Even with the substantial changes enforced on consumer purchasing habits during the crisis, coffee remained the most important hot drink for Brazilians, with consistent year-on-year growth. Much of this has to do with the beverage’s cultural relevance for Brazilians, although other aspects such as how the coffee industry was able to respond positively to new consumer needs and desires also played a key role.
As consumers gain access to more sources of information, their level of interest in beverages with which they are not yet familiar tends to grow. This has proven to be the case for coffee beans, fresh ground coffee pods and a wide variation of fruit/herbal teas.
In 2018, the value shares of small and regional players continued to register smooth declines, even though the number of new entrants increased. Especially in coffee, the most important category in value, many regional players continued to enter, offering premium products – which are not always perceived as such by consumers.
While 2016 and 2017 were not particularly dynamic in new product launches, 2018 witnessed a full recovery. Coffee was the most important category for launches, followed by tea and other hot drinks.
Leaving behind the challenging period of economic crisis, hot drinks in Brazil is set to register a solid positive performance over the forecast period – with stronger retail volume growth than that witnessed over the review period. This will largely be due to growing demand for coffee (particularly standard fresh ground, a culturally strong beverage) and tea, while other hot drinks is set to record a flat performance.
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This industry report originates from Passport, our Hot Drinks market research database.