Beer in Portugal

2020 IMPACT

Steep slowdown for beer due to the closure of the off-trade during the height of the pandemic

The on-trade is generally a very important channel for beer and one which offers the most added value. It was also the channel to have suffered the most from the global pandemic witnessing a steep contraction in volume sales.

Uplift for private label due to growth in grocery retailing and as consumers tighten their belts

Private label represents a high share of off-trade sales, therefore growth in this channel in 2020 stimulated in part by the closure of the on-trade was highly positive for the performance of economy lager. Following overall category trends, private label evolved over the years not only in line with consumer demand for cheaper products but also because the private label offering continued to expand.

Super Bock Group and SCC - Sociedade Central de Cervejas e Bebidas SA retain their duopoly while craft beer boosts penetration via the off-trade and new products are launched

The category maintains a duopoly characterised by Super Bock Group and SCC - Sociedade Central de Cervejas e Bebidas SA. These companies present relatively similar strategies, with Super Bock maintaining the lead in 2020, thanks to its greater dynamism in the off-trade channel.

RECOVERY AND OPPORTUNITIES

Steady growth for beer after rebound in 2021 providing the virus comes under control and restrictions ease

After an initial rebound in 2021, recovery is expected to be more gradual, with sustained growth over the forecast period, following the expected reduction in confinement measures and recovery of the tourism industry. Providing the virus recedes, imported premium lager is anticipated to produce the highest growth in the forecast period in volume terms driven by the recovery projected for the on-trade channel after the large decline experienced in 2020.

The reopening of society boosts innovation leading to greater diversity in beer

Innovation will continue to be an important trend over the forecast period which will add value to the category. This will lead to the launch of a greater diversity of beer styles and brands.

Growth in non/low alcohol beer in line with global trends

Consumers will increasingly seek different offers depending on the consumption occasion and their current needs. Despite the lower popularity of alcohol-free alternatives compared to other European countries, they will nonetheless represent a valued alternative.