Brazil's Beer Market Analysis - Grolsch Essay Example
Beer market in Brazil
Brazil is the 5th largest country in the world with total population of 194 million. Total beer consumption in Brazil in year 2012 is estimated to be 11,563.9 million liters. Which means each person in Brazil is going to consume an average of 60 liters per year.
The Brazilian beer market generated total revenue of $24.55 billion in year 2011. As stated by DataMonitor (2011), the market share for standard lager in Brazil is 86.3% and premium lager is 7.0%. Which means premium lager generated $3.5 billion from the total revenue.
The performance of the market is expected to be accelerated, with an anticipated CAGR of 6.5% for the next five year period 2012-2017, which will drive the market to a value of $35.8 billion by the end of year 2017.
The Market
According to Euromonitor International (Jan 2012),Brazil beer market saw total volume growth of 4% in 2011, which was lower than the expected CAGR of 6.5% registered over the review period. However, the beer market in Brazil is considered to keep growing and improving. As reported by Portuguese American Journal (30th July 2011), Pope Benedict XVI will visit the country at the occasion of World Youth Day event in 2013, as well as the soccer Confederations Cup will be held on the same year. In 2014, twelve Brazilian cities will host the soccer World Cup. Therefore, the performance of Brazil beer market is forecast to improve, with an anticipated CAGR of 6.5%
As stated by DataMonitor (2011),Anheuser-Busch InBev (AB InBev) is the leading player of Brazil beer market, roughly holding 66.7% of market volume. American Beverage ( Ambev ), one of the subsidiaries of AB InBev, has had an incredibly successful time in post-global crisis Brazil. Ambev radically control about 66.7% of the market and has solid relations with most bars and retailers and it has served as a powerful deterrent to foreign competitors.
Standard lager is the largest segment of the Brazil beer market as shown by
Brazil is the 5th largest country in the world with total population of 194 million. Total beer consumption in Brazil in year 2012 is estimated to be 11,563.9 million liters. Which means each person in Brazil is going to consume an average of 60 liters per year.
The Brazilian beer market generated total revenue of $24.55 billion in year 2011. As stated by DataMonitor (2011), the market share for standard lager in Brazil is 86.3% and premium lager is 7.0%. Which means premium lager generated $3.5 billion from the total revenue.
The performance of the market is expected to be accelerated, with an anticipated CAGR of 6.5% for the next five year period 2012-2017, which will drive the market to a value of $35.8 billion by the end of year 2017.
The Market
According to Euromonitor International (Jan 2012),Brazil beer market saw total volume growth of 4% in 2011, which was lower than the expected CAGR of 6.5% registered over the review period. However, the beer market in Brazil is considered to keep growing and improving. As reported by Portuguese American Journal (30th July 2011), Pope Benedict XVI will visit the country at the occasion of World Youth Day event in 2013, as well as the soccer Confederations Cup will be held on the same year. In 2014, twelve Brazilian cities will host the soccer World Cup. Therefore, the performance of Brazil beer market is forecast to improve, with an anticipated CAGR of 6.5%
As stated by DataMonitor (2011),Anheuser-Busch InBev (AB InBev) is the leading player of Brazil beer market, roughly holding 66.7% of market volume. American Beverage ( Ambev ), one of the subsidiaries of AB InBev, has had an incredibly successful time in post-global crisis Brazil. Ambev radically control about 66.7% of the market and has solid relations with most bars and retailers and it has served as a powerful deterrent to foreign competitors.
Standard lager is the largest segment of the Brazil beer market as shown by