Consumption
Table of Contents
According to the latest domestic consumption survey released by the Brazilian Coffee Industry Association (ABIC), Brazil’s total domestic coffee consumption for the 2010/11 season is expected to reach 19.5 million bags (of which 18.47 million bags are roasted/ground coffee and 1.03 million bags are instant coffee), an increase of 4% compared to the previous season.
According to the Brazilian Coffee Industry Association, Brazil’s green coffee consumption in the 2009/10 season reached 18.75 million bags, an increase of 4% compared to the previous season (18.03 million bags). Roasted and ground coffee consumption reached 17.73 million bags, while instant coffee consumption stood at 1.02 million bags. This data reflects the growth of the population, per capita consumption, and increased purchasing power, as well as the positive results of the coffee consumption promotion campaign in the domestic market.
ABIC reported that from November 2008 to October 2009, the coffee industry processed 18.39 million bags of green coffee, an increase of 4% compared to the same period last year (17.66 million bags). The per capita consumption in 2009 was approximately 4.65 kg of roasted coffee per person, a 3% increase from the previous year, which is equivalent to coffee consumption in Germany. This data indicates that Brazil’s domestic coffee consumption was not heavily impacted by the global financial crisis in late 2008 and throughout 2009.
ABIC forecasts that total domestic consumption in 2010 will reach 19.31 million bags, an increase of 5% compared to 2009. The average retail price of coffee in December 2009 was 10.49 real/kg, a 2.8% increase compared to the beginning of the year (10.20 real/kg in January 2009). Total sales were estimated at 6.8 million real in 2009 and 7.1 million real in 2010.
According to ABIC, if the domestic market grows steadily, Brazil will achieve its 2004 target of 21 million bags by 2012.
ABIC states that the steady growth in consumption is due to several factors, including:
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Improvement in product quality through initiatives like (1) the “Pure Coffee Brand” in 1989, aimed at recognizing the quality of domestically processed coffee, and (2) the Coffee Quality Program (PQC) in 2004, which introduced a “Quality Seal” for certain domestic coffee brands and revealed the type of beans used and the product’s flavor when those beans are used. Additionally, the Sustainable Coffee Program (PCS) provides certification ensuring comprehensive standards for farmers, from cultivation to the final product.
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Steady growth of the market for gourmet coffee, high-quality coffee, and premium coffee, which is increasingly attracting young people. The gourmet coffee market, although still small (about 3% of total domestic consumption), is growing at a rate of 15% per year.
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The Coffee and Health Program has helped raise public awareness that coffee can contribute to a healthier lifestyle.
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Strong economic growth in Brazil, including higher average incomes, more purchasing power, lower unemployment rates, and a shift from low-income to higher-income groups, has also increased domestic coffee consumption.
Roasted Coffee and Instant Coffee Consumption in Brazil, as reported by ABIC
Trade
Exports
The São Paulo Agricultural Trade Chamber forecasts that Brazil’s coffee exports for the 2010/11 season will reach 32 million bags, an increase of 2.92 million bags compared to the previous season. Green coffee exports are expected to reach 28.6 million bags, while instant coffee exports are forecasted to be 3.3 million bags.
Brazil’s coffee exports for the 2009/10 season reached 29.08 million bags, an 8% decrease compared to the previous season. Specifically, exports of green coffee (Arabica and Robusta) are estimated at 26 million bags, while instant coffee stood at 3 million bags. Brazil currently accounts for more than 30% of the world’s total coffee export volume. The decline in the supply from other coffee-producing countries has increased demand for Brazilian coffee (even during the off-season, from April to March 2010). Moreover, Brazil has maintained its competitive position in the international market despite higher production costs and the depreciation of the USD against the real.
The table below shows Brazil’s exports of green coffee beans (NCM 0901.11.10), instant coffee (NCM 2101/11/10), and roasted coffee (NCM 0901.21.00) to importing countries, according to SECEX, in the 2009 CY and the 2008/09 and 2009/10 seasons (from July to March).
Monthly Exports of Green Coffee from Brazil in the 2009/10 Season (Units: Thousand Bags)
Monthly Exports of Brazilian Coffee in the 2009/10 Season (Units: Million USD)