Beer - Brazil

The Beer market in Brazil has experienced significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Brazilian consumers have shown a growing preference for beer as their alcoholic beverage of choice. This can be attributed to the social and cultural significance of beer in Brazilian society, as well as its affordability compared to other alcoholic beverages. Additionally, there has been a shift towards craft and premium beers, as consumers are increasingly seeking unique and high-quality products.

Trends in the market: One of the key trends in the Brazilian beer market is the rise of craft breweries. Craft beer consumption has gained popularity among consumers who are looking for more diverse and flavorful options. This trend is fueled by the growing number of microbreweries and the availability of a wide range of craft beer styles. Another trend is the increasing popularity of low-alcohol and non-alcoholic beers, driven by health-conscious consumers seeking healthier alternatives.

Local special circumstances: Brazil is known for its vibrant and festive culture, which creates a favorable environment for the beer market. Beer is often consumed during social gatherings, parties, and sporting events, further boosting its demand. Additionally, Brazil's warm climate makes beer a refreshing choice for many consumers, leading to higher consumption rates.

Underlying macroeconomic factors: Brazil's growing middle class and increasing disposable income have contributed to the growth of the beer market. As more consumers have the means to spend on discretionary items, the demand for beer has risen. Furthermore, the country's improving economic stability and rising urbanization have created a conducive environment for the beer industry to thrive. In conclusion, the Beer market in Brazil has experienced significant growth due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. With a preference for craft and premium beers, the rise of craft breweries, and the popularity of low-alcohol and non-alcoholic options, the Brazilian beer market is poised for further development. Additionally, Brazil's vibrant culture, warm climate, growing middle class, increasing disposable income, economic stability, and urbanization have all contributed to the growth 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.