Ready-to-Drink (RTD) Coffee - Paraguay

The Ready-to-Drink (RTD) Coffee market in Paraguay has been experiencing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this development.

Customer preferences: Paraguayans have shown a growing preference for convenience and on-the-go consumption, which has fueled the demand for Ready-to-Drink (RTD) Coffee. The fast-paced modern lifestyle and increasing urbanization have led to a shift in consumer behavior, with more people seeking quick and easy options for their caffeine fix. RTD Coffee provides a convenient solution for those who are constantly on the move and do not have the time to brew their own coffee.

Trends in the market: One of the key trends in the RTD Coffee market in Paraguay is the increasing popularity of flavored and specialty coffee drinks. Consumers are looking for unique and innovative flavors that go beyond the traditional coffee offerings. This trend is driven by the younger generation, who are more adventurous in their taste preferences and are willing to try new and exciting flavors. Another trend in the market is the rising demand for healthier and more natural ingredients in RTD Coffee products. As consumers become more health-conscious, they are looking for products that are low in sugar, artificial additives, and preservatives. This has led to the emergence of RTD Coffee brands that focus on using natural ingredients and offering healthier alternatives to traditional coffee beverages.

Local special circumstances: Paraguay is known for its hot and humid climate, which makes cold beverages more appealing to consumers. RTD Coffee, with its refreshing and chilled nature, is a perfect choice for Paraguayans looking to quench their thirst and get a caffeine boost at the same time. The convenience of RTD Coffee also makes it a popular choice among busy professionals and students who need a quick pick-me-up during the day.

Underlying macroeconomic factors: The growing economy of Paraguay has contributed to the development of the RTD Coffee market. As disposable incomes rise, consumers have more purchasing power to indulge in convenience products like RTD Coffee. Additionally, the increasing urbanization and expansion of the middle class have created a larger consumer base for RTD Coffee companies to target. In conclusion, the Ready-to-Drink Coffee market in Paraguay is experiencing growth due to customer preferences for convenience and on-the-go consumption, the popularity of flavored and specialty coffee drinks, the demand for healthier ingredients, the local climate, and the country's growing economy. These factors have created a favorable environment for RTD Coffee companies to thrive and expand their presence in the Paraguayan market.

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.