How was the Coffee Market Transformed in 2020?

Changes in the points of consumption, increased sales through electronic channels, and more direct relationships between producers and roasters are some of the transformations reported in the coffee market at the regional and global level.

Tuesday, December 22, 2020

Changes in consumer habits, which were caused by the outbreak of covid-19 and the imposition of severe quarantines, ended up transforming several markets, including the coffee market.

According to Central American businessmen, production and exports remained at stable levels, however, consumption of the beverage changed and digital sales channels gained ground in this context of new commercial reality.

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Juan Luis Barrios Ortega, president of the National Coffee Association (Anacafé), told that "... we notice a change mainly at the point of consumption. As the coffee shops -retail stores of coffee products- were closed, they started to buy in supermarkets, and there was not a significant drop in consumption, but there was a drop in the point of commercialization".

See "Coffee: Potential Market and Consumer Preferences"

Barrios added that "... there was also an increase in sales through e-commerce and it was a strategy used by coffee shops, as they were forced to not allow the entrance of guests. The businesses that already had their platforms continued their sales, but unfortunately there were stores that were not in the supermarket channel, nor online and had to close."

To minimize costs in the different links of intermediation, direct relations between producers and roasters were accentuated. This is another of the modifications identified by the entrepreneurs.

By 2021, the head of the union believes that coffee producers should bet on digital tools, through which they can market the grain directly with the roasters and thus sell at better prices.

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