Brazil: Opportunities for the international instant coffee industry, but pressure on the domestic market

Raw Common Coffee Bean
Instant Coffee
Market & Price Trends
Published Apr 18, 2024

Tridge summary

The global coffee market is currently facing a surge in prices, primarily due to supply concerns triggered by adverse weather conditions in Vietnam, leading to a sharp increase in Robusta coffee prices. Brazil, the world's leading producer and exporter of soluble coffee, is navigating industry shifts as a result of growing conilon exports and prices. Despite maintaining competitive prices on the international stage, Brazil's domestic market, especially the soluble coffee sector, might experience price fluctuations due to increased consumption. However, the industry remains optimistic about the future growth of soluble coffee consumption within Brazil, fueled by consumer interest and the product's adaptability in various recipes and beverages.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The coffee market continues to price based on concerns about the global supply of the product. Faced with the countless uncertainties that surround the sector, all links in the chain in Brazil are adapting to the reality of record-breaking prices, which bring good margins for the producer, but the industry is still waiting to know the real impacts in the medium term. + Hot and dry weather in Vietnam drives a new explosion in prices: Robusta reaches US$4,000 a ton In a survey carried out using the Notícias Agrícolas database, they show that in the period of one year, Robusta prices at the London terminal increased from US$ 2370 to US$ 4170 per ton (an increase of 75.95%), which favored the jump in the Cepea indicator for conilon from R$610.32 to R$1,113.17 in the period (+82.39). You can check the price history here. Brazil is also the largest producer and exporter of soluble coffee and sees the scenario changing given the advance in conilon exports and prices that remain firm. The ...
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