Market Size of Latin America Coffee Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 11.59 Billion |
| Market Size (2029) | USD 16.65 Billion |
| CAGR (2024 - 2029) | 7.52 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latin America Coffee Market Analysis
The Latin America Coffee Market size is estimated at USD 11.59 billion in 2024, and is expected to reach USD 16.65 billion by 2029, growing at a CAGR of 7.52% during the forecast period (2024-2029).
The market is driven by multiple factors, such as the increasing demand for certified coffee products, consumer acceptance of single-serve coffee brew systems, and constant innovation in terms of flavors and packaging in the coffee market. The rising demand for instant coffee and more premium options for reasons of convenience, quality, and flavor is further boosting the market dynamics. Furthermore, drinking coffee at cafes, offices, and other food outlets among millennials and Gen Z is becoming the symbol of fashion and an opportunity to socialize. Hence, the rising popularity of coffee among millennials and Gen Z consumers is projected to fuel the growth of the Latin American coffee market.
Argentina has a strong coffee culture, with a tradition of consuming coffee throughout the day. This cultural preference drives demand for instant coffee as a convenient and accessible option for coffee consumption. For instance, according to the US Department of Agriculture, in 2022-23, the consumption volume of green coffee in Argentina amounted to 990 thousand 60-kilogram bags, up from 906 thousand 60-kilogram bags consumed in the year 2021-22. Furthermore, according to UN Comtrade, Brazil exported USD 7,350.81 million worth of coffee in the same year, ranking itself as one of the significant exporters of coffee. Market players seek to strengthen their presence in the market by incorporating coffee trends in their business operations, including innovative coffee pods, cold-brew coffee, functional coffee, premiumization, and marketing of key coffee brands. For instance, in February 2023, Starbucks Brazil opened three new stores in the Brazilian region. The stores are located at Fortaleza (Ceará), Goiânia and Alexânia (Goiás), and Recife (Pernambuco). Starbucks’ stores provide a wide range of coffee products, including ready-to-drink coffee beverages. The expansion of coffee chains in the region is expected to create growth opportunities for market players to offer premium and innovative products for the foodservice industry.
