Portugal instant coffee market is estimated to attain a market size of USD75.792 million by the end of 2025. Portugal’s rich coffee culture is contributing to instant coffee market growth during the forecast period. Drinking coffee is deeply rooted in everyday part of life, culture and history of Portuguese, hence further contributing to the expansion of coffee industry in the region, further fueling the market growth in the country. Also, it has been observed that drinking coffee out-of-home is comparatively cheaper. The country is known for its least expensive coffee in Europe and thus, coffee consumption is considered as a democratic right for the citizens of Portugal. The rich café culture in the country is further providing an impetus in propagating the market growth during the forecast period. Even though at-home consumption is growing, however, Portuguese prefer to consume coffee in the restaurants or in a café. Individuals prefer to drink coffee to socialize with the most popular coffee drink consumed is expresso. The high out-of-home consumption is further contributing to surging sales of instant coffee products during the forecast period. The popular coffee brands consumed in the region include Delta, Buondi, Nicola, Bicafe, Chave d’ Ouro, Sical, and Camelo. On an average, the per capita consumption of coffee is around 4kg in a year, hence, this will provide an opportunity for the market to thrive in the forecast period.
However, keeping in view the present COVID-19 scenario, the market is projected to experience a slight decline due to the closure of cafes and restaurants that serve as end-users for soluble coffee.
The retailing in Portugal is considered among the most concentrated and competitive in the European region. Hence, this will contribute to providing convenience for individuals in purchasing instant coffee products from a nearby store. Also, the growing trend of the comeback of small retail shops has been observed in recent years. These neighborhood grocery stores would further provide convenience and ease in purchasing essential household products required for day-to-day consumption. As coffee drinking is quite dominant among the Portuguese, instant coffee products hold strong market growth potential in the forecast period. Furthermore, the rising consumer interest in omni-channel retailing combining internet shopping and shopping through a brick mortar store will further continue to drive the market growth over the next five years.
It is estimated that during the forecast period, modern grocery retailers are projected to hold a significant market share in the total retail sector in comparison the traditional grocery stores. It is further predicted that supermarkets, convenience stores, and hypermarkets in the region are accounted to generate significant revenues, further contributing to fueling the market growth in the forecast period.
Furthermore, the high internet penetration with more than 60% of the population using internet is providing an opportunity for the market to flourish with the rise in internet shopping, further contributing the drive the e-commerce market growth in the region. Online shoppers in the country use prepaid cards, bank transfer, credit cards, and select eWallets for payment.