South America Craft Beer Market

South America Craft Beer Market Analysis

The South America Craft Beer Market is expected to register a CAGR of 7.4% during the forecast period.

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 Market Trends

The increasing number of microbreweries elevates the demand for craft beer

The Craft beer market expansion is mostly fueled by the larger proportion of millennials who are interested in craft beers and looking for a novel flavor, as well as the relaxing atmosphere of microbreweries and brewpubs. The market's expansion is anticipated to be fueled by elements including per-capita consumption and the number of organizations dedicated to sharing knowledge about various beers. According to Valor Economico, Beer consumption in Brazil was 10.46 Billion liters in 2021. the craft beer market share of Brazil's overall beer industry is 9% in 2022. The ongoing premiumization of beer and commercialization of micro-distilleries in the region are the factors accelerating the growth of the craft beer market. The number of craft brewers is increasing rapidly on account of the growing demand for the product. Since the last decade, microbrewing has experienced a substantial rise in Argentina. Mar del Plata, a well-known tourist area on the coast in east-central Argentina, is home to one of the nation's first and most significant craft beer clusters. In Argentina, there were 5000 microbreweries as of 2021. The region has traditionally preferred low-alcohol lagers, due to the hot climate and this presents significant growth opportunities for craft microbreweries that can offer a creative range of low alcohol-by-volume (ABV) beers, catering to the traditional preferences. Particularly popular for craft brewing is the city of Bariloche.

Argentina Holds Largest Market Share

South America's largest source of craft breweries is Argentina, and the most well-known is Antares, which is based in Mar del Plata. Although it has brewpubs spread across cities like Buenos Aires, Mendoza, and Córdoba, it is one of the more widely dispersed artisan breweries in South America. The demand for craft beer in Argentina is anticipated to increase as consumers become more aware of the broad variety of tastes and styles of craft beer and their low alcohol by volume (ABV) percentage. Low-alcohol beverages are becoming more popular, and as a result of the increased interest from health-conscious customers and the availability of new, better-tasting options, no-alcohol, and low-alcohol beer sales have been increasing.

Patagonia beer is sold in Patagonia, in the South of Argentina. It is a craft beer variation using Quilmes. This premium Argentinian beer is brewed in Bariloche. Patagonia beer is available in a variety of styles. The pilsner, amber, and wheat varieties are the most widely consumed. The Bohemian Pilsner from Patagonia is a crisp, malty beer with undertones of citrus notes. Although the Patagonia amber has a mild sweetness in the mouth, it has a malty flavor with overtones of caramel. These all factors make Argentina the largest craft beer market.

South America Craft Beer Industry Overview

The South American craft beer market is competitive. Anheuser-Busch InBev SA/NV, Heineken NV, Bogota Beer Company, Feral Brewing co, and Cerveceria Altamira leading craft beer market players are concentrating on introducing and innovating a wide variety of products and flavors in order to draw in a large audience and strengthen brand loyalty. A sizable share of the craft beer industry is serviced by the local brewers. With their significant product improvements in terms of flavors, packaging, and alcohol content, both global and regional players have accommodated the growing customer demand for the product. For instance, In February 2020, Bogota Beer Company launched Its La Cotidiana Craft lager beer in cans from canpack. An invention that has enabled customers to enter the world of craft beer. An ordinary beer with a distinctive appearance and special ingredients.

South America Craft Beer Market Leaders

South America Craft Beer Market News

• In April 2022, Anheuser-Busch's Brazilian brewer, Ambev invested USD 154 million in a new eco-sustainable glass plant in Parana, Brazil. The new glass plant provides sustainable glass bottles for the packaging of craft beer. The glass plant is able to run on biofuels, use cutting-edge technology to assure excellent water and energy efficiency, and operate on 100% renewable electricity.
• In March 2022, Heineken Launched the world's first virtual beer for the metaverse. At a product launch event held at Heineken's virtual brewery, the virtual beer was introduced. The company brought actual journalists to the launch ceremony of the phony beer in order to promote the product as a true virtual product.
• In August 2021, Feral Brewing co. launched Runt pale ale. The pale ale craft beer has a strong new flavor that gives it a tropical punch, along with flavors of stone fruit and wood. It's a mid-strength alternative with a 3.5% ABV.