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Freeze-Dried Coffee Market Size, Share, Industry, Forecast and outlook (2024-2031)

Published: November 2024 || SKU: FB5944
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Freeze-Dried Coffee Market is segmented By Flavor (Flavored, Non-Flavored), By Packaging (Jars, Sachets, Pouches), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Channels, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031 

 

Market Overview

Freeze-Dried Coffee Market is expected to grow at a CAGR of 5.4% during the forecast period 2024-2031

High-quality coffee beans like Excelsa, Liberica, Robusta, Arabica, and others make freeze-dried coffee, an instant variety of coffee. The coffee extract is frozen to about -40 degrees Celsius and then cut into pellets to create the freeze-dried coffee. The frozen pellets are vacuum-sealed and dried at a very low temperature. The temperature and drying conditions keep the aroma's quality. The growth prospects in the global freeze-dried coffee market have improved due to the increased for growth in the global market for freeze-dried coffee have improved due to the increase in demand for instant coffee. There is no debate regarding coffee's widespread appeal among local communities.

 

Market Summary

MetricsDetails
Market CAGR5.4%
Segments CoveredBy Flavor, By Packaging, By Distribution Channel, and By Region
Report Insights CoveredCompetitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.
Fastest Growing RegionAsia Pacific
Largest Market Share North America

 

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Market Dynamics

The introduction of new freeze-dried coffee flavors fuels market expansion

To increase their customer base, freeze-dried coffee producers are launching new coffee flavors like green beans, mocha Italian roast, French vanilla, ginger-bread cookie, cardamom bun, and chocolate caramel. Additionally, these value-added products are more likely to generate higher profit margins than basic goods, boosting manufacturers' profitability and fueling the market's freeze-dried coffee expansion.

Moreover, due to its simplicity in preparation compared to more conventional forms of coffee, freeze-dried coffee has grown in popularity with consumers. Additionally, the market for freeze-dried coffee has experienced significant growth due to the product's low price, high antioxidant content, and people's busy lifestyles.

Although fluctuations hamper the market expansion in the price of the raw materials used to produce it, freeze-dried coffee is under pressure to increase in price.

Market Segmentation Analysis

The flavored segment accounted for the highest share of the global dried-freeze market

The flavored segment accounted for the highest share in the global dried-freeze market due to the increased consumer behavior towards new flavors. To expand their customer base, freeze-dried coffee manufacturers are introducing new coffee flavors to the market, such as green bean, mocha Italian roast, French vanilla, ginger-bread cookie, cardamom bun, and chocolate caramel. Additionally, these value-added products are more likely to achieve higher profit margins than basic goods, boosting manufacturer profitability and fostering the expansion of the freeze-dried coffee market.

On the other hand, the hypermarket/supermarket continued to be the coffee's most popular point of sale due to the large retail space and various product lines across the brand. The increased consumer base and increased market sales are facilitated by the greater product visibility offered by supermarkets and hypermarkets. Major players are selling their distribution rights to other well-known players to expand their shelf space in supermarkets and thus increase their market penetration.

Market Geographical Share

North America is the dominating region during the forecast period

North America held the largest market share globally due to the strong consumer demand from the developed markets of the United States and Canada. Additionally, consumers increasingly favor premium instant coffee brands to satisfy their caffeine cravings as at-home coffee consumption increases in the United States. As a result, freeze-dried coffees, which have better coffee blends than spray-dried varieties, have continued to be the most popular in the area. More than 70% of American consumers prefer making coffee at home, according to a survey by the National Coffee Association.

On the other hand, over the forecast period, Asia Pacific is anticipated to experience the market's fastest growth. This results from rising instant coffee demand and the significant expansion of China and India's food and beverage industries. The International Coffee Organization reports that China produced and consumed more coffee in 2020 than Kenya, Tanzania, and Australia combined due to rising consumer disposable income.

Market Companies and Competitive Landscape

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Key major players are Unilever, Nestlé S.A, JAB Holding Company, The J.M. Smucker Company, Monster Beverage Co, Starbucks Corporation, PepsiCo Inc, McDonald's Corporation, The Coca-Cola Company, and Jacobs Kronung, Inc. These key players started launching new flavored products as consumers are willing to taste new flavors. For instance, On Jul 3rd, 2018, Hyderabad-based CCL Products (India) Ltd, a leading manufacturer of instant coffee, introduced sachets that aim to revolutionize how the nation consumes coffee while taking on tea as a direct competitor. The consumer would only need to add water to the 3-in-1 sachets' contents of instant coffee, spray-dried milk powder, and sugar to make a beverage out of them. In addition, On 3rd January 2022, The Continental Freeze Dried coffee company released its first-ever national TV commercial to educate consumers about the freeze-drying process and to promote Continental Freeze Dried, their premium instant coffee brand.

COVID-19 Impact on Market Growth

Negative impact on the global freeze-dried coffee market

The COVID-19 virus caused havoc all over the world. It turned out to be a deadly illness. Most people who contracted it recovered without any issues. One percent of those who contracted it died from it, and some who did were hospitalized. Many of those who recovered experienced lifelong complications like diabetes and strokes. Because the antibodies only lasted a few months, some of these individuals also contracted COVID-19 again. The world market for dried-freeze coffee was harmed by COVID-19. Since many businesses, corporations, restaurants, and other public spaces had to close due to the lockdown, sales in these industries fell. However, this resulted in higher sales in the domestic segment. Growth was also accelerated by the quick uptake of the e-commerce sector.

The global freeze-dried coffee market report would provide access to approximately 61 market data tables, 57 figures, and 170 pages.

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FAQ’s

  • Freeze-Dried Coffee Market is expected to grow at a CAGR of 5.4% during the forecast period 2024-2031

  • Key players are Unilever, Nestlé S.A, JAB Holding Company, The J.M. Smucker Company, Monster Beverage Co, Starbucks Corporation, PepsiCo Inc, McDonald's Corporation, The Coca-Cola Company, and Jacobs Kronung, Inc.

  • Market is segmented based on By Flavor, By Packaging, By Distribution Channel, and By Region.

  • North America held the largest market share globally due to the strong consumer demand from the developed markets.
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