May 28, 2025 – Across Latin America, specialty beverages are more than just a drink, they reflect tradition, culture, and evolving consumer preferences. From craft coffee to botanical infusions, consumers are seeking premium experiences that offer indulgence and wellness.
Innova’s 360 research into specialty beverages trends explores consumer preferences and how brands are innovating to meet these preferences. Here we also highlight the future opportunities that brands can leverage for their growth in this market.
Consumer Beverage Preferences
2 in 5 consumers in Latin America are upping their food and beverage expenditures, largely owing to inflation. Treats, rewards, and alleviating mood also influenced their expenditure over the past year. Despite inflation, consumers consider fresh products worth paying for. Beverage trends show that Generation Z and Millennials are likely to spend more on premium ingredients. Meanwhile, Boomers and Generation X perceive health-benefit-rich products as good value for money. The nature of treats and rewards is evolving, with 1 in 5 consumers treating themselves opting for premium food and drink at home.
Premium and Specialty Beverage Drivers
Premium quality is a major factor influencing hot coffee purchases, followed by iced tea and non-alcoholic beverage alternatives. More than half of consumers in Latin America perceive premium products the same as the previous year. They purchase food and beverage treats for boosting mood, stress release, and sensory experience/enjoyment. 1 in 5 consumers buy iced coffee when seeking something special or luxury, while bottled water is suitable for every day.
Many consumers value authentic connections, making parks and gardens important places to socialize. Capturing the values and power of connections, coffee brand 3Corações opened a coffee shop at Ibirapuera Park, offering functional drinks and specialty coffees rituals.
Sources of connections in Latin America include family, enjoying food together, children, shared experiences, and shared interests.
Specialty Beverages Trends
Specialty beverages have outpaced overall beverage launches in Latin America over the past five years. Brazil accounts for one-third of specialty beverage launches, followed by Mexico, Chile, and Argentina. Specialty claims are common in hot drinks, while non-alcoholic beverages show fast growth. Ethical claims continue to evolve, with ethical-human and ethical-environment claims on the rise.
Top ingredients in specialty beverages includes nutraceutical and functional ingredients, sweeteners, dairy ingredients, and herbal and fruit extracts. The fastest growing packaging materials are aluminum, paper, plastic-other, and carton.
Companies and Brands
Despite a decline in specialty beverage launches, Nestlé has led the category in Latin America over the past five years. While Strauss and São Miguel, and Jacobs Douwe Egberts have increased their launches during the same period, ranking them in second and third place, respectively.
Nestlé specialty beverages are closely connected to sustainability, including commitments to zero-waste ambition and transition toward a circular economy. Additionally, they are the first and only coffee brand with carbon-neutral certification in Brazil. They also launched specialty coffee from the Robusta variety, incorporating bees from Espírito Santo to enhance pollination of the coffee plantation.
Other Factors Influencing Beverage Preferences
Beverage trends show that consumers prioritize the quality of the product as the most important factor in food and beverages. Older generations associate quality with freshness, health benefits, shelf life, and naturalness. Gen Z and Millennials link quality with brands, safety, pack presentation, and advertisements. This aligns with Innova’s “Ingredients and Beyond” food trend, which highlights product differentiation through ingredient quality.
Flavor significantly influences consumer preferences. 63% of Latin Americans display interest in trying flavor fusions or combinations. They crave “Wildly Inventive” flavors, which prompt companies to delight them with surprising mash-ups that deliver the ‘wow’ effect. Brands reflecting these preferences offer limited edition beverages offering a limitless taste experience.
What’s Next in Specialty Beverages Trends in Latin America?
Latin America’s specialty beverage market continues to evolve as consumers seek premium experiences that fit their budgets. Inflation is shaping spending habits, but the desire for indulgence remains strong. Consumers are looking for beverages that offer mood-boosting qualities, health benefits, and unique flavors. Brands can focus on quality, transparency, and innovation to meet these expectations.
Consumers are balancing financial pressures with the need for small luxuries. Smaller portions and premium ingredients can make specialty beverages more accessible. With 1 in 5 Latin consumers spending more on food to uplift their mood, brands can highlight emotional benefits through packaging and messaging. Beverage trends reveal that Millennials and Gen Z prioritize premium quality, while Boomers and Gen X value health benefits. Brands can launch products that cater to these generations by emphasizing superior ingredients and wellness claims. More than 1 in 5 consumers plan to treat themselves with premium food and drink at home. Brands can enhance this experience with rich flavors and textures. Consumers are increasingly mindful of ethical sourcing and sustainability. Transparent storytelling can strengthen brand trust.
Brands focusing on quality, innovation, and consumer preferences are likely to stay relevant in Latin America’s dynamic market.
This article is based on Innova’s Trends in Specialty Beverages in Latin America report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
