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Changing Brewing Methods in Latin America Hot Coffee Market: Ken Research

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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. – PowerPoint PPT presentation

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Title: Changing Brewing Methods in Latin America Hot Coffee Market: Ken Research


1
Changing Brewing Methods in Latin America Hot
Coffee Market Ken Research
2
  • Key Topics Covered in the Report
  • Detailed profile of Hot Coffee market in Latin
    America.
  • Overall volume growth analysis of Hot Coffee
    market in Latin America
  • Country wise volume growth analysis of Hot
    Coffee market in Latin America
  • Consumer demographics, trends and behaviours
  • Key consumer trends which will influence Hot
    Coffee consumption
  • Historic and forecast consumption values in the
    Latin American Hot Coffee market
  • Competitive landscape of the Latin American Hot
    Coffee market
  • Distribution channels Packaging landscape of
    the Latin American Hot Coffee market

3
  • 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 withinLatin 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.
  • Economic Environment of Latin America
  •  
  • Latin America comprises of a total of twenty
    countries including ten republics of South
    America, six republics of Central America,
    Mexico, Cuba, the Dominican Republic, and Haiti.
    History of Latin Americas economy can be based
    at the three decades after World War II, when it
    experienced a blooming increasing in GDP, growing
    at around 5.

4
However, the weakness of its economic structure
was revealed in the crisis of the 1980s. This led
to various reforms in economic structure in order
to come with a more stable economy which will
thrive and make it significant in international
arena. This proved useful as Latin America went
through a steady growth coming into the 21st
century with average annual growth of 4.2 from
2004 to 2013. However the bright sunlight seems
to be fading quickly, as Latin America is getting
trapped in the darkness of recession. Latin
American Economy has went through a near free
fall kind of experience, with contraction in
Q315 and Q415 being quoted as the sharpest fall
in last six years. The overall GDP of the region
is estimated to have decreased 1.2 y-o-y in
Q116 suggesting overall weakness in economy. One
of the many reasons for this downfall was the
dramatic drop in commodities price, which
resulted in sharp decline in export revenues of
commodity-driven Latin American economy. Not only
this, high inflation is seen persisting this year
with a projected inflation of at 24.3 at the end
of 2016. However all these data does not provide
a complete picture as the appalling deterioration
of some countries masks the fact that other
countries are still going up the ladder.
5
The three pillars that form the majority of
regions GDP i.e. Brazil, Ecuador and Venezuela
have been shaken. Brazil, the regions largest
economy, is experiencing its deepest recession
since the 1930s. Ecuador is also suffering an
economic breakdown due to earthquake in April16.
And lastly Venezuela seems to be engrained in
profound political and economic crisis and there
is no indication for this crisis to be over
anytime in the near future. Meanwhile, in Mexico,
economic activity is on the up but at a very slow
rate. Colombias economy, though not at the
heights where it used to be once, is relatively
stable. Peru as a result of its business-friendly
economic policy framework is on a growth cycle
moving up at the top of its potential. But the
impact of economic downfall of the major
countries is so severe that recession is expected
to deepen this year. As per recent analysis, the
regions economy will contract 0.4 this year,
which, if true will lead to the first incident
when Latin America has registered two consecutive
years of negative growth after 1982 and 1983.
6
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.
7
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. Major Players in Latin
American Hot Coffee Market Growing consumer
sophistication and the increasing trend for
coffee consumption in Latin America is offering
access to a large pool of untapped consumers to
the coffee producers, hence attracting a large
number of international brands to Latin American
market along with the expansion of existing
domestic producers business in the region.
8
Some of the major market players with their value
share in 2015 areNestlé and Cafés La Virginia
accounting for a combined 53 value share in
Argentina, Industria Molinera de Café Ideal in
Bolivia, 3 Corações with a value share of 21
continued to lead coffee in Brazil, Nestlé with a
value share of 63 in Chile, Colombiana de Café
Colcafé with 51 value share, local players Cia
Numar and Café Rey in Costa Rica holding 26 and
25 value shares respectively, Nestlé with a 30
value share in Ecuador, Tostaduría Café León with
a retail value share of 24 in Guatemala,Nestlé
with 56 retail value share in Mexico and total
value shares of 48 and 56 in Peru and Uruguay
respectively,Café Fama de América and Empresa
Nacional del Café with a combined volume share of
54 in Venezuela. 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.
9
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.
10
To know more on coverage, click on the link
below https//www.kenresearch.com/food-beverage-
and-tobacco/non-alcoholic-beverages/hot-coffee-con
sumption/32017-11.html Related
Reports https//www.kenresearch.com/food-beverag
e-and-tobacco/non-alcoholic-beverages/hot-coffee-c
onsumption/32046-11.html https//www.kenresearch.
com/food-beverage-and-tobacco/non-alcoholic-bevera
ges/hot-coffee-consumption/32166-11.html Contact
Ken Research Ankur Gupta, Head Marketing
Communications query_at_kenresearch.com 91-124-42302
04
11
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