South America Alcoholic Drinks Market to Reach USD138.11 Billion by 2032 Due to Rising Consolidation Across Brewery Industry

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South America Alcoholic Drinks Market Overview, Trends, Size and Forecast: 2025-2030

The South America Alcoholic Drinks Market size is valued at around USD 118.22 billion in 2025 and is expected to reach USD 138.11 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 2.25% during the forecast period, i.e., 2026-32, cites MarkNtel Advisors in the recent research report. The market is witnessing steady growth, driven by a combination of rising disposable incomes, rapid urbanization, and evolving consumer lifestyles. As living standards improve, consumers are increasingly seeking products that offer distinct flavors, premium quality, and healthier alternatives such as low- and no-alcohol beverages. This shift in preference has encouraged producers to invest in innovation, craft production, and sustainable product lines. Additionally, the hospitality and tourism industries are also playing a crucial role in supporting market expansion, as growing numbers of domestic and international visitors boost on-premise consumption in bars, restaurants, and hotels across major cities.

Moreover, improved logistics and distribution infrastructure have further extended the market’s reach into rural and remote areas, enabling broader access to a diverse range of alcoholic beverages. Also, regulatory changes in taxation, import duties, and alcohol licensing have begun to reshape competitive dynamics, compelling companies to refine their strategies and strengthen compliance. In Brazil, for instance, recent public discussions around stricter alcohol regulations and higher excise taxes are prompting leading brands to diversify their portfolios and emphasize premium, responsibly marketed products. Similarly, Chile has reported robust demand for alcoholic beverages, with national consumption continuing to rise and projections indicating further growth by the end of the decade. Therefore, these factors are significantly increasing the market growth. Further states the research report, “South America Alcoholic Drinks Market Analysis, 2026.”

South America Alcoholic Drinks Market Segmentation Insights:

Beer Product Type Attracts a Large Pool of Customers

Based on the product type, the market is further segmented into Beer, Spirits, Wine, Ready-to-Drink (RTD) / Hard Seltzer, and Cider, Perry & Rice Wine. Beer holds the largest market share of about 60%. Its popularity is supported by affordability, easy availability, and strong social acceptance across countries such as Brazil, Argentina, Chile, and Colombia. For instance, in Argentina, beer consumption has surpassed that of wine, despite the country’s global reputation for Malbec. Local producers such as Quilmes and Patagonia have expanded their craft and flavored beer portfolios, capturing the interest of younger, urban consumers seeking variety.

Similarly, Chile, long recognized for its wine heritage, is witnessing a notable increase in beer demand, encouraged by the rapid rise of microbreweries and premium imports. According to the Chilean Brewers Association, per capita beer consumption has shown steady growth since 2020, reflecting a clear cultural shift. Colombia has also become an important contributor to regional growth, with Bavaria S.A. introducing lighter and fruit-flavored variants to appeal to evolving consumer preferences. Collectively, these trends reinforce beer’s enduring dominance in shaping the overall size, share, and growth of the South American alcoholic drinks industry.

South America Alcoholic Drinks Market Regional Analysis:

Brazil is the Epicenter of the Regional Alcoholic Drinks Industry

Brazil stands as the central hub of the South American Alcoholic Drink Industry, contributing the largest share of both production and consumption, accounting for 55% across the region. Its dominance is supported by a vast consumer population, strong manufacturing capacity, and an extensive distribution network. Beer, which remains the preferred alcoholic beverage among Brazilian consumers, is led by well-known brands such as Skol, Brahma, and Antarctica, produced by Ambev S.A., the region’s leading brewer. In April 2024, Ambev announced an investment worth several hundred million dollars to upgrade its breweries in São Paulo and Pernambuco, with a focus on enhancing energy efficiency and expanding the use of eco-friendly packaging materials.

Global producers are also reinforcing their foothold in the country. In 2025, Heineken increased its production capacity at its Ponta Grossa plant to serve the rising demand for premium and low-alcohol beers, while Diageo strengthened its local distribution channels for brands like Johnnie Walker and Smirnoff. Additionally, Brazil’s traditional spirit, Cachaça, produced by Companhia Müller de Bebidas, continues to gain export traction, particularly in North American and European markets.

Top Companies in the South America Alcoholic Drinks Market

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading South America Alcoholic Drinks Market companies, including Anheuser-Busch InBev, Grupo Peñaflor, Molson Anheuser-Busch InBev, Grupo Peñaflor, Molson Coors Beverage Company, Diageo PLC, Heineken NV, Cervejaria Petropolis S/A, CCU S.A., Pernod Ricard, Brown-Forman Corporation, Companhia Muller de Bebidas, Ambev S.A., and Others are looking forward to increase their market size & share.

Key Questions Answered in the Research Report

1. What is the scope, size, value, and forecast of the South America Alcoholic Drinks Market?
2. What is the volume and share of each segment in the South America Alcoholic Drinks Market?
3. What are the key trends shaping the South America Alcoholic Drinks Market from 2026 to 2032?
4. What growth factors and risks impact the South America Alcoholic Drinks Market?
5. What are the main challenges faced by players in the South America Alcoholic Drinks Market?
6. What are the top opportunities in the South America Alcoholic Drinks Market?
7. What does competitive analysis reveal about the South America Alcoholic Drinks Market landscape?
8. Who are the key players and companies leading the South America Alcoholic Drinks Market?
9. What innovations are transforming the future dynamics of the South America Alcoholic Drinks Market?
10. How are partnerships and collaborations driving the South America Alcoholic Drinks Market growth?
11. How does the South America Alcoholic Drinks Market differ based on geography and segments?