Argentina’s instant coffee market was evaluated at US$125.214 million for the year 2020, growing at a CAGR of 4.98% reaching the market size of US$175.995 million by the year 2027.
The instant coffee market is driven by the surging demand for different types of coffee and the rich coffee culture of Argentina.
Argentina is a country with one of the richest coffee cultures in the South American region. The coffee culture is dominated by an Italian style, which is preferred by individuals of all age groups and is offered by a variety of cafes and restaurants. In recent years, consumers' demand has shifted towards hot beverages rather than aerated drinks, which have high sugar levels and poses ill effects on the health of consumers. Additionally, coffee is considered to be a staple in the diet of the majority of Argentinians.
Moreover, speciality coffee and speciality cafes have gained popularity in some regions, such as Buenos Aires, as only some younger consumers prefer them. On the other hand, instant coffee has gained traction among younger age consumers and millennials alike in the past few years owing to the ease and convenience it provides and the affordable prices it is available at to suit the budget of every consumer. Thus, these factors are driving the demand for instant coffee and propelling market growth over the forecast period.
Product Offerings by the market players in the Argentina Instant Coffee Market
The market players are involved in offering better and advanced varieties of instant coffee with enhanced flavor and aromas to bolster their market position and cater to the demands of the consumers are estimated to lead to increased consumption and propel the market growth further over the forecast period.
Cabrales S.A., one of the famous coffee manufacturers and distributors in Argentina, offers a wide variety of products under its product portfolio ranging from whole beans to instant coffee. Some of the products it offers under its instant coffee line are “Cabrales Cappuccino,” which has been developed using high-quality ingredients in order to provide the best aroma and flavour. It is available in a 210g or 350g jar of Flow-Packs of 125g or 210g. it also offers another product called the “Café Cabrales Classico,” which is available in a 100g jar, and it offers “Café Descaffeinado,” which is specifically for consumers who cannot consume high levels of caffeine and is available in a 100g jar.
It is projected that the type of freeze-dried instant coffee will dominate the market.
The superior quality of freeze-dried coffee in comparison to regular coffee is the main element fueling the industry's expansion. As a result of the media's growing influence, particularly the various e-Commerce platforms, educational healthiness programs, events, and publications by international health administrations like the World Health Organization, there has been an increase in consumer awareness of wellness and health throughout the world. The most popular application for freeze-dried coffee is in travel pouches for coffee lovers. The preparation is quick, straightforward, and easy. Additionally, these freeze-dried ready-to-drink coffees are offered in a variety of packaging options, mostly in the form of bottles, cans, and tetra packs that come in a range of volumes and pack sizes to suit the requirements of varied customers.
Online distribution channel to increase its share owing to the rising usage among the different individuals
With the availability of high-speed internet services and the rapid penetration of e-commerce channels and e-retail stores, there has been a surge in the number of individuals opting to purchase different grocery items, including instant coffee, online in order to avoid queues at the retail stores, avail lucrative discounts, and save time. This has led to e-retail channels becoming popular and is contributing to the market share it holds.
Recent Developments and expansions
Juan Valdez, a network of coffee shops based in Colombia, established its first location in Argentina in January 2022.
COVID-19 Impact
Due to the country's restaurant and coffee shop closures, a modest fall in the instant coffee market is anticipated. Disruptions in the supply chain also hampered market expansion. However, it is projected that the market would recover due to the present trend of online shopping for consumption at home.
Segmentation