Market Size of South America Coffee Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.50 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
South America Coffee Market Analysis
South America Coffee Market is projected to register a CAGR of 8.5% during the forecast period, 2022-2027.
More than 1.2 billion people rely on coffee for a living; the COVID pandemic was difficult for many in the coffee business; baristas were the first to close coffee shops, and several small coffee chains never reopened when the pandemic hit. The robust coffee supply network and coffee manufacturers ensured that consumers could acquire their coffee even during a pandemic. According to Brazilian Coffee Exports Council, Brazilian coffee exports hit 40.7 million bags in 2019, and annual domestic consumption is approximately 21 million bags. According to Brazil's association of e-commerce, ABComm, home purchases of coffee rose by 35% in Brazil in the early weeks of closures in Brazil in 2020. The market uncertainties have been causing large global coffee buyers to strengthen their stocks, buying additional bags of coffee to extend out additional months. Another point in Brazil's coffee chain that may be affected by the pandemic is from the farm to the export port. In Brazil, almost all coffee beans are transported in trucks from the countryside to the shores through highways. Many commercial establishments along these routes were closed, and the truck drivers are already having trouble finding support times such as restaurants, motels or other sleep stations. This delayed the flow of the beans in some regions of South America.
Over the medium term, the facility/outlet expansions of chains, like Starbucks, Havanna, Café Martinez, Bonafide, The Coffee Store, and multiple independent and premium specialist coffee stores, are attracting millennials. This is boosting the growth of the coffee market and increasing the consumption of the product.
Brazil boasts of the prevalence of out-of-home coffee consumption, where different types of coffee, like espressos, cappuccinos, and other milk-based preparations, are prominent. In addition, companies, such as Nestle, have launched several flavored instant coffee options and coffee pods, which recorded strong performance in terms of sales volumes.
