Ready-to-Drink (RTD) Coffee - Brazil

The Ready-to-Drink (RTD) Coffee market in Brazil has experienced significant growth in recent years, driven by changing consumer preferences and local special circumstances.

Customer preferences: Brazilian consumers have increasingly embraced the convenience and variety offered by RTD coffee products. With busy lifestyles and a growing preference for on-the-go consumption, RTD coffee provides a convenient and portable option for caffeine lovers. Additionally, the younger generation in Brazil, which is known for its affinity for coffee, is particularly drawn to the unique flavors and innovative packaging of RTD coffee products.

Trends in the market: One of the key trends in the RTD coffee market in Brazil is the rise of premium and artisanal offerings. Consumers are willing to pay a premium for high-quality and specialty RTD coffee products that offer a unique and indulgent experience. This trend is driven by the increasing disposable income of Brazilian consumers and their desire for a premium coffee experience. Another trend in the market is the growing focus on health and wellness. As consumers become more health-conscious, they are seeking RTD coffee products that are low in sugar, fat, and calories. Manufacturers are responding to this demand by introducing healthier and functional variants of RTD coffee, such as those enriched with vitamins and minerals or made with natural ingredients.

Local special circumstances: Brazil is known for its rich coffee culture and is one of the largest coffee producers in the world. This strong coffee culture has influenced consumer preferences and has created a favorable environment for the growth of the RTD coffee market. The availability of high-quality coffee beans and the expertise of local coffee producers have contributed to the development of a diverse range of RTD coffee products in Brazil.

Underlying macroeconomic factors: The growth of the RTD coffee market in Brazil is also supported by favorable macroeconomic factors. Brazil has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending power. This has allowed consumers to indulge in premium and higher-priced RTD coffee products. Additionally, the country's large population and urbanization have created a vast consumer base for RTD coffee manufacturers to target. In conclusion, the Ready-to-Drink (RTD) Coffee market in Brazil is developing due to changing consumer preferences, such as the demand for convenience and premium experiences, as well as local special circumstances, including Brazil's strong coffee culture. The market is also supported by favorable macroeconomic factors, such as economic growth and increasing consumer spending power. As these trends continue to shape the market, it is expected that the RTD coffee segment in Brazil will continue to grow and diversify in the coming years.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.