TOPIC:WORLD-BRAZIL

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.