Spirits - Ecuador

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

Customer preferences: Ecuadorians have shown a growing interest in spirits, particularly in premium and craft products. This can be attributed to a shift in consumer preferences towards higher quality and more unique offerings. Additionally, there is an increasing demand for spirits that are locally produced, as consumers seek to support local businesses and products.

Trends in the market: One of the key trends in the spirits market in Ecuador is the rise of craft spirits. Consumers are increasingly looking for products that are artisanal and have a unique flavor profile. This has led to the emergence of small, local distilleries that produce spirits such as gin, rum, and vodka. These craft spirits often use locally sourced ingredients and traditional production methods, appealing to consumers who value authenticity and craftsmanship. Another trend in the market is the growing popularity of premium spirits. As disposable incomes have risen in Ecuador, consumers are willing to spend more on higher quality products. This has led to an increase in the consumption of premium spirits such as single malt whisky, aged rum, and high-end tequila. These premium spirits are often seen as a status symbol and are favored by consumers who want to indulge in a luxurious drinking experience.

Local special circumstances: One of the unique aspects of the spirits market in Ecuador is the strong presence of traditional alcoholic beverages. Ecuador has a rich cultural heritage and a long history of producing traditional drinks such as aguardiente and pisco. These traditional spirits continue to be popular among consumers, particularly in rural areas. The production and consumption of these traditional spirits are deeply ingrained in the local culture and are often associated with celebrations and social gatherings.

Underlying macroeconomic factors: The growth of the spirits market in Ecuador can be attributed to several underlying macroeconomic factors. Firstly, the country has experienced steady economic growth in recent years, leading to an increase in disposable incomes. This has allowed consumers to spend more on luxury goods, including spirits. Secondly, the tourism industry in Ecuador has been growing rapidly, attracting a large number of international visitors. This has created a demand for high-quality spirits, as tourists seek to experience the local culture and taste the traditional beverages of the country. The tourism industry has also contributed to the growth of craft spirits, as tourists are often interested in trying unique and local products. Lastly, the government of Ecuador has implemented policies to support the development of the spirits industry. This includes providing incentives for small distilleries and promoting the export of Ecuadorian spirits. These policies have helped to create a favorable business environment for spirits producers, leading to increased investment and innovation in the industry.

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.