The economy in Paraguay in 2024 performed better than it did in the previous year, seeing stable inflation, which is enabling Paraguay to emerge as one of the best performing countries in Latin America. Following the Paraguayan Central Bank estimation for 2024, GDP grew 4.1%, while inflation for the end of the year reached 3.8%, remaining relatively stable from 3.7% recorded in 2023. Annual growth was driven by strong investment and robust household consumption, a result of government efforts to increase disposable income.
Generally, demand for beer benefits from economic stability and population growth. Beer is by far the largest category of alcoholic drinks in Paraguay. For this reason, Paraguay has 73 litres per capita of beer, one of the highest rates in Latin America, where lager remains the most popular type of beer, with lighter varieties such as pilsner dominating sales. It is important to note that in recent years, the beer category has evolved significantly towards lighter Pilsen beers, with a low IBU (international bitterness unit). Following this trend, Cía Cervecera Asuncion with the intention of anticipating the launch of Michelob Ultra introduced Munich Ultra, a new beer concept with a lower alcohol content (3.4 ABV), and lower calorie content at the end of 2023. Additionally, Cerveceria Paraguaya SA (AB-Inbev) launched Michelob Ultra in March 2024. It is important to mention, that both new product developments achieved impressive results during 2024. Moreover, Munich Ultra was fuelled by a second innovation, with the launch of Munich Utra gluten free available in 275ml and 600ml glass bottles, and 260ml aluminium cans at the beginning of 2024. Imported beer was also popular driven by a wider penetration in both modern grocery retailers and small local grocers, and by the entry of new players, such as Cerveza Imperio, imported from Brazil since September 2024. The new brand is available in four beer varieties.
Cervecería Paraguaya SA is the leading player in alcoholic drinks. It produces the Ouro Fino, Brahma, Brahma Sub Zero, Skol, Budweiser 66, Pilsen, Corona, Michelob Ultra brands and Mike’s, present in beer and RTDs categories. However, the company witnessed a decline in its volume share in 2024. Although the company witnessed the growing popularity of its Ouro Fino, Budweiser 66, Corona and Michelob Ultra brands in 2024, the company lost some ground against Cía Cerveceria Asuncion, which occupied second position in terms of volume share, with this company competing in beer as well as in RTDs categories. The company is present with the Polar and Munich beer brands, which performed well in 2024.
As of 2024, small local grocers accounted for the bulk of volume sales. However, supermarkets and hypermarkets are increasing their share of alcoholic drinks’ sales in Paraguay. There are a couple of large supermarkets and hypermarkets in the country, although most are concentrated in the capital city Asuncion. Modernisation of retailing occurs mainly in the metropolitan area of the capital. However, there are some exceptions, such as Superseis, which is also present in other urban regions as the chain had around 32 stores located in 12 cities in 2024.
The on-trade channel continues to grow aligned with the positive economic scenario experienced during the last years of the review period, which encouraged several new restaurants and bars to open in 2024. The on-trade grows organically, with not much funding from manufacturers/distributors supporting on-trade campaigns. On-trade establishments, to compete, therefore have to be creative with their cocktail offerings and frequent engagement in promotions.
The country’s GDP is expected to climb 3.6% in 2025, making Paraguay one of the strongest economies in the region. In this regard, the World Bank (WB) updated its global economic projections and placed Paraguay as the second-fastest-growing economy in 2024, behind Argentina. Consequently, income levels will rise and living standards will improve once more, resulting in the further expansion of the middle class and a further erosion of poverty.
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
See all of our definitionsThis report originates from Passport, our Alcoholic Drinks research and analysis database.
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