles, the demand for alcoholic drinks has increased. In conclusion, the Alcoholic Drinks market in South America is developing due to shifting customer preferences towards premium and craft beverages, trends in the market that reflect this preference, local special circumstances such as cultural traditions and culinary heritage, and underlying macroeconomic factors such as economic stability and changing demographics. This growth presents opportunities for both local and international players in the market to cater to the evolving tastes and preferences of consumers in the region.

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.