Volume sales of alcoholic drinks recorded a double-digit decline in Argentina in 2024. The International Monetary Fund (IMF) forecast a 3.5% contraction in Argentina's GDP for 2024, while inflation saw a significant reduction at the end of 2024. Javier Milei, a libertarian economist, was elected president in December 2023, pledging to drastically cut state expenditure. Since taking office, he devalued the peso by over 50%, eliminated tens of thousands of public sector jobs, and reduced the size of government by half. The new administration has embarked on a substantial fiscal adjustment, including the removal of hundreds of price controls.
Beer remained the largest category within alcoholic drinks in Argentina in 2024; however, volume sales experienced a sharp double-digit decline. The consumption of alcoholic beverages collapsed over the course of the year, closely aligned with the government's sweeping economic reforms under President Javier Milei. These reforms, which included significant cuts to public sector employment, resulted in a notable contraction in consumer activity and spending. According to the official statistics agency INDEC, the national unemployment rate rose to 7.7% in the first quarter of 2024, up from 5.7% at the end of 2023, representing approximately 300,000 additional unemployed individuals. This sharp deterioration in the labour market severely impacted the purchasing power of middle- and low-income socioeconomic groups, which constitute the largest base of beer consumers in the country. As a consequence, beer, accounting for the majority of total alcoholic drinks volume sales in Argentina, saw a steep drop in demand. Many lower-income consumers reduced their beer consumption and traded down to more affordable alternatives, such as still grape wine sold in carton packaging.
Cervecería y Maltería Quilmes SA, was the leading company within alcoholic drinks overall in 2024. The player leads beer, offering its brands including Brahma, Quilmes Cristal, Stella Artois, Andes and Budweiser. However, following the sharp contraction in beer sales caused by the economic crisis in 2024, leading players, most notably Cervecería y Maltería Quilmes SAICAyG and its main rival, Cía Cervecerías Unidas SA, lost market share. In contrast, local wineries recorded a modest increase in volume sales. The overall concentration of alcoholic drinks volume sales shifted away from global beer producers, with domestic wine companies benefiting from the relative resilience of wine during the year.
Small local grocers was the leading distribution channel within alcoholic drinks overall in 2024, improving its share. President Milei’s government discontinued the system of price controls on food and beverages, which had been stringently applied to the modern retail channel between 2019 and 2023. As a consequence, consumers began to frequent small local grocers with greater regularity. However, the value of individual purchases declined, as households sought to manage and reduce their spending.
On-trade sales of alcoholic drinks experienced a significant contraction in 2024, driven by the severe income crisis affecting Argentina. The substantial loss in purchasing power among middle- and low-income socio-economic groups marked a fundamental shift in consumer behaviour and societal attitudes towards spending. In stark contrast to the post-COVID-19 period, when indulgent spending became commonplace, 2024 saw frugality emerge as the prevailing trend. Extreme saving habits were widely adopted, fuelled by widespread concern over job security, leading to a sharp reduction in out-of-home consumption, particularly dining and drinking occasions.
Volume sales of alcoholic drinks are set to rise over the forecast period, as the industry rebounds in line with the improving economic scenario. Beer, the largest category, will see ongoing growth, somewhat driven by consumer migration towards more affordable packaging formats. In contrast, the wine industry is likely to be impacted by climate change, with increasingly erratic weather patterns, ranging from droughts to excessive rainfall, threatening grape yields compared with previous harvests. This volatility is anticipated to place upward pressure on prices, reducing the competitiveness of value wines in relation to mainstream and economy beers. Additionally, rising costs for wine production inputs are expected to challenge the price positioning of entry-level wines, making it harder for these products to compete effectively with more cost-accessible beer alternatives.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Understand the latest market trends and future growth opportunities for the Alcoholic Drinks industry in Argentina 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:
If you're in the Alcoholic Drinks industry in Argentina, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty
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.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!