South America Coffee Market is segmented By Type (Whole Bean, Ground Coffee, Instant Coffee, and Coffee Pods and Capsules), By Distribution Channel ( Supermarkets/Hypermarkets, Convenience Stores, Specialist Stores, Online Retail, and Other Distribution Channels), and By Country (Brazil, Argentina, and Rest of South America). The report offers market size and forecasts in value (USD million) for the above segments.

The South American coffee market, a significant player in the global coffee industry, is experiencing robust growth. Driven by increasing disposable incomes, a burgeoning middle class with a growing preference for premium coffee experiences, and a strong coffee culture deeply ingrained in the region's traditions, the market is projected to maintain a healthy CAGR of 8.50% from 2025 to 2033. Brazil, the world's largest coffee producer, significantly influences the overall market dynamics, with its diverse production ranging from commodity-grade beans to high-quality specialty coffees. Growth is fueled by both domestic consumption and robust export markets. The segment experiencing the strongest growth is likely premium coffee segments, such as whole bean and specialty ground coffees, reflecting a consumer shift towards higher quality and experience-driven consumption. The rise of e-commerce and the increasing availability of diverse brewing methods also contribute to this trend. Convenience formats like coffee pods and capsules are experiencing increasing popularity, particularly in urban areas. While the market faces challenges such as fluctuations in coffee bean prices due to climatic conditions and global trade dynamics, the overall outlook remains positive. The distribution channel landscape is diversifying, with supermarkets and hypermarkets maintaining a dominant share, yet online retail stores are gaining momentum, offering convenience and broader product selection. Key players in the South American coffee market include established international brands and successful local roasters. Competition is intensifying with both established and emerging players constantly innovating in product offerings, packaging, and marketing strategies to capture consumer preference. Growth strategies include premiumization, diversification of offerings catering to different taste profiles and consumption habits, and a focus on ethical and sustainable sourcing practices increasingly important to environmentally conscious consumers. Further growth will be influenced by factors such as government policies, international trade agreements, and overall economic stability in the region. Understanding these factors is critical for both established and new entrants seeking success in this dynamic market. Recent developments include: In May 2022, AriZona Beverages announced its foray into the coffee space with Sun Brew with its new line of 100% Arabica coffee made with hand-selected beans from Central and South America. Sun Brew is available in three roast styles, namely, Snake Bite Blend, Cactus Blend, and Sedona Blend. The coffees are sold online at DrinkAriZona.com, Amazon.com, and at select grocery stores across South America., In April 2022, Starbucks and Nestlé, through their global coffee alliance collaboration, launched an e-commerce site for Starbucks packaged coffee products. The site showcases items ranging from Starbucks by Nespresso espresso capsules to Starbucks roast and ground coffees, featuring a complete portfolio of Starbucks packaged coffee product options available to customers across Brazil for enjoyment in the comfort of their own homes., In December 2021, the coffee giant, Startbucks Corporation, planned to expand its café outlets in the world's top coffee-producing region of Brazil, Minas Gerais. The company opened eight new cafe stores in Brazil.. Notable trends are: Increasing Spending Power Augmenting the Growth for Specialty Coffee.

The Argentina coffee market size reached approximately 62.40 KMT in 2024. The market is projected to grow at a CAGR of 8.60% between 2025 and 2034, reaching a volume of around 142.39 KMT by 2034.

