South America Alcoholic Drinks Market Research Report: Forecast (2026-2032)

Market Insights & Analysis: South America Alcoholic Drinks Market (2026-2032):

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. The South America Alcoholic Drinks Market is being propelled by several key drivers that are expected to sustain growth. This includes the rising disposable incomes, which are combined with increased urbanization. Moreover, consumer preferences are shifting toward differentiated flavors, low- and no-alcohol variants, and higher-quality offerings, encouraging innovation among producers. Additionally, the hospitality and tourism sectors are boosting on-premise consumption in bars, restaurants, and hotels. Also, improved distribution infrastructure, especially in remote and rural regions, has expanded product reach and availability. Furthermore, regulatory revisions in taxation, import duty adjustment, and alcohol licensing frameworks are reshaping competitive dynamics, creating both opportunities and challenges for established players and new entrants. For instance,

• During 2025, Chile and Brazil have been highlighted in industry media as “high-potential” spirits markets in the Americas, pointing to accelerating growth in their premium spirits segments.
• In Brazil, public sentiment is increasingly favoring stronger alcohol regulation: recent surveys indicate that over 60% of citizens support higher taxation and stricter advertising limits on alcohol companies.
• In Chile, per industry sources, annual consumption of alcoholic beverages reached nearly 1.5 billion liters in 2024. Projections suggest consumption may climb by approximately 14% by 2028.
• Amid these regulatory and market shifts, several beverage firms have launched or expanded their craft and premium lines in South America in 2025, a strategic response to evolving consumer demand.

Together, these supporting factors indicate that the South American alcoholic drinks industry is set to deliver steady growth, especially in segments focusing on premiumization, innovation, and responsible consumption.

South America Alcoholic Drinks Market Scope:

South America Alcoholic Drinks Market Driver:

Rising Consolidation Across the Brewery Industry – The South America Alcoholic Drinks Market growth is being supported by ongoing mergers, acquisitions, and partnerships among major global and regional players. This consolidation has been enabling economies of scale, wider distribution, and stronger brand positioning. In Brazil, Ambev S.A. expanded its craft beer portfolio in 2024 by acquiring small local breweries to meet growing demand for premium products. Similarly, in Argentina, Grupo Peñaflor entered a collaboration in 2025 with boutique wine producers to strengthen its export capabilities and diversify its product range. Additionally, in Chile, Concha y Toro has continued to invest in premiumization and digital distribution partnerships to improve access across Latin America.

Moreover, Colombia witnessed a joint venture between a leading spirits importer and a local bottler in late 2024, aimed at enhancing local production efficiency. These strategic integrations have allowed producers to reduce operational costs, improve market penetration, and expand their product portfolios, thereby supporting the overall size, share, and growth of the South America alcoholic drinks market.

South America Alcoholic Drinks Market Opportunity:

Growing Adoption of Sustainable Production Methods – Substantial growth potential is being created in this market through the adoption of sustainable production methods and targeted regional expansion. For instance, in Chile, Viña Don Melchor has deployed a “Solar Vineyard” spanning 0.16 hectares, which is launched in 2024, enabling experimental integration of solar power into vine cultivation and demonstration of low-carbon viticulture. Meanwhile, a Chilean winery brand Root:1 has introduced its GEA facility powered by solar energy, with active monitoring of water consumption to reduce resource use. Additionally, in Argentina, wineries are progressively obtaining sustainability certifications under international protocols while adopting lighter bottles and recyclable PET labels to reduce carbon footprint and packaging waste. The Wines of Argentina body is also implementing the “Sustenta Vitis” program, launched in 2023 to support wineries in energy efficiency, waste management, and sustainable practices via technical and financial aid.

Therefore, by combining renewable energy use, resource-efficient practices, and eco-packaging, producers in Chile and Argentina are creating strong growth opportunities for market share expansion, export differentiation, and long-term size, share, trends, and growth in the South America Alcoholic Drinks Market.

South America Alcoholic Drinks Market Challenge:

Stringent Alcohol Regulations and High Excise Taxes – Numerous South American countries have implemented tougher laws and tax structures targeting alcoholic beverages, which constrain market growth by raising costs and limiting promotional activities. For instance, in Brazil, the 2025 tax reform (Complementary Law 214/2025) introduced a new selective excise tax on “harmful products,” including alcoholic drinks, applying both ad valorem and ad rem taxes that are adjusted for inflation. This new tax framework increases the financial burden on producers and importers, making it more challenging for smaller players to compete. Additionally, in Chile, a revised labeling and advertising law took effect on July 7, 2024, requiring warning labels on alcohol containers (≥ 0.5% ABV), mandatory calorie disclosures, and sweeping restrictions on advertising content targeting minors. Similarly, in Argentina, Resolution No. 12 of 2024 mandates that all advertisements must clearly disclose essential product information, increasing compliance costs and limiting creative marketing flexibility.

South America Alcoholic Drinks Market Trend:

Adoption of Smart Brewing & Quality Monitoring Systems – Technological innovation is increasingly redefining how alcoholic drinks are produced across South America. In Brazil, leading breweries have adopted automated fermentation and IoT-based monitoring systems to improve precision in temperature, pH, and oxygen control during brewing. For instance, in April 2025, a major Brazilian brewer announced the integration of AI-driven process analytics at its São Paulo facility to optimize yeast utilization and reduce waste by nearly 15%. This digital transformation has improved product consistency while lowering operational costs, directly supporting sustainable growth in the region’s beer segment.

