Beer - Portugal

The Beer market in Portugal has witnessed significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Portugal, there has been a shift in customer preferences towards craft beer and premium beer varieties. Consumers are increasingly seeking unique and flavorful options, leading to the rise of craft breweries and the introduction of new beer styles. This shift in preferences is also influenced by the growing interest in supporting local businesses and the desire for high-quality products.

Trends in the market: One of the key trends in the beer market in Portugal is the increasing popularity of low-alcohol and non-alcoholic beers. Health-conscious consumers are opting for these options as they provide a lighter alternative without compromising on taste. This trend is also driven by changing lifestyles, with more individuals seeking moderation in their alcohol consumption. Another trend in the market is the growing demand for beer festivals and events. These gatherings provide an opportunity for breweries to showcase their products and engage with consumers. Beer festivals have become a popular social activity, attracting both locals and tourists, and contributing to the overall growth of the beer market.

Local special circumstances: Portugal's beer market is influenced by its rich brewing heritage and traditional beer culture. The country has a long history of beer production, with several well-established breweries that have been operating for decades. This heritage and tradition contribute to the overall appeal of beer in Portugal and help differentiate it from other markets. Furthermore, Portugal's warm climate and tourism industry play a significant role in shaping the beer market. The country's sunny weather and vibrant beach culture create a demand for refreshing and light beer options, such as lagers and pilsners. Additionally, the influx of tourists during peak seasons boosts the consumption of beer, leading to increased sales and market growth.

Underlying macroeconomic factors: The overall economic stability and rising disposable incomes in Portugal have contributed to the growth of the beer market. As consumers have more purchasing power, they are willing to spend on premium and craft beer options. This economic stability also supports the establishment and expansion of breweries, further fueling market growth. Additionally, the increasing popularity of beer tourism in Portugal has a positive impact on the market. Beer enthusiasts from around the world are drawn to Portugal's breweries and beer-related attractions, boosting both domestic and international beer consumption. This trend is further supported by the country's efforts to promote beer tourism and position Portugal as a beer destination. In conclusion, the Beer market in Portugal is experiencing growth due to changing customer preferences towards craft and premium beer, the rise of low-alcohol and non-alcoholic options, the popularity of beer festivals, the influence of Portugal's brewing heritage and traditional beer culture, the country's warm climate and tourism industry, and the underlying macroeconomic factors of economic stability and rising disposable incomes. These factors collectively contribute to the development and expansion of the beer market in Portugal.

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.