The global Instant Coffee market size was worth around USD 28.89 billion in 2022 and is predicted to grow to around USD 49.11 billion by 2032 with a compound annual growth rate (CAGR) of roughly 5.7% between 2023 and 2032.
Global Instant Coffee Market: Overview
The majority of people consume coffee in the morning to boost their energy. It is a fundamental component of food culture in many different countries, and it is especially pervasive in the foodservice industry. The instant coffee, or soluble coffee, is a type of coffee that can be quickly dissolved in water due to its processing and preparation. A concentrated coffee extract is made by roasting, grinding, and brewing coffee beans. Afterwards, the extract is freeze-dried or spray-dried to remove most of the water, resulting in fine coffee granules and powder. With instant coffee, you can quickly prepare a cup of coffee by adding hot water to the granules and stirring. Fresh coffee beans or ground coffee have a shorter shelf life, so it is a popular choice for those who want an easy and quick way to enjoy coffee without the hassle of brewing equipment.
Key Insights
- As per the analysis shared by our research analyst, the global Instant Coffee market is estimated to grow annually at a CAGR of around 5.72 % over the forecast period (2023-2032).
- In terms of revenue, the global Instant Coffee market size was valued at around USD 28.89 billion in 2022 and is predicted to grow to around USD 49.11 billion by 2032.
- Based on type, the Spray-Dried segment was predicted to show maximum market share in the year 2022.
- Based on distribution channel, the supermarkets/hypermarkets are the most significant segments of the Instant Coffee market.
- By packaging type, the pouch segment is expected to grow at the fastest CAGR of 8.09% Over the forecast period.
- On the basis of region, Europe was the leading revenue generator in 2022.
Global Instant Coffee Market: Growth Drivers
Rise in the Disposable Income and Improvement in Standard of Living to Shoot Up Demand.
Over the analysis period, from 2022 to 2030, an increase in consumer disposable income, the presence of white-collar demographics, and an increase in the number of food service outlets are expected to have a significant impact on the growth of the global instant coffee market. An enormous demand for instant coffee has been created by an improved standard of living and a change in work ethic, notably in the corporate world.
The rising popularity of instant coffee
Because of the busy lifestyles of the population, ready-to-eat and ready-to-drink foods have become increasingly popular. They are convenient, quick, affordable, and accessible, so this is a positive development for the instant coffee market. Nevertheless, with their busy schedules, consumers presently look for healthier products and do not want to sacrifice product quality. Numerous minerals and antioxidants can be found in instant coffee. It helps in boosting metabolism, reduced disease risk, improving brain function, and enhancing liver health. Instant coffee's rising popularity can be due to the convenience and ease of preparation, which fit with the hectic lifestyles of contemporary consumers. Without the need for specialised brewing equipment or time-consuming procedures, instant coffee offers a quick and convenient method to drink coffee. The growing consciousness about the aids of instant coffee will definitely contribute to the progress of the market. Also, instant coffee variants are becoming healthier – with low caffeine content and more antioxidants. These features will drive the market's growth as the health-conscious target audience will gravitate towards these products.
Global Instant Coffee Market: Restraints
One of the key restraints in the instant coffee market is the acrylamide in larger quantities in instant coffee compared to freshly brewed coffee. Acrylamide is a harmful substance formed when coffee beans are roasted. Ingesting in higher amounts can be risky for the nervous system. It can also increase the risk of cancer.
Fluctuating prices of coffee beans
One of the most widely exchanged commodities worldwide is coffee. Both countries that produce coffee and those that don't are rapidly increasing their coffee consumption. To fulfil the rising demand for coffee, controlling the lack of supply is a difficult task. Additionally, coffee productivity is also impacted by climate change, which adds price volatility. The plant disease "coffee rust" or "la roya," a fungus that infects the leaf and decimates the branch and the coffee cherry, tends to spread as the temperature rises. As a result, pests, plant illnesses, and flaws in coffee beans reduce the amount of coffee available for sale. The discrepancy between supply and demand results in higher product pricing.
Global Instant Coffee Market: Scope and Segment
|
Attribute
|
Details
|
|
Market Size in 2022
|
USD 28.89 billion
|
|
Estimated Market Size in 2032
|
USD 49.11 billion
|
|
CAGR Growth Rate
|
5.7% CAGR
|
|
Base Year
|
2022
|
|
Forecast Years
|
2023-2032
|
|
Segment covered
|
by Type (Spray-Dried and Freeze-Dried),
by Distribution Channel (Sachet, Pouch, Jar, and Others),
by Packaging (supermarkets/hypermarkets, online, business-to-business, convenience stores, and others)
|
|
Regions Covered
|
- North America
- Europe
- Asia Pacific
- Latin America
- The Middle East & Africa
|
|
Companies Covered
|
- Nestle SA
- Unilever Plc.
- Kraft Foods Inc.
- Starbucks Corporation
- Tata Consumer Products Ltd.