Moreover, Chile and Colombia have become centers of experimentation in fermentation science. In Chile, a leading wine producer introduced optical and spectroscopic quality monitoring systems in June 2025 to detect methanol and sulfur levels non-invasively during bottling. This ensured consistent product safety and compliance with international export regulations. Likewise, in Colombia, research partnerships between local universities and craft breweries are exploring indigenous yeast strains derived from tropical fruits and sugarcane to create signature flavor profiles. This scientific approach not only preserves regional authenticity but also enhances the market share of local craft producers competing with global brands.

South America Alcoholic Drinks Market (2026-2032): Segmentation Analysis

The South America Alcoholic Drinks Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2026–2032 at the regional level. Based on the analysis, the market has been further classified as:

Based on Product Type:

• Beer
• Spirits
• Wine
• Ready-to-Drink (RTD) / Hard Seltzer
• Cider, Perry & Rice Wine

Beer product type holds the largest market share, around 60% in the South American Alcoholic Drinks Industry, firmly establishing itself as the most consumed and culturally significant drink across Brazil, Argentina, Chile, and Colombia. The category consistently outperforms wine, spirits, and ready-to-drink beverages due to its affordability, accessibility, and strong social and cultural presence. For instance, Brazil remains the powerhouse of beer production and consumption, accounting for nearly 70–75% of total alcoholic beverage volume in the country.  Also, in Argentina, beer surpasses wine in domestic consumption despite the country’s global recognition for Malbec. Local brands such as Quilmes and Patagonia have boosted market share through craft and flavored beer lines.

Additionally, Chile, known for its strong wine culture, has witnessed a steady shift toward beer, driven by a surge in microbreweries and premium imports. The Chilean Brewers Association reported consistent growth in per capita beer consumption since 2020. Colombia has also emerged as a significant contributor, with Bavaria S.A. leading the market and introducing lighter and flavored variants to attract younger consumers.

Based on Distribution Channel:

• Off-Trade Channels
  • Supermarkets
  • Liquor Stores
  • Online Retail
  • Specialty Stores
• On-Trade Channels
  • Pubs, Bars, and Restaurants

Off-trade channels hold a dominant position in this market, accounting for the majority of total alcohol sales across the region. This includes supermarkets, liquor stores, convenience stores, and online retail platforms, which together contribute the largest volume share compared to on-trade channels such as bars and restaurants. The dominance of off-trade sales is primarily driven by affordability, convenience, and widespread retail coverage across urban and semi-urban areas. For instance, in Brazil, leading retailers such as Pão de Açúcar and Carrefour play a crucial role in alcohol distribution, offering competitive pricing and wide product assortments.

Additionally, the rise of e-commerce platforms like Ambev’s Zé Delivery has further strengthened the off-trade segment, with online alcohol sales growing rapidly, especially after the pandemic boosted home consumption. Moreover, in Chile and Argentina, supermarkets remain the key purchase points for wine and beer, supported by promotional campaigns and loyalty programs from major chains like Jumbo and Coto. Colombia has also witnessed strong growth in retail-based alcohol sales, with liquor store chains expanding to secondary cities and rural markets.

South America Alcoholic Drinks Market (2026-2032): Regional Projections

Geographically, the South America Alcoholic Drinks Market expands across:

• Brazil
• Argentina
• Chile
• Columbia

Brazil continues to dominate this market, holding the largest share of about 55% in both production and consumption. The country’s leadership stems from its massive consumer base. For instance, beer accounts for nearly 70–75% of total alcohol consumption in Brazil, driven by popular brands such as Skol, Brahma, and Antarctica, produced by Ambev S.A., the region’s largest brewer. Additionally, in April 2024, Ambev announced an investment of over USD100 million to modernize its breweries in São Paulo and Pernambuco, aimed at boosting energy efficiency and sustainable packaging.

Furthermore, international producers are also reinforcing their presence in the country. For reference, in 2025, Heineken Brazil expanded its production capacity at the Ponta Grossa plant to meet growing demand for premium and low-alcohol beers, while Diageo increased its local distribution network for its Johnnie Walker and Smirnoff brands. Moreover, Brazil’s iconic spirit Cachaça, led by Companhia Müller de Bebidas (51 Cachaça), continues to gain export momentum, with shipments rising steadily toward North American and European markets.

Although Brazil’s 2025 tax reform introduced higher excise duties on alcohol to curb harmful consumption, demand remains resilient. Strong logistics infrastructure, expanding retail coverage, and a growing preference for premium and flavored drinks are expected to sustain Brazil’s dominance in the regional alcoholic drinks market over the next few years.

Top South America Alcoholic Drinks Market Companies: Players, Analysis & Future Outlook

The leading Alcoholic Drinks players in the South American industry include 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.

South America Alcoholic Drinks Industry Recent Development:

• 2025: AB InBev (Bavaria) Bavaria signed an alliance with CAF (Development Bank of Latin America), expanding its “Emprendedores” program to support bar & retail owners with financing and digital tools in Colombia.
• 2024: Ambev S.A. Ambev and Solar Americas launched a 5 MW solar power plant, located next to a brewery in Cachoeiras do Macacu, Rio de Janeiro. The plant supplies energy directly (behind the meter) to Ambev’s facility.

Gain a Competitive Edge with Our South America Alcoholic Drinks Market Report

1. South America Alcoholic Drinks Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. South America Alcoholic Drinks Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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