Ethyl alcohol market in Guatemala

Earlier Report Observations

The Guatemalan ethyl alcohol market in 2018 was characterized by a highly concentrated structure, with a consortium of companies under the Licores de Guatemala brand controlling around 70% of the liquor market in Guatemala and El Salvador, while an estimated 6.6% of consumption came from illicit sources. The market volume stood at $111.8 million. It then sharply contracted to $63.2 million in 2019 before recovering to $99.1 million in 2020.

From 2021 onward, the industry's export orientation became a key driver. Growing international demand, particularly from the United States, and a shift in local consumer preferences towards cheaper private-label products supported production. In 2022, the opening of six new international markets, including Chile and France, led to a surge in exports to $180.6 million, which reduced the domestic market volume to $87.1 million. The following year, the implementation of Governmental Agreement 159-2023, which established licensing, price controls, and specific blending rules for fuel alcohol, coincided with a drop in exports to $135.7 million and a rise in domestic market volume to $110.7 million.

By early 2024, exports of undenatured ethyl alcohol showed explosive growth, increasing by 222% in January alone, underscoring Guatemala's sustained export specialization. Over the 2018-2023 period, domestic market volume fluctuated primarily in response to changes in export flows, while national production remained at approximately 65 million gallons annually.

Production ethyl alcohol in Guatemala

In kind, 2017-2020, M l

Guatemala was among the world's leading producers of ethyl alcohol from 2017 to 2020, ranking 14th globally by production volume.

Top producers of ethyl alcohol, 2017-2020

World map of production of ethyl alcohol, 2017-2020

Guatemala's ethyl alcohol production declined for the second year in a row. In 2020, the country produced 244.7 million liters, a modest decrease of 6.5% compared to the previous year. Over the period from 2017 to 2020, production fell by 5.1%, averaging an annual decline of 1.7%. The highest production volume was recorded in 2018 at 274.5 million liters, which also saw the largest increase of 6.4%.

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

In value, 2017-2020, M $ US

In 2020, the value of ethyl alcohol production in Guatemala reached 209.8 million US dollars, an increase of 8.2% from the previous year. From 2017 to 2020, production value grew by 14.3%, with an average annual growth rate of 4.6%. The largest decline occurred in 2019 at 6.6%, while the largest increase was in 2018 at 13.2%.

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

Exports ethyl alcohol from Guatemala

Exports in kind, M l

Guatemala exported 130.0 million liters of ethyl alcohol in 2020, down 26.8% from the previous year. Between 2017 and 2020, exports decreased by 4.8%, with a compound annual growth rate of -1.6%. The lowest export volume was in 2018 at 128.0 million liters, while the highest was in 2019 at 177.7 million liters, which also saw the largest increase of 38.8%.

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

From 2017 to 2020, the Netherlands, the United States, and Mexico were the leading destinations for Guatemala's ethyl alcohol exports in volume terms. The Netherlands accounted for 38.0% of exports, the United States for 18.4%, and Mexico for 9.7%, together making up 66.1% of total export flows.

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

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

Exports in value, M $ US

In 2020, Guatemala exported 111.5 million US dollars worth of ethyl alcohol, a contraction of 15.3% compared to 2019. Over the 2017-2020 period, export value increased by 14.7%, with a compound annual growth rate of 4.7%. The lowest value was recorded in 2018 at 96.9 million US dollars, while the highest was in 2019 at 131.6 million US dollars, which also experienced the largest increase of 35.9%.

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

During 2017-2020, the Netherlands, the United States, and Mexico were the main destinations for Guatemala's ethyl alcohol exports in value terms. The Netherlands represented 38.1% of exports, the United States 18.4%, and Mexico 9.6%, collectively accounting for 66.1% of total export value.

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

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

Imports ethyl alcohol to Guatemala

Imports in kind, M l

Ethyl alcohol imports into Guatemala declined for the third consecutive year. In 2020, imports totaled 0.8 million liters, a sharp drop of 36.0% from the previous year. From 2017 to 2020, imports decreased by 46.1%, with an average annual decline of 18.6%.

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

In the 2017-2020 period, Mexico dominated Guatemala's ethyl alcohol imports in volume terms, absorbing 86.1% of total flows, while numerous smaller partners made up the remainder.

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

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

Imports in value, M $ US

Imports of ethyl alcohol into Guatemala fell for the third year in a row. In 2020, import value stood at 0.7 million US dollars, a solid contraction of 20.7% compared to 2019. Between 2017 and 2020, imports decreased by 35%, averaging an annual decline of 13.4%.

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

From 2017 to 2020, Mexico was the primary source for Guatemala's ethyl alcohol imports in value terms, accounting for 86.1% of total flows, with other markets contributing as minor partners.

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

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