Hard Seltzer - South America

The Hard Seltzer market in South America has been experiencing significant growth in recent years.

Customer preferences: Customers in South America have shown a growing preference for low-calorie and low-alcohol beverages, which has contributed to the rise in popularity of Hard Seltzers. These beverages appeal to health-conscious consumers who are looking for lighter and more refreshing options. Additionally, the younger demographic in South America has shown a preference for trendy and innovative products, and Hard Seltzers have quickly gained popularity among this group.

Trends in the market: One of the key trends in the Hard Seltzer market in South America is the increasing availability of local and regional brands. While international brands initially dominated the market, local players have been quick to recognize the potential of this segment and have introduced their own Hard Seltzer offerings. This trend is driven by the desire to cater to local tastes and preferences, as well as to support local businesses. Another trend in the market is the introduction of new flavors and variations. Initially, Hard Seltzers were limited to traditional flavors such as lime and grapefruit. However, as the market has evolved, companies have started to experiment with a wider range of flavors, including tropical fruits and local ingredients. This trend is driven by the desire to differentiate products and cater to diverse consumer preferences.

Local special circumstances: One of the unique aspects of the Hard Seltzer market in South America is the presence of traditional alcoholic beverages that are deeply ingrained in the culture. Countries such as Brazil and Argentina have a strong tradition of consuming beer and wine, which presents a challenge for Hard Seltzer brands looking to establish themselves in these markets. However, the growing popularity of Hard Seltzers among younger consumers and the increasing availability of local brands are helping to overcome this challenge.

Underlying macroeconomic factors: The growing middle class in South America, coupled with increasing disposable incomes, has contributed to the growth of the Hard Seltzer market. As consumers become more affluent, they are willing to spend more on premium and innovative products, including Hard Seltzers. Additionally, the increasing urbanization and changing lifestyles in the region have also played a role in shaping consumer preferences and driving the demand for convenient and on-the-go beverages like Hard Seltzers. In conclusion, the Hard Seltzer market in South America is experiencing significant growth due to changing customer preferences, the introduction of new flavors and variations, the presence of local and regional brands, and underlying macroeconomic factors such as the growing middle class and increasing disposable incomes. While there are challenges to overcome, the future looks promising for the Hard Seltzer market in South America.

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.