Enhancements in capsule technology to boost sales in the coffee market in Mexico through 2020

Renewable energy


Coffee in Mexico: Key market research findings

  • Increasing demand for RTD coffee drives market growth
  • Instant coffee accounts for majority of the market’s revenue
  • Key vendors – Grupo LALA, Nestle, Sabormex, and Sigma Alimentos

Technavio’s market research analysts predict the coffee market in Mexico to grow at a CAGR of almost 3% between 2016 and 2020. The rise in demand for ready-to-drink (RTD) coffee in the region is the driving force behind the growth in this market. People are shifting towards RTD coffee and tea due to the increasing awareness about health concerns associated with sugared carbonated soft drinks. Coffee is becoming widely popular as an instant source of energy and a concentration booster owing to its caffeine content. Factors such as urbanization and the resultant hectic lifestyles are expected to augment the demand for RTD coffee in Mexico during the forecast period.

The new market research report from Technavio presents a breakdown and analysis of the coffee segments based on the type.

“Mexico has been witnessing a high demand for single-serve coffee pods in the recent past. Convenience, the increasing per capita consumption, consistency in taste and quality, and the availability of different varieties and flavors are some of the reasons spurring this increase in the demand for single-serve coffee pods. The demand for single-serve coffee pods arises for both, at-home and out-of-home purposes. Besides, enhancements in capsule technology such as improved shelf life is expected to boost the demand for single-serve pods,” says Vijay Sarathi, Lead Analyst, Food & Beverages, Technavio Research.

During 2015, the instant coffee segment dominated the coffee market in Mexico by accounting for almost 59% of the market space in terms of revenue. The convenience brought about by instant coffee is the primary driver for growth in this segment. Instant coffee enables consumers to prepare coffee effortlessly at home. Furthermore, the shelf life of instant coffee is comparatively longer as compared to roasted and ground coffee. Some popular instant coffee brands in the Mexico are Nescafé and Jacobs.

The key vendors in the coffee market in Mexico include Grupo LALA, Nestle, Sabormex, and Sigma Alimentos. The coffee market in Mexico is highly fragmented owing to the presence of numerous small, medium, and large vendors, including international and regional players. The providers in this market compete on the basis of product differentiation, portfolio, and pricing to gain maximum market shares during the forecast period. The intense level of competition among the vendors has resulted in an increased number of mergers and acquisitions, wherein smaller entities are being acquired by, or merged with, major players.

A more detailed analysis is available in the Technavio report, Global Coffee Market in Mexico 2016-2020.

We can customize reports by other regions and specific segments upon request.

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