Beer - Ecuador

The Beer market in Ecuador has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Ecuadorian consumers have shown a growing preference for beer over other alcoholic beverages. This can be attributed to factors such as the social aspect of beer consumption, its affordability compared to spirits, and the availability of a wide variety of beer brands and flavors in the market. Additionally, the younger generation in Ecuador is increasingly embracing beer as their beverage of choice, further fueling the demand for beer in the country.

Trends in the market: One of the key trends in the beer market in Ecuador is the rising popularity of craft beer. Craft breweries have emerged in the country, offering unique and high-quality beer options to consumers. This trend aligns with the global craft beer movement, where consumers are seeking more artisanal and locally-produced beverages. As a result, craft beer sales have been on the rise in Ecuador, appealing to consumers who are looking for a differentiated and premium beer experience. Another trend in the market is the growing demand for low-alcohol and non-alcoholic beer. Health-conscious consumers are increasingly seeking alternatives to traditional beer that offer lower calorie content and reduced alcohol levels. This trend is in line with the global shift towards healthier lifestyles and reflects the changing preferences of Ecuadorian consumers.

Local special circumstances: Ecuador's beer market is also influenced by local special circumstances. For instance, the country's warm climate and vibrant nightlife contribute to the high demand for beer, as it is often seen as a refreshing and sociable beverage. Additionally, Ecuador has a strong beer culture, with beer being a popular choice for social gatherings, celebrations, and sporting events. These cultural factors further drive the consumption of beer in the country.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the beer market in Ecuador. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending power. This has allowed consumers to afford and indulge in beer consumption. Furthermore, the tourism industry in Ecuador has been growing, attracting both domestic and international visitors who contribute to the demand for beer. In conclusion, the beer market in Ecuador is developing due to changing customer preferences, including a growing preference for craft beer and low-alcohol options. Local special circumstances, such as the warm climate and strong beer culture, also play a significant role in driving the market. Additionally, underlying macroeconomic factors, such as economic growth and the tourism industry, contribute to the increasing demand for beer in the country.

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.