Hot Coffee Consumption to Drive Latin America Hot Beverages Market: Ken Research
Ken Research announced its
latest publication on, “Hot Coffee Consumption Volume and Growth
Forecast to 2021-Latin America”, offer insights on the
changing trends and key issues within the Latin American Hot Coffee market. The publication
includes an insightful analysis of volume (M liters) and growth (Y-o-Y) trends,
consumer behavior, packaging trends, leading players and distribution trends
within Latin American Hot Coffee market. The analysis of the aforementioned trends has
been done across seventeen individual countries in Latin America: Argentina,
Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala,
Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, and Venezuela.
Brief Overview of the Hot
Coffee Market in Latin America
Further
segmentation of the hot drink beverages category under the non-alcoholic
drinks, provides for one of the most trendy and popular category among
consumers i.e. Hot Coffee. Over the time, the global hot coffee market has
shown robust growth in sales on account of changing consumer tastes and the
coffee becoming more and more affordable to every class in the society. The
same scenario has been prevalent in Latin America as well.
Latin
America is one of the powerhouses of coffee production worldwide and also it is
one of the regions with highest economic growth worldwide (2005-2010) that
aided the coffee sales. Taking into account the production side, Brazil is the
largest producer of coffee in the world, Colombia being the fourth largest
producer in the world. In Latin America, coffee contribute to 2/3rd of
hot drink consumption except in one two countries i.e. Chile and Bolivia where
tea leads the market.
Last
decade in Latin America has seen tremendous growth in coffee consumption due to
increased number of middle class families which led to entrance of specialty
coffees and specialised coffee stores as well. This in turn triggered
increased out of home coffee consumption which accounts about 42% of total
coffee consumption now. Also consumption of high quality coffee has increased,
reason being growth in dynamism of market, growing methods of brewing and
development of origin. In Mexico there has been significant growth in premium
coffee market which has led to growth in chains like Nespresso, Juan Valdez
etc. Other markets in Latin America having less sophisticated coffee
consumption are tending towards diversification of instant coffees due to their
practical nature.
Key Factors Driving Growth
in Latin America’s Hot Coffee Market
Over the years, the market for Hot Coffee market has been posting positive growth on account of various factors. While one set of factors have played its role in increasing hot coffee consumption, the other set of factors have encouraged domestic and international coffee producers to expand their business activities in Latin America in a strategic way to reap maximum benefits. Some of the major growth driving factors for the Hot Coffee market include:
· Coffee consumption is a widespread culture in Latin America and since then has been continuing as a traditional practice. Like in Colombia, the coffee tradition exists for more than a century. However, past decade has shown increased sophistication on part of consumers which has led to specialized coffee products along with special stores.
· Increasing middle class in the region, with about 87 million families whose income was between USD 10,000 and USD 45,000 a year in 2014, has created a market with greater willingness to pay for added-value products.
· Rising purchasing power along with strong economic growth has encouraged consumers to trade up to premium quality products. Consequently leading to innovation of alternative brewing methods.
· The busy lifestyles of consumers have made them more inclined towards ready-to-drink sources of energy and concentration. Coffee serves this purpose and hence is in demand.
· Café Culture in malls and other public places have led to their broad and easy availability and hence also increasing their popularity leading to even more consumer demands.
· Coffee producers’ business strategies, especially targeting the young ones, have also contributed in direct and indirect ways to the expansion of the Latin American hot coffee market. Directly by expanding their product base through innovation and launch of new products as well as through targeted marketing, while indirect effect is through price competition among producers leading to lower prices and hence increasing demand for coffee.
Latin American Hot Coffee Market
Prospects
Over the
review period (2010-2015), Latin America has been the fastest growing hot
drinks market in the world after Asia Pacific with coffee capturing a
significant share i.e. two-third of the hot drinks consumption. Over the
forecast period (2016-2021), on account of positive economic outlook and
dynamism of consumer preferences for coffee especially towards the convenient
instant coffee, the market for Hot Coffee in Latin America is expected to grow
with a CAGR range of 2%-7% in different constituting countries of the region
and dominate the hot drinks market. Brazil is expected to post the largest
value growth in coffee in the world. Leading brands will continue
targeting the young population through innovative products and packaging type
as well as investing huge in strategic marketing. The market penetration is
also expected to increase to every segment of the society and region. Two key
factors among the various driving factors, i.e. increasing consumer
sophistication and growing brewing methods are anticipated to shape the market
outlook.
Countries Covered:
- Argentina
- Bolivia
- Brazil
- Chile
- Colombia
- Costa Rica
- Ecuador
- El Salvador
- Guatemala
- Honduras
- Mexico
- Nicaragua
- Panama
- Paraguay
- Peru
- Uruguay
- Venezuela
To know more on
coverage, click on the link below:
Related Reports:
Contact:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-124-4230204
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