The Peruvian coffee consumer
Coffee consumption trends: the Peruvian case.
Coffee is a product that has managed to be sold successfully on a global level due to the possibility that the consumer can combine the consumption of the “place where it is taken” and the choice of the type, origin, roasting and grinding of coffee. This has been the case since it began to be sold in a container with lifestyle signifiers.
Global initiatives to promote coffee consumption have contributed substantially to increasing consumer awareness of the link between quality and type of coffee. This has led small vendors to take initiatives to participate in their local market based on a high-quality format such as fresh coffee, the one that conscientious consumers seek. In this way, opportunities are created in your national market. If you wanna buy uk best quality you cannot miss this website. It must make you feel regret it!
The consumer creates a force in the market that drives the sale of different types of coffee. For this reason, it has become necessary to identify what the types of buyers are. The trend of segmentation by income level and age has become popular in the global industry.
Experts recommend that producing countries improve the reputation of their individual origins and hone their marketing skills, because for countries like Peru, repliche orologi esatti it is key for sellers to know how to offer the coffee in the presentation that the type of buyer is looking for.
More than 300 brands and more than 450 presentation formats compete in the Peruvian coffee market. Of these brands, only 45 reach at least 48,000 households, which indicates that few brands have a consolidated presence. Coffee sellers need to improve their consumer offerings.
The fresh coffee segment offers an attractive business opportunity in the country, where the trend of increasing consumption of this type of coffee has led the main local fresh coffee brands to increase the value of their sales in 12 million soles. the retail channel (Euromonitor 2020).
Today, Peruvian consumers buy fresh coffee in its ground presentation because they have time to prepare it at home and are more aware of the unique sensory characteristics that the national bean can express in their cup. Additionally, they consider its size, price and value proposition.
So, the first step for a successful sale of this type of coffee would be to identify what type of consumers appreciate the characteristics of this coffee format, how much they spend and what are their motivations to buy the product.
In one year, households in the city of Lima consume 22 more cups of ground coffee than the cups consumed by households nationwide. They also spend 53 soles more than the estimated amount for households in Peru. Similarly, the northern region drinks more cups and spends more than the national average. Cities with high population density have adopted coffee consumption and are consolidated as the main markets. However, there is growth in all regions.
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In Lima and in the northern region there is a broader supply of ground coffee on the market. Therefore, family members who make purchases have more opportunities to take the product home. They are more exposed as there are more cafeterias and roasteries; in addition to the fact that the proximity to production areas allows a continuous supply.
On the other hand, ground coffee has growth opportunities in the Central East and South region through the development of strategies that expose this type of coffee more in local points of sale. With this, continuity can be generated in the shopping experiences of consumers in these locations and influence their decision to repeat this experience.
In Peru, ground coffee is a drink that is mainly prepared to share with the family: the coffee maker drop by drop has become a memory. The value of the consumption of this product is higher in households composed of 5 or more people, mainly in middle-class families, that is, of socioeconomic level C (Kantar, 2020).
The current picture is different from that of a few years ago, when the value of ground coffee was higher in the upper middle class. It seems that barriers have been overcome, since the value of the product's consumption has expanded in the segment of households with a medium income level. This would indicate that people with lower incomes now make up the space where the consumption of ground coffee can be promoted. It is a part of the market that has not yet been explored, but since coffee is an aspirational product, sellers can come up with small formats and more accessible prices: it is a healthy taste and is seen better every time.
It should be noted that there is a greater value and volume of ground coffee consumption in households without children. These middle-income households are a group with access to the diversity of presentations of ground coffee, that is, they can change where they buy it and how often they buy it.
For this group, sellers adapt the concept of product packaging, which can range from traditional to innovative or "premium version". The visual quality of the image and material of the packaging that contains the ground coffee projects the superior quality that justifies the higher price they pay, in addition to guaranteeing the care of the sensory properties of the product, which is essential.
Global segmentation trends by socioeconomic level and age apply to the national context. IPSOS (2020) recommends knowing them to develop effective sales strategies in the current context.
The younger generations (Y and Z) together account for 49%. As this group enters or improves its position in the Peruvian labor market, it would tend to buy coffee in high-value formats such as ground coffee. It's a common indulgence for them during telework.
By identifying the characteristics of the members that make up Peruvian households that consume ground coffee and their purchasing behavior, sellers find an opportunity to increase or strengthen the position of their product brands. There are spaces in the population to increase the cups of ground coffee that Peruvian families drink daily and to expand the options of type of coffee according to the occasion of consumption. Afternoon coffee can be different from morning coffee and different when sharing. Knowing more about these characteristics and consumer behaviors is important to seize the opportunity they represent. "I drink Peruvian coffee" is a phrase that we must promote. This coffee has begun to diversify its options and thereby boost the local economy, both in producing areas and large cities. The wind is blowing in favor of increased consumption, and it is important that policy proposals and industry actions encourage these processes and do not restrict consumers.
This year we will work on the National Plan for the Promotion of Coffee Consumption in order to promote the consumption of specific categories of coffee and encourage more Peruvian families to increasingly discern the qualities of this flagship drink, strengthening the country's coffee culture .
The National Plan for the Promotion of Coffee Consumption is part of the Alliance for Sustainable and Competitive Coffee project, executed by the Peruvian Chamber of Coffee and Cacao and the National Coffee Board as part of the SeCompetitive Program of the SECO Swiss Cooperation, in collaboration with Helvetas Peru and the Swiss Embassy in Peru.
SeCompetitivo Program Facebook: https://www.facebook.com/SeCompetitivo/
Facebook of the Peruvian Chamber of Coffee and Cocoa: https://www.facebook.com/camcafeperu
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References:
- Grabs, J. and Ponte, S. 2019.The Evolution of power in the global coffee and production network. Journal of Economic Geography. (19), 4: 803–828, https://doi.org/10.1093/jeg/lbz008
- Hanisch, M.2009. Global Cooperation Linkages? - The Challenge to Harmonize local with global economics. Paper to be presented at the United Nations Expert Group Meeting on Cooperatives. New York. Recovered from https://www.un.org/esa/socdev/egms/docs/2009/cooperatives/Hanisch.pdf
- Hernandez-Aguilera, J.N .; Gómez, M.I .; Rodewald, A.D .; Rueda, X .; Anunu, C .; Bennett, R .; van Es, H.M. 2018. Quality as a Driver of Sustainable Agricultural Value Chains: The Case of the Relationship Coffee Model. Bus. Strateg. Environ. 27 (2), 179-198. Recovered from https://doi.org/10.1002/bse.2009
- Ponte, S. 2002. The “Latte Revolution” Regulation, Markets and Consumption in the Global Coffee Chain. Elsevier Journal. Great Britain. Recovered from https://doi.org/10.1016/S0305-750X(02)00032-3
- Norka Peralta. (May 31, 2019). The volume and value of coffee consumed in households is growing. El Comercio. Recovered from https://elcomercio.pe/economia/peru/crece-volumen-cafe-consume-hogares-noticia-640337-noticia/?ref=ecr
- Kantar. 2020. Consumption of ground coffee in Peruvian homes.
- Euromonitor. 2020. Consumption of hot beverages in Peru.
- IPSOS Peru. 2020. Generations in Peru.