Colombia is the third largest coffee producer and exporter in the world. However, it exports 90-95% of its production because Colombian mild coffee is highly valued in international markets.
In December 2022, Colombian coffee was exported +3.51% more than was produced. According to the National Federation of Coffee Growers , " Colombian coffee should be sold to whoever pays the most for it, and if the vast majority are foreigners, a good part of the production is sold for export at higher prices."
In this sense, we must ask ourselves: What type of coffee is consumed in the country if most of what is produced is exported? How is domestic demand met? Stay tuned for this article to find out.
What was coffee consumption like in Colombia in 2022?
Although coffee production and exports in Colombia contracted by up to 10% in 2022 compared to 2021, consumption has grown, specifically that of instant coffee. Colombia currently consumes 2.2 million bags of coffee (+22% compared to 2018)
According to Kantar, an international market research company, Penetration (percentage of households that purchased instant coffee ) increased from 79.2% of the population in 2021 to 80.4% in 2022. , which represented an increase of +1 pp. In terms of volume, it achieved +7.6% growth.
For its part, roasted coffee saw penetration growth in both segments, both regular by +3.3% and premium by +7%. It is estimated that the premium segment will gain more than one million new homes in the long term. , according to the consumption patterns observed during 2022.
Regarding this positive growth in coffee in recent years, Jaime GarcΓa, country manager of Kantar's Worldpanel Colombia division, notes: "Coffee will appreciate in the long term due to price growth, a result of the development of the premium category, and frequency continues to be the greatest opportunity for market penetration. This shows that it will continue to be one of the main ingredients in the family basket and its consumption will continue to grow. β
What is the level of coffee preference in Colombia?
According to another study conducted by Kantar, 41% of Colombians are coffee lovers , as they reported consuming it between 2 and 3 times a day.
Regarding the preferred presentation when consuming coffee, the 63% of respondents indicated that they prefer ground coffee, while the remainder chose instant coffee. Now, in terms of method, which one is the favorite?
- 7 out of 10 respondents indicated that they prefer to drink the filtered drink
- 5 out of 10 espressos
- 2 out of 10 vending machines
- 1 in 10 capsule machine.
What type of coffee is imported into Colombia to meet demand?
Per capita coffee consumption has been increasing (according to FedecafΓ©, in 2018, a person over 12 years old consumed an average of 1.8kg and in 2021 it increased to 2.8kg), but production has decreased, and as it is more profitable to export, The country has had to import coffee from other countries.
In 2018 alone, Colombian coffee production was around 14 million 60-kg bags, of which 13 million were exported. Therefore, one million remained for domestic consumption.
Colombians demanded 1.8 million bags that year (currently 2.2 million bags). This translates into a deficit of 800,000 bags, which ended up being imported; which meant that 45% of the coffee consumed in the country was from abroad.
To continue covering these deficits, Colombia's imports have been increasing. According to MARO, in 2019 the country imported 43,805 tons, in 2020, 63,192 tons, and in 2021, 101,459 tons, meaning imports have doubled in two years.
Furthermore, 64,097 tons were imported in the first seven months of 2022, 9,764 more than in the same period in 2021, when 54,333 tons were recorded.
According to the USDA Foreign Agricultural Service and Bloomberg, Brazil is the main supplier of coffee to Colombia , followed by Peru, Honduras, and Ecuador, the latter being its second largest supplier, with sales of USD $49 million in the first seven months of 2022 and USD $16 million in the same period of 2021.
According to the report, Colombia mainly imports coffee beans (91%), followed by instant coffee (8%) and roasted coffee (1%).
In short, Coffee consumption in Colombia has been growing, however, production has decreased , most of what is produced is exported and, therefore, there has been an increase in imports to meet domestic demand.