Light, refreshing, and fruity and refreshing, it isn’t easy not to enjoy a drink after a long working day. Naturally gluten-free and free of alcohol, cider is an increasingly sought-after drink around the globe. Today, the market in the world is estimated to be valued at more than 10 billion dollars.
By 2023, that number will likely reach the US$16,252 billion mark, increasing at a rate of a compound annual growth of 6.1 percent over 2017. This is a huge opportunity for cideries that want to stand out in the ever-strengtheningly successful and competitive consumer goods market.
One reason for the rise of the market for cider across the globe is the rising demand for gluten-free beverages and the increasing popularity of alcohol-free drinks in Western markets, where people are increasingly concerned about their health. However, not every cider is great because it’s high in sugar amount, which has resulted in slower-than-anticipated growth in some markets.
But, the increase in the popularity of markets like Asia-Pacific as well as Latin America cannot be overlooked, particularly in the era of globalization that will see investors reconsider their western-centric views of expansion and market penetration…
Latin America: the perfect place to grow
While it was once thought to be considered a refined Western beverage, rapid growth in the sector of Latin American cider is due to the region’s rich agricultural background. Latin America is a net exporter of food and accounts for 13 percent of global agricultural trade, which puts the area in a favorable position in comparison to Europe and the United Kingdom, for example, which are among the largest drinkers of cider around the globe.
Some of LATAM’s famous exports for food include beef, soybeans, and sugar. Chile can be considered to be the eighth-largest producing apple in the world. It produced 1,766,210 tonnes of apples in 2017.
Brazil is not too far from the 11th spot, producing 1,300,943 tonnes during the same time frame, which puts these markets at an advantage as they can access top-quality raw materials for only a fraction of the price of importing them and also lower the obstacles to entry by expanding into cider production.
Agrovida Ciders Chile, for instance, located inside the Maule VII region of the country, has recently expanded into the industry following the huge growth and demand. The company used its expertise in winemaking to create sparkling apple cider, which is an authentic Chilean variation of the drink that is popular in international and local markets. Their plant, located in the Region de Los Lagos, is the home of thousands of apple trees that all thrive naturally due to the country’s sunny and rainy climate. There are no chemical or costly cultivation is required.
Alai Cider is an additional significant company of the region, exporting its bottles to customers around the world, and Scott Jones is considered to be the one responsible for bringing craft beers as well as cider into Peru and in the launch of the all-natural apple cider Oltree Cider brand in the country, which has enjoyed great satisfaction. La Farruca, the Argentinean La Farruca on, the other side, is a major player with an impressive 100-plus years of expertise in the field of cider and has a history of technological development, taking advantage of the unique climate that is located the at the foot of the Andes mountains.
The demand for locally produced goods in LATAM
While the majority of the cider made within Latin America is designed for export, the tastes of locals are evolving, and they’re demanding premium drinks with low alcohol content. In Argentina, it is the most sought-after carbonated alcohol drink that is consumed during holidays such as New Year’s Eve and Christmas. Year and is associated with the middle and lower classes.
Local brands like Sidra la Farruca, Rama Caida, Saenz Briones & Co. and SAIC Company are not only getting noticed in their own country but also exporting across the other Latin American markets and are accessible in Miami as well as the United States through the Western retailer AmigoFoods which specializes in exports to Latin America.
In Brazil On the other on the other hand, one of Brazil’s most sought-after drinks at Carnival is Sidra Cereser. Carnival Festival is Sidra Cereser. As a consequence it is no surprise that Cereser has become a popular drink in Brazil. Cereser company is owned in the United States by Mercospirits, Inc. in Illinois and distributes the tasty drink throughout all of the United States and other Western markets.
A major increase in Colombia
In places like Colombia, Companies are redefining the industry of cider and increasing the demand for the drink as a result. Great British Ciders is considered the first company to introduce cider to Colombia back in 2014 and has experienced an average increase of between 10-25% per month since its introduction.
Golden Lion Cider, On the other hand, is a renowned Colombian cider brand with British influences, and markets it using 100 percent South American apples, and is gluten-free, which appeals to a healthy younger generation.
Available throughout Colombia in some bars and restaurants, the brand of artisanal cider is gaining popularity throughout the region. It is yet another instance of a local-grown success in today’s highly extremely competitive FMCG market, in which businesses can’t afford to remain stagnant as foreign competitors invade.
Investors and businesses who are not in markets like Colombia are also able to profit from the growing popularity of cider, with numerous opportunities for exporting craft beer to Latin America. With the ever increasing transpacific connections, fresh free trade agreements, the existing knowledge of the market, and an increasing middle class that is demanding premium goods and services, it is worth taking the move.
Mexico is bubbling up in the business.
Another major participant of the Latin American cider sector is Mexico, and brands like Zemilla Mexican Hard Cider are being exported to New York City amongst other brands as people around the globe seek out the new flavors of cider and enjoy a refreshing drink.
Western brands are turning their attention to markets such as Latin America to appease the increasing desire for unusual and unique flavors and flavors in restaurants and bars that are high-end as well as online via subscription-based craft beers and cider boxes.
At a local level, Mexican entrepreneurs and investors will benefit from Mexico’s shifting attitude to drinking. The Mexican population is expected to consume around 70 liters of alcohol on average per person in the year 2019, and with a growing middle class and a variety of appealing new flavors and new brands, there are real opportunities for the Mexican industry of alcohol.
Couple this with the convenience of entry with a growing population and the increasing number of liquor stores and microbreweries. Importing beer and cider into Mexico is an appealing option for many international cideries and brewery owners.