South America Beer Market- Growth, Trends, COVID 19 Impact, and Forecasts (2023 - 2028)

South America Beer market is segmented by product type(Lager, Ale, and other beer types), by distribution channel (off trade and on trade), and by geography (Brazil, Argentina, Rest of South America). The report offers market size and value in (USD Million) during the forecasted years for the above segments.

South America Beer Industry Overview

South America Beer Market Summary
Study Period: 2018 - 2028
CAGR: 3.5 %

Major Players

South America Beer Market Major Players

*Disclaimer: Major Players sorted in no particular order

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South America Beer Market Analysis

The South America Beer market is projected to register a CAGR of 3.5% during the forecast period. (2022-2027)

South American country Brazil is one of the leading beer-consuming countries in the world. Consumers in the market prefer the Pilsen type of lager beer among other beer types available in the region. This is mainly due to the emergence of numerous microbreweries in the region where craft beer and draught beer are extensively retailed in the local beer markets. Additionally, the presence of numerous brands in the market facilitates the consumers to access beer products easily thus resulting in propelled sales of beer products in the market.

The demand for premium beer products in the market had been witnessing a surge in demand as consumers in the market are preferring premium products as the products are either sourced organically or made of handpicked ingredients which makes them more expensive than their counterparts present in the market. The increasing purchasing power of the consumers with increasing incomes encourages the consumers in the market to choose expensive products available in the market.Owing to the demand manufacturers in the market are introducing new products to attract the consumers in the market. For instance, in November 2021, Diageo launched its new Irish beer premium beer product in Argentina. The Irish Guinnes beer products are available in two different flavors like Guinness Extra Stout, the classic.

With the outbreak of COVID-19 19, the overall demand for beer has decreased with a sudden shutdown of public gatherings and retailing of beers. This resulted in a decrease in imports and retailing of beers across the region. For instance, as the er Comtradeade, the imported value of beer into South American countries decreased in 2020 to USD 0.8 billion from USD 1.13 billion in 2018. post covid 19 the market has witnessed rapid growth to reaup topto USD 1.15 billion in 2021.

South America Beer Industry Segments

Beer is an alcoholic drink made of fermented malt sourced from different ingredients like wheat etc. The South American beer market is segmented by product type, distribution channel, and geography. By product type, the market is segmented into lager, ale, and other beer types. Based on the distribution channel, the market is segmented into off-trade and on-trade. It provides an analysis of emerging and established economies across South America comprising Brazil, Argentina, and the rest of South America. For each segment, the market sizing and forecasts have been done on the basis of value(in USD million.)

Product Type
Lager
Ale
Other Beer types
By distribution channel
Off trade Channel
Online Retail Channel
Offline Retail Channel
On Trade Channel
By Geography
South America
Brazil
Argentina
Rest of South America

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South America Beer Market Trends

This section covers the major market trends shaping the South America Beer Market according to our research experts:

Growing microbreweries leading to increased consumption.

The number of microbreweries has surged in recent years in the region, as consumers in the market prefer traditionally and locally brewed beers over bottled beer products readily available in the market. Consumers in the market are choosing craft beers brewed in microbreweries as craft beers are comparatively healthier than regular beers as they do not affect cardiovascular health as much as traditional beers. 

According to the Ministry of Agriculture, Livestock, and Supply (MAPA), the number of craft breweries jumped from 50 in 2002 to 1,178 in 2019. According to the Brazilian Association for Craft Beer (ABRACERVA), Brazil’s craft brewery production was approximately 380 million liters in 2019, which represented an average of 2.5 percent of the total amount of beer produced in the country and was expected that in 2020 the country would reach more than 1,500 breweries. The breweries are highly concentrated in the south-southern parts of the country, with 80 percent of the total breweries spread throughout the regions.

Besides, the ingredients used in manufacturing at microbreweries are handpicked and give an authentic taste which encourages the consumers in the market to choose these products over regular beers in the market. Owing to the increasing importance and demand for craft beers in the market, major players in the market are focusing on operating microbreweries on their own to capture the market share in the region. For instance, In April 2022, Novo Brazil Brewing Company opened a new microbrewery in Imperial Beach in San Diego, Brazil. The company aims to increase its production capacity by 30% by next year with the added production unit.

