Ready-to-Drink (RTD) Coffee - Cuba

The Ready-to-Drink (RTD) Coffee market in Cuba is experiencing significant growth and development in recent years.

Customer preferences: In Cuba, there is a growing demand for convenience and on-the-go products, which has contributed to the popularity of ready-to-drink coffee. Consumers are increasingly seeking beverages that are quick and easy to consume, especially in urban areas where people lead busy lifestyles. The younger generation, in particular, is driving this trend as they are more open to trying new and innovative products.

Trends in the market: One of the key trends in the RTD coffee market in Cuba is the increasing availability and variety of products. Domestic and international companies are introducing new flavors and packaging formats to cater to the diverse preferences of consumers. This has led to a wider range of options for consumers to choose from, including different coffee blends, sweetened and unsweetened varieties, and even functional beverages that offer additional health benefits. Another trend in the market is the emphasis on premium and high-quality ingredients. Cuban consumers are becoming more discerning and are willing to pay a premium for products that offer superior taste and quality. As a result, companies are focusing on sourcing high-quality coffee beans and using premium ingredients to differentiate their products in the market.

Local special circumstances: Cuba has a strong coffee culture, with a long history of coffee production and consumption. Coffee is deeply ingrained in Cuban society and is considered a staple beverage. This cultural affinity for coffee has created a favorable environment for the growth of the RTD coffee market. Consumers are already familiar with the taste and aroma of coffee, making them more receptive to ready-to-drink coffee products. Furthermore, the tourism industry in Cuba is booming, with a growing number of international visitors each year. This has created a significant market for RTD coffee, as tourists often seek familiar and convenient options when it comes to beverages. The availability of RTD coffee products in hotels, restaurants, and convenience stores caters to the needs of these tourists and provides them with a taste of Cuban coffee culture.

Underlying macroeconomic factors: The improving economic conditions in Cuba have also contributed to the development of the RTD coffee market. As the country experiences economic growth and rising disposable incomes, consumers have more purchasing power to spend on discretionary items such as ready-to-drink coffee. This has created a favorable market environment for companies to invest in product development and marketing activities. Additionally, the government's efforts to attract foreign investment and promote entrepreneurship have led to the entry of international coffee companies into the Cuban market. These companies bring with them their expertise and resources, which further fuel the growth of the RTD coffee market. The collaboration between domestic and international players has resulted in increased product innovation and market competition, benefiting both consumers and the industry as a whole. In conclusion, the Ready-to-Drink (RTD) Coffee market in Cuba is experiencing growth and development due to changing customer preferences, the introduction of new products, the cultural affinity for coffee, the booming tourism industry, improving economic conditions, and the entry of international players into the market. These factors have created a favorable environment for the expansion of the RTD coffee market in Cuba.

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.