Brazilians Brew Less: Coffee Consumption Declines in World’s Second-Largest market
SÃO PAULO,Oct 26 - A growing number of Brazilians are reducing their coffee intake,a trend revealed in a new study that signals a potential shift in consumption patterns within the world’s second-largest coffee market. The research, conducted by market analysis firm NielsenIQ, indicates a decline in regular coffee drinkers across various demographics, driven primarily by health concerns adn rising costs.
The shift comes as Brazil, traditionally a nation synonymous with coffee, grapples with economic pressures and increasing awareness of the potential health impacts of caffeine. While coffee remains deeply ingrained in Brazilian culture,the study highlights a growing segment of the population actively seeking alternatives or moderating their consumption – a development with notable implications for both domestic producers and global coffee markets. NielsenIQ data shows a 2.3% decrease in the number of people drinking coffee daily in the first half of 2023 compared to the same period last year.
According to the NielsenIQ study, approximately 57.5% of Brazilian households regularly consumed coffee in the first half of 2023, down from 59.8% in the same period of 2022. The decline is notably noticeable among younger consumers aged 18-24, with a 5.8% reduction in daily coffee drinkers. Researchers attribute this trend to a heightened focus on wellness and a preference for beverages perceived as healthier, such as teas and juices.
“Consumers are becoming more mindful of their health and are actively seeking options that align with their lifestyle choices,” explained Juliana Nakamura, a NielsenIQ analyst involved in the study. “This is leading to a diversification of beverage consumption, with coffee facing increased competition from alternatives.”
Rising coffee prices are also contributing to the decline. Brazil experienced significant inflation in 2022 and 2023, impacting the affordability of everyday goods, including coffee. The price of roasted and ground coffee increased by an average of 18% in the past year, according to the Brazilian Institute of Geography and Statistics (IBGE).
The Brazilian Coffee Exporters Federation (Cecafé) acknowledged the trend but emphasized that overall coffee consumption remains considerable. Cecafé data indicates that Brazil consumed 22.3 million 60-kg bags of coffee in 2022, a figure still among the highest globally. however, Cecafé representatives stated they are closely monitoring the evolving consumer preferences and are working with producers to adapt to the changing market dynamics.
The study’s findings raise questions about the long-term sustainability of Brazil’s coffee culture and the potential impact on the contry’s robust coffee industry, which is a major source of employment and export revenue. Analysts predict that producers will need to focus on innovation,quality,and sustainability to maintain their market share in the face of evolving consumer demands.
