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

Instant Coffee Market is Segmented By Flavoring (Flavored Instant Coffee, Unflavored Instant Coffee), By Packaging (Sachets, Pouches, Jars), By Production Technology (Freeze-Dried Instant Coffee, Spray-Dried Instant Coffee), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialist Retailers, Online Channels, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Instant Coffee Market Size

The Global Instant Coffee Market reached USD 31,236.2 million in 2022 and is projected to witness lucrative growth by reaching up to USD 48,669.6 million by 2030. The market is growing at a CAGR of 5.7% during the forecast period (2024-2031). The global instant coffee market is a rapidly growing industry, driven by increasing demand for convenient and easy-to-prepare coffee products.

Factors contributing to the growth of the instant coffee market include the rising popularity of coffee among consumers, particularly in developing countries, and the convenience and affordability of instant coffee products. Additionally, the availability of various flavors and packaging options is expected to further drive instant coffee market growth. The manufacturers are investing in product innovation, expanding their product portfolios, and adopting strategies such as mergers and acquisitions to gain a competitive advantage in the instant coffee market.

Instant Coffee Market Scope

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Instant Coffee Market Dynamics

The Convenience Of Instant Coffee Drives the Market Growth

Consumers are looking for quick and easy ways to enjoy their favorite coffee products, without the need for extensive preparation or specialized equipment. This demand for convenience leads to the development of a wide range of instant coffee products, which are prepared quickly and easily using just hot water or a microwave. 

For instance, on January 4, 2022, Sleepy Owl, a direct-to-consumer coffee brand, has recently launched Premium Instant Coffee, expanding its product portfolio and making the brand more accessible to consumers. The new product aims to bridge the gap between convenience and experience, which is one of the key selling points of the brand. The premium instant coffee is made with 100% Arabica beans and utilizes microground technology. It contains 95% soluble coffee crystals and 5% freshly roasted high-quality beans.

Changing Consumer Preferences Drive Market Growth 

Consumers are looking for high-quality and innovative coffee products that meet their changing tastes and preferences, and the instant coffee market offers a wide range of options. In addition, the instant coffee market is adapting to evolving changing consumer preferences for healthier and more sustainable products, with a growing selection of organic and fair trade instant coffee options. 

The instant coffee market also sees an increase in demand for flavored and functional instant coffee products, as consumers look for products that offer unique flavors and health benefits. For instance, on January 5, 2023, Tata Consumer Products launched its new premium instant coffee named "Tata Coffee Grand Premium", which is made from a 100% coffee blend with flavor-locked decoction crystals, focusing on innovation. 

Instant Coffee Market Segment Analysis

The global instant coffee market is segmented based on flavoring, packaging, production technology, distribution channel, and region.

Increased Demand For Convenient And Easy-To-Use Packages Is Expected To Drive Segment Growth

The sachets segment held the largest share of the global instant coffee market in 2022. Sachets are convenient and easy to use, providing a pre-measured amount of coffee that can be quickly prepared with hot water. Manufacturers are also exploring new packaging materials and designs to make their products stand out on shelves and attract consumers, which has driven the market. 

For instance, on January 9, 2023, Rage Coffee, an FMCG company in Delhi that specializes in caffeine-related products, introduced its latest offering: 20 ml coffee sachets. The packaging is designed to be highly portable, taking up minimal space and delivering a flavorful filter coffee with 200 mg of caffeine for an instant boost. 

Global Instant Coffee Market Geographical Share

Increased Consumption Of Instant Coffee in the Asia Pacific

The Asia-Pacific region has been a dominant force in the global instant coffee market, accounting for the largest share of overall consumption and production. This trend is driven by the region's large and growing population, increasing disposable incomes, and changing consumer preferences toward convenient and on-the-go coffee products. Countries such as China, India, Japan, South Korea, and Indonesia are among the largest markets for instant coffee in the region, with a high demand for sachets and other convenient packaging formats. 

According to the International Coffee Organization, Japan imported 6,751 bags (in thousand 60 kg bags) of green coffee beans in 2020-21. Concurrently, Japan consumed 7,479 bags (in thousand 60 kg bags) of coffee in 2021, reflecting the country's significant coffee consumption. Similarly, in Australia, coffee is a popular beverage with consumers having diverse preferences for the types and flavors of coffee they consume.

Instant Coffee Companies

The major global instant coffee market players include Nestle SA, Unilever PLC, Kraft Foods Inc, Starbucks Corporation, Tata Global Beverages Limited, The Coca-Cola Company, JABA Holdings Company, The J.M Smucker Company, Straues Group Ltd, and Tchibo GmbH.

COVID-19 Impact on Instant Coffee Market

The Covid-19 pandemic had a significant impact on the global instant coffee market, causing disruptions in the supply chain, changes in consumer behavior, and fluctuations in demand. The market experienced a decline in sales during the early stages of the pandemic, as lockdowns and restrictions led to the closure of coffee shops and cafes. However, the market quickly rebounded as consumers shifted towards at-home consumption and increased their purchases of coffee products for home brewing. This trend was driven by the need for convenience, as well as the closure of coffee shops and cafes, which led to a surge in demand for instant coffee products.

Artificial Intelligence Impact Analysis

Artificial intelligence (AI) is expected to have a significant impact on the global instant coffee market in the coming years. AI-powered tools can be used to optimize various aspects of the coffee production process, including crop management, quality control, and supply chain management. AI can be used to analyze data on coffee quality and flavor profiles, which can help companies to optimize their production processes and develop new products that better meet consumer preferences. This is particularly relevant in the highly competitive instant coffee market, where companies are constantly looking for ways to differentiate their products and meet changing consumer demands.

Key Developments

• In June 2022, Olam Food Ingredients (OFI) partnered with GEA to construct a production facility in Espírito Santo, Brazil, where two complete lines of freeze-dried and spray-dried instant coffee will be manufactured. The facility is expected to begin production in 2023, with GEA responsible for the installation of the production lines.
• In March 2022, Beat Coffee, a coffee roaster based in Melbourne, launched a specialty instant coffee that combines quality, flavor, and convenience in a single sachet. This new product is unique in that it captures the vibrancy of the coffee through a freeze-drying process, preserving the caramel and honey-flavored notes.
• In April 2021, the Nescafe brand introduced a new line of instant coffee blends to its portfolio, called the Roastery Collection range. This product range has been designed to offer consumers the taste and flavor of artisanal coffee that they would typically experience at a specialty coffee shop.

Why Purchase the Report?

• To visualize the global instant coffee market segmentation based on flavoring, packaging, production technology, distribution channel, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of instant coffee market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global instant coffee market report would provide approximately 69 tables, 66 figures, and 135 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies