Brazilian coffee market is an attractive environment for new investments
Coffee consumption in Brazil has continued to rise in recent years, despite the slow economy, according to a report by Rabobank.
Improving economic conditions are expected to accelerate this trend – over the next five years, Brazil is expected to generate two-thirds of total Latin American coffee consumption growth. Brazil is still recovering from its recent economic recession, which has affected parts of the specialty coffee market. But there is a positive outlook for the Brazilian economy which may stimulate the sector.
In terms of value, Brazil should see the largest increase of coffee sales in Latin America. From 2019 to 2024, retail value is expected to reach US$3.4bn, which represents 66% of total growth in Latin America.
“The specialty coffee market continues to show solid growth,” according to Rabobank data analyst, Guilherme Morya. “The steady stream of new product launches and innovations should help this segment to perform very well. At-home or out-of-home, Brazil has a good landscape for coffee consumption, especially for premium blends.
“We believe a recovering economy, increasing foreign coffee investment and growing consumer awareness/appreciation will all work together to grow the value of the Brazilian coffee market. As this virtuous cycle continues, it should attract even more investment into the consumer coffee industry in Brazil.”