South America Alcoholic Beverage Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.23 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Alcoholic Beverage Market Analysis
The South American Alcoholic Beverage Market is projected to register a CAGR of 3.23% over the next five years.
Consumers in the South American region have shown a rising preference for whiskey and vodka, which is expected to regulate the corresponding markets in this region. Further, demand for ethnic premium, super-premium spirits, and flavoured spirits increased among the Millennials in the market. The young generation opts for low-calorie and low-alcohol beverages due to health concerns. Market players have been launching innovative products by considering consumer preferences. For instance, in October 2022, Diageo plc launched Johnnie Walker Blonde, following its introduction via the launch program in 2021 across cities in Brazil, Mexico, and a few other countries.
The changes in taste and the growing demand for small-batch, handmade beverages with unique flavour profiles contribute to the growth of the South American craft spirits market. The ever-increasing number of younger demographics encourages these beverages' market. The economy's growth is driving greater flexibility and giving consumers the luxury to demand handcrafted alcoholic drinks. Demand for premium beverages also increases as consumption of alcoholic beverages on casual occasions increases. The market players are expanding their business in other countries to strengthen their portfolios.
South America Alcoholic Beverage Market Trends
This section covers the major market trends shaping the South America Alcoholic Beverages Market according to our research experts:
Brazil Dominates the Region
Due to the rising disposable income and more no. of the working population, the demand for premium alcoholic beverages is increasing in the region. According to the Brazilian Institute of Geography and Statistics data 2021, the monthly per capita household income of Distrito Federal is BRL 2,513. Brazilians prefer beer over other alcoholic beverages in the region. Due to regulations on the production and consumption of alcoholic beverages, the market is differentiated in the area. Regular office parties, birthday parties, and other corporate events, consumption of alcohol has become common in Brazil. Young consumers in the region have shifted their preference to different flavored alcoholic drinks. Market players are launching various alcoholic beverages by considering the demand of consumers. In August 2021, Coca-Cola FEMSA formed an acquisition with the Brazilian specialty beer brand Therezópolis. The purpose of this acquisition was to strengthen its portfolio of beer brands in Brazil.
Growth in Number of Local Microbreweries
The rising number of microbreweries is leading the alcoholic beverages market in South American countries. The priority toward new flavors and new brewing techniques at these independent establishments attracts local consumers. AB InBev currently owns Cervejaria Colorado and Cervejaria Wals in Brazil and Bogota Beer Company in Colombia, the country's largest craft brewer. Due to the increasing number of breweries in the region, demand for different alcoholic beverages in the region is also increased. Beer is the favorite alcoholic drink for South Americans but innovation and the introduction of new products in the market are also attracting consumers. Furthermore, young consumers are opting for different flavored and low-calorie alcoholic beverages due to which the innovation in products is also increasing. In October 2022, a Diageo Plc brand Johnnie Walker launched Johnnie Walker Blonde. The product is made sweeter with smoother flavors. The product was launched in Brazil, the United States, Bulgaria, Germany, and Thailand.
South America Alcoholic Beverage Industry Overview
The South America alcoholic beverage market is fragmented with regional and global players. Several global market leaders dominate the regional market as the local consumers are fond of the taste and quality of well-distilled spirits and good-quality beers. Some of the major players in the market are Anheuser-Busch InBev, Heineken N.V., Cervejaria Petropolis S/A, Grupo Peñaflor, and Diageo Plc. The local manufacturers or private players primarily focus on producing traditional alcoholic beverages to conserve their culture. The major players are also practicing geographical expansion and mergers and acquisitions.
South America Alcoholic Beverage Market Leaders
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Anheuser-Busch InBev
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Heineken N.V.
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Cervejaria Petropolis S/A
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Grupo Peñaflor
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Diageo Plc
*Disclaimer: Major Players sorted in no particular order
South America Alcoholic Beverage Market News
- November 2022: Diageo Plc announced the acquisition of Balcones Distilling ('Balcones'), a Texas Craft Distiller. Balcones is one of the leading producers of American Single Malt Whisky.
- February 2022: Grupo Peñaflor announced its entry into the Hard Seltzers category with the launch of its new brand Mingo Hard Seltzer. The product has a 4% ABV alcohol content and less than 100 kcal per can. The product is available in three flavors: Lemon with cucumber and ginger, Grapefruit with rosehip and cardamom, and passion fruit with guava and coriander. The company is looking to expand its current portfolio of RTD beverages, with a significant presence in the category through its brand Frizzé.
- November 2021: Grupo Petrópolis Ltda., under its brand Itaipava, announced the launch of a new 100% malt edition for its premium beer product line. It is an American-style lager with new packaging, highlighting its golden color and superior appearance. The company had a massive product launch event in Bahia, with social media influencers, press authorities, and other guests attending the show.
South America Alcoholic Beverage Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
3.1 Market Overview
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Beer
5.1.2 Wine
5.1.3 Spirits
5.2 Distribution Channel
5.2.1 On-trade
5.2.2 Off-trade
5.3 Geography
5.3.1 Brazil
5.3.2 Argentina
5.3.3 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Anheuser-Busch InBev
6.3.2 Heineken N.V.
6.3.3 Diageo
6.3.4 Grupo Penaflor
6.3.5 Cervejaria Petropolis S/A
6.3.6 CCU S.A.
6.3.7 Brown-Forman
6.3.8 Companhia Muller de Bebidas
6.3.9 Pernod Ricard
6.3.10 Molson Coors Beverage Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
South America Alcoholic Beverage Industry Segmentation
Alcoholic Beverage is produced by fermenting fruits, vegetables, grain, or other sources of sugar. The South American alcoholic beverage market is segmented by product type into beer, wine, and spirits. Based on the distribution channel, the market has been classified into on-trade and off-trade. The market is also geographically diversified, considering Brazil, Argentina, and the rest of the South American region. For each segment, the market sizing and forecast have been done based on value (in USD million).
| Product Type | |
| Beer | |
| Wine | |
| Spirits |
| Distribution Channel | |
| On-trade | |
| Off-trade |
| Geography | |
| Brazil | |
| Argentina | |
| Rest of South America |
South America Alcoholic Beverage Market Research FAQs
What is the current South America Alcoholic Beverages Market size?
The South America Alcoholic Beverages Market is projected to register a CAGR of 3.23% during the forecast period (2024-2029)
Who are the key players in South America Alcoholic Beverages Market?
Anheuser-Busch InBev, Heineken N.V., Cervejaria Petropolis S/A, Grupo Peñaflor and Diageo Plc are the major companies operating in the South America Alcoholic Beverages Market.
What years does this South America Alcoholic Beverages Market cover?
The report covers the South America Alcoholic Beverages Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South America Alcoholic Beverages Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South America Alcoholic Beverage Industry Report
Statistics for the 2024 South America Alcoholic Beverage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Alcoholic Beverage analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
South America Alcoholic Beverage Market Report Snapshots
