Wine - Brazil

The Wine market in Brazil has been experiencing significant growth in recent years, driven by changing consumer preferences, emerging trends, and local special circumstances.

Customer preferences: Brazilian consumers are increasingly embracing wine as a popular beverage choice, shifting away from traditional drinks such as beer and spirits. This change in consumer preferences can be attributed to several factors, including a growing middle class with higher disposable incomes, a desire for healthier and more sophisticated drinking options, and an increasing interest in wine culture and education. As a result, there is a growing demand for a wide variety of wines, including both domestic and imported brands.

Trends in the market: One of the key trends in the Brazilian wine market is the increasing popularity of sparkling wines. Sparkling wine consumption has been on the rise, driven by a shift towards more celebratory and festive drinking occasions. This trend is particularly evident during holidays and special events, such as New Year's Eve and weddings. As a result, both domestic and imported sparkling wines are experiencing strong growth in the market. Another trend in the Brazilian wine market is the growing demand for organic and natural wines. As consumers become more health-conscious and environmentally aware, there is a rising interest in wines that are produced using organic and sustainable practices. This trend is driven by a desire for healthier and more environmentally friendly products, as well as a growing appreciation for the unique flavors and characteristics of organic wines.

Local special circumstances: Brazil is the largest wine producer in South America, with a long history of winemaking dating back to the 16th century. The country's unique climate and diverse terroir offer ideal conditions for grape cultivation, resulting in a wide range of wine styles and flavors. Additionally, Brazil has a strong cultural affinity for wine, with wine consumption being associated with socializing, celebrations, and gastronomy. This cultural aspect contributes to the growing popularity of wine and the development of a vibrant wine culture in the country.

Underlying macroeconomic factors: The growth of the wine market in Brazil is also influenced by underlying macroeconomic factors. The country has experienced a period of economic stability and rising incomes, which has led to an expansion of the middle class and increased consumer purchasing power. This has allowed more consumers to afford and explore the world of wine, driving demand and market growth. Additionally, Brazil has seen an increase in tourism in recent years, with wine tourism becoming a popular activity for both domestic and international visitors. This has further contributed to the growth of the wine market, as tourists are exposed to different wine regions and encouraged to explore and purchase local wines. In conclusion, the Wine market in Brazil is experiencing significant growth due to changing consumer preferences, emerging trends such as the popularity of sparkling and organic wines, local special circumstances such as Brazil's wine culture and unique terroir, and underlying macroeconomic factors including rising incomes and increased tourism. This combination of factors has created a favorable environment for the development and expansion of the wine market in Brazil.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.