Instant Coffee Market Size Worth $23.11 Billion by 2030 | CAGR: 6.21% by The Brainy Insights
The Brainy Insights
7 min read
The Brainy Insights
According to The Brainy Insights, the global instant coffee market size is projected to reach USD 23.11 billion by 2030 from its value of USD 13.44 billion in 2021, at a CAGR of 6.21% during the forecast period. The growing awareness about the benefits of instant coffee will positively contribute to the development of the market. The growing demand for high-quality, unique, and novel instant coffee will also contribute to the European instant coffee market's growth.
Newark, Sept. 20, 2023 (GLOBE NEWSWIRE) -- As per the report published by The Brainy Insights, the global instant coffee market is expected to grow from USD 13.44 billion in 2021 to USD 23.11 billion by 2030, at a CAGR of 6.21% during the forecast period 2022-2030.
The handy, quick, affordable, and accessible food & beverages are becoming more and more popular given today's population's hectic and busy schedules. Thereby aiding in the development of the instant coffee market. Also, the presence of antioxidants in instant coffee that increases brain function lowers the risk of sickness, enhances liver health, and speeds up metabolism, attracting more consumers to the market. The market will develop as people become more aware of the advantages of instant coffee. Additionally, instant coffee comes in a wide range of flavors and variants. The growth of the instant coffee business has drawn multiple market players into the instant coffee sector, resulting in a highly fragmented market. Due to the oversupply of instant coffee, businesses compete more fiercely than ever to win over new customers and keep those they already have by introducing new products with different flavors and packaging. Furthermore, innovative marketing techniques have increased the popularity of high-end, premium coffee flavors. Also, coffee makers are creating coffee flavors tailored to the consumers' local tastes and preferences. Instant coffee's incorporation of antioxidants, which is good for consumers' health, is another factor driving the market's expansion. Such initiatives will broaden the consumer market and offer profitable opportunities to sector participants. However, the higher presence of acrylamide, which is harmful to humans when consumed in larger quantities, can restrict market development. Furthermore, the growing concern about the addictive nature of coffee and its side effects when consumed in high quantities can challenge the market's growth. Proper messaging with cautious advisory on coffee consumption can mitigate the restrictions and challenges for the market players.
Competitive Strategy
To enhance their market position in the global instant coffee market, the key players are now focusing on adopting the strategies such as product innovations, mergers & acquisitions, recent developments, joint ventures, collaborations, and partnerships.
• Cusa Tea announced the creation of Cusa Coffee in March 2020. Cusa Coffee utilizes the same evaporative dehydration method as Cusa Tea. Seven instant packets are included in one box, and each sachet creates an 8-ounce cup of freshly made coffee in under three seconds. In April 2020, Cusa Coffee also introduced Light Roast, Medium Roast, and Dark Roast flavors in the market.
• The Roastery Collection line was introduced by Nescafe in April 2021 as part of an effort to provide consumers "the flavor of the artisan coffee" they would anticipate from a coffee shop. Two Arabica-bean-based instant coffee mixes, Light Roast and Dark Roast are part of the Nescafe Gold Blend Roastery Collection.
The instant coffee market witnessed steady growth before the pandemic hit, and unlike most markets, the pandemic has had a positive impact on the instant coffee market. The pandemic-induced lockdowns facilitated the development of homemade instant coffee beverages, cookies, ice creams, cakes, and other desserts. For instance, during the initial lockdown phase, the trend of making Dalgona coffee gained prominence on the social media platforms like Instagram and Facebook. Furthermore, the continued enhancement in the quality and diversity of instant coffee has provided an impetus to the market. The shift of consumers to online shopping to avoid contact led to many market players launching their products online, significantly contributing to sales and revenues for the said market players.
Key Findings
• In 2021, the spray-dried segment dominated the market with the largest market share of 56% and market revenue of 7.52 billion.
The type segment is divided into spray-dried and freeze-dried. In 2021, the spray-dried segment dominated the market with the largest market share of 56% and market revenue of 7.52 billion.
• Over the forecast period, the pouch segment will grow at the fastest CAGR of 8.29%.
The packaging type segment is divided into a sachet, pouch, jar, and others. Over the forecast period, the pouch segment will grow at the fastest CAGR of 8.29%.
• In 2021, the supermarkets/hypermarkets segment accounted for the largest share of the market, with 55% and market revenue of 7.39 billion.
The distribution channel segment is divided into supermarkets/hypermarkets, online, business-to-business, convenience stores, and others. In 2021, the supermarket/hypermarket segment accounted for the largest share of the market, with 55% and market revenue of 7.39 billion.
Regional Segment Analysis of the Instant Coffee Market
• North America (U.S., Canada, Mexico) • Europe (Germany, France, U.K., Italy, Spain, Rest of Europe) • Asia-Pacific (China, Japan, India, Rest of APAC) • South America (Brazil and the Rest of South America) • The Middle East and Africa (UAE, South Africa, Rest of MEA)
Europe emerged as the largest market for the global instant coffee market, with a market share of around 35% and 4.70 billion of the market revenue in 2021. The Asia Pacific is expected to be the largest market during the forecast period. The instant coffee market in the Asia Pacific has been expanding rapidly. China, Japan, and Vietnam dominate instant coffee in the Asia Pacific. The rising demand for ready-to-drink products, given the busy lifestyle of the population, is driving the demand in this region. Spray-dried instant coffee is the most popular product in the region; however, higher quality freeze-dried premium coffee is also witnessing a rise in demand. The increasing expansion of supermarket/hypermarket chains like reliance, big bazaar, and D-mart is a positive development for the instant coffee market as the maximum sales happen through these distribution channels. The products are affordable, accessible, easy to make, and available in numerous flavors, which will facilitate the market's growth. The low caffeine content and high presence of antioxidants will expand the market by attracting health-conscious consumers.
Key players operating in the global instant coffee market are:
• Jacobs Douwe Egberts • Kraft Foods Inc. • Matthew Algie & Company Ltd. • Nestle SA • Starbucks Corporation • Strauss Group Ltd. • Tata Consumer Products Ltd. • Tchibo Coffee International Ltd. • Trung Nguyen • Unilever PLC
This study forecasts global, regional, and country revenue from 2019 to 2030. The Brainy Insights has segmented the global instant coffee market based on the below-mentioned segments:
Global Instant Coffee Market by Type:
• Spray-Dried • Freeze-Dried
Global Instant Coffee Market by Packaging:
• Sachet • Pouch • Jar • Others
Global Instant Coffee Market by Distribution Channel:
The global instant coffee market is analyzed based on value (USD Billion). All the segments have been analyzed on a worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report offers an in-depth analysis of driving factors, opportunities, restraints, and challenges for gaining critical insight into the market. The study includes porter's five forces model, attractiveness analysis, raw material analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.
About The Brainy Insights:
The Brainy Insights is a market research company, aimed at providing actionable insights through data analytics to companies to improve their business acumen. We have a robust forecasting and estimation model to meet the clients' objectives of high-quality output within a short span of time. We provide both customized (clients' specific) and syndicate reports. Our repository of syndicate reports is diverse across all the categories and sub-categories across domains. Our customized solutions are tailored to meet the clients' requirements whether they are looking to expand or planning to launch a new product in the global market.
