Alcoholic drinks in 2024: The big picture
Overall, alcoholic drinks in Ecuador registered a decline in volume sales in 2024, though there was a slight increase through off-trade channels. Multiple domestic factors impacted overall consumption. Rising insecurity, unprecedented in the country’s history, led to the declaration of a state of emergency, with curfews declared during parts of the year. This insecurity deterred consumers from visiting nightlife venues such as bars, clubs, and restaurants, resulting in a sharp drop in on-trade sales and shifting behaviour towards home consumption.
2024 key trends
Beer continued to account for most volume sales. However, due to the factors mentioned above, it faced significant challenges in 2024. Compounding this, the Special Consumption Tax (ICE) on beer was raised on January 1, 2024, from $13.08 to $13.28 per litre of pure alcohol. This increase left the industry with little choice but to pass on the added cost to consumers, significantly raising retail prices. As a result, beer has become less appealing to price-sensitive consumers, leading to a decline in demand. This dual impact of higher VAT and ICE placed considerable strain on beer.
Competitive landscape
The leading company in Ecuador’s alcoholic drinks continued to be Cervecería Nacional, a subsidiary of AB InBev. Dominating beer, the company benefits from its extensive portfolio of well-established brands such as Pilsener and Club. It also recently widened its returns policy to include premium offerings and this has proved very popular. The company also invests in effective marketing tailored to local preferences that focuses on highlighting the pride of being Ecuadorian. Additionally, its affiliation with AB InBev also allows the company to cater to more premium consumers, with imported offerings such as Corona and Budweiser.
Retail developments
Small local grocers, followed by food/drink/tobacco specialists, continued to be the main retail channel for alcohol in Ecuador. However, 2024 was a tough year, with security issues forcing many outlets to reduce their operating hours, limiting consumer access and sales opportunities. Additionally, frequent blackouts caused by the country’s energy crisis disrupted refrigeration, making it difficult for retailers to sell cooled products, which is particularly important for beer and RTDs. These obstacles pushed some consumers toward modern grocery retailers, which generally had their own generators for backup during blackouts.
On-trade vs off-trade split
On-trade channels were particularly impacted by the challenging socio-economic context. Insecurity has led to decreased consumer confidence, discouraging people from frequenting restaurants, bars, and clubs, which are central to on-trade sales. Additionally, the energy crisis, marked by frequent blackouts, disrupted the operations of venues, particularly hindering their ability to serve chilled alcoholic beverages. As such, there was a notable decline in volume sales. Also coastal regions were particularly impacted by security issues. This included provinces such as Guayas, Manabi, Esmeraldas, Los Rios and Santo Domingo. This environment forced brands to adapt, with a shift in focus to off-trade channels.
What next for alcoholic drinks?
The outlook is positive over the forecast period, with overall volume sales predicted to increase. With the energy crisis expected to abate, there will be less blackouts. Additionally, as security issues hopefully also lessen, foot traffic in on-trade establishments like bars and restaurants will increase. Although inflationary pressures and tax hikes may continue to have an impact, the overall outlook looks positive as economic conditions improve, leading to a gradual recovery in alcoholic drink sales.
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Overview:
Understand the latest market trends and future growth opportunities for the Alcoholic Drinks industry in Ecuador with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Beer
- Wine
- Spirits
- Cider and Perry
- RTDs
If you're in the Alcoholic Drinks industry in Ecuador, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty
The Alcoholic Drinks in Ecuador report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Alcoholic Drinks in Ecuador?
- Where is consumer demand for Alcoholic Drinks focussed?
- Which is being consumed more; beer, wine or spirits?
- Where is demand growing? Stagnating?
- How is the operating environment for alcoholic drinks changing?
- Which are the leading brands in Ecuador?
- How are products distributed in Ecuador?
- What are the key trends in new product development?
- Do consumers want value for money or added value?
- How will macroeconomic context and shifting cultural values shape future growth?
- How will COVID-19 and recession impact the alcoholic drinks industry?
- Where is future growth expected to be most dynamic?
Alcoholic Drinks in Ecuador
Alcoholic drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
On-trade vs off-trade split
What next for alcoholic drinks?
Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
On-trade establishments
TAXATION AND DUTY LEVIES
Contraband/parallel trade
Duty free
Cross-border/private imports
Outlook
DISCLAIMER
Beer in Ecuador
KEY DATA FINDINGS
Social and economic challenges lead to fall in volume sales of beer
Cervecería Nacional continues to dominate
Small local grocers continue to drive sales
An improving picture over the forecast period
Low alcohol beer loses relevance
A shift towards higher margins
Lager price band methodology
Rtds in Ecuador
KEY DATA FINDINGS
Decline in volume sales, due to several factors
Cubata gains significant traction over review period
E-commerce gains most volume share
Healthy volume growth over foreast period
Variety in terms of size and packaging formats ensures wide consumer base
Constant launches keep consumers engaged
Spirits in Ecuador
KEY DATA FINDINGS
Socio-economic challenges see volume sales fall
Zhumir brand continues to lead spirits
Discounters gain most volume share
Positive outlook over forecast period
Adding flavours and reducing alcohol content key areas of focus
Affordable premium key driver of sales
Vodka, gin, other blended Scotch whisky, dark rum and white rum price band methodology
Wine in Ecuador
KEY DATA FINDINGS
Volume sales fall by a quarter
Packaging used as key marketing tool
Small local grocers lose most volume share
More positive picture over forecast period
Opportunity for smaller distribtutors to make a mark
Need to attract younger generations
The following categories and subcategories are included:
Alcoholic Drinks
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- Ale
- Sorghum
- Weissbier/Weizen/Wheat Beer
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- Flavoured/Mixed Lager
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- Domestic Premium Lager
- Imported Premium Lager
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- Domestic Mid-Priced Lager
- Imported Mid-Priced Lager
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- Domestic Economy Lager
- Imported Economy Lager
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- Domestic Premium Lager
- Domestic Mid-Priced Lager
- Domestic Economy Lager
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- Imported Premium Lager
- Imported Mid-Priced Lager
- Imported Economy Lager
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- Low Alcohol Beer
- Non Alcoholic Beer
- Stout
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- Regular Cider/Perry
- Non Alcoholic Cider/Perry
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- Malt-based RTDs
- Spirit-based RTDs
- Wine-based RTDs
- Other RTDs
- Non Alcoholic RTDs
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- Brandy
- Cognac
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- Bitters
- Cream-based Liqueurs
- Other Liqueurs
- Non Alcoholic Spirits
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- Prestige Dark Rum
- Ultra Premium Dark Rum
- Super Premium Dark Rum
- Premium Dark Rum
- Standard Dark Rum
- Economy Dark Rum
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- Prestige White Rum
- Ultra Premium White Rum
- Super Premium White Rum
- Premium White Rum
- Standard White Rum
- Economy White Rum
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- Tequila (and Mezcal)
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- Bourbon/Other US Whiskey
- Canadian Whisky
- Irish Whiskey
- Japanese Whisky
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- Blended Malt Scotch Whisky
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- Prestige Other Blended Scotch Whisky
- Ultra Premium Other Blended Scotch Whisky
- Super Premium Other Blended Scotch Whisky
- Premium Other Blended Scotch Whisky
- Standard Other Blended Scotch Whisky
- Economy Other Blended Scotch Whisky
- Single Grain Scotch Whisky
- Single Malt Scotch Whisky
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- Other Whiskies
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- Prestige English Gin
- Ultra Premium English Gin
- Super Premium English Gin
- Premium English Gin
- Standard English Gin
- Economy English Gin
- Dutch Gin
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- Prestige Vodka
- Ultra Premium Vodka
- Super Premium Vodka
- Premium Vodka
- Standard Vodka
- Economy Vodka
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- Absinthe
- Ad-Mix Brandy
- Ad-Mix Gin
- Ad-Mix Rum
- Ad-Mix Vodka
- Ad-Mix Whisky
- Aguardente/Aguardiente
- Aguardiente De Caña
- Akvavit/Aquavit
- Aniseed-Flavoured Spirits
- Borovicka
- Boukha
- Brandy Type Distilled Spirits
- Cachaça
- Calvados
- Cane
- Chacha
- Charanda
- Chinese Herbal Spirits
- Chinese Spirits
- Cut Brandy
- Destilados De Agave
- Distilled Fruit Spirits
- Domestic Brandy
- Domestic Rum
- Doppelkorn
- Economy Chinese Spirits
- Flavoured Spirits
- Flavoured Vodka-based Drinks
- Fynbos gin/Local Gin
- Gin-flavoured spirits
- Goldbrand/Goldkrone
- Grappa
- Grappamiel
- Guaro
- Kirsch
- Komovica
- Korn
- Lambanog
- Limoncello
- Local White Spirits
- Lower Mid-Range Chinese Spirits
- Lozovaca
- Maesilju
- Mahia Rabi Amrane
- Mead
- Mixed Spirits
- Nalivka/Nalewka
- Nastoyka
- National Specialities
- Obstbrände
- Ouzo
- Pacharán
- Palinca/Pálinka
- Pear and Apple Distillates
- Pisco
- Premium Chinese Spirits
- Prune
- Punsch
- Rachiu/Rakija
- Rum-Flavoured Spirits
- Samane
- Sambuca
- Samsu
- Schnapps
- Shochu/Soju
- Singani
- Sljivovica/Slivovice
- Steinhäeger
- Strong African Spirits
- Super Premium Chinese Spirits
- Sura Khao
- Tequila Flavoured Spirits
- Travarica
- Tsipouro
- Upper Mid-Range Chinese Spirits
- Vieux
- Viina
- Vodka Type Distilled Spirits
- Other Distilled Beverages
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- Port
- Sherry
- Vermouth
- Other Fortified Wine
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- Apple Wine
- Bokbunjaju
- Cheongju
- Chinese Wine
- Economy Rice Wine
- Fortified Fruit Wine
- Fruit and Berry Wine
- Fruit and Herbal Wine
- Fruit and Honey based Wine
- Fruit Wine
- Lower Mid-Range Rice Wine
- Non-Grape Dessert Wine
- Premium Rice Wine
- Sake
- Takju
- Upper Mid-Range Rice Wine
- Yakju
- Yellow Wine
- Other Non-Grape Wine
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- Champagne
- Other Sparkling Wine
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- Still Red Wine
- Still Rosé Wine
- Still White Wine
- Non Alcoholic Wine
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
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This report originates from Passport, our Alcoholic Drinks research and analysis database.
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