July 15, 2024 – In Latin America, consumers enjoy alcoholic and non-alcoholic beverages for their rich flavors and refreshing qualities. Innova’s 360 research into the alcoholic and non-alcoholic beverage market allows for identification of key insights into market size, consumer preferences, and top companies, as well as what may develop in the future.
Alcoholic and Non-Alcoholic Market Size and Trends
In Latin America, there has been a 4% rise in alcoholic beverage launches and sales over the past five years. Alcoholic and non-alcoholic beverage market research displays that alcoholic beverages in Latin America are expected to continue growing, with both sales and product development at a similar rate. Brazil leads in per capita consumption of alcoholic beverages, with beer accounting for more than 90% of this consumption. Although non-alcoholic beer is growing, it still accounts for a small fraction of total beer consumption per capita in Latin America.
Over the past five years, Brazil has also led in alcoholic beverage sales with a 4% rise, followed by Mexico, Argentina, Colombia, and Chile. This growth indicates a rising consumer interest in diverse alcoholic beverages across the region.
Alcoholic and Non-Alcoholic Market Consumer Insights
Consumers in Latin America prefer a wide range of alcoholic and non-alcoholic beverages, to relax and wind down. The majority of consumers in the region have consumed both alcoholic and non-alcoholic beer over the past year. Notably, 18% of consumers have increased their consumption of non-alcoholic alternative beverages. This rise is driven by variety, changing taste preferences, and a desire to control alcohol intake.
Alcoholic and non-alcoholic beverage market research shows that consumers in Latin America prefer drinking non-alcoholic beverages evenly throughout the day, while alcoholic beverages are consumed mostly at night. When purchasing non-alcoholic beverages, consumers prioritize product safety, traditional made, and low or no sugar claims. This trend indicates a rising interest in different alcoholic and non-alcoholic beverage options.
Top Companies in the Alcoholic and Non-Alcoholic Market
The most active launchers of new alcoholic beverages in Latin America are AB InBev, Heineken, Vina Concha Y Toro, and Cervejaria Dogma. These global giants have significantly boosted new product development across the region. However, the top companies differ across Latin American countries. For instance, Dellepiane leads in Argentina, whereas Heineken dominates new alcoholic beverage launches in Brazil.
AB InBev is the top company with the most alcoholic beverage entries. Its key brands include Spaten, Patagonia, Guarana, Brahma, and Corona. The company’s strategy focuses on inclusiveness, expanding Latin American businesses, and growing their mainstream portfolio. They also emphasize premiumization and innovation in their Beyond Beer segment. In 2023, their no-alcohol beer portfolio has shown a significant rise. Additionally, AB InBev is developing Peru’s first malting barley for the country’s farmers and brewers in collaboration with the National Agrarian University La Molina.
What’s Shaping the Alcoholic and Non-Alcoholic Market?
Brazil is the fastest growing country in Latin America for new alcoholic beverage launches, with a 15% increase, followed by Argentina. Over the past year, beer and wine have accounted for three-quarters of new launches in the region, while flavored alcoholic beverages have shown significant growth. Fruit flavors like lemon, strawberry and orange are rising in new flavored alcoholic beverages.
Gluten-free and ethical environmental claims are mostly seen on new alcoholic beverage launches in the past five years. Brands are targeting lifestyle-related claims, which has led to a rise in vegan and sugar free options. Additionally, seasonal claims and limited editions are becoming more popular.
Alcoholic and Non-Alcoholic Beer Trends
Brazilians consume beer more frequently than other Latin American consumers. More than half of Latin American consumers drink beer to relax and wind down, but 22% of them have decreased their alcohol consumption to control alcohol intake and improve health.
In the past year, 1 in 4 beer launches in Latin America are India Pale Ale, followed by Pilsner and wheat beer. Although sour beer accounts for a small fraction of total beer launches, it is a rising trend. It is often paired with fruit flavors for a refreshing taste experience.
Alcoholic and non-alcoholic beverage market research shows that different generations consume diverse types of beer. For instance, Gen Z and Millennials prefer beer with added flavors. This highlights a growing demand for flavor rich beer options among younger consumers in Latin America.
Premixed Cocktails and Flavored Malt Beverage Trends
Alcoholic beverages in Latin America are evolving, with a noticeable consumer interest in premixed cocktails and flavored malt beverages. Although, regular consumption in this category is limited to a small fraction of consumers. Over the past year, 14% have increased their consumption of premixed cocktails and flavored malt beverages, driven by increased variety, more promotions, and changing preferences. Citrus, lemon, strawberry, lemonade, and pineapple are the top 5 flavors in this category, though preferences vary by country in Latin America.
Trends Impacting the Alcoholic and Non-Alcoholic Beverage Market
Several of Innova Market Insights’ Top 10 Trends for 2024 are impacting the alcoholic and non-alcoholic beverage market in Latin America. The ‘Nurturing Nature’ trend highlights consumers’ desire for brands to go beyond sustainability and take actions to protect nature. In Latin America, this trend is visible as beverage companies prioritize glass and aluminium for inner packaging material. Heineken, for example, announced the use of 100% renewable energy in its Alagoinhas and Ponta Grossa breweries. Several brands are emphasizing eco-friendly packaging, sustainable agriculture, and carbon-negative beer to meet consumer demands.
The ‘Local Goes Global’ trend highlights that consumers seek locally sourced labels that reflect national pride in the flavors of alcoholic beverages. Brands are launching products with distinctive local flavors, such as Ca sparkling mixed cider displaying British style, fermented, and bottled in Brazil, whereas Japas Hanami sour beer highlights aromas and flavor from Japan.
Consumer trends research shows that 2 in 5 consumers in Latin America are cutting down on alcohol to improve their health. This preference aligns with the ‘Indulging in Health’ trend, in which consumers are seeking the best from both aspects, looking for health benefits through indulgent formats in alcoholic beverages. New beer launches are featuring healthier alternatives, catering to the needs of health-conscious consumers.
What’s Next in the Alcoholic and Non-Alcoholic Beverages Market?
The alcoholic and non-alcoholic beverage market is evolving rapidly, with Brazil leading in new product development and sales. This dynamic landscape offers several opportunities for companies to innovate and expand their offerings. Consumers growing demand for fresh combinations in traditional beverages drives companies to experiment with new flavors and ingredients.
The rising preference for low and no alcohol options is prompting beverage innovators to develop adult-tasting alcohol alternatives that prioritize health and flavor. Additionally, companies can explore different ways to develop sustainable packaging solutions to demonstrate their commitment to the environment. As the market evolves, companies are likely to cater to consumer demands for healthier, sustainable, and innovative alcoholic and non-alcoholic beverage options.
This article is based on our report, “Now & Next in Alcoholic & Non-Alcoholic Beverage in Latin America.” If you are interested in reading this report, feel free to request a demo.
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