Alcoholic Drinks - Brazil

The Alcoholic Drinks market in Brazil has been experiencing significant growth in recent years. This can be attributed to several factors, including changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Brazil, customer preferences for alcoholic drinks have been shifting towards premium and craft beverages. Consumers are becoming more discerning and are willing to pay a premium for higher quality products. This has led to an increase in demand for premium spirits, craft beers, and boutique wines. Additionally, there is a growing interest in healthier options, such as low-alcohol or alcohol-free drinks, as well as organic and natural products.

Trends in the market: One of the major trends in the Alcoholic Drinks market in Brazil is the rise of craft beer. Craft breweries have been popping up all over the country, offering a wide variety of unique and flavorful beers. This trend is driven by the increasing demand for artisanal products and the desire for more diverse and innovative flavor profiles. Another trend is the growing popularity of cocktails, with consumers seeking out mixologists and craft cocktail bars for unique and creative drink experiences.

Local special circumstances: Brazil has a rich cultural heritage when it comes to alcoholic beverages. Cachaça, a traditional Brazilian spirit made from sugarcane, is a key player in the local market. It is not only consumed as a standalone drink but also used as a base for cocktails, such as the famous caipirinha. The popularity of cachaça contributes to the overall growth of the Alcoholic Drinks market in Brazil.

Underlying macroeconomic factors: The Alcoholic Drinks market in Brazil is also influenced by underlying macroeconomic factors. The country has experienced economic growth in recent years, leading to an increase in disposable income and consumer spending. This has resulted in a higher demand for luxury and premium products, including alcoholic beverages. Additionally, Brazil has a large and young population, which further drives the demand for alcoholic drinks. In conclusion, the Alcoholic Drinks market in Brazil is developing in response to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for premium and craft beverages, the rise of craft beer, the popularity of cocktails, the cultural significance of cachaça, and the country's economic growth and young population all contribute 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.