Coffee in Costa Rica

Euromonitor International
December 2022
COFFEE IN COSTA RICA Passport i

LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2022 DEVELOPMENTS ............................................................................................................... 1
Inflations leads players to offer discounts ................................................................................. 1
Players look to differentiate themselves from the competition .................................................. 1
Colcafé’s instant coffee with cream and sugar gains value share ............................................ 1
PROSPECTS AND OPPORTUNITIES......................................................................................... 1
Muted constant value growth over forecast period as coffee is A mature product .................... 1
Limited decaffeinated fresh coffee offerings create space for new brands to enter .................. 2
Private label to benefit as inflationary pressures continue ........................................................ 2
CATEGORY DATA ....................................................................................................................... 2
Table 1 Retail Sales of Coffee by Category: Volume 2017-2022 .............................. 2
Table 2 Retail Sales of Coffee by Category: Value 2017-2022 ................................. 2
Table 3 Retail Sales of Coffee by Category: % Volume Growth 2017-2022 ............. 3
Table 4 Retail Sales of Coffee by Category: % Value Growth 2017-2022 ................ 3
Table 5 NBO Company Shares of Coffee: % Retail Value 2018-2022 ...................... 3
Table 6 LBN Brand Shares of Coffee: % Retail Value 2019-2022 ............................ 4
Table 7 Forecast Retail Sales of Coffee by Category: Volume 2022-2027 ............... 4
Table 8 Forecast Retail Sales of Coffee by Category: Value 2022-2027 .................. 4
Table 9 Forecast Retail Sales of Coffee by Category: % Volume Growth 2022-
2027 ............................................................................................................. 5
Table 10 Forecast Retail Sales of Coffee by Category: % Value Growth 2022-
2027 ............................................................................................................. 5

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COFFEE IN COSTA RICA

KEY DATA FINDINGS
▪ Retail value sales rise by 8% in current terms in 2022 to CRC104 billion
▪ Instant coffee mixes is the best performing category in 2022, with retail value sales growing
by 11% in current terms to CRC3.1 billion
▪ Cía Numar SA is the leading player in 2022, with a retail value share of 33%
▪ Retail sales are set to increase at a current value CAGR of 4% (2022 constant value CAGR of
1%) over the forecast period to CRC129 billion

2022 DEVELOPMENTS

Inflations leads players to offer discounts

Coffee is expected to register healthy current retail value growth, though retail volume growth
is expected to be minimal, as inflation takes hold. The war in Ukraine is pushing up global fuel
prices and impacting retail prices and dampening volume growth, as a result. However, volume
growth through on-trade channels is expected to be significantly higher, as society fully opens
up post pandemic lockdowns. With rising price sensitivity through retail channels, players are
offering bundling or gift options. Examples include offerings of three packs of Café Montaña, at
a lower price per pack, while Starbucks capsules and Britt coffee beans also offer discounts for
packs. Oma is offering a gift of stickers with its 2.5kg bags that are available at the retailer
PriceSmart, which offers bulk buying options.

Players look to differentiate themselves from the competition

The coffee landscape continues to be quite consolidated, with the top three players, that is
Cía Numar, Café Rey and Café Volio accounting for well over two-thirds of volume sales, with
Cía Numar continuing to have a strong lead. In 2022, with consumers being especially price
conscious, players look to differentiate themselves by adding value. For example, Café Britt is
selling two limited edition coffees, Mérito Buena Vista and Cafe de Perez Zeledon, which
showcase their origins. The Levenda brand is offering vanilla flavoured coffee and Nescafe
Dolce Gusto is now offering non-dairy milk pods such as almond macchiato.

Colcafé’s instant coffee with cream and sugar gains value share
While fresh coffee is much more popular in Costa Rica, there is also demand for instant
coffee and a product that is gaining traction is Colcafé’s instant coffee that also includes sugar
and cream. Consumers enjoy its convenience and taste and also see it as a saving, as it is
similarly priced to regular instant coffee, and there is no need to also buy milk.

PROSPECTS AND OPPORTUNITIES

Muted constant value growth over forecast period as coffee is A mature

product
Coffee is a mature product, with little further room for growth. As a result, over the forecast
period, coffee will register muted constant value and volume growth. In addition, if inflation

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continues to rise, consumers will trade down to cheaper brands. Volume growth will be higher
through foodservice channels.

Limited decaffeinated fresh coffee offerings create space for new brands
to enter
One coffee product that has limited offerings in Costa Rica is decaffeinated fresh coffee, with
Britt Decaf being the only option. Its offering is also relatively expensive and is not widely
available. This leaves open an opportunity for a more affordable decaffeinated option to launch
in Costa Rica.

