INSTANT COFFEE MARKET ANALYSIS

Market Challenges And Opportunities

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.