Coffee in Colombia

PROSPECTS

Fresh ground coffee pods sees rapid ascent as new product development continues

Fresh ground coffee pods remained the most dynamic category in 2019, albeit with growth coming from a relatively low base. These products saw dynamic growth throughout the review period thanks to their offer of convenience and the ability to easily replicate popular coffee types from cafés and specialist coffee shops, such as espresso, cappuccino and latte.

Premiumisation continues within coffee

Coffee continued to see healthy growth in 2019 both in the retail and foodservice channels. Consumer interest in higher quality, premium coffee continues to grow with this being supported by the rapid growth seen in the number of specialist coffee shops opening across the country during the review period.

Local coffee farmers turning to new technology to retain crop yields

Colombia is one of the world’s largest coffee producers, but it is susceptible to factors such as the weather and pests which can damage crop yields. The La Niña climate phenomenon had a negative impact on coffee production in the country in 2018, but production was expected to be improved in 2019 thanks to the El Niño phenomenon.

COMPETITIVE LANDSCAPE

Faced with mounting competition Nestlé offers free Nespresso machines to subscribers

Nestlé de Colombia SA retained a strong position in coffee in Colombia in 2019 largely thanks to the strength of its Nescafé brand. Nevertheless, it was in fresh ground coffee pods that the company saw the most dynamic growth in 2019 with its Nescafé Dolce Gusto and Nespresso brands dominating the category.

Juan Valdez on the rise thanks to strong investment

Procafecol SA’s Juan Valdez brand continued to see dynamic double-digit growth in retail value and volume terms in 2019. The brand is present in standard fresh ground coffee and fresh ground coffee pods.

Premiumisation puts pressure on Colcafé’s lead

Industria Colombiana de Café SA (Colcafé)’s Colcafé brand retained the lead in instant coffee in 2019, but it continued to lose share to Nescafé. Colcafé is a well-established domestic brand which continues to benefit from consumer familiarity and loyalty; however, with consumers increasingly focusing on new and interesting products it is starting to lose share.

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