Hot Drinks in Ecuador

Hot drinks in 2023: The big picture

2023 was a year of sustained positive volume growth for Ecuador’s hot drinks industry as each of the two largest categories, coffee and tea, saw rising demand. However, demand for hot drinks increased only marginally, largely due to rising consumer concern over the high sugar content of these products.

2023 key trends

The adverse socioeconomic situation that currently prevails in Ecuador and the advent of unprecedented levels of social unrest towards the end of the review period have forced all of the companies present in the country’s hot drinks industry to manage a succession of serious challenges. In particular, the unparalleled security crisis that has engulfed Ecuador and society in recent months, coupled with political volatility and climate-induced disruptions to cultural activity, including coffee cultivation, have cast a huge cloud over the collective mood of the Ecuadorian population and hindered economic advancement.

Competitive landscape

With demand for other hot drinks under pressure due to spreading concern over the negative long-term health implications of a diet high in sugar, recent years have seen key category players engaged in attempts to make their brands stand out. These efforts mainly revolve around refreshing their brands via the launch of new products.

Retailing developments

Hard discounters continued to witness phenomenal growth in Ecuador towards the end of the review period as the retail channel gained ground at a time when many local households are feeling pressure on their disposable incomes. Much of this general expansion can be attributed to the efforts of the pioneering brand Tuti, which has spearheaded the spread of discounters throughout Ecuador, resulting in a notable increase in the presence of the Tuti chain within major urban areas in all regions of the country.

Foodservice vs retail split

Towards the end of the review period, the Ecuadorian consumer foodservice industry witnessed remarkable growth and development as it recovered fully from the impact of the COVID-19 pandemic. This growth has been particularly focused on small cafés and specialist shops that promise consumers interesting and unique coffee experiences.

What next for hot drinks?

On the basis of the ongoing consumer trends reported above, fresh coffee is expected to outperform instant coffee over the forecast period. Local consumers are set to become increasingly interested in fresh coffee that offers complex flavours and aromas, rather than the simplicity and convenience of instant coffee.