Coffee in Guatemala

PROSPECTS

Low unit prices drive sales

Coffee is a hot drink that is commonly drunk by a large consumer base ranging from the lower to the upper end of the market. The lower end of the market is the more significant, and consumers in this group prefer to drink a weak cup of coffee to maximise the product and make it more affordable.

The on-trade is increasing its influence in the category

Coffee is a traditional drink in Guatemala, being one of the most important agricultural products in the country. Producing good-quality coffee has influenced consumers to appreciate what is made locally and to improve quality of coffee served locally.

Premiumisation is seen in fresh coffee and instant coffee

The premiumisation of coffee continues to drive growth in retail value sales. Premiumisation marks the response of companies to increasingly knowledgeable and sophisticated consumers looking for more specific attributes.

COMPETITIVE LANDSCAPE

Tostaduría Café León SA leads the category

Tostaduría Café León SA remained the category leader in 2018. The company has a wide product portfolio of fresh coffee, ranging from more affordable blends, such as Del Rey, which is blended with wheat to make it more affordable, to premium blends such as León Regiones, It sells different blends from various Guatemalan regions that cultivate coffee.

On-trade brands beginning to be seen off-trade

In order to offer consumers a better cup of coffee and offer them the flavours they already like in coffee shops and restaurants, companies are selling their own brands of coffee for consumers to have at home. One such example is San Martin, one of Guatemala’s most popular bakery/restaurant chains, which now sells San Martin house coffee blend in all its outlets.

Domestic brands are predominant

As Guatemala is a strong coffee producer, domestic brands have a stronger presence in the category than internationals. Local brands such as Café León (fresh coffee) and Incasa (instant coffee) have considerable shares thanks to their long presence in the market with affordable brands that are very popular among lower-end buyers.

Files are delivered directly into your account within a few minutes of purchase.