Ready-to-Drink (RTD) Coffee & Tea - Brazil

The Ready-to-Drink (RTD) Coffee & Tea market in Brazil has been experiencing significant growth in recent years.

Customer preferences: Brazilian consumers have shown a growing preference for convenience and on-the-go products, which has fueled the demand for RTD coffee and tea. These beverages offer a quick and easy solution for busy individuals who want to enjoy their favorite drinks without the need for brewing or steeping. Additionally, the younger generation in Brazil, who value convenience and are always on the move, have been driving the demand for RTD coffee and tea.

Trends in the market: One of the key trends in the RTD coffee and tea market in Brazil is the increasing popularity of premium and specialty products. Consumers are becoming more discerning and are willing to pay a premium for high-quality and unique flavors. This trend is driven by the desire for a more indulgent and elevated drinking experience. As a result, companies in the market are introducing innovative flavors and blends to cater to this demand. Another trend in the market is the rising interest in healthier and functional beverages. Brazilian consumers are becoming more health-conscious and are seeking beverages that offer functional benefits, such as improved energy, focus, or relaxation. This has led to the introduction of RTD coffee and tea products that are infused with natural ingredients like herbs, botanicals, and vitamins.

Local special circumstances: Brazil is known for its coffee culture, and the consumption of coffee is deeply ingrained in the Brazilian lifestyle. This cultural affinity for coffee has translated into a strong market for RTD coffee in the country. Brazilians appreciate the rich and bold flavors of coffee, and the convenience of RTD coffee allows them to enjoy their favorite beverage anytime, anywhere. Additionally, Brazil has a large and growing young population, which is a key target market for RTD coffee and tea. The younger generation in Brazil is more open to trying new products and flavors, and they value convenience and efficiency in their daily lives. This demographic shift has created a favorable environment for the growth of the RTD coffee and tea market.

Underlying macroeconomic factors: The Brazilian economy has been recovering from a period of recession, which has led to increased consumer spending power. As a result, consumers are more willing to spend on discretionary items like RTD coffee and tea. The improving economy has also led to an increase in disposable income, allowing consumers to indulge in premium and specialty RTD coffee and tea products. Furthermore, the growing urbanization in Brazil has contributed to the growth of the RTD coffee and tea market. Urban dwellers have busy lifestyles and are constantly on the move, making them ideal consumers for convenient and portable beverages. The increasing urbanization rate in Brazil has created a larger consumer base for RTD coffee and tea products. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Brazil is experiencing growth due to customer preferences for convenience and on-the-go products, the rising popularity of premium and specialty beverages, the increasing interest in healthier and functional drinks, the cultural affinity for coffee, the large and growing young population, the recovering economy, and the growing urbanization rate.

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.