Brazil instant coffee market is estimated to be valued at US$1,237.164 million in 2019 and is projected to grow steadily during the forecast period. The market for instant or soluble coffee is projected to grow at a significant pace during the forecast period. This is mainly attributed to the growing popularity of instant coffee among the middle-class population. Hence, with the rising middle-class population, the market is predicted to experience strong growth in sales in the forecast period, as these individuals look for more practical products. Companies based in the region are coming up with new and innovative products so as to satisfy the needs of the growing middle-class population. The wide availability of instant coffee in the form of pouches are observed on the supermarket shelves, showing a high market demand among the population in the region. Furthermore, with coffee being the second-most drunk beverage in Brazil, after water, the market shows robust growth prospects during the forecast period. However, with the emergence of ready-to-drink refreshing juice and other drinks, the market is projected to impede during the forecast period. Hence, the presence of coffee-substitutes is creating a tough competition for the coffee manufacturers as these have to struggle hard to bolster their position in the country along with other substituent products.
According to USDA statistics, domestic consumption of coffee for the Marketing Year, MY 2019/2020 is estimated to be 23.53 million 60 kg coffee bags which comprise 22.35 million 60 kg bags of roast/ground coffee, and 1.18 million 60kg bags of soluble coffee. This is an increase of 1.5% in comparison to the previous marketing year.
Furthermore, the high penetration of coffee in Brazilian households is further augmenting the market demand in the forecast period. It is further estimated that per capita coffee consumption for 2018 grew from the previous year, accounting at 4.82 kg of roasted coffee per person.
Coffee cultivation in Brazil: Brazil’s hot and humid climate and rich soil is perfect for coffee plants to flourish. The country cultivates both Arabica and Robusta variety. Robusta is utilized for the production of instant coffees and is lower in terms of quality. Robusta comprises around 20% of Brazil’s annual crop production. Major coffee-producing regions in Brazil include Minas Cerais, Bahia, Paraná, Espírito Santo, São Paulo, and Rio de Janeiro.
Product Launch: The Brazilian Soluble Coffee Industry Association, ABICS announced the launch of its instant coffee brand, Explore&Enjoy – Instant Coffee Brazil. The brand was created as a part of a cooperation agreement with the Brazilian Trade and Investment Promotion Agency, Apex-Brasil. The deal was signed in February 2018. The soluble coffee is produced by the dehydration process of the roasted bean. One of the main goals of the brand is to show that the country plays a leading role in the instant coffee industry. Brazil is the world’s largest producer and exporter od soluble coffee. Also, the presence of Brazilian soluble coffee industries works with a variety of products that serve the domestic and international markets. A brand of soluble coffee has also been created for domestic consumption by the name, Crie&Curta. One of the planned actions was the establishment of a Brazilian soluble coffee brand, this is because of the fact that usually the instant coffee brands are sold to the leading companies and they pack it and distribute it as per their brand name to other markets.