Private label to benefit as inflationary pressures continue

Given the recent spikes seen in coffee unit prices across global commodity markets and the
anticipated impact of climate change on coffee production over the course of the forecast
period, unit prices are likely to continue to rise, notwithstanding the war in Ukraine. Within this
scenario, larger local and international players alike will be able to benefit from their superior
economies of scale due to the cost savings that this entails. In particular, the private label coffee
offered by the country’s leading chained modern grocery retailers, including Walmart and
PriceSmart can be expected to attract the attention of consumers, with these retailers expected
to capitalise as much as possible on price-driven demand trends. Even high-end retailers such
as Automercado are expected to offer private label coffee, with striking the right balance
between quality and affordability likely to prove crucial.

CATEGORY DATA
Table 1 Retail Sales of Coffee by Category: Volume 2017-2022

Tonnes
2017 2018 2019 2020 2021 2022

- Instant Coffee Mixes 253.0 264.2 276.4 292.8 305.1 318.3

- Instant Standard Coffee 177.9 182.4 187.2 196.4 201.1 206.2
Instant Coffee 430.9 446.6 463.7 489.1 506.2 524.5
-- Standard Fresh 12,478.3 12,512.6 12,528.2 13,398.0 13,684.9 13,712.7
Ground Coffee
-- Fresh Ground Coffee 13.3 12.3 10.7 11.3 11.8 12.1
Pods
- Fresh Ground Coffee 12,491.7 12,524.9 12,538.9 13,409.3 13,696.7 13,724.8
- Fresh Coffee Beans 147.1 151.3 155.0 160.1 163.5 167.2
Fresh Coffee 12,638.8 12,676.2 12,693.9 13,569.4 13,860.2 13,892.0
Coffee 13,069.7 13,122.8 13,157.6 14,058.5 14,366.4 14,416.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Retail Sales of Coffee by Category: Value 2017-2022

CRC billion
2017 2018 2019 2020 2021 2022

- Instant Coffee Mixes 2.1 2.3 2.4 2.6 2.8 3.1

- Instant Standard Coffee 4.5 4.7 4.9 5.2 5.7 6.2
Instant Coffee 6.6 7.0 7.4 7.8 8.5 9.3

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-- Standard Fresh 70.3 72.2 73.5 79.4 86.2 92.5

Ground Coffee
-- Fresh Ground Coffee 0.5 0.4 0.4 0.4 0.5 0.5
Pods
- Fresh Ground Coffee 70.8 72.6 73.9 79.8 86.6 93.0
- Fresh Coffee Beans 1.4 1.5 1.5 1.6 1.7 1.9
Fresh Coffee 72.2 74.1 75.5 81.4 88.4 94.9
Coffee 78.8 81.0 82.8 89.2 96.8 104.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Retail Sales of Coffee by Category: % Volume Growth 2017-2022

% volume growth
2021/22 2017-22 CAGR 2017/22 Total

- Instant Coffee Mixes 4.3 4.7 25.8

- Instant Standard Coffee 2.5 3.0 15.9
Instant Coffee 3.6 4.0 21.7
-- Standard Fresh Ground Coffee 0.2 1.9 9.9
-- Fresh Ground Coffee Pods 2.3 -2.0 -9.4
- Fresh Ground Coffee 0.2 1.9 9.9
- Fresh Coffee Beans 2.3 2.6 13.6
Fresh Coffee 0.2 1.9 9.9
Coffee 0.3 2.0 10.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Retail Sales of Coffee by Category: % Value Growth 2017-2022

% current value growth

2021/22 2017-22 CAGR 2017/22 Total

- Instant Coffee Mixes 10.9 7.9 46.0

- Instant Standard Coffee 10.0 6.8 39.1
Instant Coffee 10.3 7.2 41.3
-- Standard Fresh Ground Coffee 7.4 5.7 31.7
-- Fresh Ground Coffee Pods 8.4 0.9 4.8
- Fresh Ground Coffee 7.4 5.6 31.5
- Fresh Coffee Beans 9.8 6.5 37.1
Fresh Coffee 7.5 5.6 31.6
Coffee 7.7 5.8 32.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 NBO Company Shares of Coffee: % Retail Value 2018-2022

% retail value rsp

Company 2018 2019 2020 2021 2022

Cía Numar SA 35.4 34.7 34.3 33.4 33.0

Café Rey 17.9 17.9 17.7 17.5 17.3
Café Volio 9.8 9.8 9.8 9.9 9.8
Nestlé Costa Rica SA 6.9 7.0 6.9 6.9 6.9
Grupo Café Britt SA 6.6 6.6 6.5 6.5 6.5

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Café Dorado 6.3 6.2 6.1 6.0 5.9

