Market Size of South America Alcoholic Beverages Industry
| 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 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 Beverages Market Size Summary
The South American alcoholic beverage market is experiencing a dynamic shift, driven by evolving consumer preferences and economic growth. There is a notable increase in the demand for whiskey and vodka, alongside a growing interest in ethnic premium and super-premium spirits, particularly among Millennials. This demographic is also leaning towards low-calorie and low-alcohol options due to health considerations. The market is witnessing innovation, with companies like Diageo plc introducing new products such as Johnnie Walker Blonde to cater to these preferences. The craft spirits segment is gaining traction, fueled by a desire for small-batch, handmade beverages with unique flavors. The expansion of microbreweries and the introduction of new brewing techniques are further enhancing the market's appeal, particularly in countries like Brazil and Colombia.
The market landscape is characterized by a mix of regional and global players, with major companies such as Anheuser-Busch InBev, Heineken N.V., and Diageo Plc leading the charge. These players are not only focusing on product innovation but also on geographical expansion and strategic acquisitions to strengthen their market presence. The rising disposable income and an increasing working population are contributing to the demand for premium alcoholic beverages, with beer remaining a favorite among South Americans. The market is also seeing a rise in flavored and low-calorie drinks, reflecting the changing tastes of younger consumers. Local manufacturers continue to produce traditional beverages, preserving cultural heritage while global players dominate with their well-distilled spirits and quality beers.
South America Alcoholic Beverages Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Product Type
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2.1.1 Beer
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2.1.2 Wine
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2.1.3 Spirits
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2.2 Distribution Channel
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2.2.1 On-trade
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2.2.2 Off-trade
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2.3 Geography
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2.3.1 Brazil
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2.3.2 Argentina
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2.3.3 Rest of South America
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South America Alcoholic Beverages Market Size 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.
