Instant Coffee Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2022 |
| CAGR | 5.28 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Instant Coffee Market Analysis
The Instant Coffee Market is projected to record a CAGR of 5.28% over the next five years.
The middle-class population in developing countries has a huge demand for in-home coffee consumption. Convenience in food habits and coffee consumption, in particular, gravitates consumers toward instant coffee. The versatility of the product to different consumer tastes and preferences, as well as its adaptability to be distributed through a wide range of distribution channels to aid in-home consumption, has been supporting this market growth. Major players like Nestle, Starbucks, and Unilever are launching coffee machines for a better in-home coffee experience. For instance, in November 2022, Nescafe Dolce Gusto launched Neo, the brand's next-generation coffee machines and pods. The coffee pods are paper-based and biodegradable.
Coffee is used for many daily purposes like improving energy levels, providing essential nutrients, increasing microbiome diversity, helping in reducing fat, and many more. Some people are addicted to coffee and require coffee to stay awake at work. Because of the hectic work culture, instant coffee-making machines are also available in offices, hospitals, and colleges. Because of the trend of on-the-go food, consumers prefer their coffee to be easy to carry. This is why major players are innovating sustainable and good-quality containers for coffee.
The companies are taking initiatives to protect the environment using sustainable packaging materials. For instance, in September 2021, Blue Bottle coffee, a Nestle brand, announced its commitment to achieving carbon neutrality by 2024. This includes the reduction of the emission of greenhouse gases due to products and packaging. Thus, the market is expected to grow over the long term owing to the on-the-go trend of food, high e-commerce sales, and the requirement for convenience of people.
Instant Coffee Market Trends
This section covers the major market trends shaping the Instant Coffee Market according to our research experts:
Increasing Demand for Flavored Coffee
The increased focus on unique, authentic flavors and various functional properties of coffee has aided in the premiumization of the instant coffee market. Multinational players and local craft brands are putting more emphasis on designing authentic flavors for instant coffee. Flavors that meet localized taste preferences are increasingly being adopted by companies. There is a steady demand for flavored coffees in the United States. From the supply point of view, companies are increasingly focusing on procuring coffee ingredients to help consumers simmer up the brew that is just right for them.
Thus, flavored coffee is expected to gain prominence in the market during the forecast period. The companies are expanding their portfolios by forming mergers and acquisitions with other global brands to innovate and explore new product categories. The major players are launching the products in new regions and cities. For instance, in July 2021, Nestle and Starbucks announced to launch of RTD coffee beverages in Southeast Asia, Oceania, and Latin America.
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Asia-Pacific to Drive Market Growth
Asia-Pacific is set for robust market growth over the forecast period. Many countries in the Asia-Pacific 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 category. Also, coffee has become a part of the culture in Mainland China. China provides a strong opportunity for the major instant coffee retailers, as the country has witnessed a shift in preferences, citing millennial consumption patterns. Japan is the fifth-largest importer of coffee and coffee products.
As per the International Coffee Organization, in 2020-21, Japan imported 6,751 bags ( in thousand 60 kg bags) of green coffee beans. Similar to imports, Japan consumed 7,479 bags (in thousand 60 kg bags) in 2021. Coffee is popular among Australians as well. Consumers in the country have a wide variety of preferences for the coffee they consume. The companies are expanding their footprints in the market with new and innovative product launches to strengthen their regional presence.
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Instant Coffee Industry Overview
The instant coffee market is consolidated, with the top international players holding a significant share of the global market. Nestle SA is one of the leaders in the instant coffee market with its brand, Nescafe. In many regions across the world, all other brands together occupy a significant market share, which is equal to or slightly less than Nescafe. Key players operating the instant coffee market include Nestle SA, Starbucks Corporation, Kraft Foods Inc., Tata Consumer Products Ltd, and Unilever PLC. These companies are actively investing in online distribution channels, targeting consumers who seek convenience. Thus, the key players are embarking on forming strategic partnerships with online portals, as one of their key strategies is to achieve consolidation and cater to the demands of consumers across various demographics.
Instant Coffee Market Leaders
Nestlé SA
Unilever Plc.
Kraft Foods Inc.
Starbucks Corporation
Tata Consumer Products
*Disclaimer: Major Players sorted in no particular order
Instant Coffee Market News
- In January 2022, instant coffee brand Sleepy Owl launched premium instant coffee, expanding its product portfolio and widening its accessibility as a brand, which is available in three flavors, namely Original, French Vanilla, and Hazelnut, and these do not contain any artificial flavors and preservatives.