The Latin American coffee market, valued at $11.59 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 7.52% from 2025 to 2033. This expansion is driven by several key factors. Rising disposable incomes across the region are fueling increased coffee consumption, particularly among younger demographics embracing specialty coffee and ready-to-drink options. The burgeoning popularity of convenient formats like coffee pods and capsules further contributes to market growth. Tourism, especially in key countries like Brazil and Argentina, also plays a significant role, boosting demand in the on-trade segment (cafes, restaurants, hotels). Furthermore, the growing online retail sector provides an expanding distribution channel, making coffee more accessible to consumers across diverse geographical locations. However, the market faces challenges including fluctuating coffee bean prices, which can impact production costs and profitability. Economic instability in certain Latin American nations may also pose a restraint on overall market growth. The segment breakdown reveals a diverse market, with whole bean coffee, ground coffee, and instant coffee maintaining substantial market share, while the ready-to-drink and pod/capsule segments are experiencing the fastest growth, reflecting evolving consumer preferences for convenience and premium experiences. Brazil and Argentina dominate the regional market, fueled by substantial domestic consumption and robust export activities. The "Rest of Latin America" segment is anticipated to see considerable growth potential, driven by rising coffee consumption in emerging markets. The competitive landscape is characterized by a mix of multinational giants like Nestlé and JDE Peet's, alongside significant regional players such as Grupo 3corações and Café Bom Dia. These companies employ various strategies, including product diversification, brand building, and strategic partnerships, to gain a competitive edge. Future growth will likely be influenced by innovations in sustainable sourcing and production methods, catering to the increasing consumer awareness of ethical and environmental concerns. The market's continued expansion will likely be determined by the ability of players to successfully adapt to evolving consumer trends, leverage digital channels effectively, and navigate macroeconomic uncertainties. Recent developments include: May 2024: Nestlé announced plans to enhance its B2B and B2C operations in Brazil by investing BRL 1 billion (approximately USD 193.97 million) by 2026. The renowned coffee company aims to utilize this funding to implement advanced technology, such as roasting equipment, and enhance production line flexibility to introduce new products and flavors., February 2024: Nespresso Professional launched a Brazil Organic capsule, a new pure Arabica blend developed exclusively to complement the existing Origins Organic range. The new Brazilian capsule will join flavors from Peru, Congo, and Colombia as an addition to the collection. All four professional Origins Organic coffees are ‘Made with Care’ and sourced from carefully selected regions within their respective countries., January 2024: JDE Peet completed the acquisition of Maratá's coffee & tea business in Brazil. The acquisition complemented JDE Peet's’ existing portfolio of brands predominantly sold in the southern regions of Brazil and increased the company’s scale and national coverage in Brazil, a market that offers compelling prospects for both volume and value growth.. Key drivers for this market are: Emergence of Coffee Culture and Cafe Chains, Innovation in Coffee Flavors, Formats, and Brewing Methods. Potential restraints include: Emergence of Coffee Culture and Cafe Chains, Innovation in Coffee Flavors, Formats, and Brewing Methods. Notable trends are: Rising Popularity of Ground/Roasted Coffee Driving the Market.

Forecast: Coffee Market Size Volume in Argentina 2022 - 2026 Discover more data with ReportLinker!

The Latin America Coffee Market report segments the industry into Product Type (Whole Bean Coffee, Ground Coffee, Instant Coffee, Coffee Pods and Capsules, Ready-to-drink Coffee), Distribution Channel (On-trade, Off-trade), and Geography (Brazil, Argentina, Rest of Latin America). Get five years of historical data alongside five-year market forecasts.

The Argentina coffee market is expected to reach a market size of more than USD 1.50 Billion by 2029.

The Ready-to-Drink (RTD) coffee market in South America is experiencing steady growth, projected to maintain a Compound Annual Growth Rate (CAGR) of 2.90% from 2025 to 2033. This expansion is driven by several key factors. Firstly, the increasing popularity of convenient and on-the-go beverage options aligns perfectly with the busy lifestyles of South American consumers. Secondly, the rising disposable incomes, particularly in urban areas of Brazil and Argentina, are fueling demand for premium RTD coffee products. Furthermore, innovative product offerings, such as cold brew coffee and flavored variations, are attracting a wider consumer base and driving market segmentation. The dominance of supermarket/hypermarkets as a distribution channel underscores the importance of strong retail partnerships for success in this market. However, the market faces challenges such as fluctuating coffee bean prices and the need to overcome consumer preference for traditional brewing methods in some regions. Competition from established beverage giants like Coca-Cola and Starbucks, alongside emerging local and specialty brands like Death Wish Coffee and Fit Brewing, is intense, demanding continuous product innovation and effective marketing strategies. The market's segmentation by packaging (bottles, cans) and distribution channels presents opportunities for tailored marketing and product development strategies. Brazil and Argentina, as the largest economies in South America, represent the most significant market segments, though the "Rest of South America" region shows potential for future growth. The success of RTD coffee brands in South America will depend on their ability to adapt to local tastes and preferences, leverage effective distribution networks, and offer competitive pricing. A focus on sustainable sourcing and environmentally friendly packaging will also be crucial to attracting the increasingly environmentally conscious consumer. The forecast period of 2025-2033 presents a significant opportunity for companies to capitalize on the growing demand for convenient and high-quality RTD coffee, particularly through targeted marketing campaigns and strategic partnerships within the retail sector. The continued expansion of online retail channels also presents a promising avenue for growth, requiring brands to optimize their e-commerce presence and delivery infrastructure. Overall, the RTD coffee market in South America offers a compelling investment landscape with considerable potential for long-term growth. Notable trends are: Bottled RTD Coffee Gaining Attention.

