Market Trends of South America Alcoholic Beverages Industry
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.
