Instant Coffee Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023

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The global instant coffee market was worth more than US$ 10 Billion in 2017, registering a CAGR of 5% during 2010-2017. The market is further projected to reach a value of US$ 14 Billion by 2023, growing at a CAGR of around 5% during 2018-2023. 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.
     

Instant Coffee Market Share

Breakup by Product Type:

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:

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:

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. Supermarkets and hypermarkets are followed by the business-to-business, convenience stores and online segments.

Regional Insights:

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. Europe is followed by Asia Pacific, North America, Latin America, and the Middle East and Africa.

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:

  • Kraft Foods Inc.
  • Strauss Group Ltd.
  • Starbucks Corporation
  • Tata Global Beverages
  • Jacobs Douwe Egberts
  • Matthew Algie & Company Ltd.
  • 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.

Key Questions Answered in This Report:

  • How has the global instant coffee market performed so far and how will it perform in the coming years?
  • What are the key regional markets in the global instant coffee market?
  • What are the major packaging segments in the global instant coffee market?
  • What are the key product types in the global instant coffee market?
  • What are the major distribution channels in the global instant coffee market?
  • What are the price trends of instant coffee?
  • What are the various stages in the value chain of the global instant coffee market?
  • What are the key driving factors and challenges in the global instant coffee market?
  • What is the structure of the global instant coffee market and who are the key players?
  • What is the degree of competition in the global instant coffee market?
  • What are the profit margins in the global instant coffee market?
  • What are the key requirements for setting up an instant coffee manufacturing plant?
  • How is instant coffee manufactured?
  • What are the various unit operations involved in an instant coffee manufacturing plant?
  • What is the total size of land required for setting up an instant coffee manufacturing plant?
  • What are the machinery requirements for setting up an instant coffee manufacturing plant?
  • What are the raw material requirements for setting up an instant coffee manufacturing plant?
  • What are the packaging requirements for instant coffee?
  • What are the transportation requirements for instant coffee?
  • What are the utility requirements for setting up an instant coffee manufacturing plant?
  • What are the manpower requirements for setting up an instant coffee manufacturing plant?
  • What are the infrastructure costs for setting up an instant coffee manufacturing plant?
  • What are the capital costs for setting up an instant coffee manufacturing plant?
  • What are the operating costs for setting up an instant coffee manufacturing plant?
  • What will be the income and expenditures for an instant coffee manufacturing plant?
  • What is the time required to break-even?

1    Preface
2    Scope and Methodology
   
2.1    Objectives of the Study
    2.2    Stakeholders
    2.3    Data Sources
        2.3.1    Primary Sources
        2.3.2    Secondary Sources
    2.4    Market Estimation
        2.4.1    Bottom-Up Approach
        2.4.2    Top-Down Approach
    2.5    Forecasting Methodology
3    Executive Summary
4    Introduction
   
4.1    Overview
    4.2    Key Industry Trends
5    Global Coffee Industry
   
5.1    Market Overview
    5.2    Production Volume Trends
    5.3    Market Breakup by Region
    5.4    Market Breakup by Coffee Bean Type
    5.5    Market Forecast
6    Global Instant Coffee Industry
   
6.1    Market Overview
    6.2    Market Performance
        6.2.1     Volume Trends
        6.2.2     Value Trends
    6.3    Price Analysis
        6.3.1    Price Indicators
        6.3.2    Price Structure
        6.3.3    Price Trends
    6.4    Market Breakup by Packaging 
    6.5    Market Breakup by Coffee Type
    6.6    Market Breakup by Distribution Channel 
    6.7    Market Breakup by Region
    6.8    Market Forecast
    6.9    SWOT Analysis
        6.9.1    Strengths
        6.9.2    Weaknesses
        6.9.3    Opportunities
        6.9.4    Threats
    6.10    Value Chain Analysis
        6.10.1    Raw Material Procurement
        6.10.2    Manufacturing
        6.10.3    Marketing
        6.10.4    Distribution
        6.10.5    Exports
        6.10.6    End-Use
    6.11    Porter’s Five Forces Analysis
        6.11.1    Overview
        6.11.2    Bargaining Power of Buyers
        6.11.3    Bargaining Power of Suppliers
        6.11.4    Degree of Competition
        6.11.5    Threat of New Entrants
        6.11.6    Threat of Substitutes
    6.12    Key Market Drivers and Success Factors
7    Market Breakup by Packaging 
   
