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GCC Instant Coffee Market to Witness Moderate Growth During 2020-2025, Catalyzed by Demand for Specialty Coffee

According to the recent report by IMARC Group, titled “GCC Instant Coffee Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025,” the GCC instant coffee market size grew at a CAGR of about 4% during 2014-2019. Instant coffee, also known as soluble coffee, is derived from brewed coffee beans and can be used to make a hot beverage by pouring hot water or milk. It is generally available in different forms, including powder, crystals, and concentrated liquid. It is commercially prepared by either spray drying or freeze-drying methods. These methods ensure that the aroma, flavor, and quality of the coffee remain intact and offer the same taste as grounded coffee beans. In comparison to freshly brewed coffee, instant coffee usually contains slightly less caffeine. Some of the common advantages of instant coffee include its ease of usage, quick preparation, long shelf life, and low weight.

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.

GCC Instant Coffee Market Trends:

About 60% of the population in the GCC countries is under 25 years of age. As these young consumers are inclining toward western cultural habits, it is increasing the consumption of instant coffee in the region. Moreover, the inflating income levels of the consumers are also contributing to the market growth. Furthermore, exposure to premium and specialty coffee via social media platforms has led to their heightened demand, especially in Saudi Arabia and the UAE. In addition to this, manufacturers are introducing new coffee flavors like gingerbread cookies, cardamom bun, mocha, and hazelnut to cater to attract a broader consumer base, which, in turn, is catalyzing the market growth. Additionally, a large international expatriate population has cross-pollinated the market with the third to fifth-wave coffee shop concepts from Australia, Europe, and the United States. On account of these factors, the market is expected to experience moderate growth during the forecast period (2020-2025). 

Market Summary:

  • Based on the product type, the market has been bifurcated into spray dried and freeze dried coffee.
  • On the basis of the packaging, the market has been categorized into pouches, jars, sachets, and others.
  • The market has been divided into flavored and unflavored coffee.
  • Based on the distribution channel, the market has been segmented into supermarkets and hypermarkets, independent retailers, business to business, departmental stores, online, and others.
  • On the basis of the end user, the market has been classified into institutional and home users.
  • Region-wise, the market has been segregated into Saudi Arabia, Oman, Qatar, the United Arab Emirates, Kuwait, and Bahrain.
  • The competitive landscape of the market has been analyzed in the report, with some of the key players being Nestle S.A., Starbucks Corporation, Strauss Group Ltd., Jacobs Douwe Egberts, Luigi Lavazza S.P.A., Tchibo Coffee International Ltd., The Kraft Heinz Company, and Tata Global Beverages Limited.

 

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