Spirits - Chile

The Spirits market in Chile has been experiencing significant growth in recent years.

Customer preferences: Chilean consumers have shown a growing interest in premium and craft spirits. They are increasingly looking for unique and high-quality products that offer a distinct taste and experience. This shift in consumer preferences can be attributed to a number of factors, including the rising disposable income levels and changing lifestyle choices. Additionally, consumers in Chile are becoming more knowledgeable about different types of spirits and are willing to explore new and innovative options.

Trends in the market: One of the key trends in the spirits market in Chile is the increasing popularity of local and artisanal spirits. Chile has a rich tradition of producing high-quality spirits, such as pisco and aguardiente, and consumers are showing a growing appreciation for these traditional products. This trend is also driven by the desire to support local producers and the growing interest in sustainable and environmentally-friendly products. As a result, there has been a surge in the number of small-scale distilleries and craft spirit producers in the country. Another trend in the market is the growing demand for premium spirits, particularly among the younger generation. As disposable incomes rise, consumers are willing to spend more on high-end spirits that offer a superior taste and quality. This trend is also influenced by the increasing influence of Western culture and the desire to emulate the lifestyles of affluent consumers in other countries.

Local special circumstances: Chile is known for its wine production, and this has had an impact on the spirits market as well. Wine culture is deeply ingrained in Chilean society, and consumers have a strong preference for wine over other alcoholic beverages. However, there has been a shift in recent years, with consumers showing a greater interest in spirits. This can be attributed to changing social norms and the increasing influence of international trends. Another special circumstance in Chile is the strict regulations governing the production and sale of alcoholic beverages. The government has implemented measures to control the consumption of alcohol, including restrictions on advertising and the sale of alcoholic beverages. These regulations have had an impact on the spirits market, but they have also created opportunities for innovative marketing strategies and product differentiation.

Underlying macroeconomic factors: The growth of the spirits market in Chile can be attributed to several macroeconomic factors. Firstly, the country has experienced steady economic growth in recent years, resulting in rising disposable incomes. This has enabled consumers to spend more on discretionary items, including premium spirits. Secondly, the increasing urbanization and changing demographics in Chile have also contributed to the growth of the spirits market. As more people move to cities and adopt a more cosmopolitan lifestyle, their drinking habits and preferences are also changing. This has created a demand for a wider variety of spirits and a more diverse range of products. In conclusion, the spirits market in Chile is experiencing significant growth due to changing consumer preferences, the emergence of local and artisanal spirits, and the increasing demand for premium products. These trends are supported by underlying macroeconomic factors, such as rising disposable incomes and changing demographics. However, the market is also influenced by local special circumstances, including the strong wine culture and strict regulations governing the sale of alcoholic beverages. Overall, the future of the spirits market in Chile looks promising, with opportunities for both local and international producers to capitalize on the growing demand.

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.