Soft Drinks - Ecuador

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

Customer preferences: Ecuadorian consumers have shown a strong preference for soft drinks, making it a popular beverage choice across all age groups. This can be attributed to the hot and humid climate in the country, where people often seek refreshing and hydrating drinks. Additionally, the convenience and affordability of soft drinks have made them a popular choice for on-the-go consumption.

Trends in the market: One of the key trends in the Soft Drinks market in Ecuador is the growing demand for healthier options. As consumers become more health-conscious, there has been a shift towards low-sugar and natural ingredient-based soft drinks. This trend is driven by the increasing awareness of the negative health effects of excessive sugar consumption and the desire for healthier alternatives. Another trend in the market is the rise of functional beverages. Consumers are increasingly looking for soft drinks that offer additional benefits such as energy boost, improved digestion, or enhanced mental focus. This has led to the introduction of a variety of functional soft drinks in the market, including energy drinks, sports drinks, and herbal-infused beverages.

Local special circumstances: One of the unique factors influencing the Soft Drinks market in Ecuador is the popularity of traditional beverages. Ecuador has a rich cultural heritage, and traditional beverages like horchata and chicha have been consumed for centuries. These drinks are often made from local ingredients and have a distinct flavor profile, appealing to consumers looking for authentic and traditional experiences.

Underlying macroeconomic factors: The growing Soft Drinks market in Ecuador can also be attributed to favorable macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income among the population. This has resulted in greater purchasing power and an increased demand for non-essential products like soft drinks. Additionally, the expanding tourism industry in Ecuador has contributed to the growth of the Soft Drinks market. As more tourists visit the country, there is a higher demand for beverages, including soft drinks, in hotels, restaurants, and tourist attractions. This has created new opportunities for both local and international soft drink manufacturers to cater to the needs of both domestic and international consumers. In conclusion, the Soft Drinks market in Ecuador is growing due to customer preferences for refreshing and convenient beverages, the increasing demand for healthier options and functional beverages, the popularity of traditional drinks, and favorable macroeconomic factors such as economic growth and a thriving tourism 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 Non-Alcoholic Drinks, 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 Non-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. The market is updated twice a year.