Spirits - Paraguay

The Spirits market in Paraguay has been experiencing steady growth in recent years, driven by changing customer preferences, emerging trends in the market, and local special circumstances. Customer preferences in Paraguay have been shifting towards premium and craft spirits, as consumers seek higher quality and more unique products. This trend can be attributed to the increasing disposable income and changing lifestyles of Paraguayan consumers. As consumers become more discerning and sophisticated in their tastes, they are willing to pay a premium for spirits that offer superior quality and craftsmanship. This has led to a rise in the demand for premium spirits, such as aged whiskies, artisanal gins, and small-batch rums. In addition to premium spirits, there has also been a growing interest in local and regional spirits in Paraguay. Consumers are increasingly seeking out spirits that are produced locally or have a strong regional identity. This trend can be observed in the rising popularity of traditional Paraguayan spirits, such as caña paraguaya and cocido. The demand for these spirits is driven by a desire to support local producers and preserve cultural heritage. One of the key trends in the Spirits market in Paraguay is the increasing popularity of cocktail culture. As more consumers experiment with mixology and craft cocktails, there is a growing demand for spirits that can be used as key ingredients in cocktails. This trend is reflected in the rising sales of spirits such as vodka, tequila, and rum, which are commonly used in cocktails. The growing popularity of cocktail bars and mixology workshops also contributes to the demand for spirits in Paraguay. Local special circumstances in Paraguay also play a role in shaping the Spirits market. The country has a rich tradition of brewing and distilling, with a number of local producers and brands. This creates a competitive market environment, with both local and international brands vying for market share. Local producers often have a strong brand presence and customer loyalty, which can make it challenging for international brands to enter the market. However, there is also a growing interest in international spirits, particularly among younger consumers who are more open to trying new and exotic products. Underlying macroeconomic factors, such as economic stability and favorable trade policies, also contribute to the growth of the Spirits market in Paraguay. The country has experienced steady economic growth in recent years, which has increased consumer purchasing power and disposable income. This has created a favorable market environment for spirits, as consumers are more willing to spend on luxury and premium products. Additionally, Paraguay has implemented trade policies that promote the importation of spirits, making it easier for international brands to enter the market and meet the growing demand. In conclusion, the Spirits market in Paraguay is developing in response to changing customer preferences, emerging trends in the market, and local special circumstances. The demand for premium and craft spirits, as well as local and regional spirits, is driving the growth of the market. The increasing popularity of cocktail culture and the presence of local producers also contribute to the market dynamics. Favorable macroeconomic factors, such as economic stability and trade policies, further support the growth of the Spirits market in Paraguay.

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.