Colombia Instant Coffee Market Size, Share, COVID-19 Impact, Opportunities, And Trends By Type (Freeze-Dried Instant Coffee, Spray-Dried Instant Coffee, Others), By Distribution Channel (Offline (Retail, Food Services), Online), And By Province - Forecasts From 2022 To 2027
- Published : Sep 2022
- Report Code : KSI061613672
- Pages : 76
Colombia instant coffee market is projected to grow at a compound annual growth rate of 9.35% over the forecast period to attain a market size of US$442.828 million in 2027, from US$236.877 million in 2020. Colombia is the third-largest producer and exporter of coffee globally, behind Brazil and Vietnam. As per the USDA statistics, coffee production in Colombia accounted for 14.3 million 60 kg bags of GBE, i.e. green bean equivalent in MY 2019/2020. It is expected that the production will recover to more than 14 million bags GBE due to the low-intensity El Nino weather phenomena that have increased the flowering period in the major producing regions of Colombia. This is because of the fact that good flowering helps in the determination of the harvest size. Domestic consumption in the country is expected to reach 1.8 million 60 kg bags GBE in MY 2019/2020. This achieved a growth of 5.8% in comparison to the previous year.
Additionally, in order to support the rising domestic demand coupled with a decrease in production in MY 2017/2018, the country imported around 770,000 60 kg bags of GBE. The imports were mainly from the regions of Peru, Honduras, Ecuador, and Brazil. In order to satiate the local demand, imports are projected to rise to more than 400,000 60 kg bags GBE in MY 2019/2020. This is because of the decline in inventories and export recovery.
The market for instant coffee is projected to surge in the forecast period owing to the prevalent coffee culture of the country, where coffee is the most common beverage consumed. Also, coffee consumption is evolving at a fast pace due to several factors influencing consumption in the country. This includes socio-economic changes, concerns regarding health and sustainability, and the need for more sophisticated commodities. Coffee consumers demand high-quality soluble coffee. Also, coffee provides significant health benefits like containing high levels of antioxidants, is gaining traction and is further contributing to the rising popularity of coffee in the form of a regular beverage in Colombia. Furthermore, consumers nowadays prefer environment-friendly and sustainable products. Hence, it is expected that Colombian coffee brands follow good manufacturing practices that are in line with eco-friendly manufacturing practices.
Furthermore, coffee consumption in Colombia is rising at a fast pace due to the growing number of coffee shops and the development of new coffee products in order to satiate the accelerating demand of young professionals and international visitors, further creating strong prospects for the market to thrive in the forecast period. Juan Valdez and OMA are the major coffee shops located in the region. Other coffee stores include McCafe, Illy, Segafredo, and Starbucks. However, in the current novel coronavirus scenario, the market is projected to experience a decline with the shutting down of coffee shops, hotels, and restaurants, thus, impacting market growth negatively in 2020 owing to lockdown measures. Post-lockdown, the market is set to grow at a sustainable pace by following the new norms, which include taking care of workplace safety and practicing social distancing.
Significant strategies adopted by coffee stores offering coffee and bakery products at lower prices than competitors will continue to drive market demand because this will allow an increase in customer footprint demanding low-cost coffee. For example, Café Tostao has grown in recent years with the establishment of more than 400 small coffee shops in Bogota, Cali, and Medellin providing coffee and pastries at a lower price. This strategy helped the store become the second largest in terms of coffee sales in Colombia after Juan Valdez.
The COVID-19 lockdown had a large influence on the instant coffee industry in the first part of 2020, but it steadily faded in succeeding quarters, with no impact on normal expansion. While institutional sales fell due to the closure of offices and public venues during the lockdown, domestic consumption grew rapidly. On the other side, the present trend of internet purchases for at-home consumption is pressuring retailers, coffees, and consumers to adjust to this new reality. As a result, global coffee consumption is predicted to rise as a result of this factor. Coffee sales were particularly brisk during the pandemic, as people stocked up on essentials.
- March 2021- In Colombia, Alquera, Nestlé, Yara, and IDH have joined together to promote sustainable animal husbandry.
- By Type
- Freeze-Dried Instant Coffee
- Spray-Dried Instant Coffee
- By Distribution Channel
- Food Services
- By Province
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Function
4.4. Function Value Chain Analysis
5. Colombia Instant Coffee Market Analysis, By Type
5.2. Freeze-Dried Instant Coffee
5.3. Spray-Dried Instant Coffee
6. Colombia Instant Coffee Market Analysis, By Distribution Channel
6.2.2. Food Services
7. Colombia Instant Coffee Market Analysis, By Province
8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. Company Profiles
9.1. Unisel Co.
9.3. Grupo Nutresa
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