Coffee industry expects to grow in 2015

The coffee industry is expected to grow 2% this year in Brazil. Growth has been especially strong in the single-serve coffee market, where sales are expected to go up 40% to 50%, according to the Brazilian Association of Coffee Industry (ABIC). According to the association, coffee is consumed in 98.2% of Brazilian homes.

Brazil is the leading coffee producing and exporting country as well as one of the top markets, second only to the United States. Industry reports show that domestic consumption of coffee in Brazil, which had declined 1.23% in 2013, recovered 1.24% between November 2013 and October 2014, producing 20.333 million bags (a measure generally equivalent to 60 kg of coffee). The industry expects a 2% growth in 2015.

“The industry is experiencing technological upgrades, and investment in recent years has grown significantly,” ABIC's Executive Director Nathan Herskowicz told Agência Brasil on the National Coffee Day, celebrated Sunday (May 24). “Surveys revealed a 54% growth in 2014 compared to 2013,” he added.

He said the single-serve coffee industry has received significant investment. São Paulo and Southern states account for 53% of the sales, and businesses in this industry are expecting the market to grow in the upcoming ten years.

The outlook is consistent with two recently announced investment plans for the construction of capsule plants in the city of Montes Claros, Minas Gerais, totaling investments of $93 million.

According to Herskowicz, despite the cautious moment amid the country's current economic scenario, no downturns are expected for the coffee market overall. “[The coffee industry] shares the concerns raised by the economic outlook, but since coffee is a daily-consumption and low-cost product, economic fluctuations don't impact the sector significantly.”

Translated by Mayra Borges