- In March 2022, Melbourne's coffee roaster Beat Coffee launched a specialty instant coffee that captures quality, flavor, and convenience in a single sachet. The freeze-drying process involved in it enables the vibrancy of the coffee to be captured instant, which keeps the caramel and honey-flavored notes.
- In April 2021, Nescafe expanded its portfolio with the launch of a Roastery Collection range in a move designed to give consumers the flavor of the artisan coffee that they would expect from a coffee shop. The Nescafe Gold Blend Roastery collection includes two instant coffee blends, Light Roast and Dark Roast, each made with Arabica beans.
Instant Coffee Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Flavoring
5.1.1 Flavored Instant Coffee
5.1.2 Unflavored Instant Coffee
5.2 Packaging
5.2.1 Sachets
5.2.2 Pouches
5.2.3 Jars
5.3 Production Technology
5.3.1 Freeze-dried Instant Coffee
5.3.2 Spray-dried Instant Coffee
5.4 Distribution Channel
5.4.1 Supermarkets/Hypermarkets
5.4.2 Convenience Stores
5.4.3 Specialist Retailers
5.4.4 Online Channels
5.4.5 Other Distribution Channels
5.5 Geography
5.5.1 North America
5.5.1.1 United States
5.5.1.2 Canada
5.5.1.3 Mexico
5.5.1.4 Rest of North America
5.5.2 Europe
5.5.2.1 Germany
5.5.2.2 United Kingdom
5.5.2.3 France
5.5.2.4 Spain
5.5.2.5 Russia
5.5.2.6 Italy
5.5.2.7 Rest of Europe
5.5.3 Asia-Pacific
5.5.3.1 China
5.5.3.2 India
5.5.3.3 Japan
5.5.3.4 Australia
5.5.3.5 Rest of Asia-Pacific
5.5.4 South America
5.5.4.1 Brazil
5.5.4.2 Argentina
5.5.4.3 Rest of South America
5.5.5 Middle East and Africa
5.5.5.1 Saudi Arabia
5.5.5.2 South Africa
5.5.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Nestlé SA
6.3.2 Unilever PLC
6.3.3 Starbucks Corporation
6.3.4 Kraft Heinz Company
6.3.5 Tata Consumer Products Limited
6.3.6 Luigi Lavazza SpA
6.3.7 The Coca-Cola Company
6.3.8 Tchibo GmbH
6.3.9 Strauss Group Limited
6.3.10 Massimo Zanetti Beverage Group
6.3.11 JAB Holding Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Instant Coffee Industry Segmentation
Instant coffee, also called soluble coffee, coffee crystals, and coffee powder, is a beverage derived from brewed coffee beans that enable people to quickly prepare hot coffee by adding hot water or milk to the powder or crystals and stirring. The instant coffee market is segmented by flavoring into flavored and unflavored instant coffee. By packaging type, the market is segmented into sachets, pouches, and jars. By production technology, the market is segmented into freeze-dried instant coffee and spray-dried instant coffee and by distribution channels into supermarkets/hypermarkets, convenience stores, specialist retailers, online channels, and other distribution channels. By geography, the market is segmented into North America, Europe, South America, Asia-Pacific, and the Middle East and Africa. For each segment, the market sizing and forecasts have been done based on the value in USD million.
| Flavoring | |
| Flavored Instant Coffee | |
| Unflavored Instant Coffee |
| Packaging | |
| Sachets | |
| Pouches | |
| Jars |
| Production Technology | |
| Freeze-dried Instant Coffee | |
| Spray-dried Instant Coffee |
| Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Convenience Stores | |
| Specialist Retailers | |
| Online Channels | |
| Other Distribution Channels |
| Geography | |||||||||
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Instant Coffee Market Research FAQs
What is the current Instant Coffee Market size?
The Instant Coffee Market is projected to register a CAGR of 5.28% during the forecast period (2023-2028).
Who are the key players in Instant Coffee Market?
Nestlé SA, Unilever Plc., Kraft Foods Inc., Starbucks Corporation and Tata Consumer Products are the major companies operating in the Instant Coffee Market.
Which is the fastest growing region in Instant Coffee Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Instant Coffee Market?
In 2023, the North America accounts for the largest market share in the Instant Coffee Market.
Instant Coffee Industry Report
Statistics for the 2023 Instant Coffee market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Instant Coffee analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Instant Coffee Market Report Snapshots
