Market Trends of South America Beer Industry
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.
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.