7.1    Jar 
    7.2    Pouch
    7.3    Sachet 
    7.4    Others    
8    Market Breakup by Coffee Type
   
8.1    Spray Dried
    8.2    Freeze Dried
9    Market Breakup by Distribution Channel 
   
9.1    Business-To-Business
    9.2    Supermarkets and Hypermarkets
    9.3    Independent Retailers
    9.4    Departmental Stores
    9.5    Online
    9.6    Others
10    Market Breakup by Region
   
10.1    Europe 
    10.2    Asia-Pacific
    10.3    North America
    10.4    Latin America
    10.5    Middle East and Africa
11    Competitive Landscape
   
 11.1    Market Structure
    11.2    Market Share of Key Players
12    Instant Coffee Manufacturing Process
   
12.1    Product Overview
    12.2    Detailed Process Flow
    12.3    Various Types of Unit Operations Involved
    12.4    Mass Balance and Raw Material Requirements
13    Project Details, Requirements and Costs Involved
   
13.1    Land Requirements and Expenditures
    13.2    Construction Requirements and Expenditures
    13.3    Plant Layout
    13.4    Plant Machinery
    13.5    Machinery Pictures
    13.6    Raw Material Requirements and Expenditures
    13.7    Raw Material and Final Product Pictures
    13.8    Packaging Requirements and Expenditures
    13.9    Transportation Requirements and Expenditures
    13.10   Utility Requirements and Expenditures
    13.11   Manpower Requirements and Expenditures
    13.12   Other Capital Investments
14    Loans and Financial Assistance
15    Project Economics
   
15.1    Capital Cost of the Project
    15.2    Techno-Economic Parameters
    15.3    Product Pricing and Margins Across Various Levels of the Supply Chain
    15.4    Taxation and Depreciation
    15.5    Income Projections
    15.6    Expenditure Projections
    15.7    Financial Analysis
    15.8    Profit Analysis
16    Key Player Profiles
   
16.1      Nestle 
    16.2      Starbucks Corporation
    16.3      Jacobs Douwe Egberts
    16.4      Strauss Group Ltd.
    16.5      Matthew Algie & Company Ltd.
    16.6      Kraft Foods Inc. 
    16.7      Tata Global Beverages
    16.8      Tchibo Coffee International Ltd.


List of Figures


Figure 1: Global: Coffee Industry Overview
Figure 2: Global: Coffee Market: Production Volume Trends (in Million Kg), 2010-2017
Figure 3: Global: Coffee Market: Production Breakup by Region (in %), 2017
Figure 4: Global: Coffee Market: Consumption Breakup by Region (in %), 2017
Figure 5: Global: Coffee Market: Breakup by Coffee Bean Type (in %), 2017
Figure 6: Global: Coffee Market: Production Breakup by Coffee Type Across Various Region
Figure 7: Global: Coffee Market: Arabica Coffee Production Breakup by Region (in %), 2017
Figure 8: Global: Coffee Market: Robusta Coffee Production Breakup by Region (in %), 2017
Figure 9: Global: Coffee Market Forecast: Volume Trends (in Million Kg), 2018-2023
Figure 10: Global: Instant Coffee Industry Overview
Figure 11: Global: Instant Coffee Market: Production Volume Trends (in Million Kg), 2010-2017
Figure 12: Global: Instant Coffee Market: Value Trends (in Billion US$), 2010-2017
Figure 13: Global: Instant Coffee Market: Price Trends (in US$/Kg), 2010-2017
Figure 14: Global: Instant Coffee Market: Production Breakup by Region (in %), 2017
Figure 15: Global: Instant Coffee Market: Consumption Breakup by Region (in %), 2017
Figure 16: Global: Instant Coffee Market: Breakup by Coffee Type (in %), 2017
Figure 17: Global: Instant Coffee Market Forecast: Production Volume Trends (in Million Kg), 2018-2023
Figure 18: Global: Instant Coffee Market Forecast: Value Trends (in Billion US$), 2018-2023
Figure 19: Global: Instant Coffee Industry: SWOT Analysis
Figure 20: Global: Instant Coffee Industry: Value Chain Analysis
Figure 21: Global: Instant Coffee Industry: Porter’s Five Forces Analysis
Figure 22: Europe: Instant Coffee Market (in ‘000 Kg), 2010, 2017 & 2023
Figure 23: Asia-Pacific: Instant Coffee Market (in ‘000 Kg), 2010, 2017 & 2023
Figure 24: North America: Instant Coffee Market (in ‘000 Kg), 2010, 2017 & 2023
Figure 25: Latin America: Instant Coffee Market (in ‘000 Bags), 2010, 2017 & 2023
Figure 26: Middle East and Africa: Instant Coffee Market (in ‘000 Kg), 2010, 2017 & 2023
Figure 27: Global Instant Coffee Market: Spray Dried (in Million Kg), 2010, 2017 & 2023
Figure 28: Global Instant Coffee Market: Freeze Dried (in Million Kg), 2010, 2017 & 2023
Figure 29: Instant Coffee Manufacturing Plant: Detailed Process Flow
Figure 30: Instant Coffee Manufacturing Process: Conversion Rate of Products
Figure 31: Instant Coffee Manufacturing Process: Proposed Plant Layout
Figure 32: Instant Coffee Manufacturing Plant: Packaging Requirement
Figure 33: Instant Coffee Manufacturing Plant: Breakup of Capital Costs (in %)
Figure 34: Instant Coffee Industry: Profit Margins at Various Levels of the Supply Chain
Figure 35: Instant Coffee Production: Manufacturing Cost Breakup (in %)

