Coffee: an Excellent Business Opportunity in Mexico

Cannot you imagine how coffee is an excellent business opportunity in Mexico? Well, we tell you that coffee consumption in this country has become a trend.

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Cannot you imagine how coffee is an excellent business opportunity in Mexico? Well, we tell you that coffee consumption in this country has become a trend. More and more people are drinking this delicious elixir every day inspired by the benefits of its consumption and the influence of other cultures.

This has led to a commercial boom that favors mainly investors and entrepreneurs. In part, it is due to the initiative of many of them who have made their way in the cafeteria business. Like La Flor de Córdoba coffee shops, favoring the growth of coffee consumption.

Why is coffee an excellent business opportunity?

To detect a business opportunity, the needs of the consumer are taken into account. And depending on them, a product or service is created to meet that demand. Well, coffee consumption in Mexico has grown considerably in recent years, with the recent five years being significant.

Mexico is known to be a coffee producing and exporting country. But, the consumption of the grain was very low among Mexicans. So much so that, in 2005, when countries like the United States and Brazil consumed about 5 kilos of coffee per person per year, Mexicans consumed only 840 grams.

This figure doubled 10 years later, showing a growth of more than 100%. At least 1.7 kilograms of coffee were consumed by each Mexican for the year 2015. Growth for 2016 and 2017 was close to 1.5%, increasing by around 2% each year, according to data from Fira.

In terms of the number of cups, currently, each Mexican consumes about 210. But, it is predicted that by 2025 the coffee intake will grow at least 300 annual cups per capita. Being an increase around 40%, with respect to the amount of cups that are consumed at present.

This only reflects the increase in the culture of coffee consumption in the country. And it also shows the changes that the coffee market is experiencing. Where entrepreneurs and entrepreneurs have greater investment opportunities.

Coffee shops are a great opportunity

The growth of the consumption of the grain owes in large part to the offer of coffee shops and franchises that offer this type of services. Positions that have facilitated access to good coffee to a large part of Mexicans. That is why the consumption of ground coffee has increased significantly.

This is because Mexicans, although they continue to consume coffee inside the home, are allowed to taste a great variety of coffee. Variety that only coffee shops can offer.

La Flor de Córdoba coffee shops, for example, are part of the culture of good coffee consumption. They are a company of great tradition and with more than 80 years serving one of the best coffees in Mexico. It is a business that has seen the growth of consumption and allowed to expand as franchises.

This cafeteria is part of the establishments that have boosted coffee consumption in Mexico. Above all, in the younger groups or the so-called Millenials. Those who have been very influenced by the culture of coffee consumption, promoting its growth.

Consumption of coffee in cafeterias grows more and more

At least 50 percent of Mexican coffee consumers ingest coffee provided by coffee shops. In general, about 70% of Mexicans drink coffee, at home or elsewhere. According to surveys conducted by the Strategic Communications Cabinet (GCE).

According to 2014 figures, growth has been maintained. For then, only 66% of Mexicans drank coffee. And with respect to cafeteria users, in 2014 they were only 36.4%. That means that visits to coffee shops have increased approximately 13.6.

It is important to highlight that the consumption of the grain has been registered daily. So about 50 percent of Mexicans consume at least two cups a day. A survey conducted by Profeco indicated that only 1 percent of the population does not consume coffee.

This means that there is a large population to be satisfied. What indicates a great opportunity in terms of the coffee offer. On top of that, profitability is a plus point. Because the utilities for each cup of coffee are quite high.

The production of a cup of coffee can cost approximately 10 pesos. And the price for the final consumer can reach, on average, 25 or 35 pesos. That leaves a profit of at least 15 or 25 pesos per cup. That easily reach to cover the payments of machinery, employees, etc.

Although there are a number of marketing strategies to consider when starting a business. However, the sale of coffee allows a rapid growth of the business and the benefits are usually short-term. Both for those who acquire franchises and for independent entrepreneurs.

How much coffee can be sold in a cafeteria?

The sale of coffee inside the cafeterias really indicates the number of profits that can be had and the profitability of the establishment. And is that despite its momentum has been recent, coffee shops sell about 30% of coffee produced in the country, according to 2016 data.

Mexico currently produces about 3.5 million bags of coffee with a capacity of 60 kilos each. This means that coffee shops sell close to 1 million bags of coffee. And it is expected that for the next years the number will increase.

Above all, if it continues its growth as in 2015. Year in which coffee sales increased by up to 30%. Meanwhile, within the country there are many brands that are expanding. Because they are identifying the opportunities that the recent consumption of coffee is providing.