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The instant coffee market size is forecast to increase by USD 13.36 billion at a CAGR of 6.02% between 2023 and 2028. The market is experiencing significant growth, driven by the rising popularity of instant coffee among millennials and the increasing demand for convenient and affordable coffee options. This demographic prefers instant coffee due to its ease of preparation and portability, making it an ideal choice for their busy lifestyles. Additionally, the trend of enjoying café-style coffee at home has led to a rise in demand for instant espresso coffee. However, the market faces challenges from substitute products such as ready-to-drink coffee and tea, which offer similar convenience. To stay competitive, market players are focusing on product innovation, such as introducing organic and flavored instant coffee variants, and expanding their distribution networks. Overall, the market is expected to witness steady growth in the coming years, driven by these trends and challenges.
The market is witnessing significant growth due to the increasing preference for convenience and busy lifestyles among consumers. The adoption of freeze-drying technology has been a major driver for the market, enabling the production of high-quality instant coffee with the same taste and aroma as freshly brewed coffee. The market is also witnessing a trend towards premiumization, with consumers seeking out unique flavors, functional properties, and authentic single-origin coffee. Home consumption is a key trend in the market, driven by urbanization and the growing working population. Single-serve formats and e-commerce channels are also gaining popularity, providing consumers with greater convenience and flexibility.
Furthermore, packaging innovations, such as stand-up pouches and biodegradable packaging, are also influencing consumer preferences. Multinational players and local craft brands are competing in the market, offering a range of premium blends and single-origin coffee. Consumers are increasingly seeking out coffee with traceability and quality, as well as those with functional properties, such as added vitamins or antioxidants. Online retailing is also becoming an important distribution channel for instant coffee, allowing consumers to easily purchase their favorite brands and flavors from the comfort of their own homes.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The spray-dried segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to the increasing preference for convenience and busy lifestyles among consumers. Freeze-drying technology, a key manufacturing process in the industry, is gaining popularity for its ability to preserve the aroma, flavor, and authenticity of Specialty Coffee. Single-serve formats, particularly in E-commerce, are driving the market's growth, as urbanization and the working population's increasing numbers opt for home consumption. Premiumization, with its focus on unique flavors, functional properties, and traceability, is a significant trend. Packaging innovations, such as Single-origin coffee, Premium blends, Artisanal blends, and Flavored coffee, cater to evolving consumer preferences.
Furthermore, the market comprises Multinational players and Local craft brands, offering various Packaging types, including Spray-dried coffee, Dried coffee, Coffee extract, and Concentrated brewing methods. Preparation methods like Ground coffee beans and Brewing continue to evolve, with Spray-drying and Freeze-drying being the most common methods. Iced beverages and Functional properties further expand the market's scope.
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The spray-dried segment was valued at USD 21.51 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Instant coffee, a popular alternative to traditional brewed coffee, offers numerous health benefits due to its rich content of essential nutrients and antioxidants. These include vital nutrients such as riboflavin, pantothenic acid, manganese, and potassium. The primary active ingredient, caffeine, is known to enhance brain function, improve mental alertness, and boost metabolism. Additionally, it may reduce the risk of various diseases, including liver disease and mental health conditions, due to its antioxidant properties. Instant coffee's low-calorie count and long shelf life make it an ideal choice for those seeking a low-maintenance, convenient beverage option. Travelers and individuals with busy schedules particularly benefit from the ease of preparing instant coffee with just hot water.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising popularity of instant coffee among millennials is the key driver of the market. The market is witnessing significant growth due to the rising preference for convenient and quick consumption among the busy working population, students, and urban consumers. Millennials, in particular, are driving market demand, as they prioritize convenience and unique flavors in their coffee choices. Freeze-drying technology and single-serve formats are key trends in the market, with companies focusing on premiumization and packaging innovations to cater to consumer preferences. Multinational players and local craft brands are offering a wide range of products, including premium blends, artisanal blends, flavored coffee, and iced beverages. Coffee consumption is on the rise, with instant coffee gaining popularity due to its ease of preparation and functional properties.
Furthermore, packaging types, such as stand-up pouches and sachets, are being used to ensure product freshness and convenience. Instant coffee is available in various forms, including freeze-dried, spray-dried, coffee extract, and dried coffee. companies are focusing on enhancing the aroma and flavor profiles of their products to offer authenticity and traceability. Online retailing is also gaining momentum, with consumers increasingly opting for the convenience of buying coffee online. Overall, the market is expected to grow significantly during the forecast period, driven by consumer preferences, busy lifestyles, and the increasing popularity of specialty coffee.
