In Uruguay, Every Second Beer Consumed Is Imported
Pressuring Local Brewers and Triggering Labor Unrest
Uruguay's beer market experienced a remarkable shift in 2024, as imported beer accounted for an unprecedented 48.3% of total consumption. New figures from the country’s tax authority (DGI) show that 475,000 hectoliters of beer were imported—a 16.7% increase over 2023 and the highest import volume since tracking began in 1997.
In contrast, domestic production fell to 508,000 hectoliters, a level not seen in over two decades. The decline is tied to changing consumer preferences, with growing demand for low-cost, non-returnable cans and small bottles—formats largely dominated by imports.
According to Gustavo Rodríguez, director of ID Retail, these personal-size packages are easy to transport and increasingly available in non-traditional sales channels, further expanding their reach.
The impact on the local brewing sector has been severe. Fábricas Nacionales de Cerveza (FNC), Uruguay’s leading brewer and part of AmBev (a subsidiary of AB InBev), recently shut down its Minas facility due to nearly 50% idle capacity. The plant had produced liter-sized bottles of the iconic Patricia brand and housed a canning line. FNC has now consolidated production in the country’s capital in Montevideo.
The decision sparked a strike by the Federation of Beverage Workers and Employees (FOEB) last year. FOEB President Fernando Ferreira criticized the closure as part of an "onslaught" by foreign interests and warned of possible disruption to distribution if no agreement is reached.
The long-term trend is clear: in 2014, imports made up just 10% of beer consumption in Uruguay. By 2019, they accounted for 30%. Now, they are approaching the halfway mark—a sign of a structural transformation in consumer habits and industry dynamics.
Beyond beer, the broader beverage market showed mixed results. Bottled water consumption dropped 20% to 3.9 million hectoliters after a temporary spike in 2023 caused by water quality concerns. Still, volumes remain above 2022 levels. Meanwhile, soft drink and cola sales edged up 1.6%, reversing a five-year downward trend.
Uruguay’s stable political climate and open economy have long supported local industry. But regional factors—including Argentina’s economic crisis and a strong Brazilian real—are making imported beverages increasingly competitive, reshaping the local market and challenging traditional producers.
GDP growth. However, the strength of the Brazilian real and Argentina’s ongoing economic turmoil have made Uruguay a target for cheaper regional imports, particularly in the beverage sector. The high penetration of low-cost imported beer is a direct reflection of these macroeconomic dynamics, placing additional pressure on domestic producers.
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