List of Tables


Table 1: Global: Coffee Market: Key Industry Highlights, 2017 and 2023
Table 2: Global: Coffee Market Forecast: Breakup by Region, 2018-2023
Table 3: Global: Instant Coffee Market: Key Industry Highlights, 2017 and 2023
Table 4: Global: Instant Coffee Market Forecast: Breakup by Packaging (in Million US$), 2018-2023
Table 5: Global: Instant Coffee Market Forecast: Breakup by Coffee Type (in Million Kg ), 2018-2023
Table 6: Global: Instant Coffee Market Forecast: Breakup by Distribution Channel (in Million US$) , 2018-2023
Table 7: Global: Instant Coffee Market Forecast: Breakup by Region (in ‘000 Bags), 2018-2023
Table 8: Instant Coffee Manufacturing Plant: Costs Related to Land and Site Development (in US$)
Table 9: Instant Coffee Manufacturing Plant: Costs Related to Civil Works (in US$)
Table 10: Instant Coffee Manufacturing Plant: Costs Related to Cleaning Section (in US$)
Table 11: Instant Coffee Manufacturing Plant: Costs Related to Roasting Section (in US$)
Table 12: Instant Coffee Manufacturing Plant: Costs Related to Grinding Section (in US$)
Table 13: Instant Coffee Manufacturing Plant: Costs Related to Extraction Section (in US$)
Table 14: Instant Coffee Manufacturing Plant: Costs Related to Evaporation and Aroma Treatment Section (in US$)
Table 15: Instant Coffee Manufacturing Plant: Costs Related to Spray Drying Section (in US$)
Table 16: Instant Coffee Manufacturing Plant: Costs Related to Packaging Section (in US$)
Table 17: Instant Coffee Manufacturing Plant: Costs Related to Other Section (in US$)
Table 18: Instant Coffee Manufacturing Plant: Summary of Machinery Costs (in US$)
Table 19: Instant Coffee Manufacturing Plant: Raw Material Requirements
Table 20: Instant Coffee Manufacturing Plant: Costs Related to Salaries and Wages (in US$)
Table 21: Instant Coffee Manufacturing Plant: Costs Related to Other Capital Investments (in US$)
Table 22: Details of Financial Assistance Offered by Financial Institutions
Table 23: Instant Coffee Manufacturing Plant: Capital Costs (in US$)
Table 24: Instant Coffee Manufacturing Plant: Techno-Economic Parameters
Table 25: Instant Coffee Manufacturing Plant: Taxation and Depreciation
Table 26: Instant Coffee Manufacturing Plant: Income Projections (in US$)
Table 27: Instant Coffee Manufacturing Plant: Expenditure Projections (in US$)
Table 28: Instant Coffee Manufacturing Plant: Cash Flow Analysis Without Considering the Income Tax Liability
Table 29: Instant Coffee Manufacturing Plant: Cash Flow Analysis on Considering the Income Tax Liability
Table 30: Instant Coffee Manufacturing Plant: Profit and Loss Account


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