Coffee in Latin America

Delivery

This report comes in PPT.

Key takeaways

Economic problems result in some downtrading

Consumers in Latin America have continued to buy coffee, which, in some countries, is seen almost as a daily necessity, although, given the economic impact of the pandemic, some shoppers have been trading down to cheaper products as they feel the pinch in their household incomes.

Nestlé remains a clear leader in coffee

Nestlé remains the clear leader in Latin American coffee, with a strong position in most national markets, generally as the number one player, and rarely outside the top three. It accounts for more than half of instant coffee sales in many countries.

Private label makes gains in Mexico

While its share is still very small in the region, private label has been gaining in importance in Mexico, primarily in instant coffee, due to households’ squeezed incomes in the pandemic, with its competitive prices and growing offer helping to attract consumers.

Still room for premium products

Consumers are expected to continue looking to premium-quality coffee to help them replicate the café experience at home. In line with this trend, Cielito Querido Café, a chain of coffee shops in Mexico, is planning to launch a range of its products at hypermarkets and supermarkets.

E-commerce sees dynamic growth in the pandemic

While e-commerce remains a very small sales channel for coffee in Latin America, with a share of less than 1% regionally, it saw strong growth in the pandemic, particularly in 2020, with players within coffee likely to continue to focus on improving their e-commerce and digital strategies and processes.

Positive growth expected over 2021-2026

Both volume and value growth are expected to record relatively healthy CAGRs over the forecast period. While standard fresh ground coffee will remain the dominant product, fresh ground coffee pods will be the most dynamic category.