Distribuidora Café 4.9 4.8 4.8 4.7 4.6
Montaña
Others 12.1 12.9 13.9 15.1 16.1
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 LBN Brand Shares of Coffee: % Retail Value 2019-2022

% retail value rsp

Brand (GBO) Company (NBO) 2019 2020 2021 2022

Café 1820 Cía Numar SA 34.7 34.3 33.4 33.0

Café Rey (Café Rey Café Rey 17.9 17.7 17.5 17.3
de Costa Rica SA)
Café Volio Café Volio 9.8 9.8 9.9 9.8
Café Britt Grupo Café Britt SA 6.6 6.5 6.5 6.5
Nescafé (Nestlé SA) Nestlé Costa Rica SA 5.5 5.5 5.5 5.5
Café Montaña Distribuidora Café Montaña 4.8 4.8 4.7 4.6
Triángulo de Oro Café Dorado 4.0 4.0 3.9 3.8
Café Dorado Molido Café Dorado 2.2 2.2 2.1 2.0
Café Presto (Nestlé Nestlé Costa Rica SA 1.1 1.0 1.0 1.0
SA)
Nescafé Dolce Gusto Nestlé Costa Rica SA 0.4 0.4 0.4 0.4
(Nestlé SA)
Others Others 12.9 13.9 15.1 16.1
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 Forecast Retail Sales of Coffee by Category: Volume 2022-2027

Tonnes
2022 2023 2024 2025 2026 2027

- Instant Coffee Mixes 318.3 332.2 346.9 362.5 378.9 396.3

- Instant Standard Coffee 206.2 211.6 217.1 223.0 229.0 235.4
Instant Coffee 524.5 543.8 564.0 585.4 607.9 631.7
-- Standard Fresh 13,712.7 13,750.1 13,795.9 13,847.6 13,907.4 13,974.7
Ground Coffee
-- Fresh Ground Coffee 12.1 12.3 12.6 12.8 13.1 13.4
Pods
- Fresh Ground Coffee 13,724.8 13,762.4 13,808.5 13,860.4 13,920.5 13,988.1
- Fresh Coffee Beans 167.2 171.1 175.1 179.4 183.8 188.5
Fresh Coffee 13,892.0 13,933.5 13,983.6 14,039.8 14,104.4 14,176.6
Coffee 14,416.5 14,477.3 14,547.7 14,625.2 14,712.3 14,808.3
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 8 Forecast Retail Sales of Coffee by Category: Value 2022-2027

CRC billion
2022 2023 2024 2025 2026 2027

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- Instant Coffee Mixes 3.1 3.2 3.4 3.6 3.7 3.9

- Instant Standard Coffee 6.2 6.4 6.6 6.8 7.0 7.2
Instant Coffee 9.3 9.7 10.0 10.3 10.7 11.2
-- Standard Fresh 92.5 93.1 93.7 94.4 95.0 95.8
Ground Coffee
-- Fresh Ground Coffee 0.5 0.5 0.5 0.5 0.5 0.5
Pods
- Fresh Ground Coffee 93.0 93.6 94.2 94.9 95.5 96.3
- Fresh Coffee Beans 1.9 2.0 2.0 2.1 2.2 2.2
Fresh Coffee 94.9 95.6 96.2 97.0 97.7 98.5
Coffee 104.3 105.3 106.2 107.4 108.4 109.7
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 9 Forecast Retail Sales of Coffee by Category: % Volume Growth 2022-2027

% volume growth
2022/23 2022-27 CAGR 2022/27 Total

- Instant Coffee Mixes 4.4 4.5 24.5

- Instant Standard Coffee 2.6 2.7 14.2
Instant Coffee 3.7 3.8 20.4
-- Standard Fresh Ground Coffee 0.3 0.4 1.9
-- Fresh Ground Coffee Pods 2.2 2.1 11.2
- Fresh Ground Coffee 0.3 0.4 1.9
- Fresh Coffee Beans 2.3 2.4 12.7
Fresh Coffee 0.3 0.4 2.0
Coffee 0.4 0.5 2.7
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Retail Sales of Coffee by Category: % Value Growth 2022-2027

% constant value growth

2022/2023 2022-27 CAGR 2022/27 Total

- Instant Coffee Mixes 4.6 4.8 26.1

- Instant Standard Coffee 2.8 3.0 16.1
Instant Coffee 3.4 3.6 19.4
-- Standard Fresh Ground Coffee 0.6 0.7 3.5
-- Fresh Ground Coffee Pods 2.5 2.4 12.3
- Fresh Ground Coffee 0.6 0.7 3.5
- Fresh Coffee Beans 3.5 2.9 15.4
Fresh Coffee 0.7 0.7 3.8
Coffee 0.9 1.0 5.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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