Coffee posted a steep decline in foodservice volume sales in 2020, as on-trade outlets across Brazil were forced to close for several months due to COVID-19 lockdowns, and home delivery services could not compensate for the loss of in-person business. In contrast, retail volume sales growth slowed slightly from 2019, but remained robust overall.
Although coffee showed a reasonably resilient performance in retail volume sales terms in 2020, the category was not immune to changes in consumer behaviour brought about by COVID-19. Specifically, as the economic fallout of the pandemic eroded purchasing power and caused unemployment to rise, increased budget-consciousness led many Brazilians to trade down to cheaper coffee products.
3 Corações remained the leading player in coffee in 2020. The company’s overall retail volume and value shares were up on 2019, thanks in part to its acquisition of Mitsui Alimentos Ltda at the start of the year.
With the economic repercussions of COVID-19 likely to be felt for some time to come, it is expected many consumers will continue to favour cheaper coffee products during the early part of the forecast period. However, as disposable incomes rise in line with an anticipated economic recovery, those who traded down in 2020 will gradually revert to buying higher quality and more expensive brands.
The COVID-19 crisis has had a devastating impact on foodservice operators in Brazil. Specialist coffee shops have been among the hardest hit, especially independent outlets.
Similar to many other types of packaged food and beverages in Brazil, retail volume sales of coffee via e-commerce increased substantially in 2020 as lockdown measures and fear of contracting COVID-19 discouraged consumers from shopping in brick-and-mortar retail outlets. However, the overall volume share of this channel within the category remained low, and many coffee producers were poorly positioned to benefit from the pivot to online shopping.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Coffee industry in Brazil with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Coffee industry in Brazil, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Coffee research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page