Spirits - Peru

The Spirits market in Peru has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, and local special circumstances.

Customer preferences: Peruvian consumers have shown a growing interest in premium and craft spirits, as they are becoming more discerning and sophisticated in their choices. They are willing to pay a premium for high-quality products that offer unique flavors and experiences. This shift in consumer preferences has led to an increase in the demand for premium spirits, such as single malt whiskies, artisanal gins, and small-batch rums. Additionally, there is a growing demand for organic and sustainable spirits, as consumers are becoming more conscious of the environmental impact of their choices.

Trends in the market: One of the key trends in the Spirits market in Peru is the rise of local distilleries and craft spirits. Peruvian consumers are increasingly interested in supporting local producers and exploring unique flavors that showcase the country's rich cultural heritage. This trend has led to the emergence of small-scale distilleries that produce traditional Peruvian spirits, such as pisco and aguardiente, using traditional production methods and locally sourced ingredients. These craft spirits offer a distinct taste and story, appealing to consumers looking for authentic and artisanal products. Another trend in the market is the growing popularity of cocktail culture. Peruvian consumers are embracing the art of mixology and experimenting with different spirits and flavors to create innovative and exciting cocktails. This trend has led to an increased demand for spirits that are versatile and can be used in a variety of cocktails. As a result, brands are launching new products and marketing campaigns that cater to this trend, offering consumers a wide range of options to choose from.

Local special circumstances: Peru is known for its vibrant culinary scene, with Peruvian cuisine gaining international recognition in recent years. This has had a positive impact on the Spirits market, as consumers are looking for spirits that complement the flavors and ingredients of Peruvian dishes. Pisco, a grape brandy that is the national spirit of Peru, has seen a surge in popularity both domestically and internationally. It is often used as a base for traditional Peruvian cocktails, such as the Pisco Sour, and is also gaining recognition as a standalone spirit.

Underlying macroeconomic factors: The growing middle class in Peru has contributed to the expansion of the Spirits market. As disposable incomes rise, consumers have more purchasing power and are willing to spend on premium and high-quality products. Additionally, the tourism industry in Peru has been booming, with an increasing number of international tourists visiting the country. This has created a demand for spirits that showcase the country's cultural heritage and offer an authentic Peruvian experience. In conclusion, the Spirits market in Peru is experiencing growth due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Peruvian consumers are increasingly interested in premium and craft spirits, as well as local products that reflect the country's cultural heritage. The rise of cocktail culture and the growing middle class have also contributed to the expansion of the market. Overall, the Spirits market in Peru presents opportunities for both local and international brands to cater to the evolving tastes and preferences 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.