Global Instant Coffee Market - 2022-2029

Global Instant Coffee Market - 2022-2029

Market Overview

The global instant coffee market is valued at USD XX million in 2021 and is forecasted to reach USD XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029)

Instant coffee is manufactured from roasted and ground coffee beans, and it allows consumers to make hot coffee quickly by simply adding hot water or milk to the crystals or powder. Coffee consumption is changing worldwide, particularly in cities, and the market is predicted to rise significantly during the projection period because of the growing middle-class population. In addition, the expanding culture of cafés and coffee shops in developing nations is driving significant market players to invest, boosting market growth prospects throughout the projection period.

Market Dynamics:

Growing importance of authentic flavors and functional properties

The premiumization of the instant coffee market has been facilitated by an increased focus on unique, authentic flavors and diverse useful characteristics of coffee. Authentic tastes for instant coffee are becoming more important to multinational corporations and local indie artisan firms. Companies are increasingly adopting flavors that cater to localized taste preferences. From a supply standpoint, corporations are increasingly focusing on obtaining coffee ingredients to assist consumers in creating the perfect cup. Functional coffee also has emerged as a clear winner in aiding the premiumization of the market. Instant coffee for consumers following a keto diet, instant coffee advertised as natural energy beverages, and instant coffee with protein have gained popularity among consumers.

Similarly, consumers' fast-paced lifestyles and the expanding food and beverage business have resulted in a growth in restaurants and cafes, boosting demand for commodity products like instant coffee. According to the India Brand Equity Foundation, 100 chain cafes and bakery companies in 2015 and around 3,100 - 3,200 coffee outlets in major Indian cities. Coffee businesses are booming in India, and by 2026, they're anticipated to be worth billions of dollars.

Market Segmentation:

Spray-dried segment is dominating the market during the forecast period

The spray-dried category is expected to be the fastest-growing segment by type, with a CAGR of XX percent over the forecast period. Spray-dried instant coffee is more popular among customers since it is less expensive than freeze-dried instant coffee. Spray dried instant coffee is made using a special blend of green coffee beans that have been meticulously picked. Before extracting clear liquid, these beans are roasted to the specified roasting conditions. After removing all non-soluble components, the liquid is further treated to evaporate the water through different stages before spraying onto a tall tower to produce a spray-dried soluble coffee powder. The procedure is meticulously managed to ensure that the rich fragrance volatiles is preserved in the finished product and that every sip is refreshing. InstantCoffeeCo's spray-dried instant coffee packets are made from carefully picked green coffee beans obtained directly from local coffee farms across Vietnam. As a wholesale instant coffee supplier, the goal is to provide high-quality spray-dried coffee processed using updated technologies under rigorous quality control, thereby contributing to the enhancement of Vietnamese instant coffee's value within the global coffee value chain.

The supermarkets and hypermarkets segment is expected to increase at the quickest rate during the projected period, with a CAGR of XX percent. Greater shelf space and a larger assortment of items can be credited to the segment's rise. The city's central area has the most supermarkets, attracting more people. Furthermore, the availability of a wide range of instant coffees and enticing offers is likely to propel the category and hence the global instant coffee market forward.

Geographical Penetration:

Asia-Pacific is fastest growing region during the forecast period

Over the projection period, Asia-Pacific is expected to have strong market expansion. Many countries in Asia-Pacific have traditionally been tea consumers, but the increased availability of instant coffee in markets like India has boosted overall coffee sales. Also, coffee has become a part of the culture in Mainland China. China provides a strong opportunity for the major instant coffee retailers, as the country has witnessed a shift in preferences, citing the millennial consumption patterns. As quoted by the Coffee Business Intelligence, in 2018, the country's coffee consumption rate grew by about 20%, 2% more than the global growth rate. Coffee is also very popular in Australia. Consumers in the country have a wide range of coffee preferences. To boost their position in the region, the corporations are expanding their footprints in the market with new and creative product launches.

Coffee pods and capsules and instant coffee are becoming increasingly popular among the general public (especially in North America and Western Europe) as a convenient way to make delicious coffee at home in less time. For example, according to a poll performed by the National Coffee Association in the United States, over 70% of consumers prefer to prepare coffee at home. Increasing demand for certified coffee products, customer acceptance of single-serve coffee brew systems, and ongoing innovation led by top competitors in the coffee market are just a few drivers driving the market. According to coffee production, nations such as Brazil and Vietnam produce the most coffee in terms of volume. Brazil is the world's greatest producer of green coffee, with 3.6 billion metric tons produced, followed by Vietnam, Colombia and Indonesia.

Competitive Landscape:

Nestlé SA, Unilever Plc., CCL Products, Kraft Heinz Company, The Coca-Cola Company, Luigi Lavazza SpA., Strauss Group Limited, Massimo Zanetti Beverage Group, Tata Global Beverages Limited, and JAB Holding Company are some of the major competitors in the instant coffee market. The instant coffee industry has a big and growing number of participants, with the potential to produce significant profits due to rising demand. To obtain a competitive advantage over their competitors in this industry, market in the global instant coffee market is employing various growth methods. As part of their growth strategies, key companies in this market are focused on strategic acquisitions, collaborative alliances, and innovation to give their consumers better products with new flavors throughout the world. Nestlé announced the launch of Starbucks premium instant coffee in February 2020. (soluble). Dark and medium roast coffee and a variety of coffee beverages are part of the new line. In regions such as the United Kingdom, Australia, Brazil, Chile, Mexico, Japan, Malaysia, New Zealand, Greater China (Mainland China, Hong Kong, and Taiwan), Singapore, Ireland, Thailand, and South Africa, all new products will be offered in multi-serve tins and single-serve forms.

COVID-19 Impact:

Positive impact on the global instant coffee market

The COVID-19 crisis affects the major coffee importing and consuming markets in Europe, North America, and Asia. Governments have enacted policies such as social distance and lockdowns, which have significantly impacted cafes, microbreweries, restaurants, and other out-of-home operations. Appropriate social distancing measures may compromise operational efficiency in restricted locations, such as fruit and vegetable packing plants or meat processing plants, and adequate staff protections are required. Many businesses have also reported high rates of employee absences; for example, workforce availability in French meat processing plants in the COVID-19-affected regions was reduced by up to 30%. The present trend of internet purchase for at-home consumption, on the other hand, is driving merchants, roasters, and consumers to adjust to this new reality. As a result, global coffee consumption is predicted to rise due to this factor. Companies like Nestle SA, for example, have reported robust retail demand for food and beverage items around the world, with organic group sales growth of 4.4 percent in the first quarter of 2020. During the pandemic, coffee sales were particularly strong, as people stocked up on essentials.

Why Purchase the Report?

Understand the current market scenario and viability of global instant coffee market over the forecast period

Visualize the composition of the global instant coffee market in terms of flavoring, packaging, production technology and distribution channel to identify major players, growth potential, and market strategies

Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period

Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market

What we offer?

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study

Excel data sheet with valuable data points of the global instant coffee market – Regional and Country level segmentation

Product mapping in excel for the key products of all major market players

Market Share Analysis covering business revenues ($) and revenue share (%) of key market players

The global instant coffee market report would provide an access to approximately 70 market data tables, 62 figures and 180 pages

Target Audience:

Coffee Producers

Instant Coffee Production line manufacturers

Healthcare Agencies

Education & Research Institutes

Research Professionals