Instant Coffee Market

Market Overview:

The global instant coffee market size reached US$ 13.3 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 18.3 Billion by 2028, exhibiting a growth rate (CAGR) of 5.51% during 2023-2028. 

Instant coffee, also known as coffee powder, is one of the most widely consumed beverages made by grinding roasted coffee beans. It enables consumers to quickly prepare a cup of coffee by pouring hot water to the instant coffee mix. In comparison with brewed coffee, instant coffee comprises of lower caffeine content but higher amounts of antioxidants. Regular consumption of instant coffee assists in boosting metabolism, improving brain function and enhancing liver health. Owing to this, instant coffee is gaining immense popularity especially among the working population across the globe.

Global Instant Coffee Market Drivers:

• Instant coffee manufacturers are introducing new coffee flavors in the market, such as mocha, green bean, Italian roast, French vanilla, ginger-bread cookie, cardamom bun and chocolate caramel, in order to expand their consumer-base. Moreover, these value-added products tend to fetch a higher margin than basic products, allowing them to increase the profitability of the manufacturers, in turn, contributing to the market growth.
• As single-serve packets are more affordable and provide convenience to the consumers, they are experiencing a strong demand in homes, cafés, hotels and restaurants. Moreover, they allow the consumers to try out new flavors without spending on bulk packs.
• The consumption of premium instant coffee products is proliferating at a rapid pace in emerging markets like the Middle East, Eastern Europe and South East Asia due to inflating disposable incomes, growing urbanization and altering food patterns of the consumers in these regions.
• The population in several instant coffee drinking countries is anticipated to grow in the upcoming years. This is expected to expand the overall consumer-base of instant coffee and strengthen the growth of the market.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global instant coffee market report, along with forecasts at the global and regional level from 2023-2028. Our report has categorized the market based on product type, packaging and distribution channel.

Breakup by Product Type:

• Spray Dried
• Freeze Dried
   

On the basis of product types, the market is bifurcated as spray dried and freeze dried instant coffee. Amongst these, spray dried instant coffee holds the dominant share as it is relatively affordable than the freeze dried variant.

Breakup by Packaging:

• Jar
• Pouch
• Sachet
• Others
   

Based on packaging, pouches account for the majority of the market share as they are flexible, versatile, lightweight and recyclable in nature. In contrast with other forms of packaging, pouches offer a more convenient and cheaper way of packaging. Besides pouches, the other packaging types include jars and sachets.

Breakup by Distribution Channel:

• Business-To-Business
• Supermarkets and Hypermarkets
• Convenience Stores
• Online
• Others
   

On the basis of distribution channels, supermarkets and hypermarkets represent the largest segment as they offer large shelf-space and a wide variety of products to choose from.

Regional Insights:

• Europe
• Asia-Pacific
• North America
• Latin America
• Middle East and Africa
   

On a geographical front, Europe enjoys the leading position in the market, holding the biggest share. As Europe has an age-old tradition of coffee-drinking, there is a high demand for instant coffee products in the region.

Competitive Landscape:

The global instant coffee market is highly concentrated in nature with the top player (Nestle) holding around a half of the overall market share. Some of the other leading players operating in the market are:

• Nestle 
• Starbucks Corporation
• Matthew Algie & Company Ltd.
• Kraft Foods Inc. 
• Tata Consumer Products Limited
• Strauss Group Ltd. 
• Jacobs Douwe Egberts
• Tchibo Coffee International Ltd. 
   

This report provides a deep insight into the global instant coffee industry covering all its essential aspects. This ranges from macro overview of the market to micro details of the industry performance, recent trends, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc. The report also provides a comprehensive analysis for setting up an instant coffee manufacturing plant. The study analyses the processing and manufacturing requirements, project cost, project funding, project economics, expected returns on investment, profit margins, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the instant coffee industry in any manner.

Report Coverage: