The beer market in Uruguay underwent a significant transformation in 2024, as imported brands claimed a record 48.3% of total beer consumption. According to data reported to the General Directorate of Taxation (DGI) for the Specific Internal Tax (Imesi), 475,000 hectoliters of beer were imported last year—an increase of 16.7% compared to 2023 and the highest volume since records began in 1997.
Domestic beer production, by contrast, fell to 508,000 hectoliters, a level not seen since 2002. The shift reflects a growing preference among Uruguayan consumers for personal-size non-returnable packaging like cans and small bottles, which are mostly imported at low prices.
According to Gustavo Rodríguez, director of ID Retail, the expanding market for low-cost, single-serve imports is being driven by logistics advantages and new distribution strategies. These imported products are easier to deliver even without specialized vehicles and are increasingly sold in outlets that traditionally did not stock alcohol.
The growing presence of budget foreign brands has created intense pressure on Uruguay’s domestic brewing industry. Fábricas Nacionales de Cerveza (FNC), Uruguay’s leading beer producer and part of AmBev, a subsidiary of AB InBev, recently announced the closure of its Minas facility. The site had bottled the liter-size Patricia brand, the leading beer brand in Uruguay, and operated a canning line. Due to idle capacity nearing 50%, FNC said it would consolidate operations in Montevideo.
The move triggered a strike by the Federation of Beverage Workers and Employees (FOEB), which condemned what it described as an “onslaught” by a multinational company making decisions outside the country.
FNC confirmed that competitiveness problems compared to cheaper imported beers have driven the shift in demand toward imported cans. Government mediators are now involved, with separate negotiation tables addressing labor and sector-wide competitiveness issues.
This structural shift has been dramatic: in 2014, only one in ten hectoliters of beer consumed in Uruguay was imported. By 2019, it was three in ten. Today, it is nearly five in ten.
Meanwhile, the beverage market overall shows mixed trends. Bottled water consumption declined by 20% to 3,918,000 hectoliters in 2024, following an exceptional spike in 2023 caused by public water quality issues. However, it still exceeds 2022 levels. Consumption of soft drinks and colas rose modestly by 1.6% to 3,058,000 hectoliters, ending a five-year decline.
Uruguay, a country of approximately 3.5 million inhabitants, has one of the smallest populations in South America but ranks high in economic and political stability. While its economy is relatively small compared to neighbors like Brazil and Argentina, Uruguay has benefited from low inflation, open trade policies, and steady 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.
