The trend has been fueled by increased demand for single-serve packaging such as non-returnable cans and bottles, mostly manufactured abroad and at low prices.
The beer market in Uruguay grew slightly last year, with the growth of imported products particularly notable, reaching a 48.3% share of the total.
In 2024, beer consumption reached 98.3 million liters, according to data on the physical volume sold in the local market and declared by manufacturers and importers to the General Directorate of Taxation (DGI) for the determination of the Specific Internal Tax (Imesi).
Regarding its origin, DGI data show that imported beer increased for the fifth consecutive year and saw a sharp jump compared to 2023. Between January and December, 47.5 million liters of beer arrived from abroad, a 16.7% increase year-on-year, and a record volume for the historical series that began in 1997.
Meanwhile, domestic production units totaled 50.8 million liters. To find such a low volume in the Uruguayan industry, we have to go back to 2002.
The domestic beer industry is facing difficulties due to the strong entry of imported brands at low prices, and local production is losing ground to products obtained by large wholesalers, for example in Brazil.
Nearly five out of every ten liters of beer consumed in the country in 2024 came from abroad. Five years ago, that ratio was three liters for every ten liters, and just one liter for every ten liters in 2014.
Market trends
ID Retail director Gustavo Rodríguez told El Observador that a series of circumstances are causing the share of imported beers to grow relative to domestically produced beers.
As he explained, first, there is a growing trend in the consumption of personal packaging (small non-returnable bottles and cans). These types of packaging are primarily imported, while domestic production consists of large returnable glass containers.
On the other hand, he noted that there are growing trends in imported budget brands. Because these brands don't require packaging retrieval, they tend to be distributed with less logistical complexity and reach diverse stores where beer hasn't traditionally been sold in large numbers.
Thus, any distributor without trucks for lockers can supply beer to small businesses where alcoholic beverages are not a primary focus, Rodríguez noted.
"The offering at points of sale is expanding, and competition is intensifying in personal packaging and in the low-price segments of imported beers, both from the region and from a wide variety of sources," the expert summarized.
On the other hand, the National Beer Factory (FNC) told El Observador that "in recent years, the national beer industry has faced competitiveness issues compared to imported products, which has led to a shift in demand toward low-priced imported cans."
The market "is being invaded by imported cans," the Federation of Beverage Workers and Employees (FOEB) recently remarked in Parliament.
Consumption of water and soft drinks
Bottled water consumption reached 391.8 million liters, a 20% drop compared to 2023, a year in which demand was strongly boosted by difficulties with drinking water from OSE.
In any case, consumption volumes were higher than in 2022 and are well above those of a decade ago, according to DGI data. One possible explanation lies in changes in the population's consumption habits in favor of healthier products.
In Uruguay, there are approximately 60 companies that sell bottled water. The product is subject to a 22.5% VAT and a 10.5% Imesi tax on a fictitious price.
On the other hand, 305.8 million liters of colas and soft drinks were declared to the DGI last year, 1.6% more than in all of 2023.
This sector had been declining for five consecutive years, reaching a low of just 282 million liters in 2020, during the first year of the pandemic. The peak in consumption dates back to 2014, with 338 million liters declared, according to the DGI's historical data.
