BRAZIL

BRAZIL SET TO BECOME WORLD’S LARGEST CONSUMER

Although it is likely to narrowly miss earlier domestic consumption targets set for this year, Brazil’s domestic consumption continues to increase quickly, thanks to ongoing efforts to increase the quality of the coffee available to Brazilian consumers.

Having jumped by more than 4 per cent in 2009 compared to the previous year, coffee consumption in Brazil is expected to increase by another 5 per cent in volume terms this year to 19.31 million bags, according to the Brazilian Coffee Industry Association (ABIC).

Per capita consumption in Brazil in 2009 reached 5.81kg of green coffee equivalent per annum, with the Brazilians drinking an ever greater range of coffee beverages including espressos and cappuccinos.

According to ABIC’s figures, industry sales last year are estimated to have been some US$6.8 billion, and the forecast for 2010 is for sales to reach a level of US$7.1 billion, and with the growth in 2009 and forecast 5 per cent increase in sales in 2010, Brazilian domestic consumption will soon break through the 20 million bag level and could reach 21 million bags by 2012, a level that on current trends would make Brazil the world’s largest consumer, surpassing even the US.

Nathan Herszkowic, the Executive Director of ABICS, told Coffee & Cocoa International that consumption increased by 4.15 per cent in 2009, reaching a level of 18.39 million bags. “ABIC estimates that this growth will continue and will be at least 5 per cent in 2010,” he said.

Mr Herszkowic noted that, currently, domestic consumption accounts for around 40 per cent of the Brazilian crop, with the greatest increase in domestic consumption taking place in Sao Paulo, Rio de Janeiro and Minas Gerais states. “The greatest increase is probably are taking place in the northeast and central western parts of Brazil, because of huge, ongoing development of these areas,” he told Coffee & Cocoa International.

Asked for a rough breakdown of the demographic profile of the ‘new’ coffee drinkers in Brazil, Mr Herszkowic said that many of the new coffee drinkers are middle class, aged 21 to 29 years, and are drinking coffee at their place of work, and in cafes, but the really big increase in consumption continues to be at home. In fact, as he explained, more than 95 per cent of the Brazilian population of more than 15 years of age now declare that they drink coffee every day.

For more information about coffee drinking trends in Brazil , see the forthcoming March 2010 issue of Coffee & Cocoa International.

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