GLOBAL INSTANT COFFEE MARKET (2023 - 2030)

The Global Instant Coffee Market was valued at USD 31.71 Billion in 2023 and is projected to reach a market size of USD 44.95 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 5.11%. 

Instant coffee is one of the most extensively consumed beverages made from roasted coffee beans. It allows customers to easily prepare coffee by just pouring hot water into it. Instant coffee contains less caffeine and more antioxidants than brewed coffee. Regular drinking of instant coffee provides numerous health benefits, including increased metabolism, improved cognitive function, and improved liver health. Furthermore, instant coffee is available in granulated, concentrated liquid, and powdered form in sachets or glass jars, and is gaining enormous popularity, particularly among the working people around the world.

Key Market Insights:

In emerging countries, the middle-class population has a high desire for in-home coffee consumption. Tea is facing stiff competition in Asian households. Convenience in food habits, particularly coffee consumption, draws customers to instant coffee. The product's adaptability to varied consumer tastes and preferences, as well as its ability to be disseminated through a variety of distribution channels to promote in-home consumption, has aided market expansion. Nestle, Starbucks, and Unilever are among the major businesses releasing coffee machines to improve the in-home coffee experience. Nescafe Dolce Gusto, for example, will launch Neo, the brand's next-generation coffee machines and pods, in November 2022.
Coffee serves a variety of everyday functions, including enhancing energy levels, delivering critical nutrients, promoting microbiota diversity, aiding in fat loss, and many others. Some people have aversions to coffee and require it to remain awake at work. Because of the frenetic work atmosphere, instant coffee-making devices are widely available in organizations, hospitals, and colleges.

Instant Coffee Market Drivers:

Instant coffee-making devices are widely available in businesses, hospitals, and institutions due to the frenetic work atmosphere.

The modern world's corporate culture and ever-increasing stress levels have had a disastrous effect on people's health, particularly that of working adults. The risk of depression and suicide may be reduced with coffee. People have been exposed to coffee even more by companies that provide access to beverages in the office. Coffee's demand rises dramatically since it is highly addicting and includes antioxidants and caffeine.

Instant coffee is full of powerful antioxidants. It may even contain higher amounts of antioxidants and nutrients than other types of coffee.

The largest source of antioxidants in the typical diet is coffee. Many of the health advantages linked with it are thought to be caused by its high antioxidant content. Instant coffee has a lot of potent antioxidants, just like normal coffee. One study suggests that because of the way instant coffee is produced, it may have even higher concentrations of certain antioxidants than regular brews. Additionally, a typical cup of instant coffee only has 7 calories and very little magnesium, potassium, and niacin (vitamin B3).

Instant Coffee has lesser caffeine content as compared to regular coffee resulting in more health benefits than the traditional ones.

Coffee has the highest nutritional content of caffeine, which is the stimulant that is eaten worldwide. But compared to traditional coffee, quick coffee often has a little bit less caffeine. A single teaspoon of powder in one cup of instant coffee can have anywhere from 30 to 90 milligrams of caffeine, compared to 70 to 140 milligrams in a cup of conventional coffee. Instant coffee might be a better option for people who need to reduce their caffeine intake because everyone's sensitivity to the stimulant differs. Decaf is another variety of instant coffee that has even less caffeine. Anxiety, restlessness, upset stomach, tremors, and a rapid heartbeat can all result from consuming too much caffeine.

Instant coffee offers more health benefits than regular coffee expanding the demand for instant coffee.

The caffeine content of instant coffee may enhance brain function. It might speed up your metabolism and enable you to burn more fat. The risk of neurodegenerative illnesses like Parkinson's and Alzheimer's may be lowered by coffee. The risk of type 2 diabetes may be lowered by coffee. Caffeine and coffee may lower the incidence of liver cancer and illnesses like cirrhosis. The risk of depression and suicide may be reduced with coffee. Coffee use may lengthen your life. It is crucial to remember that a large number of these research were observational in nature. These studies can only demonstrate that individuals who regularly consume coffee have a lower chance of contracting diseases; they cannot demonstrate that coffee lowers one's risk of sickness.

