Spirits - Argentina

The Spirits market in Argentina has been experiencing significant growth in recent years. Customer preferences are shifting towards premium and craft spirits, and there is a growing demand for unique and innovative products. This trend is driven by a combination of factors, including changing consumer tastes, increased disposable income, and a growing cocktail culture.

Customer preferences: In Argentina, consumers are becoming more discerning when it comes to spirits. They are seeking out high-quality products that offer a unique and authentic experience. This has led to a rise in the popularity of premium and craft spirits, as consumers are willing to pay a premium for products that are made with care and attention to detail. Additionally, there is a growing interest in spirits that are produced using traditional methods and local ingredients, as consumers are looking for products that reflect their cultural heritage.

Trends in the market: One of the key trends in the Spirits market in Argentina is the rise of craft distilleries. These small-scale producers are gaining popularity as consumers seek out products that are made with passion and creativity. Craft spirits offer a unique flavor profile and often incorporate local ingredients, which appeals to consumers who are looking for something different from the mass-produced offerings available in the market. Another trend in the market is the growing popularity of cocktails. The cocktail culture in Argentina has been on the rise in recent years, with consumers increasingly enjoying experimenting with different spirits and mixers to create their own unique drinks. This trend has led to an increased demand for premium spirits that can be used as the base for cocktails, as well as a variety of mixers and garnishes.

Local special circumstances: Argentina has a rich tradition of wine production, and this has had an impact on the Spirits market. Wine is the traditional alcoholic beverage of choice in Argentina, and it remains highly popular. However, there is a growing interest in spirits, particularly among younger consumers, who are looking for new and exciting experiences. This has created an opportunity for spirits producers to introduce innovative products that cater to this emerging market.

Underlying macroeconomic factors: The growth of the Spirits market in Argentina is also being driven by underlying macroeconomic factors. The country has experienced a period of economic stability in recent years, with steady GDP growth and low inflation. This has led to an increase in disposable income, allowing consumers to spend more on luxury items such as premium spirits. Additionally, the tourism industry in Argentina has been growing, attracting visitors from around the world who are interested in experiencing the country's vibrant food and drink culture. This has created a demand for high-quality spirits that can be enjoyed by both locals and tourists alike. In conclusion, the Spirits market in Argentina is experiencing growth due to changing customer preferences, including a shift towards premium and craft spirits, as well as the growing popularity of cocktails. Local special circumstances, such as the country's tradition of wine production, and underlying macroeconomic factors, including economic stability and a growing tourism industry, are also contributing to the market's development. As a result, spirits producers in Argentina have an opportunity to capitalize on these trends and meet the evolving needs of consumers.

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.