South America Beer Market : Number of microbrewers, in Brazil, 2016-2019

Consumers in brazil prefer beer over other alcoholic beverages

According to a USDA report in 2020 Brazilian beer consumption per capita averages 60 liters annually. The Brazilian beer market is primarily supplied by domestic brands and most sold beers are the ones considered entry-price; however, many Brazilian consumers have been adopting the trend “drink less but drink better”. Consumers in the beer market have become more “experimental”, resulting in more people looking for new beer styles. This trend opens up a variety of opportunities for premium and craft beers. Also, modern consumers (mostly Millennials and Gen-Z) seem to be less brand loyal, which creates opportunities for the introduction of new types of beers in the market. Moreover, consumers in the market prefer the consumption of beer at home rather than bars and other alcohol in retail establishments which resulted in an increase in the production of canned beer in the country. . For instance, in September 2020, Ambev company opened its new can factory in Brazil to facilitate the production of canned beer and promote the at-home consumption of beer. The company aims to produce 1.5 billion cans a year to cater to the demand from stay-at-home drinkers in the market.

South America Beer Market : imported value of alcoholic beverages, in %, Brazil, 2020

South America Beer Market Competitor Analysis

The market is fragmented with the presence of international players and numerous local breweries in the region. Players in the market are focusing on increasing product offerings and introducing microbreweries across the region. A few of the major players in the market include Anheuser-Busch InBev, Heineken N.V, Carlsberg Group, Columbia Craft Brewing Company, and Novo Brazil Brewing Company. Sighting the market opportunities in the region the major players are looking forward to investment to boost their market growth. For instance, in May 2022, Compañía Cervecerías Unidas (CCU), one of the leading producers of beverages in South America part-owned by Heineken which offers brands in Argentina such as Imperial, Schneider, Heineken, Amstel Lager, Miller, Salta Cautiva, Grolsch, Warsteiner and Sidra 1888 has announced an investment of more than ARS 2.7 billion (USD 23 million) to increase the production and logistics capacity for national and international beers at Cervecería de Luján, in the Province of Buenos Aires, the beer is intended to supply the local market.

South America Beer Market Top Players

  1. Anheuser-Busch InBev

  2. NOVO BRAZIL BREWING

  3. Columbia Craft Brewing Company

  4. Heineken N.V

  5. Carlsberg Group

*Disclaimer: Major Players sorted in no particular order

South America Beer Market Concentration

South America Beer Market Recent Developments

  • In May 2022, Compania Cervecerias Unidas (CCU) invested about USD 23 million to expand its beer production capacity in Argentina. The company aims to strengthen its footprints across the region with increasing production and logistic capacity to reach maximum consumers in the market. 
  • In November 2021, Novo Brazil Brewing Company has launched its two limited editions of the beer collection called TRES. TRES beers contain about 9.5% ABV and contain about 1.7 oz of hops per gallon. The two flavors include a triple-hazy and hoppy flavor.
  • In September 2021, River North Brewery launched its new Socorro Chile Lager beer on the occasion of the annual Chile Beer day. Socorro Chile Lager is a light lager at 5% ABV and is spicy in flavor. The product is also available in two more flavors namely pineapple jalapeno imperial Saison and Mayan chocolate imperial stout.

South America Beer Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions & Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Lager

      2. 5.1.2 Ale

      3. 5.1.3 Other Beer types

    2. 5.2 By distribution channel

      1. 5.2.1 Off trade Channel

        1. 5.2.1.1 Online Retail Channel

        2. 5.2.1.2 Offline Retail Channel

      2. 5.2.2 On Trade Channel

    3. 5.3 By Geography

      1. 5.3.1 South America

        1. 5.3.1.1 Brazil

        2. 5.3.1.2 Argentina

        3. 5.3.1.3 Rest of South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Anheuser-Bushch InBev

      2. 6.4.2 Heineken N.V

      3. 6.4.3 Carlsberg Group

      4. 6.4.4 Columbia Craft Brewing Company

      5. 6.4.5 Novo Brazil Brewing Company

      6. 6.4.6 Amber S A

      7. 6.4.7 Bavaria Brewery

      8. 6.4.8 Brahma

      9. 6.4.9 Muller Inc

      10. 6.4.10 Bayern Brewing, Inc

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MAKRET

  9. 9. DISCLAIMER

**Subject to Availability
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South America Beer Market Research FAQs

The South America Beer Market is studied from 2018 - 2028.

The South America Beer Market is growing at a CAGR of 3.5% over the next 5 years.

Anheuser-Busch InBev, NOVO BRAZIL BREWING, Columbia Craft Brewing Company, Heineken N.V, Carlsberg Group are the major companies operating in South America Beer Market .

South America Beer Industry Reports

In-depth industry statistics and market share insights of the South America Beer Market sector for 2020, 2021, and 2022. The South America Beer Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the South America Beer Market report PDF.

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