In 2024, the value of coffee imports into Argentina amounted to 159 million U.S. dollars. This represents an increase of five percent compared to the previous year. That same year, the volume of coffee imports in Argentina reached over 26,600 metric tons.

Forecast: Coffee Market Size Volume Per Capita in Argentina 2022 - 2026 Discover more data with ReportLinker!

In 2024, the Argentinian green coffee market decreased by -5.2% to $100M, falling for the second year in a row after two years of growth. Overall, consumption, however, saw a relatively flat trend pattern. As a result, consumption reached the peak level of $118M. From 2023 to 2024, the growth of the market failed to regain momentum.

The Argentina ready to drink tea & coffee market was valued at more than USD 100 Million in 2022, increased due to cultural significance.

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Coffee Market Size 2025-2029

The coffee market size is forecast to increase by USD 37.7 billion, at a CAGR of 6.9% between 2024 and 2029.

The market is experiencing significant growth, fueled by the increasing popularity of coffee and the trend towards specialty coffee and premiumization. Consumers' preference for high-quality, unique coffee experiences is driving this trend, leading companies to invest in innovative products and production methods. Climate change poses a significant threat to coffee production, with extreme weather conditions and supply chain disruptions becoming increasingly common. Extreme weather conditions and supply chain disruptions pose significant risks to coffee farmers and producers, potentially leading to decreased yields and increased costs.
Companies must adapt to these challenges by implementing sustainable farming practices, investing in technology to mitigate the effects of climate change, and diversifying their supply chains to reduce reliance on specific regions. To capitalize on the market's growth and navigate these challenges, companies must stay informed of consumer preferences and trends, invest in research and development, and build resilient supply chains.

What will be the Size of the Coffee Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, with dynamic shifts in consumer preferences, technological advancements, and sustainability initiatives shaping the landscape. Coffee tastings and innovation are at the forefront of this evolution, as roasters and retailers explore new flavor profiles and brewing methods. Antioxidants found in coffee beans have gained renewed attention for their potential health benefits, driving demand for organic and traceable coffee beans. Brewing equipment, from French presses to espresso machines, and coffee filters, continue to advance, offering consumers greater control over their coffee experience. Coffee roasting techniques, such as roast profiles and coffee training, have become essential skills for baristas and home enthusiasts alike.

Coffee byproducts, including coffee waste and brewed coffee grounds, are being repurposed for various applications, from fertilizer to biofuels, further highlighting the industry's commitment to sustainability. Coffee certifications, such as fair trade and organic, continue to influence purchasing decisions, as consumers increasingly demand ethical and environmentally responsible sourcing. Cold brew and instant coffee have emerged as popular alternatives to traditional brewing methods, catering to diverse consumer preferences. Coffee aroma and flavor remain key differentiators, with specialty coffee shops and cafes offering unique blends and roasts to attract discerning customers. Caffeine content and coffee brewing techniques, such as drip coffee and espresso, continue to be refined, ensuring a consistent and high-quality experience for consumers.

The ongoing exploration of coffee's rich flavors and the pursuit of sustainable and ethical practices underscore the continuous dynamism of this vibrant market.

How is this Coffee Industry segmented?

The coffee industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Arabica coffee
  Robusta coffee
  Liberica coffee
  Excelsa coffee


Application

  Food and beverage
  Pharmaceuticals
  Cosmetic


Roast Type

  Light Roast
  Medium Roast
  Dark Roast


Distribution Channel

  Foodservice
  Retail


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By Product Insights

The arabica coffee segment is estimated to witness significant growth during the forecast period.

In the dynamic market, Arabica beans lead with over 60% of global production, cherished for their mild, sweet, and slightly acidic flavor profile. Arabica coffee's appeal lies in its fruit and sugar notes, contrasting Robusta's stronger, harsher taste. Arabica beans, which grow in favorable climates and altitudes such as Brazil, Colombia, Ethiopia, Honduras, and Peru, deliver high-quality beans to discerning consumers worldwide. Prominent companies cater to diverse consumer preferences with Arabica coffee offerings. Coffee culture thrives through various channels, including coffee festivals, tastings, and innovation. Green coffee beans undergo roasting, transforming into various roast profiles.

Roasted beans are then pac

The Latin America Coffee Market is expected to reach a value of USD 31.10 billion by 2033, expanding at a CAGR of 7.52% during the forecast period. The growing coffee culture, increasing urbanization, and rising disposable income are some of the key factors driving the market growth. Furthermore, the increasing shift towards premium and specialty coffees is expected to further boost the market demand. The major market players are Nestle, Café Bom Dia, The Kraft Heinz Company, Massimo Zanetti Beverage Group, Sabormex SA de CV, Melitta, Grupo 3corações, New Mexico Piñon Coffee, JDE Peet's NV, and Café El Marino SA de CV. Brazil is the largest coffee producer and consumer in Latin America and is expected to hold a significant market share throughout the forecast period. The country is known for its high-quality Arabica beans, which are exported worldwide. Argentina is another important coffee producer and consumer in the region and is known for its Robusta beans. The rest of Latin America includes countries such as Mexico, Peru, Colombia, and Guatemala, which contribute to the region's coffee production and consumption. Recent developments include: May 2024: Nestlé announced plans to enhance its B2B and B2C operations in Brazil by investing BRL 1 billion (approximately USD 193.97 million) by 2026. The renowned coffee company aims to utilize this funding to implement advanced technology, such as roasting equipment, and enhance production line flexibility to introduce new products and flavors., February 2024: Nespresso Professional launched a Brazil Organic capsule, a new pure Arabica blend developed exclusively to complement the existing Origins Organic range. The new Brazilian capsule will join flavors from Peru, Congo, and Colombia as an addition to the collection. All four professional Origins Organic coffees are ‘Made with Care’ and sourced from carefully selected regions within their respective countries., January 2024: JDE Peet completed the acquisition of Maratá's coffee & tea business in Brazil. The acquisition complemented JDE Peet's’ existing portfolio of brands predominantly sold in the southern regions of Brazil and increased the company’s scale and national coverage in Brazil, a market that offers compelling prospects for both volume and value growth.. Key drivers for this market are: Emergence of Coffee Culture and Cafe Chains, Innovation in Coffee Flavors, Formats, and Brewing Methods. Potential restraints include: Emergence of Coffee Culture and Cafe Chains, Innovation in Coffee Flavors, Formats, and Brewing Methods. Notable trends are: Rising Popularity of Ground/Roasted Coffee Driving the Market.

The Argentinian roasted coffee market expanded notably to $38M in 2024, increasing by 14% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption enjoyed a buoyant increase. Roasted coffee consumption peaked in 2024 and is expected to retain growth in years to come.

Access South America Arabica Coffee Industry Overview which includes South America country analysis of (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America), market split by Type, Application

Comprehensive dataset of 5,057 Coffee shops in Argentina as of July, 2025. Includes verified contact information (email, phone), geocoded addresses, customer ratings, reviews, business categories, and operational details. Perfect for market research, lead generation, competitive analysis, and business intelligence. Download a complimentary sample to evaluate data quality and completeness.

The Argentinian roasted decaffeinated coffee market expanded sharply to $888K in 2024, rising by 8% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption saw a moderate increase.

The Argentinian coffee extract market was estimated at $347M in 2024, picking up by 3% against the previous year. Over the period under review, the total consumption indicated slight growth from 2012 to 2024: its value increased at an average annual rate of +1.9% over the last twelve-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption increased by +57.4% against 2019 indices.

The Argentinian non-decaffeinated roasted coffee market reached $37M in 2024, picking up by 14% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption showed a buoyant increase.