Mexico Instant Coffee Market - Forecasts from 2022 to 2027

The Mexico instant coffee market is estimated to grow at a CAGR of 5.92% over the forecast period to attain a market size of US$2,965.226 million in 2027, from US$1,982.113 million in 2020.

The market is propelled to grow at a significant pace in the forecast period owing to the maximum consumption of soluble coffee in the region. As per the USDA estimates, soluble coffee is predicted to hold around 50 to 60% of the market share for domestic consumption. The country, in 2018/2019 observed higher domestic product supplies to fulfil the demand, in addition to more anticipated domestic supply in the year 2019/2020. The growing popularity of soluble coffee among people of low-income groups is bolstering the market demand in the forecast period.

The post-consumption statistics for both roasted and soluble coffee were predicted to be 2.7 million 60kg bags for the marketing year, MY 2019/2020. This showed that the production is quite robust along with stable domestic prices. The consumption in the year 2018/2019 was reported to be around 2.5 million 60kg bags, which was considered to be lower than the expected growth. However, it was higher than the previous year (source: USDA).

The increasing retail sales of instant coffee are propagating market growth in the forecast period.

It has been observed that in spite of the growth of coffee shops for speciality coffee, the preference for instant coffee continues, while the speciality market remains niche, further contributing to holding a significant market share in the forecast period.

Coffee cultivation and facility establishment for soluble coffee production: Arabica holds a major share in terms of coffee cultivation in Mexico, accounting for around 96%, on the other hand, Robusta is accounted to hold a share of around 3 to 4%. Due to the enhanced consumption of soluble or instant coffee in the country, significant efforts are made by the government and coffee sector to increase robusta production. A planned Nestle coffee processing plant in Veracruz was announced by the government in December 2018. The 154 million USD industry was the first large investment recorded and also promised to create around 10,000 job opportunities.

In 2016, it was observed that over 40% of robusta was produced in Mexico, and since then, the country raised its robusta production almost three-time from around 200,000 60 kg bags to more than 700,000 60 kilo bags for the time period 2017-2018. It was however reported that from 1992-2016, the country enhanced its imports of Robusta coffee to produce soluble coffee for consumption. At present, around 1.4 kg of coffee per year in the form of ground or soluble coffee is consumed by an inhabitant of Mexico.

COVID-19 SCENARIO

The Mexico instant coffee market rose as a result of COVID-19. Restaurants, cafes, tea micro-roasters, and other out-of-home operations have all been harmed by measures such as social separation and lockdowns. Nonetheless, the present trend toward online purchases for consumption at home is forcing retailers, roasters, and consumers to adjust to this new reality. As a result, this factor boosts the global consumption of instant coffee and tea. As a result, demand for instant tea and coffee has increased in 2020, resulting in increased retail instant tea and coffee sales.

Segmentation:

By Type

• Freeze-Dried Instant Coffee
• Spray-Dried Instant Coffee

By Distribution Channel

• Offline
• Retail
• Food Services
• Online

By Province

• Chiapas
• Veracruz
• Puebla
• Oaxaca