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I AgreeAnalysis of Instant Coffee Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The global instant coffee market stands at US$ 42.5 billion in 2023 and is estimated to progress at a CAGR of 5% from 2023 to 2033. As such, worldwide sales of instant coffee are projected to reach a market valuation of US$ 69.2 billion by the end of 2033.
Instant coffee is prepared easily and quickly, which is a crucial aspect and is expected to stimulate the demand for instant coffee over the coming 10 years. Instant coffee is also known as coffee powder and is one of the widely used hot beverages manufactured by grinding roasted coffee beans. Consumers can easily prepare a cup of coffee simply by pouring hot water into an instant mix sachet.
Instant coffee is soluble coffee or coffee powder, which is manufactured from roasted or manufactured coffee beans. In recent years, fresh coffee has been influencing people around the world, instant coffee is consumed globally owing to its faster and simpler way of preparation. The rising popularity of instant coffee is resulting in a shift from conventional coffee to premium instant coffee.
There are two prominent methods to prepare instant coffee:
Compared to brewed coffee, instant coffee has lower caffeine content and higher amounts of antioxidants. Many people consume instant coffee on regular basis, which boosts metabolism, enhances liver health, and improves brain function. Thus, due to these benefits, instant coffee is gaining traction in the market, especially among working-class people.
Manufacturers of instant coffee are introducing various new flavors, including chocolate caramel, cardamom bun, gingerbread cookie, French vanilla, Italian roast, green bean, and mocha. Through these newly launched flavors, instant coffee suppliers are expanding their consumer base. In addition, these value-added products are expected to fetch more margin compared to basic coffee products.
The number of individuals consuming coffee across the world is increasing at a noteworthy rate, which is expected to generate lucrative opportunities for global suppliers in the market.
Report Attributes |
Details |
Instant Coffee Market Size in 2023 |
US$ 42.5 Billion |
Projected Market Value (2033) |
US$ 69.2 Billion |
Global Market Growth Rate (2023 to 2033) |
5% CAGR |
Germany Market Growth Rate (2023 to 2033) |
3.6% CAGR |
Canada Market Growth Rate (2023 to 2033) |
4% CAGR |
Key Companies Profiled |
|
“Growing Demand for Flavored Coffee Variants among Consumers”
Increasing popularity of authentic and unique flavors along with different functional properties of coffee are aiding in the premiumization of instant coffee. Local brands and multinational players are emphasizing the production of multiple authentic flavors of instant coffee. Companies are adopting numerous flavors to meet the preferences of consumers for local authentic coffee.
At present, there has been a constant increase in the demand for flavored coffee around the world. Thus, flavored instant coffee is projected to gain prominence across the globe over the coming years.
“Affordability & Convenience of Instant Coffee Fueling its Demand”
Single-serve packets of instant coffee are affordable and convenient to prepare. Restaurants, hotels, cafés, and households are contributing to the increased demand for instant coffee. Single-use packets enable consumers to try out novel flavors without spending extra on bulk packs.
The coffee-drinking population of numerous countries is projected to grow during the forecast period. Altering food patterns and changing lifestyles are expected to contribute to increased demand for instant coffee.
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“Absence of Freshness in Instant Coffee”
The absence of a fresh coffee feel in instant coffee is estimated to restrain its adoption. In addition, instant coffee has a high concentration of acrylamide, which is a chemical compound that can cause cancer in animals. This is expected to bring down the demand for instant coffee.
“Asia Pacific Will Offer Lucrative Opportunities to Market Players”
Asia Pacific is estimated to hold a substantial share of the global market revenue. Various countries from the region are consumers of conventional tea. However, the penetration of instant coffee in the Asia Pacific region is predicted to boost its sales.
Coffee is becoming popular across Mainland China. Instant coffee retailers are expected to gain opportunities owing to shifting preferences and increasing consumption of coffee by millennials. Japan is estimated to hold a noteworthy share of the regional market’s revenue as it is a prominent importer of coffee in the region.
Coffee is also gaining traction in the Australian market. Consumers can opt for any flavor of coffee from a wide variety of options. Further, companies are expanding their footprints with innovative and new product launches for strengthening their supply chain management systems.
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“Rising Popularity of Single-serve Coffee Packaging Format”
Japan holds a substantial share as an importer of coffee due to the growing consumption of coffee among people in Japan. In addition, the rising popularity of the single-serve coffee packaging format is also gaining prominence as it is quick and convenient.
“Increasing Popularity of Instant Coffee in the United States”
Easy availability of instant coffee through different channels, convenience provided to consumers on different scales, and the moderate price of consumption are estimated to fuel the demand for instant coffee in the United States. Further, a decline in the demand for aerated drinks is also driving sales of instant coffee.
“Age-old Tradition of Consuming Coffee in the Country”
Coffee consumption is a part of Germany’s tradition and culture, which is estimated to propel sales of instant coffee products over the coming years.
“Freeze-dried Instant Coffee Gaining Traction in the Global Market”
Freeze-dried and spray-dried are segments of the global instant coffee market, based on material. Between these two, the freeze-dried segment is anticipated to hold a prominent share of the market’s revenue. Coffee extracts are generally frozen at -400 C and then cut into granules. These frozen granules are dried under a vacuum and at low temperatures. The quality, taste, and aroma are protected by gently drying under extremely low temperatures.
“Sachet Packaging Solutions Attracting Larger Consumer Base”
Based on packaging, jars, sachets, pouches, and others are segments of the instant coffee market. Among these, the sachet segment is forecasted to hold a substantial share of revenue due to its easy and quick preparation method.
“Supermarkets & Hypermarkets Lead Instant Coffee Distribution”
Supermarkets & hypermarkets, B2B, independent retailers, and other channels are used to distribute instant coffee to target end users. Among these, the supermarkets & hypermarkets segment is anticipated to hold a noteworthy position in the global market due to the growing urbanization and the easy availability of products under one roof.
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According to this analysis by Fact.MR, a provider of market research and competitive intelligence, prominent companies are investing in the expansion of their footprints across the globe. Key market players are focusing on strengthening their supply chain management systems for an effective supply of instant coffee around the world. Delivery of quality products while maintaining product standards and ensuring minimum environmental impact are some of the primary objectives of these players in the instant coffee market.
Key providers of instant coffee are involved in new developments to provide innovative and more effective services to target end users.
For instance,
Key suppliers of instant coffee are Jacobs Douwe Egberts B.V., Starbucks Corporation, The J.M. Smucker Company, The Kraft Heinz Company, Tata Global Beverages Ltd., Trung Nguyen, and Matthew Algie Company Limited.
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The valuation of the instant coffee market stands at US$ 42.5 billion in 2023.
The market for instant coffee is set to expand at a CAGR of 5% from 2023 to 2033.
Sales of instant coffee in Germany are forecasted to rise at a CAGR of 3.6% through 2033.
The global instant coffee market is anticipated to reach US$ 69.2 billion by 2033-end.
In Canada, the instant coffee market is projected to advance at a CAGR of 4% through 2033.