Instant Coffee Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)

The Global Instant Coffee Market Report is Segmented by Flavoring (Flavored and Unflavored Instant Coffee), Packaging Type (Sachets, Pouches, and Jars), Production Technology (Freeze-Dried Instant Coffee and Spray-Dried Instant Coffee), Distribution Channel (Supermarkets/Hypermarkets, Convenience/Grocery Stores, Specialist Retailers, Online Channels, and Other Distribution Channels), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Report Offers the Market Size in Value Terms in USD for all the Abovementioned Segments.

Instant Coffee Market Size

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Instant Coffee Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 33.18 Billion
Market Size (2029) USD 43.54 Billion
CAGR (2024 - 2029) 5.58 %
Fastest Growing Market South America
Largest Market Asia Pacific

Major Players

Instant Coffee Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Instant Coffee Market Analysis

The Instant Coffee Market size is estimated at USD 33.18 billion in 2024, and is expected to reach USD 43.54 billion by 2029, growing at a CAGR of 5.58% during the forecast period (2024-2029).

Convenience is the foremost factor driving the demand for instant coffee that can be easily prepared. Moreover, the rising popularity of ready-to-eat products, especially among the working population and students, represents another significant factor impelling the market growth. Additionally, the wide availability of instant coffee, per different consumer tastes and preferences, through a wide range of distribution channels supports market growth. Moreover, the increased focus on unique, authentic flavors and functional properties of coffee has aided in the premiumization of instant coffee. Multinational players and local craft brands emphasize designing authentic flavors to cater to the diversified demands of consumers. For instance, in September 2023, the Devon-based company Little’s launched a new Toffee Nut Instant Coffee made using premium beans that are roasted and freeze-dried. Additionally, the company launched its instant coffee products in different flavors ranging from Rich Hazelnut and French Vanilla to spiced Cardamom Bun and Christmas Spirit. Such innovations, coupled with advancements in packaging types, such as sachets catering to single-time users, are expected to further boost the sales of instant coffee products across the globe. 

Instant Coffee Market Trends

Growing Popularity of Single-Origin Coffee

Single-origin coffee is often associated with higher quality and distinct flavor profiles compared to blended coffee. As a result, instant coffee brands are responding by offering single-origin options to cater to the demand for higher-quality products. For example, in February 2023, Blue Bottle Coffee launched its small batch as the Nestlé-owned brand aimed to deliver an ultra-special coffee. The new specialty coffee was claimed to be sourced from a region in Yemen known for its 7,500-foot elevations and dry climate. The offering was a part of Blue Bottle’s Exceedingly Rare program of single-origin coffees, often available in minuscule quantities. Moreover, consumers nowadays are becoming more discerning about their coffee choices and are interested in learning about the origin and characteristics of their coffee. Therefore, platers offer single-origin coffee with transparency and a unique story behind each cup, appealing to consumers who value authenticity and traceability in their coffee experience. These factors are anticipated to provide a positive outlook for the market during the study period.

Instant Coffee market: Method of preparation among past-day coffee drinkers, the United States, 2023 (in %)

Asia-Pacific Dominates the Market

Although tea is a traditional beverage in China, instant coffee is becoming popular among consumers due to changing consumer taste preferences. Moreover, instant coffee is easier to make, store, and consume than other counterparts available in the market. Therefore, it eventually increased the consumption of coffee in China. For instance, according to the International Coffee Association, overall coffee consumption in China grew by 14% from 2022 to 2023. Moreover, online retailing of instant coffee products has significantly impacted the market in India as emerging brands focus on marketing and retailing instant coffee in premium, flavored, and artisanal blends through different distribution channels. Furthermore, adults and younger consumers are adopting coffee as an alternative to Japanese tea owing to an increased inclination toward Western culture. For instance, according to the Ministry of Finance, Japan's import volume of instant coffee increased from 10.45 thousand tons in 2019 to 12.59 thousand tons in 2022.

Instant Coffee Market:  Market Size (%), By Geography, Global, 2023

Instant Coffee Industry Overview

The global instant coffee market is fragmented, with international and regional players competing for significant market share. Some key players include Nestlé SA, JM Smucker Company, JAB Holding Company, Starbucks Corporation, and Luigi Lavazza SpA. The major players are indulging in strategies, such as product launches, mergers and acquisitions, expansions, and partnerships, to establish a strong consumer base and esteemed position in the market. Additionally, companies are entering new markets through geographical expansion and product line expansion to enhance their offering and customer reach.

Instant Coffee Market Leaders

  1. Nestlé SA

  2. JM Smucker Company

  3. JAB Holding Company 

  4. Starbucks corporation

  5. Luigi Lavazza SpA

*Disclaimer: Major Players sorted in no particular order

Instant Coffee Market Concentration
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Instant Coffee Market News

  • February 2024: FMCG major Nestle expanded its manufacturing footprints and operations in India by investing between INR 6,000 and 6,500 crore during 2020-2025. Nestle India invested INR 7,000 crore, but the investment in the last five years by the company is more than the previous 20 to 25 years.
  • February 2024: Hindustan Unilever Limited (HUL) expanded its Bru Gold portfolio with a new range of flavored coffee in vanilla, caramel, or hazelnut. The company is focused on driving growth by attracting more users, creating more consumption occasions, and premiumising its portfolio.
  • February 2024: Bank of America and Starbucks Coffee Company announced a partnership agreement allowing customers to earn up to 2% cashback on qualifying purchases with Starbucks Rewards account.

