Global Liquid Coffee Market - 2022-2029

Global Liquid Coffee Market - 2022-2029

Market Overview

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

The water-soluble solids formed from roasted coffee and placed into liquid form are liquid coffee. It's used in foods to give baked goods, ice cream, and other products a true coffee flavor. Alternatively, it can be dispensed at the push of a button from hot-drinks machines. Catering, cafeterias, and canteens use it in this manner. Liquid coffee helps to accelerate metabolism, improve cognitive function, and improve liver health when consumed regularly. As a result, instant coffee is becoming increasingly popular, particularly among the working population worldwide.

Market Dynamics:

The market is being driven by the increasing convenience offered by liquid coffee

Several factors are driving the global liquid coffee market expansion, including the convenience of liquid coffee vs fresh coffee, as well as the quick and simple preparation process. Because liquid coffee is easier to prepare than fresh coffee, convenience is a major element driving market expansion. Consumers' fast-paced lifestyles are fueling demand for convenient food products such as liquid coffee, which is driving market expansion. According to the India Brand Equity Foundation, there were 100 chain cafés and bakery companies providing coffee in India in 2015, with an estimated 3,100 - 3,200 outlets. Liquid coffee is more appealing to new coffee consumers, particularly in developing nations. This is due to the multiple advantages it provides, as well as its ability to gratify their developing taste senses. Another essential component in preserving the growing demand for liquid coffee around the world is modernization.

Furthermore, manufacturers are constantly working on new and appealing ways to improve and develop liquid coffee in terms of aroma, quality, and flavor. All of this is done to ensure that liquid coffee tastes like freshly brewed coffee. Single-service systems are currently being created that are extremely appropriate for transporting and consuming, resulting in rapid growth in both the out-of-home and at-home segments.

Market Segmentation:

Sachet segment accounted for the highest share in global liquid coffee market

The market is bifurcated into jars, sachets, pouches, and others based on packaging. Because of its quick and easy preparation in a short amount of time, the sachet category is likely to hold the highest share of the liquid coffee market. Small sealed flexible packets with three or four layers of packaging are known as sachets. Aluminum, paper, cellulose, plastic, and fabric are among the chemicals used to manufacture them. Cosmetics, personal care, food and beverage, and pharmaceuticals use sachet packaging extensively. Sachet packets are less expensive than larger packets and require less storage space, lowering shipping costs. The main target market for sachet packing vendors is a low-income group, such as the poor or lower-middle-class, who are price-sensitive and would always prefer a cheaper version of the product.

Supermarkets and hypermarkets accounted for the largest segment of distribution channels in 2021. The rise of the market can be attributed to the availability of more shelf space and a greater selection of products. Supermarkets are typically found near the city's central district, attracting more customers.

Geographical Penetration:

Asia-Pacific is the dominating region during the forecast period

Over the projection period, Asia-Pacific is expected to have strong market expansion. Many countries in the Asia-Pacific region have traditionally been tea users, but the rising penetration of liquid coffee in areas like India has boosted overall coffee sales. Coffee has also become ingrained in the culture of mainland China. The major liquid coffee merchants have a strong opportunity in China, as the country has seen a shift in preferences, citing millennial consumption trends.

Due to a rise in demand for high-quality and single-origin coffees, Europe will witness significant market development. Furthermore, increased coffee consumption in the region has aided regional market growth. According to the European Ministry of Foreign Affairs, the region consumed 33% of all coffee eaten globally, boosting regional sales.

Competitive Landscape:

The liquid coffee market is highly concentrated, with the major worldwide manufacturers controlling a large portion of the market. With its Nescafe brand, Nestle SA is one of the world leaders in liquid coffee. All other brands combined have a large market share that is equivalent to or slightly less than Nescafe in several regions throughout the world. Nestle SA, Starbucks Corporation, Kraft Foods Inc., Tata Consumer Products Ltd., and Unilever PLC are among the major participants in the liquid coffee market. These companies are heavily investing in online distribution channels to appeal to consumers seeking convenience. Rage Coffee has launched ‘Liquid Coffee’ to make it even more convenient for coffee lover during the festive season. This newly released 'Liquid Coffee,' like most Rage products, is hygienically produced using triple filtered purified water and natural flavors.

COVID-19 Impact: Positive impact on the global liquid coffee market

The COVID-19 lockdown greatly influenced the liquid coffee industry in the first quarter of 2020, but it steadily faded in succeeding quarters, with no impact on full-year growth. Domestic consumption grew significantly while institutional sales decreased due to shuttered offices and public locations during the lockdown. On the other side, the present trend of internet purchases for at-home consumption is pressuring retailers, roasters, and consumers to adjust to this new reality. As a result, global coffee consumption is predicted to rise because of this factor. In developing countries, the middle class has a high need for in-home coffee drinking. Consumers are turning toward liquid coffee due to convenience in food habits in general and coffee intake. The product's adaptability has fueled this market expansion to diverse consumer tastes and preferences and its capacity to be disseminated through a variety of distribution channels to facilitate in-home consumption.