This report provides the results for the Spirits market in Brazil from Canadean's unique, highly detailed study of consumers' Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as retailer choices in organized sector. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level.
Introduction and Landscape
Why was the report written?
Marketers in the Spirits market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Spirits market they account for, and which consumer trends drive their behavior.
What is the current market landscape and what is changing?
As consumer confidence increases with the economic recovery, consumer trends will be directly affected. Since the global financial crisis of 2008-2009 the organized retail market has been characterized by an increase in the amount of discounted and own-brand products. Brandy, Gin andGenever, Liqueurs, Rum, Specialty Spirits, Tequila andMezcal, Vodka, and Whiskey are not considered essential items and therefore consumption patterns have been negatively affected. While Brazil's economy has recovered quickly, it has still suffered from decreased consumer spending. As economic and market recovery continues over 2012, consumption patterns will record a positive trend in both the medium and heavy frequency bands and the amount of non-users should decrease
What are the key drivers behind recent market changes?
Consumers' uptake of products and the influence of consumer trends are fundamental causes of change in markets - making knowing what these trends are and the extent of their influence crucial. The survey-based data provided in this report examines over 20 consumer trends that affect the market and examines the share of consumption across 26 consumer groups. This data provides a detailed insight into exactly who the consumer is and just how much impact the latest consumer trends are having.
What makes this report unique and essential to read?
The data provided is unique in the market as it tracks consumer behavior through to its actual value impact on a product market. This provides readers with a unique data analysis of the market, allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviors.
Key Features and Benefits
- Consumer data, based upon proprietary surveys and then consumer group tracking and modelling for the following specific categories: Brandy, Whiskey, Rum, Gin and Genever, Vodka, Tequila and Mezcal, Specialty Spirits, andLiqueurs.
- Detailed consumer segmentation covering over 26 consumer groups, 20 consumer trends, and consumption frequency for each product category.
- Consumer penetration for brands and private labels, based upon the original survey and then subsequent consumer tracking and modeling.
- Unique organized retailer choice data at the product category level, based upon the original survey and then subsequent consumer tracking and modeling.
Key Market Issues
- Consumer trend analysis of spirits in Brazil indicates that young adults account for the majority of spirits consumption by value, followed by Pre-Mid-Lifers and Mid-Lifers. This may be due to the increasing presence of alcoholic beverages in youth dominated events such as social gatherings, sports events, and festivals. This trend will be compounded by Brazil's young population.
- Individual consumers in urban areas consume as many spirits as rural consumers: urban consumers account for 98% of the spirits market by value and of the weighted population. This indicates that while an urban/rural segmentation might provide insight into the consumption patterns of individual brands, it doesn't affect overall category consumption.
- Whiskey is overwhelmingly consumed by men; women account for less than one-third of the Brazilian market by value. In contrast, men account for approximately 60% of the Brandy market, another traditionally male-dominated Spirit.
- The Spirits market in Brazil is dominated by branded products while private label penetration is very low. This may be due to the relatively undeveloped state of the Brazilian organized retail market, as private label sales are higher in mature, highly concentrated organized retail markets.
- Consumer survey results indicate that changing age structures and changing life stages are the leading trends influencing Spirits consumption in Brazil. Spirits manufacturers and marketing companies need to take account of these demographic-driven trends; Brazil's large young population and the tendency to increasingly delay settling down, marriage, and childbirth.
- Although the Brazilian market is fragmented in terms of the number of retailers operating in the organized sector, the top three retailers account for more than half of the spirits distribution by volume. This indicates retailers enjoy a high bargaining power.