INSTANT COFFEE MARKET ANALYSIS

Instant Coffee Market size was valued at USD 36.23 Billion in 2022 and is projected to reach USD 53.32 Billion by 2030, growing at a CAGR of 4.95% from 2023 to 2030. The quick and easy preparation in a short span of time is the crucial aspect of the rise in the market revenue of Instant Coffee as well as high antioxidant content will foster market growth. The Instant Coffee Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Instant Coffee Market: Growth Drivers

Introduction of new flavors to expand their consumer-base

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.

Affordable and Convenient

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 such as 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.

Instant Coffee Market: Market Restraints

High content of acrylamide

High content of acrylamide in instant coffee as compared to the other forms of coffee is a major factor hindering growth of the instant coffee market. Acrylamide is a neurotoxic and can damage peripheral and central nervous system (PNS and CNS) in both humans and animals. Overexposure to acrylamide can cause damage to nervous system and it may increase the risk of cancer. According to a study conducted by National Center for Biotechnology Information in 2014, instant coffee was found to contain 100% more acrylamide (358 mg/kg) than fresh roasted coffee. This scenario is likely to restrain the growth of instant coffee industry in the near future.

Figure 1. Global Instant Coffee Market (%), By Segment Type

To learn more about this report, request sample copy

Among packaging type, the jars segment is expected to witness significant market share in the Instant Coffee Market. In 2022, the segment accounted for 40% share in the Instant Coffee Market in terms of revenue. This was majorly attributed to high consumption of coffee in the Asia Pacific region. Therefore, significant growth in consumption of coffee due to increasing population is expected to boost the instant coffee market during the forecast period.

Instant Coffee Market: Regional Insights

Asia Pacific is expected to witness the fastest growth in the Instant Coffee Market over the forecast period. This is owing to an increasing demand for instant coffee and significant growth of the food and beverage industry in India and China. According to International Coffee Organization, in 2015, China produced more coffee than Kenya and Tanzania combined, and consumed more than Australia, owing to increasing disposal income of consumers.

Figure 2. Global Instant Coffee Market Share (%), By Region

To learn more about this report, request sample copy

Instant Coffee Market: - Impact of Coronavirus (Covid-19) Pandemic

The impact of the COVID-19 lockdown on the instant coffee market was significant in the first quarter of 2020, but it gradually lessened in the subsequent quarters with limited impact on full-year growth. During the lockdown, while institutional sales suffered due to closed offices and public places, domestic consumption witnessed strong growth by the companies. Also, the current trend toward online shopping for at-home consumption, on the other hand, is forcing retailers, roasters, and consumers to adapt to this new reality. As a result, this factor is expected to increase global coffee consumption. Nestlé SA, for example, reported strong retail demand for food and beverage products around the world, achieving 4.4% organic group sales growth in the first quarter of 2020. Coffee sales were especially strong as people stockpiled essential items during the pandemic.

Instant Coffee Market: Recent Developments

• In January 2022, instant coffee brand Sleepy Owl launched premium instant coffee, expanding its product portfolio and widening its accessibility as a brand, which is available in three flavors, namely Original, French Vanilla, and Hazelnut, and these do not contain any artificial flavors and preservatives.
• In March 2022, Melbourne's coffee roaster Beat Coffee launched a specialty instant coffee that captures quality, flavor, and convenience in a single sachet. The freeze-drying process involved in it enables the vibrancy of the coffee to be captured instant, which keeps the caramel and honey-flavored notes.
• In April 2021, Nescafe expanded its portfolio with the launch of a Roastery Collection range in a move designed to give consumers the flavor of the artisan coffee that they would expect from a coffee shop. The Nescafe Gold Blend Roastery collection includes two instant coffee blends, Light Roast and Dark Roast, each made with Arabica beans.

Instant Coffee Market: Key Companies

Major players operating in the instant coffee market include, Nestle S.A, Keurig Green Mountain Inc., Starbucks Corporation, Jacobs Douwe Egberts, Tata Global Beverages Limited, Strauss Group Ltd, Luigi Lavazza S.P.A., Matthew Algie & Company Limited, Kraft Foods Inc., Tata Global Beverages, Tchibo Coffee International Ltd, Unilever Plc., Leo Coffee, Cothas Coffee Co., Hintz Foodstuff Production Gmbh, Illycaffe S.p.A., Sri Narasu's Coffee Company Pvt. Ltd., Hindustan Unilever Limited, Zino Davidoff, BM Foods, CCL Products (India) Ltd., and others.

Definition: Instant coffee is coffee powder that is produced by coffee beans that have been brewed at a higher Coffee-to-Water ratio as compared to regular coffee. Instant coffee is coffee powder or soluble coffee made from coffee beans, which enables people to make a cup of coffee by just stirring instant coffee in hot water.