Alcoholic drinks in Portugal faced relevant challenges in 2024, with prices increasing due to an IABA tax of 10% which was implemented by the government in 2024. This was in addition to the tax increase in 2023 and the impact of inflation on prices, all of which hampered stronger growth in alcoholic drinks in total volume terms in 2024. Some companies absorbed part of the increase in costs by reducing their margins, but other players simply passed on most of the added cost to consumers. This pushed average unit prices up, although this was more visible in the on-trade channel, as tourists present a higher capacity to absorb higher prices. The off-trade channel proved less resilient to price increases with volume sales declining in 2024.
Beer and wine dominate sales of alcoholic drinks in Portugal in total volume terms. Wine saw a small decline in sales in total volume terms in 2023, but it managed to recover in 2024. Contrary to other alcoholic drinks, wine continues to benefit from IABA tax exclusion. Nonetheless, the category registered a very relevant average price increase compared with previous years, mainly in the on-trade, as players increased the cost of their alcoholic drinks to compensate for the increased cost of food and thereby avoid losing customers. Record tourism also encouraged on-trade businesses to raise their prices, with inbound visitors often having deeper pockets and a greater willingness to spend on alcoholic drinks. Beer also managed to deliver an increase in total volume terms, with most categories seeing positive results, with non alcoholic beer and premium lager seeing the strongest growth. Both beer and wine also benefited from being cheaper than spirits, with some consumers making the switch to save money.
Super Bock Group SGPS SA extended its lead in alcoholic drinks in total volume terms in 2024. The company holds a strong lead in beer, but it has also seen a growing presence in wine, namely with the brand Vini, a draft wine. It also offers a line of wine-based RTDs, Vini Sangria (red and white), in the on-trade channel. The company also benefited from its dominant position in the dynamic cider/perry category with the Somersby brand, under which it launched a new on-the-go format comprised of 33cl cans in April 2024. It also reinforced its communications for the brand during summer 2024, with outdoor and digital marketing. SCC - Sociedade Central de Cervejas e Bebidas SA is the closest rival to Super Bock. The company is the distributor for the Guinness brand in Portugal and it reinforced its brand portfolio in 2024 with the launch of Guiness 0.0.
Supermarkets remained the dominant distribution channel for alcoholic drinks in Portugal in 2024. This dominant position is due to the close proximity of these stores to consumers and the continued opening of new outlets.
The on-trade channel continued on its path recovery in 2024, posting strong growth as off-trade volume sales declined. This was partly a result of local consumers returning to their old consumption habits, but mostly from the positive impact of tourism on the market. 2024 saw a record number of visitors in Portugal as well as a record number of overnight stays, all of which boosted on-trade sales of alcoholic drinks.
Sales of alcoholic drinks are expected to see only modest growth in total volume terms over the forecast period, with off-trade volume sales predicted to decline. Health entities are expected to continue with their efforts to limit alcohol consumption. This will likely include promoting responsible drinking habits but also lobbying with the government to raise taxes in order to make drinking less affordable and placing additional limits on distributors to prevent easy access to younger consumers. Future anti-alcohol policies could present a threat to the category’s future development. Despite the government’s compromise to make no changes to the IABA for 2025, prices are still expected to increase which could make alcoholic drinks even less affordable for Portuguese consumers, especially in the on-trade channel.
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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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