Instant Coffee Market

The Instant Coffee Market is Expected to be Flourished by the Growing Demand for On-the-Go Beverages

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Instant coffee is a product made by brewing coffee beans that allows consumers to make coffee with just hot water. It involves extracting the coffee from roasted beans with hot water to make a concentrated liquid that is then dehydrated into solid or semi-solid granules, powder, or paste. Instant coffee is gaining popularity among consumers looking for an on-the-go caffeine boost. The product is highly convenient as it can be easily prepared anywhere and anytime. It is becoming a preferred choice for young professionals and students who have busy lifestyles. Some of the popular types of instant coffee include spray-dried coffee, freeze-dried coffee, and vacuum-packed coffee. The global instant coffee market is dominated by players like Nestle, Jacobs Kronung, Strauss Group, and Mt. Hagen.

The global Instant Coffee Market is estimated to be valued at US$ 42.05 Bn in 2024 and is expected to exhibit a CAGR of 8.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

The growing demand for on-the-go beverages among fast-paced consumers is expected to drive the growth of the instant coffee market over the forecast period. Instant coffee is highly convenient as it can be prepared instantly with just hot water without any added apparatus like cafetieres or coffee machines. This makes it a preferred choice for office-goers and students who are looking for an instant source of caffeine to boost their energy levels. Moreover, the increasing urbanization and busier lifestyles have prompted consumers to opt for easy-to-make beverages like instant coffee. Changing tastes and preferences along with rising disposable income of consumers are also fueling the sales of premium instant coffee that offers uniqueness in flavors. However, rising health concerns associated with caffeine intake may hamper the market growth.

Segment Analysis

The global instant coffee market is dominated by the retail packaging segment. This segment accounts for over 60% of the total market share as instant coffees are majorly consumed in homes. The retail packaging segment includes various packet sizes ranging from single-serve sachets to larger jars catering to family consumption. This provides consumers with flexibility in usage. The food service segment is the second largest and is growing at a higher rate owing to the increasing number of coffeeshops, restaurants, cafes etc. serving instant coffee-based beverages.

PEST Analysis

Political: The governments of major coffee producing countries are supporting farmers by subsidizing inputs and establishing minimum support prices to safeguard their interests. Some governments also provide market access through trade agreements.

Economic: Growing disposable incomes and fast-paced urban lifestyles continue to drive the demand for convenient foods including instant coffee. The rising number of working women has also expanded the consumer base. However, high input costs and fluctuations in coffee commodity prices remain challenges.

Social: Changing dietary habits and growing coffee consumption culture, especially among youth and millennials are fueling the uptake of both regular and flavored instant coffees. The large migrant population has increased the demand for ethnic and regional coffee flavors.

Technological: Major players are focusing on new product developments using advanced extraction technologies to provide customized flavors, textures, functional benefits and different packaging formats like sachets, sticks, bottles etc. Automatic coffee vending machines are also gaining traction.

Key Takeaways

The Global Instant Coffee Market Size is expected to witness high growth over the forecast period supported by increasing urbanization, busier lifestyles and consumers’ convenience-led choices.

Regional analysis: The Asia Pacific region currently holds over 40% market share and is projected to grow at a CAGR of 10% during the forecast period. India and China are witnessing double digit growth and are emerging as lucrative markets. Rising disposable incomes, growing young population and increasing socializing opportunities have significantly boosted coffee consumption in these countries. The large café culture and presence of major domestic and international coffee chains are further driving sales.

Key players operating in the instant coffee market are De Monchy Aromatics Limited, AOS Products Private Limited, TriVita, Inc., Edens Garden Inc. and Prime Natural Beauty. These companies have a strong presence across various regions and continue extensive R&D to roll out innovative products with different flavors and formats.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it 
Ravina
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Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.