South America Craft Beer Market Size (2024 - 2029)

The South America Craft Beer market is experiencing growth driven by increasing consumer awareness of diverse flavors and styles, alongside a preference for lower alcohol content. This trend is supported by a rising number of craft beer enthusiasts, particularly in Argentina and Brazil, fueled by higher disposable incomes and a shift towards beer over other alcoholic options. The region's unique beer culture, exemplified by attractions like Quito's brewery museum, further enhances the craft beer appeal. However, the market has faced challenges due to the COVID-19 pandemic, which disrupted traditional distribution channels as consumers shifted to food retailers and online platforms.

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Market Size of South America Craft Beer Industry

South America Craft Beer market
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 7.40 %
Market Concentration Medium

Major Players

South America Craft Beer Market Major Players

*Disclaimer: Major Players sorted in no particular order

South America Craft Beer Market Analysis

The South America Craft Beer market is projected to register a CAGR of 7.4% during the forecast period, 2022-2027.

The craft beer demand is anticipated to increase throughout the forecast period as a result of consumers' increasing awareness of the vast variety of flavors and styles of craft beer and their low alcohol by volume (ABV) percentage. In addition, the industry is anticipated to benefit from the expanding number of craft beer enthusiasts in Argentina and Brazil. Due to rising disposable income and a shift in consumer preferences toward beer over other alcoholic beverages, there is a growing demand for craft beer.

The first brewery in South America was established in Quito which is turned into a public museum allowing tourists to enjoy the authentic flavor of Quito-brewed craft beer. The "beer tour" gives the chance to learn more about Quito's beer culture in-depth through activities like blind beer tasting and special flavor sampling, all while exploring the streets' steep inclines, portraying iconic locations, and finding the locations where this exquisite beverage is sold which is boosting the popularity of craft beer in South America

The COVID-19 pandemic has caused widespread hotel and restaurant closures and restrictions throughout the region, which has hampered the craft beer distribution system. Customers' shopping habits have suddenly shifted in the interim. Because hotels, restaurants, and bars are closed or only functioning to a limited capacity, customers are turning to food retailers and online marketplaces to shop for the product.

South America Craft Beer Industry Segmentation

Craft beer is brewed by a small brewery in a manual or traditional manner. These beers have a distinct taste from regular watery beer, which is usually mass-produced. The South America craft beer market is segmented by type, distribution channel, and geography. Based on the type of craft beer, the scope includes ales, pilseners, pale lagers, specialty beers, and other types. By distribution channel, the market is segmented into on-trade and off-trade distribution, off-trade is further segmented into online and offline channels. Based on geography, the market is segmented into Argentina, Brazil, and rest of the South America. For each segment, the market sizing and forecasts have been done on the basis of value (in USD billion).

By Type
Ales
Pilsners and Pale Lagers
Specialty Beers
Others
By Distriburtion Channel
On-Trade
Off-Trade
Online Channel
Offline Channel
By Geography
Argentina
Brazil
Rest of South America
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South America Craft Beer Market Size Summary

The South American craft beer market is experiencing significant growth, driven by an increasing consumer awareness of the diverse flavors and styles of craft beer, as well as a preference for lower alcohol content beverages. This trend is particularly evident in Argentina and Brazil, where a rising number of craft beer enthusiasts are contributing to the market's expansion. The region's craft beer industry is benefiting from a shift in consumer preferences towards beer over other alcoholic beverages, supported by higher disposable incomes. The establishment of craft beer tourism, such as the beer tours in Quito, is further enhancing the popularity of craft beer by offering immersive experiences that highlight local beer cultures. Despite challenges posed by the COVID-19 pandemic, which disrupted traditional distribution channels, the market has adapted with consumers increasingly turning to food retailers and online platforms for their craft beer purchases.

Argentina stands out as the largest craft beer market in South America, with a substantial number of microbreweries and a growing demand for innovative low-alcohol options. The country's craft beer scene is characterized by a mix of traditional and modern brewing techniques, with notable brands like Patagonia and Antares leading the way. The competitive landscape of the South American craft beer market is marked by the presence of both global and local players, such as Anheuser-Busch InBev, Heineken, and Bogota Beer Company, who are continuously innovating to meet consumer demands. These companies are investing in sustainable practices and exploring new product offerings, such as virtual beers and eco-friendly packaging solutions, to strengthen their market positions. The ongoing premiumization of beer and the commercialization of micro-distilleries are key factors propelling the market's growth, as consumers seek unique and high-quality beer experiences.

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South America Craft Beer Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Ales

      2. 2.1.2 Pilsners and Pale Lagers

      3. 2.1.3 Specialty Beers

      4. 2.1.4 Others

    2. 2.2 By Distriburtion Channel

      1. 2.2.1 On-Trade

      2. 2.2.2 Off-Trade

        1. 2.2.2.1 Online Channel

        2. 2.2.2.2 Offline Channel

    3. 2.3 By Geography

      1. 2.3.1 Argentina

      2. 2.3.2 Brazil

      3. 2.3.3 Rest of South America

South America Craft Beer Market Size FAQs

The South America Craft Beer Market is projected to register a CAGR of 7.40% during the forecast period (2024-2029)

Anheuser-Busch InBev SA/NV, Heineken NV, Bogota Beer Company, Feral Brewing co and Cerveceria Altamira are the major companies operating in the South America Craft Beer Market.

South America Craft Beer Report Snapshots

South America Craft Beer Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)