According to the International Monetary Fund (IMF), the Salvadoran economy grew by 3% in 2024. This is supported by the positive performance of activities, such as construction and tourism, which have compensated for the drop in manufacturing and the reduction in external demand, mainly from the United States, the leading destination for exports.
Beer is the most important category within alcoholic drinks, and in 2024 total volume sales remained flat. The price increases recorded during the year constrained demand. Salvadorans prefer domestic beer, in particular brands in the mi-priced segment. Premium brands, however, which represent a small proportion of sales, achieved the strongest increase in popularity, driven by brands, such as Michelob Ultra, that appeals to consumers because it has a low-calorie count.
The competitive landscape remained almost unchanged during the review period, and in 2024, Industrias La Constancia SA retained its leading position in alcoholic drinks, leveraged on the success of brands such as Pilsener, Golden, Corona, and Michelob. Pilsener, a local brand, is the outright leading brand, supported by its long-standing presence in the country and being part of Salvadorian culture.
No significant changes have been observed in the distribution of alcoholic drinks, with supermarkets and hypermarkets remaining the most popular and dynamic channels. The success of these channels can be attributed to ongoing promotional efforts and discounts that appeal to consumers seeking budget-friendly options. Additionally, food/drink/tobacco specialists play an important role in the distribution of premium products. Small local grocers have limited distribution because, in the country, a licence is required to sell beverages with an abv content of more than 6%.
Sales of alcoholic drinks in the on-trade channel continue to decline. Despite improved security in El Salvador, which makes people feel safer visiting restaurants, bars, and nightclubs, the strict enforcement of drinking and driving laws has deterred on-trade sales due to a zero-tolerance policy for alcohol. The legal limit can be easily exceeded, as two and a half beers can produce a positive alcohol test. Furthermore, increased scrutiny from authorities regarding updated operating permits has led to the closure of many venues throughout 2024, prompting consumers to shift their drinking habits towards home consumption.
Over the forecast period, the total volume sales of alcoholic drinks are expected to experience moderate growth. While economic conditions seem promising, substantial increases are not expected. Private investment is likely to stay low, and the economy will continue to depend significantly on foreign markets and remittances. Although these remittances have remained stable, they could be negatively impacted by the immigration policies of US President Donald Trump, who is recognised for his stringent deportation measures.
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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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