Alcoholic beer market in MERCOSUR

Earlier Report Observations

Between 2018 and 2020, the alcoholic beer market in MERCOSUR grew from 17.8 to 19.9 billion liters. This expansion was driven by the burgeoning craft beer segment, stimulated by shifting social preferences and the establishment of specific craft beer legislation in Argentina, which formalized production and sales. Regional harmonization of technical regulations for brewing also created a more uniform market framework. Even in 2020, despite the COVID-19 pandemic temporarily reducing on-trade consumption, the overall market volume increased as rising demand for non-alcoholic and low-alcohol beer, coupled with greater e-commerce penetration for craft and premium products, offset declines in traditional channels.

Market volume experienced a correction, declining to 19.4 billion liters in 2021 and further to 19.0 billion liters in 2022. During this period, the gradual reopening of cultural events and venues in Brazil and other member states began to stimulate on-premise consumption, while significant investments were announced in new production plants and technologies, such as artificial intelligence for quality improvement in Mexico and Brazil. Concurrently, the craft and premium segment continued its robust growth, and Brazil implemented new labeling regulations (IN 65) for low-alcohol and non-alcoholic beer, enhancing market transparency.

A strong recovery followed in 2023, with the market reaching 20.3 billion liters, surpassing previous peaks. This rebound was supported by major investments in new beer processing facilities in Mexico focused on local raw materials and a marked 10.6% increase in alcoholic beverage production in Brazil, where beer remained the primary driver. Advances in the MERCOSUR-European Union trade agreement, promising gradual tariff reductions and standards harmonization, set the stage for future export growth. Looking ahead, ongoing trends like consumer preference for healthier options, including non-alcoholic and innovative flavored beers, and the deepening role of e-commerce are shaping the market's evolution.

Production alcoholic beer in MERCOSUR

In kind, 2017-2020, M l

Top producers of alcoholic beer, 2017-2020

World map of production of alcoholic beer, 2017-2020

Alcoholic beer production in MERCOSUR has grown for the third year in a row. In 2020, the region produced 19 881 million liters of alcoholic beer, representing a 1.9% increase compared to the previous year. Looking at the period from 2017 to 2020, production rose by 24.3%, which translates to an average annual growth rate of 7.5%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, M l

In value, 2017-2020, M $ US

Alcoholic beer production in MERCOSUR has continued its upward trend for the third consecutive year. In 2020, the output was valued at 16 573 million US dollars, marking a 1.8% increase from 2019. Over the four-year span from 2017 to 2020, production grew by 19.8%, with a compound annual growth rate of 6.2%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports alcoholic beer from MERCOSUR

Exports in kind, M l

Alcoholic beer exports from MERCOSUR have increased for the second year in a row. In 2020, the region exported 131.4 million liters of alcoholic beer, showing a modest gain of 9.0% compared to the previous year. However, from 2017 to 2020, exports overall decreased by 20.7%, averaging an annual decline of 7.4%. The lowest export volume was recorded in 2018 at 119.3 million liters, which also saw the largest drop of 27.9% that year.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, M l

Between 2017 and 2020, Bolivia and Chile were the two primary destinations for MERCOSUR's alcoholic beer exports in volume terms. Bolivia accounted for 9.8% of total flows, while Chile made up 4.1%, together representing 13.9% of all exports.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, M $ US

After two years of decline, alcoholic beer exports from MERCOSUR rebounded in 2020. Exports reached 109.5 million US dollars, up by 8.8% from the prior year. Despite this recent uptick, exports fell by 23.5% over the period from 2017 to 2020, with an average annual decrease of 8.5%. The lowest value was recorded in 2019 at 100.6 million US dollars, and the sharpest decline occurred in 2018 at 25.9%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, M $ US

From 2017 to 2020, the main buyers of alcoholic beer from MERCOSUR in value terms were Bolivia, Chile, and the United States. Bolivia accounted for 8.7% of exports, Chile for 4.0%, and the United States for 0.7%, collectively making up 13.4% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports alcoholic beer to MERCOSUR

Imports in kind, M l

Imports of alcoholic beer into MERCOSUR have declined for the second consecutive year. In 2020, imports totaled 192.4 million liters, down by 14.9% from 2019. Over the period from 2017 to 2020, imports decreased by 18.7%, with a compound annual growth rate of -6.7%. The peak import volume was in 2018 at 274.3 million liters, which also saw the largest increase of 15.8% that year. The most significant drop occurred in 2019, with a 17.6% decline.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, M l

Between 2017 and 2020, the sources of alcoholic beer imports into MERCOSUR were quite diverse. Mexico, the United States, and Germany were the top partners, with Mexico accounting for 17.6% of imports in volume, the United States for 7.4%, and Germany for 6.6%. Together, these three countries represented only 31.6% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, M $ US

Imports of alcoholic beer into MERCOSUR have fallen for the second year in a row. In 2020, imports amounted to 178.2 million US dollars, a decrease of 22.0% from 2019. From 2017 to 2020, imports dropped by 28.8%, averaging an annual decline of 10.7%. The highest import value was recorded in 2018 at 266.6 million US dollars, which also experienced the largest increase of 6.5% that year.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, M $ US

Over the period from 2017 to 2020, imports of alcoholic beer into MERCOSUR in value terms were spread across a wide range of markets. Mexico, the United States, and the Netherlands were the leading sources, with Mexico contributing 19.6% of import value, the United States 10.9%, and the Netherlands 7.7%. Combined, these three countries accounted for only 38.2% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020