Alcoholic Drinks - Ecuador

The Alcoholic Drinks market in Ecuador is experiencing steady growth due to changing customer preferences and local special circumstances. Customer preferences in Ecuador have shifted towards premium and craft alcoholic beverages. Consumers are becoming more interested in high-quality products and are willing to pay a premium for them. This trend is driven by a growing middle class with higher disposable incomes and a desire for unique and differentiated products. Additionally, there is an increasing demand for healthier options in the alcoholic drinks market, such as low-alcohol or alcohol-free beverages. This is in line with a global trend towards healthier lifestyles and a growing awareness of the negative health effects of excessive alcohol consumption. Trends in the market include the rise of local craft breweries and distilleries. Ecuador has seen a surge in the number of small-scale producers who focus on creating unique and artisanal alcoholic beverages. These craft producers often use locally sourced ingredients and traditional brewing or distilling methods, which appeal to consumers looking for authentic and locally made products. This trend is also supported by the growing popularity of beer festivals and tasting events, where consumers can discover and sample a wide variety of craft beers. Another trend in the market is the increasing popularity of imported alcoholic beverages. Ecuadorian consumers are becoming more adventurous and are willing to try new and exotic products from around the world. This trend is driven by globalization and the increasing availability of imported products in local supermarkets and specialty stores. In particular, there is a growing demand for premium imported wines and spirits, which are seen as a status symbol and a sign of sophistication. Local special circumstances in Ecuador also contribute to the development of the alcoholic drinks market. The country has a rich cultural heritage and a tradition of consuming alcoholic beverages, particularly beer and spirits. This cultural affinity towards alcohol creates a favorable environment for the growth of the market. Additionally, Ecuador has a diverse climate and geography, which allows for the production of a wide range of raw materials used in the production of alcoholic drinks. This includes ingredients such as barley, corn, grapes, and tropical fruits, which are used in the production of beer, wine, and spirits. Underlying macroeconomic factors that influence the development of the alcoholic drinks market in Ecuador include economic growth, urbanization, and changing demographics. As the economy continues to grow, more people have disposable income to spend on discretionary items such as alcoholic beverages. Urbanization also plays a role, as cities tend to have a higher concentration of bars, restaurants, and retail outlets that sell alcoholic drinks. Finally, changing demographics, such as a young and increasingly urban population, contribute to the growth of the market as younger consumers are more likely to experiment with different types of alcoholic beverages and are more open to trying new products.

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.