Brazil Instant Coffee Market Forecasts from 2023 to 2028

The Brazil instant coffee market is predicted to grow at a CAGR of 4.71% from US$1, 226.469 million in 2021 to US$1, 692.916 million by 2028.

The market growth is due to the growing population and their need for convenient items. Further, to meet the needs of the expanding middle-class population, regional businesses are developing fresh, cutting-edge products. The abundance of instant coffee in pouch form available in the stores shows a significant market demand among residents. Furthermore, the Brazil instant coffee market has strong growth prospects throughout the projected period because coffee is Brazil's second-most popular beverage.

Increasing Consumption of Instant Coffee

The increasing consumption of instant coffee in the nation is propelling Brazil's instant coffee market size. According to USDA data, domestic coffee consumption reached 23.53 million 60 kg coffee bags for the Marketing Year, MY 2019/2020, of which 22.35 million are 60 kg bags of roasted or ground coffee and 1.18 million are 60 kg bags of soluble coffee. This is a 1.5% increase over the prior marketing year. Furthermore, according to the World Coffee Association, Brazil is the world's second-largest domestic coffee consumer and the country with the greatest domestic consumption among coffee-producing nations. These certain factors are expected to drive Brazil instant coffee market growth.

Growing Demand for Conveniently Coffee

Instant coffee has grown in popularity in recent years due to its mobility and convenience thus boosting the Brazil instant coffee market. Consumption of instant coffee products is rising among millennials and professionals because they offer benefits including energy, freshness, and antioxidants. Brazilian consumers are increasingly turning to coffee beverages as a better substitute for sugary fizzy drinks as the emphasis on health and well-being grows. In addition to the classic coffee flavors, market players are adding add fresh and distinctive flavors like floral undertones and other unprocessed flavors to cater to younger customers seeking out novel tastes. According to theNational Supply Company (Companhia Nacional do Abastecimento (CONAB), Brazil's coffee industry generated USD 11.81 billion in revenue in 2022. Additionally, coffee production reached 28.9 bags per hectare in 2023, up from the 27.7 bags per hectare observed in 2022 resulting in high demand for instant coffee in Brazil.

Increasing Retail Sales of Instant Coffee

The easy availability of coffee in malls and retail stores is opening the doors for higher coffee consumption in the country thereby propelling the Brazil instant coffee market. According to the Brazilian Retail and consumer society of the SBVC in 2021, (Sociedade Brasileira de Varejo e Consumo), retail and consumer products are a USD 600 billion market which accounts for almost 20% of the country’s gross domestic product. Retail sales in Brazil have been increasing year of year and are comprised of approximately 14, 500 convenience stores, 1, 220 hypermarts, more than 8, 300 supermarkets that are hard to dismiss, and more than 5, 300 discount stores. The increase in retail stores and increasing demand for coffee are the two main factors pushing the instant coffee market in the country.

Minas Geria Province is anticipated to grow Significantly

The Minas Geria province of Brazil is expected to hold a significant share of the Brazil instant coffee market. An increase in the demand for coffee from several Brazilian households in Minas Gerais coupled with rising per capita coffee consumption presents favorable conditions for the market till the forecast period. Factors supporting the production of coffee in different areas of Minas Gerais include the hot & humid climate of the region in addition to the rich soil that reflects the perfect combination for the growth of coffee plants. The main producing regions within Minas Gerais include Sul de Minas, responsible for around 30% of the country’s coffee production among others.

Key Market Developments

• In August 2022, Verve Coffee Roasters launched three different flavors in the market, all these flavors were launched in retail stores and were readily available for people to buy.
• In June 2022, ofi entered into a partnership with GEA to expand instant coffee production in Brazil. Two production facilities of freeze-fried and spray-dried instant coffee for oalm food ingredients in Espirito Santo.

Segmentation:

By Type

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

By Distribution Channel

• Offline
• Retail
• Foodservice
• Online

By Province

• Minas Gerais
• Sao Paulo
• Bahia
• Others