Instant Coffee - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
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 Nestlй-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.
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 Industry Overview
The global instant coffee market is fragmented, with international and regional players competing for significant market share. Some key players include Nestlй 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.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
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 Nestlй-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.
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 Industry Overview
The global instant coffee market is fragmented, with international and regional players competing for significant market share. Some key players include Nestlй 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.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
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
4.1.1 Growing Popularity of Single-Origin Coffee
4.1.2 Product Differentiation and Marketing Strategies
4.2 Market Restraints
4.2.1 Presence of Substitutes Hampering Market Growth
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/Grocery 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 Nestlй 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 JAB Holding Company
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
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
4.1.1 Growing Popularity of Single-Origin Coffee
4.1.2 Product Differentiation and Marketing Strategies
4.2 Market Restraints
4.2.1 Presence of Substitutes Hampering Market Growth
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/Grocery 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 Nestlй 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 JAB Holding Company
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
