Brazil: Beer consumption continues to decline

Despite some signs of economic recovery, Brazilians have not yet returned to the same level of beer consumption as before. The population, however, is now spending more to buy products of better quality, Globo reported on December 3 citing data by Euromonitor and Nielsen.

Brazil’s beer sales continue to decline and are expected to drop for the third year in a row in 2017. According to Nielsen data, January-September sales in Brazil dropped by 2% as compared to the same period in 2016. Euromonitor has not yet revised its forecast for a 0.6% decline of beer sales in the country this year.

The nation’s No. 1 brewer Ambev said its sales fell 1.9% in the first nine months of this year. Other market leaders, Heineken and Grupo Petropolis, don’t disclose their sales results in Brazil.

Euromonitor analysts said Brazil’s annual beer consumption declined from 67.8 litres per capita to 60.7 litres per capita over the last 4 years.

The population, however, is increasingly opting for pricier, higher quality brews. In 2007, premium beers, including craft, pure malt or simply more expensive brands, accounted for around 7% of all beer consumed in the country. In 2016, its share reached 11%. According to Nielsen, premium beer segment is showing circa 20% growth every year. Thus, despite lower sales volume, Brazil’s beer sales in money terms are growing: turnover was 1.2% higher in January-September this year than in the same period in 2016.

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