Alcoholic Drinks - Colombia

The Alcoholic Drinks market in Colombia has been experiencing significant growth in recent years.

Customer preferences: Colombian consumers have shown a growing interest in premium and craft alcoholic drinks. They are increasingly willing to pay a premium for high-quality products that offer unique flavors and experiences. This trend is driven by a desire for more sophisticated and diverse options, as well as a shift towards healthier and more sustainable choices. Additionally, there is a growing demand for convenience in the form of ready-to-drink cocktails and pre-mixed beverages.

Trends in the market: One of the key trends in the Colombian Alcoholic Drinks market is the rise of local craft breweries and distilleries. These small-scale producers are gaining popularity among consumers who value artisanal and locally-made products. Craft beer, in particular, has seen a surge in demand, with a wide variety of flavors and styles now available in the market. This trend is also reflected in the growing number of craft beer festivals and events taking place across the country. Another trend in the market is the increasing popularity of spirits, especially premium and aged spirits such as whiskey and rum. Colombian consumers are becoming more knowledgeable about different types of spirits and are willing to explore new and unique options. This trend is driven by a desire for higher quality and more refined drinking experiences.

Local special circumstances: Colombia has a rich cultural heritage when it comes to alcoholic drinks, with traditional spirits such as aguardiente and rum playing an important role in local celebrations and social gatherings. These traditional drinks continue to be popular among Colombians, especially during festivals and holidays. However, there is also a growing interest in international alcoholic drinks, as consumers are becoming more exposed to global trends and influences.

Underlying macroeconomic factors: The growth of the Alcoholic Drinks market in Colombia can be attributed to several macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. This has allowed consumers to indulge in premium and higher-priced alcoholic drinks. Additionally, Colombia has a young and urbanizing population, which is more open to trying new products and experiences. The expanding middle class and changing lifestyles have also contributed to the growth of the market. In conclusion, the Alcoholic Drinks market in Colombia is experiencing growth due to changing customer preferences, including a demand for premium and craft drinks, as well as a desire for convenience. The rise of local craft breweries and distilleries, as well as the increasing popularity of spirits, are key trends in the market. The cultural significance of traditional drinks and the influence of global trends are also important factors. The underlying macroeconomic factors, such as economic growth, a young and urbanizing population, and changing lifestyles, have contributed to the market's development.

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.