Brazil and Chile are “high-potential” markets in the Americas for spirits brands, with annual sales in both countries forecast to rise at double-digit rates, new research shows.
Brazil’s spirits industry is due to see its value grow at a CAGR of 18.2%, from $17.4bn in 2023 to $40.1bn in 2028, according to a new report from GlobalData, Just Drinks’ parent.
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Chile’s spirits sector was valued at $3.7bn in 2023 and is expected to grow at a CAGR rate of 13.1% by 2028, reaching sales of $6.9bn.
In Brazil, Companhia Muller De Bebidas, Diageo and Engarrafamento Pitu were the leading companies by in their share of sales volumes in 2023, the research showed. Companhia Muller De Bebidas held a 10.8% volume share, while Diageo and Engarrafamento Pitu held 10.6% and 8.2%.
The dominant spirits category for Brazil was speciality spirits, which held 40.1% of the category value share, followed by vodka at 15.6% and liqueurs at 13.8%. Speciality spirits also held the largest volume share in volume terms, hovering around 60% across nine top spirits-consuming cities, including Sao Paulo, Rio de Janeiro and Belo Horizonte.
Speciality spirits under GlobalData’s definition include distilled liquors like cachaça, soju, pisco, aguardiente or pastis.
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By GlobalDataIn Chile, Diageo, Compania Cervecerías Unidas and Cooperative Agricola Pisquera Elqui were the leading companies in terms of volume share for Chile in 2023, holding 16%, 12.5% and 9% respectively.
Brandy was the dominating spirits category for Chile in value terms in 2023, taking 28.4% of category value share. Whiskey and speciality spirits followed at 24.4% and 21.7% respectively.
Speciality spirits, however, was the leading category by volume in 2023 across the top consumption cities in Chile – Santiago, Valparaiso and Concepcion. Its highest volume share was recorded in Santiago at 35.9%.
One trend defining spirits consumption habits in both countries is consumer interest in “unique or novel ingredients”, GlobalData suggested.
In a GlobalData consumer survey, 64% of Chilean consumers said they are “either always or often influenced by new experiences associated with product purchases”. A separate survey from the data analytics group showed 70% of Brazilian respondents said they see “novel or unique characteristics while purchasing food and drinks essential or nice to have”.
GlobalData also forecast an increase in demand for RTD cocktails in the Americas overall as more consumers look to “high-quality drinking experiences”.
Environmentally friendly packaging is also expected to become more important in the spirits sector in the region as consumers look to packaging made with sustainable materials, while social media and celebrity-backed brands could also prove more important in the future for engaging with consumers in the Americas.
