Brazilian abandons favorite brand and prioritizes price when buying coffee
Due to rising coffee prices, Brazilian consumers are increasingly opting for cheaper coffee products over their preferred brands.
Rising coffee prices have significantly altered consumer behavior in Brazil, with many prioritizing cost over brand loyalty. A biennial survey conducted by Instituto Axxus for the Brazilian Coffee Industry Association (Abic) indicates that a striking 39% of consumers now exclusively purchase the cheapest coffee available, a notable increase from 16% in 2023. This marks the first instance where price-focused purchasing has surpassed other factors traditionally influencing coffee purchases, such as brand preference.
In addition to choosing cheaper options, the survey highlights a significant decline in overall coffee consumption, with 24% of respondents reporting that they have reduced their coffee intake. This is the highest percentage recorded in the survey's history, indicating a shift in consumer habits linked to economic pressures. Previous years saw lower averages, with only 3% in 2023, 5% in 2021, and 7% in 2019 indicating reduced consumption, which emphasizes the current trend's severity.
The findings signal a broader trend of frugality among Brazilians, as economic factors begin to dominate purchasing decisions. This shift not only indicates potential challenges for brand loyalty in the coffee sector but also underscores the growing importance of affordability in consumer choices. As price sensitivity increases, brands may need to reevaluate their marketing and pricing strategies to retain customers amidst this evolving landscape.