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India Instant Coffee Market to Grow at 3.3% During 2022-2027, Spurred by Increasing Preference for On-the-Go Beverages

Published on Nov 07, 2019

According to the latest report by IMARC Group, titled "India Instant Coffee Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027," the instant coffee market in India is expected to grow at a CAGR of 3.3% during 2022-2027. Instant coffee refers to a beverage made from brewed and dried coffee bean extracts. They are obtained by grinding roasted coffee beans through spray- or freeze-drying processes. The extract is sprayed into hot air that turns them into fine fragments in the spray-drying technique, whereas the freeze-drying process involves freezing and drying the extract at low temperatures under vacuum conditions. It is characterized by a coarse granulated texture and is added to water or milk for preparing ready-to-drink coffee. The aroma and flavor of instant coffee remain almost similar to the freshly brewed alternatives but consists of relatively lower caffeine content and a higher concentration of antioxidants. Its consumption is consequently associated with boosting metabolism, enhancing brain function and maintaining liver health.

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.

India Instant Coffee Market Trends:

The market is primarily driven by the enhanced convenience associated with the usage of instant coffee. Instant coffee is easy to prepare and can be prepared from anywhere, thus making it one of the preferred beverages among working professionals. The preparation process is also quick and cost-efficient, which further contributes to its increasing popularity. Additionally, the significant expansion of the café culture in India has led to the establishment of numerous multinational chains of coffeehouses. These giants are now launching instant variants of coffee mixes, along with exotic blends of coffee beans, to cater to a vast array of diverse consumers. Numerous key players are also launching instant decaffeinated variants and premium blends of instant mixes to target affluent consumers with sophisticated tastes. These product variants gather higher margins than regular coffee, thereby catalyzing the overall profitability of the manufacturers. They are also introducing instant mixes with unique flavors, such as vanilla, mocha, caramel, hazelnut, mint, orange and berry, which are gaining widespread preference among the masses.

Market Summary:

  • On the basis of the packaging, the market has been classified into jar, pouch, sachet and others.
  • Based on the coffee type, the market has been bifurcated into spray and freeze dried.
  • On the basis of the distribution channel, the market has been divided into business-to-business, supermarkets and hypermarkets, independent retailers, departmental stores, online and others.
  • On the geographical front, the market has been segregated into North India, West and Central India, South India and East India.
  • The competitive landscape of the market has been analyzed in the report with the detailed profiles of the key players operating in the market.

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