Maybe three to five cups of instant coffee a day is the ideal amount. Research has consistently associated this sum with the greatest risk reductions.

Instant Coffee Market Restraints and Challenges:

When compared to ordinary coffee, instant coffee might have up to twice the amount of acrylamide. Roasting coffee beans produces the chemical acrylamide, which has the potential to be hazardous.

Roasting coffee beans produces the potentially dangerous chemical acrylamide. Along with smoke, a variety of meals, household goods, and personal care products are frequently found to contain this toxin. It's interesting to note that acrylamide levels in instant coffee can reach twice those in freshly roasted coffee.

An excessive amount of acrylamide exposure can harm the neurological system and raise the risk of cancer. Nonetheless, the quantity of acrylamide you encounter from your food and coffee is significantly less than the quantity that has been demonstrated to be hazardous. As a result, acrylamide exposure from drinking instant coffee shouldn't be a worry.

Instant Coffee Market Opportunities:

The Instant Coffee Market presents ample opportunities for manufacturers to broaden their presence. With burgeoning demand, producers should aim to expand and diversify their operations, enhancing their appeal to a broader customer base like in Asian nations. Aggressive promotion of the benefits of instant Coffee consumption is essential to raise consumer awareness and entice them towards the offerings.

INSTANT COFFEE  MARKET REPORT COVERAGE:

Instant Coffee Market Segmentation:

Market Segmentation: By Flavoring

• Flavored

• Unflavored

The instant coffee industry is becoming more and more premium due to the growing emphasis on distinctive, real flavors and the many useful qualities of coffee. Creating distinctive flavors for instant coffee is becoming increasingly important to both local artisan companies and multinational corporations. Businesses are adopting flavors that cater to regional taste preferences more and more. The market for flavored coffee is consistently growing. From a supply-side perspective, businesses are placing more emphasis on acquiring coffee ingredients so that customers may make the perfect brew at home.

As a result, during the projected period, flavored coffee is anticipated to become more popular in the market. By making mergers and acquisitions with other international brands, the corporations are diversifying their holdings and pursuing new product category exploration and innovation. The major companies are introducing their products in previously untapped markets. For example, in July 2021, it was revealed that Nestle and Starbucks would be introducing RTD coffee beverages across Latin America, Southeast Asia, and Oceania.

Market Segmentation: By Packaging Type

• Sachets

• Pouches

• Jars

Coffee firms want to boost their sales of instant coffee by offering a variety of packaging options to meet the diverse needs of their clientele. Sachets, pouches, and jars are examples of packaging forms. Because it's not always practical to carry jars everywhere, customers who are willing to travel can bring sachets and pouches. The sort of packaging used also affects how much money is made from that specific packaged coffee. The instant coffee market was dominated by the jar segment in 2023, but the pouch segment is expected to grow at the fastest rate during the forecast period. This is because pouch packaging uses significantly fewer raw materials, lowers overall product packaging costs, and increases end-user companies' profit margins. Additionally, as convenience and health consciousness become more prominent, single-serve packaging styles are becoming more and more popular, which is helping the industry expand.

Market Segmentation: By Production Technology

• Freeze-dried Instant Coffee

• Spray-dried instant coffee

Preparing instant coffee can be done in two major ways:

Coffee extract is sprayed into hot air to dry it quickly and transform the droplets into little bits or fine powder. This process is known as spray drying. Freeze-drying: The coffee extract is divided into tiny pieces and frozen before being vacuum-dried at a low temperature. Coffee flavor, aroma, and quality are all maintained using these approaches. Due to the low temperatures used during the freeze-drying process, materials are less prone to thermal deterioration or physical and chemical changes.

