Demand for softer alcoholic drinks continues to benefit beer and wine
Ongoing changes in local consumers’ drinking habits are informed by a number of factors, such as the slow economic recovery, harsher penalties for drunk driving and the recently approved tobacco control legislation (which bans smoking in bars and restaurants). Thus the trend towards at-home entertaining continued to develop, with consumers opting for cheaper and softer alcoholic drinks on a more regular basis. This scenario favours the demand for beer and wine, which continued to record the fastest growth in total volume sales terms.
Imported economy lager proves popular among locals
The ongoing fast development of imported economy lager continued to drive the drinking preferences of local consumers. They remained very attracted to the increasing availability of value for money offers, which are also capable of providing flavour and origin differentiation. As a result, imported economy lager remains an interesting option for a wide base of potential consumers, who are willing to try (and change) new brands on a regular basis. On the other hand, the demand for imported spirits continued to migrate towards added-value and high-quality products. This proves that upper-income consumers are upgrading their consumption of alcoholic drinks, given the increasing preference for drinking at home with friends and family instead of going out.
Florida Bebidas SA strengthens its position and starts distributing Diageo’s brands
Besides Florida Bebidas SA’s recent acquisition of the US brewery North American Breweries Holdings LLC, the local beer manufacturer continues to establish important local alliances to become the absolute leader in alcoholic drinks in Costa Rica. After absorbing HÅ&COM Bebidas del Mundo SA’s wine division at the end of 2010, it established a commercial alliance in 2012, to start distributing Diageo Plc’s brands in the country. This creates the opportunity to take full control of HÅ&COM’s operations in 2013. On the other hand, the local brewery responded very aggressively to the increasing competition from imported economy lager by launching its own economy beer brand, Bohemia, which takes advantage of the local manufacturer’s large economies of scale.
Off-trade sales continue to benefit from market dynamics
The on-trade consumption of alcoholic drinks declined over the review period. Factors such as the recently approved Transit Law and the lingering effects of the economic slowdown have encouraged consumers to socialise at home more. This is seen as significantly safer, preventing excessive drinking, while allowing buyers to trade-up to higher-quality products, such as imported premium lager and fine spirits.
Further polarisation in demand is anticipated over the forecast period
As a result of the uncertain economic situation, it is expected that the segmentation of most alcoholic drinks will continue to develop in the country. This will favour the offer of low-priced products (such as economy beer) on the one hand, and the demand for added-value and higher-quality drinks, including beer, wine and spirits, on the other. While some consumers will try to buy higher-quality products, most people are anticipated to take advantage of the good value for money offers by imported beers and wines.
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The Alcoholic Drinks in Costa Rica market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Production, imports by origin, exports by destination
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Alcoholic Drinks in Costa Rica?
- What are the major brands in Costa Rica?
- Have there been any alcoholic drinks legislative changes over the past 12 months?
- How is the alcoholic drinks industry affected by the recession?
- What is consumed more; beer, wine or spirits?
- What have been the key trends seen in new product developments?
- Do alcoholic drinks consumers want value for money or added value?
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This industry report originates from Passport, our Alcoholic Drinks market research database.