Market Trends of Latin America Coffee Industry
Rising Popularity of Ground/Roasted Coffee Driving the Market
Coffee culture is deeply ingrained in Brazilian society. Cafes and coffee shops are becoming popular social hubs, promoting the consumption of ground coffee. This cultural shift enhances the demand for roasted coffee as part of everyday life. Moreover, in 2023, the Ministry of Agriculture and Livestock established new standards for roasted coffee sold in Brazil, including mandatory information on labels, producer and retailer accountability for selling adulterated products, and the consumer protection agency’s action on complaints of product fraud.
The growing recognition of the health benefits linked to moderate coffee consumption is fueling the growth of roasted coffee. Antioxidants in roasted coffee help boost immunity, which can prevent cancer and other diseases. The rich brown color of coffee results from these antioxidants, which can help fight free radicals that cause cellular damage and have been linked to cancer. As a result, people who consume coffee regularly are at a lower risk for multiple types of cancer, including colorectal cancer. In 2022, according to the International Agency for Research on Cancer, the number of cancer deaths in Brazil included 38.29 thousand for lung cancer and 28.88 thousand for breast cancer. Thus, these advantages have shaped a positive outlook among regional consumers toward roasted coffee. Health-conscious individuals are on the lookout for roasted coffee items that not only deliver a delightful taste but also promise potential health advantages. Moreover, roasted coffee reduces the risk of cancer and enhances liver health. Consequently, the health benefits provided by roasted coffee are spurring consumption, ultimately propelling market expansion.
Brazil Holds a Dominant Share in the Latin American Coffee Market
Brazil's coffee culture is supported by an increase in the number of small specialty cafes and coffee shops. Factors such as the quality of coffee, along with the coffee brand, texture, temperature, milk, and the level of crema in an espresso, are highly important to customers. Brazil is one of the largest producers of coffee beans in the world. According to National Supply Company (Portuguese: Companhia Nacional do Abastecimento (CONAB)), in 2022, the revenue of coffee production in Brazil was USD 11.81 billion. Brazil is one of the largest coffee-producing countries in the world, and coffee consumption is deeply ingrained in Brazilian culture. As a result, the country has a high demand for coffee beverages.
In addition, factors such as sustainable coffee pods are of immense importance to Brazilian consumers. Due to this, manufacturers are more inclined toward offering biodegradable coffee pods. For instance, In November 2022, Nestlé launched sustainable coffee pods. Neo's new range of coffee pods are paper-based, home-compostable, and use 70% less packaging (by weight) than current capsules, as per the company’s claims. Such sustainable coffee pods drive the demand for coffee in the regional market. Furthermore, Brazilian consumers registered greater demand for roasted and grounded coffee over the study period. Coffee pod manufacturers in the country are constantly producing innovations in terms of flavor, variety, and price in order to increase their consumer base. Some of the popular brands of coffee pods and capsules available in the country include Lavazza, Rosso, Mokaccino, and Kimbo.