Instant Coffee Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

      1. 4.1.1 Growing Popularity of Single-Origin Coffee

      2. 4.1.2 Product Differentiation and Marketing Strategies

    2. 4.2 Market Restraints

      1. 4.2.1 Presence of Substitutes Hampering Market Growth

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Flavoring

      1. 5.1.1 Flavored Instant Coffee

      2. 5.1.2 Unflavored Instant Coffee

    2. 5.2 Packaging

      1. 5.2.1 Sachets

      2. 5.2.2 Pouches

      3. 5.2.3 Jars

    3. 5.3 Production Technology

      1. 5.3.1 Freeze-dried Instant Coffee

      2. 5.3.2 Spray-dried Instant Coffee

    4. 5.4 Distribution Channel

      1. 5.4.1 Supermarkets/Hypermarkets

      2. 5.4.2 Convenience/Grocery Stores

      3. 5.4.3 Specialist Retailers

      4. 5.4.4 Online Channels

      5. 5.4.5 Other Distribution Channels

    5. 5.5 Geography

      1. 5.5.1 North America

        1. 5.5.1.1 United States

        2. 5.5.1.2 Canada

        3. 5.5.1.3 Mexico

        4. 5.5.1.4 Rest of North America

      2. 5.5.2 Europe

        1. 5.5.2.1 Germany

        2. 5.5.2.2 United Kingdom

        3. 5.5.2.3 France

        4. 5.5.2.4 Spain

        5. 5.5.2.5 Russia

        6. 5.5.2.6 Italy

        7. 5.5.2.7 Rest of Europe

      3. 5.5.3 Asia-Pacific

        1. 5.5.3.1 China

        2. 5.5.3.2 India

        3. 5.5.3.3 Japan

        4. 5.5.3.4 Australia

        5. 5.5.3.5 Rest of Asia-Pacific

      4. 5.5.4 South America

        1. 5.5.4.1 Brazil

        2. 5.5.4.2 Argentina

        3. 5.5.4.3 Rest of South America

      5. 5.5.5 Middle East and Africa

        1. 5.5.5.1 Saudi Arabia

        2. 5.5.5.2 South Africa

        3. 5.5.5.3 Rest of Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Nestlé SA

      2. 6.3.2 Unilever PLC

      3. 6.3.3 Starbucks Corporation

      4. 6.3.4 Kraft Heinz Company

      5. 6.3.5 Tata Consumer Products Limited

      6. 6.3.6 Luigi Lavazza SpA

      7. 6.3.7 The Coca-Cola Company

      8. 6.3.8 Tchibo GmbH

      9. 6.3.9 Strauss Group Limited

      10. 6.3.10 JAB Holding Company

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Instant Coffee Industry Segmentation

Instant coffee is a beverage derived from brewed coffee beans and can be consumed easily by adding hot water or milk to powder or crystals. The global instant coffee market is segmented by flavoring (flavored and unflavored instant coffee), packaging type (sachets, pouches, and jars), production technology (freeze-dried instant coffee and spray-dried instant coffee), distribution channel (supermarkets/hypermarkets, convenience/grocery stores, specialist retailers, online channels, and other distribution channels), and geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The report offers the market size in value terms in USD for all the abovementioned segments.

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/Grocery Stores
Specialist Retailers
Online Channels
Other Distribution Channels
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
France
Spain
Russia
Italy
Rest of Europe
Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East and Africa
Saudi Arabia
South Africa
Rest of Middle East and Africa
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Instant Coffee Market Research FAQs

The Instant Coffee Market size is expected to reach USD 33.18 billion in 2024 and grow at a CAGR of 5.58% to reach USD 43.54 billion by 2029.

In 2024, the Instant Coffee Market size is expected to reach USD 33.18 billion.

Nestlé SA, JM Smucker Company, JAB Holding Company, Starbucks corporation and Luigi Lavazza SpA are the major companies operating in the Instant Coffee Market.

South America is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia Pacific accounts for the largest market share in Instant Coffee Market.

In 2023, the Instant Coffee Market size was estimated at USD 31.33 billion. The report covers the Instant Coffee Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Instant Coffee Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The biggest challenges for Instant Coffee manufacturers in emerging markets are a) Overcoming price sensitivity b) Establishing brand recognition

Instant Coffee Industry Report

The global instant coffee market is experiencing rapid growth, driven by the busy lifestyles and higher income levels of today's working population. This demand is further fueled by a vibrant coffee culture among young adults and investments in enhanced production techniques and premium coffee beans. Instant coffee brands are capitalizing on this momentum by offering products that combine convenience with the traditional taste and aroma of coffee, requiring no special brew equipment. Innovations in freeze-drying, spray-drying, and packaging technologies are increasing product shelf life and appeal. Additionally, a shift towards health-conscious consumerism is prompting brands to infuse their offerings with beneficial vitamins and minerals. The expanding distribution channels, especially the e-commerce sector, are making it easier for consumers to access a wide variety of instant coffee options. The industry's segmentation illustrates a strong preference for spray-dried varieties and highlights supermarkets and hypermarkets as primary retail spaces. The surge in demand for flavored coffee signifies the market's adaptation to diverse consumer preferences, showcasing the dynamic nature of instant coffee brands in catering to various tastes. Get a sample of this industry analysis as a free report PDF download.

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Instant Coffee Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)