Although it is a labor-intensive and costly procedure, samples can be readily reconstituted—that is, returned to their pre-drying state. Despite having a lengthy cleaning period and a high temperature at which raw materials can deteriorate, spray drying is inexpensive to operate and offers a quick drying process. The gravimetric determination of the moisture content (% wet basis) on coffee powder through mass loss indicates that the moisture content of freeze-dried coffee (7.46 %) is larger than that of spray-dried coffee (4.72%). Given that spray drying uses a higher temperature than freeze-drying, it was believed that the coffee would have a lower moisture content (greater stability and preservation).

Market Segmentation: By distribution channel

• Business to Business

• Superstore and hypermarket

• Convenience store

• Specialist retailers

• Online channels

In 2023, the supermarket and hypermarket segments accounted for the highest portion based on distribution channels. The segment is growing as a result of more shelf space being available and a greater selection among many products. Supermarkets are typically found in the heart of cities, which draws in more customers. The demand for instant coffee is being driven by the region's rapidly urbanizing population, growing middle class, and rising disposable income. Even though online sales are growing at the fastest rate due to consumers finding online ordering to be more convenient and the fact that many businesses are offering attractive discounts and promotions to draw in customers, offline sales still account for more than three-fourths of the market share for instant coffee in 2023.

Market Segmentation: By Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

In an attempt to increase the size of their customer base, instant coffee producers are introducing new tastes to the market, such as chocolate caramel, cardamom bun, Italian roast, and gingerbread cookie. Furthermore, emerging markets such as the Middle East, South East Asia, and Eastern Europe are seeing a sharp increase in the purchase of luxury goods due to factors such as increasing urbanization, rising disposable incomes, and changing dietary habits of consumers. The demand for instant coffee is predicted to rise internationally as a result of technological advancements that produce coffee of greater quality.

Over the projected period, Asia-Pacific is expected to have strong market expansion. Tea has long been a popular beverage in many Asia-Pacific nations. All things considered; the category's overall sales of coffee have increased due to the growing popularity of instant coffee in places like India. China's mainland has also incorporated coffee into its culture. Due to millennial consumption patterns and other shifts in the country's preferences, China presents a significant opportunity for big instant coffee retailers. Japan ranks as the world's fifth-largest importer of coffee and related goods.

The instant coffee industry will generate $30.3 billion in revenue by 2023. Comparatively speaking, Japan generates the largest revenue worldwide ($4,741 million in 2023). Nearly half (48.7%) of the global coffee imports in 2022 came from the top 5 importers—the United States of America, Germany, France, Italy, and Belgium. From a continental standpoint, European consumers purchased the most foreign coffee in 2022, paying $26.4 billion, or 55.2% of the total amount purchased worldwide. With a share of 24.7%, North American importers came in second, and purchasers in Asia received the remaining 14.7% of the imported coffee.

COVID-19 Impact Analysis on the Instant Coffee Market:

The epidemic caused a decline in the export of instant coffee in 2020 and disruptions to the supply chain. Government regulations on the operation of lodging facilities, dining establishments, and coffee shops were coupled with a notable decline in the number of workers present in their offices. In 2021, the market for instant coffee experienced a surge as producers created a diverse range of flavors in response to evolving consumer preferences, which they then distributed through online channels. Additionally, the need for instant coffee was fueled by the rise in coffee chains and eateries.

Latest Trends/ Developments:

The instant coffee company Sleepy Owl introduced premium instant coffee in January 2022, broadening its range of offerings and increasing brand accessibility. The brand comes in three flavors: Original, French Vanilla, and Hazelnut, and none of them include artificial flavors or preservatives.

A specialty instant coffee that combines convenience, taste, and quality in a single sachet was introduced by Melbourne-based coffee roaster Beat Coffee in March 2022. It is possible to preserve the coffee's vitality and preserve the notes of caramel and honey flavor through the technique of freeze-drying.

With the introduction of the Roastery Collection line in April 2021, Nescafe broadened its product offering to provide customers with a taste

Key Players:

• Nestlé 

• Starbucks Corporation

• KRAFT Foods

• Tata Consumer Products Limited

• Tchibo Coffee International Ltd

• Strauss Group

• Jacobs Douwe Egberts Pro

• Others