Hot Coffee Consumption to Drive Latin America Hot Beverages Market: Ken Research - PowerPoint PPT Presentation

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Hot Coffee Consumption to Drive Latin America Hot Beverages Market: Ken Research

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Coffee consumption is a widespread culture in Latin America and since then has been continuing as a traditional practice. Like in Colombia, the coffee tradition exists for more than a century. However, past decade has shown increased sophistication on part of consumers which has led to specialized coffee products along with special stores. – PowerPoint PPT presentation

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Title: Hot Coffee Consumption to Drive Latin America Hot Beverages Market: Ken Research


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Hot Coffee Consumption to Drive Latin America Hot
Beverages Market Ken Research
2
Ken Research announced its latest publication on,
Hot Coffee Consumption Volume and Growth
Forecast to 2021-Latin America, offer insights
on the changing trends and key issues within the
Latin American Hot Coffee market. The publication
includes an insightful analysis of volume (M
liters) and growth (Y-o-Y) trends, consumer
behavior, packaging trends, leading players and
distribution trends within Latin American Hot
Coffee market. The analysis of the aforementioned
trends has been done across seventeen individual
countries in Latin America Argentina, Bolivia,
Brazil, Chile, Colombia, Costa Rica, Ecuador, El
Salvador, Guatemala, Honduras, Mexico, Nicaragua,
Panama, Paraguay, Peru, Uruguay, and Venezuela.
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Brief Overview of the Hot Coffee Market in Latin
America Further segmentation of the hot drink
beverages category under the non-alcoholic
drinks, provides for one of the most trendy and
popular category among consumers i.e. Hot Coffee.
Over the time, the global hot coffee market has
shown robust growth in sales on account of
changing consumer tastes and the coffee becoming
more and more affordable to every class in the
society. The same scenario has been prevalent in
Latin America as well. Latin America is one of
the powerhouses of coffee production worldwide
and also it is one of the regions with highest
economic growth worldwide (2005-2010) that aided
the coffee sales. Taking into account the
production side, Brazil is the largest producer
of coffee in the world, Colombia being the fourth
largest producer in the world. In Latin America,
coffee contribute to 2/3rd of hot drink
consumption except in one two countries i.e.
Chile and Bolivia where tea leads the market.
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Last decade in Latin America has seen tremendous
growth in coffee consumption due to increased
number of middle class families which led to
entrance of specialty coffees and specialised
coffee stores as well. This in turn triggered
increased out of home coffee consumption which
accounts about 42 of total coffee consumption
now. Also consumption of high quality coffee has
increased, reason being growth in dynamism of
market, growing methods of brewing and
development of origin. In Mexico there has been
significant growth in premium coffee market which
has led to growth in chains like Nespresso, Juan
Valdez etc. Other markets in Latin America having
less sophisticated coffee consumption are tending
towards diversification of instant coffees due to
their practical nature. Key Factors Driving
Growth in Latin Americas Hot Coffee Market Over
the years, the market for Hot Coffee market has
been posting positive growth on account of
various factors. While one set of factors have
played its role in increasing hot coffee
consumption, the other set of factors have
encouraged domestic and international coffee
producers to expand their business activities in
Latin America in a strategic way to reap maximum
benefits. Some of the major growth driving
factors for the Hot Coffee market include
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  • Coffee consumption is a widespread culture in
    Latin America and since then has been continuing
    as a traditional practice. Like in Colombia, the
    coffee tradition exists for more than a century.
    However, past decade has shown increased
    sophistication on part of consumers which has led
    to specialized coffee products along with special
    stores.
  • Increasing middle class in the region, with about
    87 million families whose income was between USD
    10,000 and USD 45,000 a year in 2014, has created
    a market with greater willingness to pay for
    added-value products.
  • Rising purchasing power along with strong
    economic growth has encouraged consumers to trade
    up to premium quality products. Consequently
    leading to innovation of alternative brewing
    methods.
  • The busy lifestyles of consumers have made them
    more inclined towards ready-to-drink sources of
    energy and concentration. Coffee serves this
    purpose and hence is in demand.
  • Café Culture in malls and other public places
    have led to their broad and easy availability and
    hence also increasing their popularity leading to
    even more consumer demands.

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  • Coffee producers business strategies, especially
    targeting the young ones, have also contributed
    in direct and indirect ways to the expansion of
    the Latin American hot coffee market. Directly by
    expanding their product base through innovation
    and launch of new products as well as through
    targeted marketing, while indirect effect is
    through price competition among producers leading
    to lower prices and hence increasing demand for
    coffee.
  • Latin American Hot Coffee Market Prospects
  • Over the review period (2010-2015), Latin America
    has been the fastest growing hot drinks market in
    the world after Asia Pacific with coffee
    capturing a significant share i.e. two-third of
    the hot drinks consumption. Over the forecast
    period (2016-2021), on account of positive
    economic outlook and dynamism of consumer
    preferences for coffee especially towards the
    convenient instant coffee, the market for Hot
    Coffee in Latin America is expected to grow with
    a CAGR range of 2-7 in different constituting
    countries of the region and dominate the hot
    drinks market.

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  • Brazil is expected to post the largest value
    growth in coffee in the world. Leading brands
    will continue targeting the young population
    through innovative products and packaging type as
    well as investing huge in strategic marketing.
    The market penetration is also expected to
    increase to every segment of the society and
    region. Two key factors among the various driving
    factors, i.e. increasing consumer sophistication
    and growing brewing methods are anticipated to
    shape the market outlook.
  • Countries Covered
  • Argentina
  • Bolivia
  • Brazil
  • Chile
  • Colombia
  • Costa Rica
  • Ecuador

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  • El Salvador
  • Guatemala
  • Honduras
  • Mexico
  • Nicaragua
  • Panama
  • Paraguay
  • Peru
  • Uruguay
  • Venezuela
  • To know more on coverage, click on the link
    below
  • https//www.kenresearch.com/food-beverage-and-toba
    cco/non-alcoholic-beverages/hot-coffee-consumption
    /32017-11.html

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Related Reports https//www.kenresearch.com/food
-beverage-and-tobacco/non-alcoholic-beverages/hot-
coffee-consumption/32046-11.html https//www.kenr
esearch.com/food-beverage-and-tobacco/non-alcoholi
c-beverages/hot-coffee-consumption/32166-11.html
Contact Ken Research Ankur Gupta, Head
Marketing Communications query_at_kenresearch.com
91-124-4230204
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