In 2018, instant coffee continued to dominate retail volume and value sales in Mexico because of its convenience and affordability. Its lower cost compared to fresh coffee formats is especially important for low- and middle-income consumers in Mexico.
In recent years, a segment of consumers migrated to higher-quality products. Premiumisation was the response of companies to increasingly knowledgeable and sophisticated consumers looking for more specific attributes.
Convenience, fashion and enhanced quality are attributes customers appreciate from fresh ground coffee pods. Although pods are much pricier per cup than instant or fresh coffee, they offer similar quality to that found in specialist coffee shops, at a much lower cost.
Companies compete for the attention of the consumers and win their preference when deciding on the store. One strategy used is to keep developing products with interesting propositions.
In 2018, Nestle´ Me´xico remained a strong leader of coffee in both retail volume and value terms. Widely known for its coffee brands, the company remained the undisputed leader in instant coffee, where it offered brands such as Nescafe´ and Taster’s Choice.
Coffee companies say the future is in coffee pods, and do not want to be left out of this trend. Over the review period, the entrance of new brands contributed to sales growth in fresh ground coffee pods.
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This industry report originates from Passport, our Hot Drinks market research database.