- Jacobs Douwe Egberts
- Matthew Algie & Company Ltd.
- Matthew Algie & Company Ltd.
- Tchibo Coffee International Ltd.
- Trung Nguyen
- Keurig Green Mountain
|
|
Report Coverage
|
Revenue Forecast, Company Share, Competitive Landscape, Growth Factors, Restraints, Opportunities, Value Chain Analysis, Porter’s Five Forces Analysis, Patent Analysis, Market Attractiveness Analysis by Segments
|
Global Instant Coffee Market: Segmentation
Based on Type, The Spray-Dried segment led the global Instant Coffee market with remarkable revenue share of more than 56% in 2022 and is anticipated to retain its dominance throughout the forecast period. Spray drying involves spraying coffee extract into a stream of hot air and converting it into a fine powder. Spray dried instant coffee is relatively affordable than the freeze-dried variant, thus, creating its higher demand among consumers.
Based on distribution channel, the supermarkets/hypermarkets segment dominated the market, accounting for more than 50% of total revenue due to rising urbanization and easy availability of the product at the consumer end. Several brands are offering product demonstrations at supermarkets or hypermarkets to attract customers, which could provide an impetus to the segment's growth.
Based on packaging type, the market is divided into a sachet, pouch, jar, and others. The pouch segment is expected to grow at the fastest CAGR. This is because pouches are the best option for instant coffee packaging because they are easy to store, unbreakable (unlike glass jars), and come in a variety of sizes. Manufacturers are also trying with new packaging materials and designs for the purpose to make a difference their products on store shelves and attract customers, which has fueled the market.
By Region, Europe to lead the market growth during the projection period
The creation of new products with technological advancements, the rising demand for convenient coffee capsules and pods, as well as the adoption of automatic bean-to-cup machines, are just a few of the causes that may be credited to the domination of the regional market. Additionally, the highest coffee consumption in the world is found in a number of European nations. The largest coffee-consuming nations in the world include Finland, Norway, Iceland, Denmark, the Netherlands, Sweden, Switzerland, Belgium, and Luxembourg. Major firms working together and forming strategic alliances are anticipated to help the market expand in the area.
Asia-Pacific is also set for strong market growth over the forecast period. Many countries in this region have been traditional consumers of tea. However, the increased penetration of instant coffee in markets such as India has boosted the overall sales of the coffee. Additionally, Asia-Pacific is projected to rise in the forecast period attributable to the growing western influence of coffee drinking on the region's young population. The region's growth will also be driven by the rising disposable income of the people.
Global Instant Coffee Market: Competitive Analysis
The global Instant Coffee market is driven by players like Nestle SA, Unilever Plc., Kraft Foods Inc., Starbucks Corporation, Tata Consumer Products Ltd., Jacobs Douwe Egberts, Matthew Algie & Company Ltd., Matthew Algie & Company Ltd., Tchibo Coffee International Ltd., Trung Nguyen, Keurig Green Mountain, among others.
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.
- The Premium Instant Coffee is offered in three enjoyable flavors, Original, French Vanilla, and Hazelnut and these do not contain any artificial flavors and preservatives.
- In April 2021, Nescafé expanded its portfolio with the launch of a Roastery Collection range, in a move designed to give consumers the flavor of the artisan coffee they would expect from a coffee shop.
The global Instant Coffee market is segmented as follows:
By Type
By Packaging
By Distribution Channel
- Supermarkets/Hypermarkets
- Online
- Business-To-Business
- Convenience Stores
- Others
By Region
North America
- The U.S.
- Canada
- Mexico
- Rest of North America
Europe
- U.K
- France
- Germany
- Italy
- Spain
- Rest Of Europe
Asia Pacific
- China
- Japan
- India
- South Korea
- South East Asia
- Rest Of Asia Pacific
Latin America
- Brazil
- Argentina
- Rest Of Latin America
The Middle East & Africa
- GCC Countries
- South Africa
- Rest Of Middle East & Africa
Frequently Asked Questions (FAQs):
What is the Size of Instant Coffee Market?
The global Instant Coffee market size was worth USD 28.89 billion in 2022 and is expected to grow to USD 49.11Billion by 2032
What will be the CAGR of global Instant Coffee market?
The Instant Coffee market is expected to drive growth at a CAGR of 5.7% from 2023 to 2032.
Who are the major players operating in the Instant Coffee market?
Nestle SA, Unilever Plc., Kraft Foods Inc., Starbucks Corporation, Tata Consumer Products Ltd., Jacobs Douwe Egberts, Matthew Algie & Company Ltd., Matthew Algie & Company Ltd., Tchibo Coffee International Ltd., Trung Nguyen, Keurig Green Mountain, are the major players operating in the Instant Coffee market.
Which region will lead the global Instant Coffee market?
Europe dominated the global Instant Coffee market in 2022.
Which is the fastest growing region in Instant Coffee Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2032).