Article | Feb 26, 2021
Peruvians try different hot drinks at home
Consumers sensitize their taste for local coffee with higher quality qualities
Peruvians have changed their lifestyle due to restrictions imposed and concerns about leaving home and contracting COVID-19. This change has been accompanied by an increase in domestic consumption of hot beverages; During 2020 the cpc (per capita consumption) increased by 2% in the retail channel, reaching up to 2000 gr.
This would indicate that there are more occasions and new opportunities for the domestic consumption of hot beverages, with small wineries and grocery retail markets now being the main places of purchase. In the 2015-2020 period, the value marketed in the retail channel went from 1,256 to 1,775 (S /. Million).
Source: Euromonitor Passport 2020. Hot Drinks Peru.
Hot beverages comprise the categories of coffee, other hot beverages, and tea. Last year, the sales volume of these products in the retail channel increased 6%, 3%, and 1% respectively.
Within the consumption of hot beverages at home during 2020; coffee had a participation of 20%, its variety in formats and prices for different budgets has made more people consider it a basic family product. There are even those who have begun to consume it to replicate the experience of a cafeteria at home. On the other hand, tea had 8%; not only with classic black tea, but also with green and other fruity or herbal teas, which were consumed as joint stress relievers. The other hot drinks include a wide range of products for different market segments: chocolate-based flavored drinks have been preferred by the young segment, and malt-based drinks or other typical Peruvian plants have been a natural option. for adults concerned about health and well-being. For this reason, their participation was 72%.
The projections to the year 2025 in this dynamic market indicate that the participation of coffee in the consumption of hot beverages at home; would grow at an annual rate (1) of 6%, higher than that of other hot beverages (5%), and tea (3%). Thus, coffee consumption at home would have a total growth of 33% in the next 5 years.
Source: Euromonitor Passport 2020. Hot Drinks Peru
According to Euromonitor data (2020), before the pandemic, the highest purchasing power among the Peruvian urban middle class; It led them to look for new formats, mostly local, of fresh ground coffee; high value presentation, standard and grain version. By increasing your purchases for domestic consumption; These consumers are still willing to explore new products. Therefore, households that consume ground coffee can try up to 8 different brands (2) in a year. By meeting this divergent demand, other brands, in addition to the best known ones, have increased their sales value in the retail channel in the last five years: from 61 to 128 (S / mill.).
Source: Euromonitor Passport 2020. Hot Drinks Peru
(1) Compound Annual Growth Rate
(2) Source: Kantar
More awareness of the variety of coffee formats
A greater involvement of consumers in the coffee culture is beginning to be noticed, since they increased their awareness of the qualities of ground coffee in high-value formats, in addition to the standard presentation and in beans. This is thanks to the initiatives of companies that have provided additional information on its attributes. For this reason, although years of economic uncertainty are expected; It is encouraging for companies to work on innovations and development of new products, since it is expected that by 2025 the value of sales in the retail channel for these products would increase by 46.9% .; with an approximate increase from 105 to 150 (mill. S /.)
Staying more hours at home has not only opened a commercial sale to companies that offer beverages according to new consumption habits, it has also generated an experience of consumption at home that could imply a trend in the long term, since it is working from home is likely to continue while work centers are gradually reactivated. Apart from this, specialty coffee shops, also affected by the pandemic, could benefit from this trend, as there would be more enthusiastic consumers to drink high-quality coffee, which would contribute to the recovery of their businesses.
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 consumers to discern better and better the qualities of coffee.
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 Cacao: https://www.facebook.com/camcafeperu