The rising demand for instant espresso coffee at home is the upcoming trend in the market. Instant coffee, particularly espresso, has gained significant traction among consumers in developed countries, driven by the convenience of preparation and busy lifestyles. Freeze-drying technology, such as used by Nestle SA and Starbucks Corp., enables the production of instant coffee with superior aroma and flavor, making it a viable alternative to traditional brewing methods. The rise of e-commerce and online retailing has further facilitated the growth of the market, allowing consumers to access a wide range of offerings, including premium blends, artisanal brands, and unique flavors. Single-serve formats, like espresso pods, cater to the increasing preference for home consumption, with players introducing new espresso blend capsules.
Moreover, packaging innovations, such as vacuum-sealed bags and resealable pouches, ensure the preservation of coffee's authenticity, traceability, and quality. Consumers, including the working population, students, and urban dwellers, are increasingly drawn to the functional properties of coffee, such as energy boost and focus enhancement. Instant coffee offerings extend beyond traditional brews, with functional coffee extracts, dried coffee, spray-dried coffee, and concentrated coffee gaining popularity. The market also includes a diverse range of products, from single-origin coffee to flavored coffee and iced beverages, catering to various consumer preferences. The market is witnessing intense competition from multinational players and local craft brands, emphasizing the importance of product differentiation and innovation.
The rising threat from substitute products is a key challenge affecting the market growth. The market has faced significant challenges over the past three decades due to the increasing popularity of other hot and cold beverages, such as roast and ground coffee, soft drinks, carbonated drinks, nutritional and energy drinks, green tea, iced tea, and coffee pods. The rise of energy drinks like Stokely-Van Camps Gatorade and RED BULL has led to a decline in instant coffee consumption in several developed markets. However, the market continues to evolve, with trends such as premiumization, home consumption, and packaging innovations driving growth. Busy lifestyles, urbanization, and the working population, including students, continue to fuel the demand for instant coffee.
Furthermore, specialty Coffee brands are leveraging Freeze-Drying Technology to offer unique flavors and functional properties, catering to consumer preferences. Multinational players and local craft brands are introducing Single-Serve Formats, Premium Blends, Artisanal Blends, and Flavored Coffee to meet the evolving needs of consumers. Packaging types, such as stand-up pouches and sachets, are being used to maintain the aroma and flavor of the coffee. The market also offers Concentrated, Spray-Dried, and Freeze-Dried Coffee, as well as Coffee Extract and Dried Coffee, to cater to various consumer preferences. In recent years, there has been a growing trend towards Online Retailing, with e-commerce platforms offering a wide range of instant coffee products. Iced beverages and Functional Properties are also gaining popularity, with Freeze-Dried Coffee and Spray-Dried Coffee being used to make iced beverages. The market continues to focus on Quality, Flavor Profiles, Authenticity, Traceability, and Sustainability to meet the evolving needs of consumers.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ITC Ltd.: The company offers instant coffee under the brand name Sunbean such as Sunbean Gourmet Coffee Nicamalai, Sunbean Beaten Coffee, Sunbean Beaten Coffee Strong, Sunbean Gourmet Coffee Panagiri, Sunbean Beaten Caffe, and many more.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing popularity of specialty coffee and the convenience offered by single-serve formats. The use of advanced technologies like freeze-drying and spray-drying for producing instant coffee has led to improved flavor and aroma, making it a preferred choice for busy lifestyles and urbanization. Consumer preferences for premiumization and unique flavors have driven the market for premium blends, artisanal blends, and flavored coffee. Home consumption is a major trend in the market, with e-commerce platforms enabling easy access to a wide range of offerings.
Furthermore, packaging innovations, such as single-origin coffee and traceability, add to the appeal of instant coffee, providing authenticity and quality. The working population, students, and consumers with busy lifestyles are the primary consumers of instant coffee, driving the market growth. Functional properties, such as energy boost and health benefits, are also contributing factors. The market is witnessing the entry of multinational players and local craft brands, offering a diverse range of packaging types, including concentrated, ground coffee beans, coffee extract, dried coffee, and iced beverages.
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Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.02% |
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Market growth 2024-2028 |
USD 13.36 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.36 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 31% |
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Key countries |
US, Japan, China, France, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Anthonys Goods, Death Wish Coffee Co., Giraldo Farms, Illycaffe Spa, ITC Ltd., JDE PEETs NV, Keurig Dr Pepper Inc., Lens Coffee LLC, Louis Dreyfus Co. BV, LUIGI LAVAZZA S.p.A., Massimo Zanetti Beverage Group Spa, Nestle SA, Starbucks Corp., Strauss Group Ltd., Tata Consumer Products Ltd., Tchibo GmbH, The J.M Smucker Co., UCC UESHIMA COFFEE CO. LTD., Unilever PLC, Waka Coffee Inc., Bevzilla, and The Good life Co. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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