Ready-to-Drink (RTD) Coffee - Central America

The Ready-to-Drink (RTD) Coffee market in Central America has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the RTD Coffee market in Central America is the changing preferences of consumers. With the increasing busy lifestyles, consumers are looking for convenient and on-the-go options for their coffee fix. RTD Coffee provides a quick and easy solution for consumers who want to enjoy their favorite beverage without the hassle of brewing it themselves. Additionally, the younger generation is more open to trying new and innovative flavors, which has further fueled the demand for RTD Coffee in the region.

Trends in the market: The RTD Coffee market in Central America is witnessing several key trends. Firstly, there is a growing demand for healthier and more natural options. Consumers are becoming more health-conscious and are looking for RTD Coffee products that are low in sugar, use natural ingredients, and are free from artificial additives. This trend is driving the development of new products that cater to these preferences. Another trend in the market is the increasing popularity of cold brew coffee. Cold brew coffee has a smoother and less acidic taste compared to traditional hot brewed coffee, which appeals to a wide range of consumers. This trend has led to the introduction of a variety of cold brew RTD Coffee products in the market.

Local special circumstances: Central America is known for its coffee production, with countries like Costa Rica, Guatemala, and Honduras being major exporters of coffee beans. This local special circumstance has contributed to the growth of the RTD Coffee market in the region. Consumers in Central America have a strong affinity for coffee and are familiar with the different flavors and varieties of coffee. This cultural connection to coffee has made the region an ideal market for RTD Coffee products.

Underlying macroeconomic factors: The growing middle class and increasing disposable income in Central America have also played a role in the development of the RTD Coffee market. As more people have the means to spend on convenience products, the demand for RTD Coffee has increased. Additionally, the expanding urbanization in the region has led to a greater need for on-the-go options, further driving the growth of the RTD Coffee market. In conclusion, the Ready-to-Drink (RTD) Coffee market in Central America is experiencing growth due to changing customer preferences, including the desire for convenience and healthier options. The market is also influenced by local special circumstances, such as the region's strong coffee culture. The underlying macroeconomic factors, such as the growing middle class and increasing disposable income, have also contributed to the market's development.

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.