Brazilian RTD Coffee Market

Brazil RTD Coffee Market Analysis

The Brazil Ready-to-Drink Coffee Market is expected to register a CAGR of 2.8% during the forecast period.

• Brazil is one of the largest producers of coffee beans in the world. According to National Supply Company (Portuguese: Companhia Nacional do Abastecimento (CONAB)), in 2022, the revenue of coffee production in Brazil was USD 11.81 billion. Brazil is one of the largest coffee-producing countries in the world, and coffee consumption is deeply ingrained in Brazilian culture. As a result, the country has a high demand for coffee beverages.
• Ready-to-drink coffee beverages have become increasingly popular in recent years due to their convenience and portability. These types of beverages are often packaged in containers such as cans or bottles, making them easy to consume on the go or while traveling. Ready-to-drink coffee products provide energy, freshness, and antioxidant benefits, so their consumption is increasing among millennials and working people.
• Additionally, the availability of ready-to-drink coffee products across various distribution channels has played a significant role in driving the market's growth. Supermarkets and retail stores are the primary channels for the distribution of these products in Brazil, as they allow manufacturers to reach a wide consumer base. Convenience stores have also become a popular distribution channel, particularly in urban areas where consumers are always on the go and looking for quick and easy options.
• In recent years, the growth of e-commerce has further expanded the reach of ready-to-drink coffee products in Brazil. With the increasing adoption of online shopping, consumers can now easily purchase their favorite coffee beverages from the comfort of their homes and have them delivered to their doorstep. This has opened up new opportunities for manufacturers to reach consumers in remote areas where traditional distribution channels may not be as accessible.
• With an increasing emphasis on health and wellness, many consumers in Brazil are turning to coffee beverages as a healthier alternative to sugary carbonated drinks. To cater to this growing market of health-conscious consumers, many coffee beverage manufacturers are innovating and diversifying their product offerings. In addition to traditional coffee flavors, they incorporate new and unique flavors, such as floral notes and other natural flavors, to appeal to younger consumers looking for new taste experiences. These innovations have helped drive growth in the ready-to-drink coffee market in Brazil, as more consumers opt for these products over highly processed drinks.
• However, increasing prices of coffee beans in the market are expected to restrain the market growth in the country. Over the medium term, the market is expected to grow owing to increasing innovations and consumer demand for convenience products.

Brazil RTD Coffee Market Trends

Growing Demand for Ready-to-Drink Beverages and Coffee

• Healthy drinking is becoming a major trend among Brazilian consumers, and that ready-to-drink coffee is gaining popularity due to its proven health benefits. It's also good to know that consumers are becoming more aware of the disadvantages of consuming alcoholic beverages and carbonated drinks.
• Various types of ready-to-drink coffee are introduced in the market to serve the vast consumer base spread in South America. There is an increased demand for on-the-go, convenient, ready-to-drink beverages among consumers owing to the country's busy lifestyles and increasing working population.
• According to the Brazilian Institute of Geography and Statistics (Portuguese: Instituto Brasileiro de Geografia e Estatística (IBGE)), the number of employed persons in Brazil reached nearly 98.3 million in the second quarter of 2022. With a large and growing workforce, the demand for convenient and portable options like ready-to-drink coffee beverages is likely to continue increasing in the country. Moreover, the convenience and versatility of these drinks make them an appealing choice for many consumers.

Online Retail Channels hold Largest Market Share

• The availability of ready-to-drink products in different distribution channels like supermarkets, retail stores, and online channels is increasing its demand in the market. Online retail channels, like shopping websites, provide multiple discounts and offers on products. E-commerce websites provide consumers with a wide variety of products and brands, including ready-to-drink coffee beverages, in one convenient place. This makes it easier for consumers to compare different products and prices and make informed purchasing decisions without having to visit multiple stores.
• The convenience of online shopping and home delivery is also a major factor driving the growth of e-commerce in Brazil. With busy working schedules and limited time for shopping, many consumers are opting to purchase products online and have them delivered directly to their homes or offices. This saves them time and effort and allows them to enjoy the convenience of ready-to-drink coffee beverages without having to visit a store or coffee shop.
• E-commerce websites like Amazon, Shopee, and Walmart have become increasingly popular in Brazil, providing consumers easy access to a wide range of products, including ready-to-drink coffee beverages. These websites typically ensure that the products they offer are fresh and within the expiry date, providing consumers with added convenience and peace of mind when purchasing these products online.
• The use of mobile devices is also driving the growth of e-commerce in Brazil, particularly among young consumers who are highly connected and prefer to use mobile devices for online shopping. As a result, the demand for ready-to-drink coffee products is likely to increase further over the medium term, driven by the convenience and portability of these products and the increasing consumption of on-the-go convenience products in the country.

Brazil RTD Coffee Industry Overview

Brazil's Ready-to-Drink (RTD) Coffee Market is fragmented, with regional and global players dominating the market. Some prominent players in the market include Starbucks Corporation, The Coca-Cola Company, PepsiCo Inc., Restaurant Brands Inc (Tim Hortons), and Nestlé SA. The market players are launching new and innovative coffee products to attract young consumers in the country. Additionally, mergers and acquisitions are also strengthening the marketplace of players.

Brazil RTD Coffee Market Leaders

Brazil RTD Coffee Market News

• February 2023: Starbucks Brazil opened three new stores in the Brazilian region. The stores are located at Fortaleza (Ceará), Goiânia and Alexânia (Goiás), and Recife (Pernambuco). Starbucks stores provide a wide range of coffee products, including ready-to-drink coffee beverages.
• August 2022: Verve Coffee Roasters launched a new line of ready-to-drink flash brew oat milk lattes. The products are available in three flavors, i.e., original, chocolate, and honey lavender. The products are available in retail stores and on Amazon.
• July 2021: Starbucks Corporation and Nestle launched ready-to-drink coffee products in the South East Asia, Oceania, and Latin America markets. The different products include Frappuccino and Starbucks Doubleshot. The products are also available on Amazon.