Beer - Paraguay

The Beer market in Paraguay has been experiencing significant growth in recent years. Customer preferences have shifted towards a greater demand for craft beer, leading to an increase in the number of microbreweries in the country. Additionally, the growing popularity of beer festivals and events has contributed to the expansion of the market.

Customer preferences: Paraguayan consumers have shown a growing interest in craft beer. This can be attributed to a desire for unique and high-quality products. Craft beer offers a wider range of flavors and styles compared to traditional beers, appealing to consumers who are looking for a more diverse drinking experience. As a result, microbreweries have emerged to meet this demand, offering a variety of craft beers brewed locally.

Trends in the market: One of the key trends in the beer market in Paraguay is the rise of beer festivals and events. These events provide an opportunity for breweries to showcase their products and engage with consumers. Beer festivals have become increasingly popular, attracting a large number of attendees who are eager to sample different types of beer. This trend has not only contributed to the growth of the craft beer market, but also created a sense of community among beer enthusiasts. Another trend in the market is the increasing popularity of flavored beers. Paraguayan consumers are showing a preference for beers with unique flavors such as fruit-infused or spiced varieties. This trend aligns with the global shift towards more experimental and innovative beer offerings. Breweries are capitalizing on this trend by introducing new and exciting flavors to cater to consumer preferences.

Local special circumstances: Paraguay has a rich brewing tradition, with beer being a popular beverage in the country. The local culture and traditions have played a significant role in shaping the beer market. Paraguayans enjoy socializing and spending time with friends and family, often in outdoor settings. Beer is a common choice for these social gatherings, creating a strong demand for the product. Furthermore, Paraguay has a favorable climate for beer consumption. The country experiences warm weather throughout the year, which contributes to the popularity of beer as a refreshing beverage. The combination of a strong beer-drinking culture and favorable climate has created a conducive environment for the growth of the beer market.

Underlying macroeconomic factors: Paraguay has experienced steady economic growth in recent years, which has contributed to an increase in disposable income. As a result, consumers have more purchasing power and are willing to spend on premium products such as craft beer. This economic stability has provided a favorable environment for the development of the beer market. Additionally, the government has implemented policies to promote the growth of the beer industry. This includes reducing taxes on beer production and facilitating the licensing process for breweries. These measures have incentivized investment in the sector and encouraged the establishment of new breweries, further fueling the growth of the market. In conclusion, the beer market in Paraguay is witnessing significant growth driven by customer preferences for craft beer and the popularity of beer festivals. The local culture and favorable climate also contribute to the demand for beer. The country's steady economic growth and government support for the industry have created a conducive environment for 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.