Hot Drinks in Guatemala

Hot drinks in 2024: The big picture

Bernardo Arévalo was sworn in as Guatemala’s president in January 2024 and faced the challenge of implementing change in a country with entrenched corruption and high poverty rates. With a population of nearly 18 million, Guatemala is the most populous country in Central America, and it is estimated that nearly 39% still live below the poverty line.

2024 key trends

Coffee remains the most popular hot beverage due to Guatemala’s strong coffee culture and extensive local production, which continues to improve in quality and is recognised with international awards. However, coffee is recording stagnant volume growth in 2024 due to its already high level of penetration in the country and the consumer shift to cold, soft drinks during heat waves.

Competitive landscape

Nescafé by Nestlé SA remains the leading brand in instant coffee in retail volume terms in 2024. With rising price sensitivity in the country, Nestlé focused on cost-saving packaging options, such as 170g resealable stand-up pouches to “refill your jar”.

Retailing developments

The traditional channel is of great relevance in Guatemala for products such as coffee or atole (corn and soy-based powder), which are low-cost options that are affordable for most consumers. With the rising cost of living and increased spending caution amongst lower-income consumers, the option of purchasing smaller packages, such as instant coffee in individual, single-use sachets, from neighbourhood stores has become more significant.

Foodservice vs retail split

Coffee shops and restaurants have already managed to surpass pre-pandemic sales volumes, showing growth rates higher than other industries, despite the rising cost of living in recent years as Guatemalans have been eager to resume activities outside of the home and socialise. Growth is further supported by the expansion of coffee shop networks from brands such as Barista and El Cafetalito that promote their locally sourced specialty coffees.

What next for hot drinks?

Over the forecast period, highlighting quality enhancements, such as freeze-drying and the origin of the coffee, is expected to intensify in instant coffee, mirroring the strategy already seen in fresh ground coffee. Price and ease of preparation alone are no longer enough to attract new generations of consumers who are growing up in the coffee culture.