As the name suggests, instant beverage premixes are drinks that can easily be prepared usually by adding water. These premixes are available in various forms such as paste, powder, and granular. Owing to benefits offered by instant beverage premixes, adoption rate of these drinks is increasing substantially. For instance, ginger tea premix are rich in anti-oxidants and offers weight reduction and lowering the risk of heart disease.
The corporate sector is the largest consumer segment in the market for instant beverage premixes. This is owing to time saving and easy preparation of these remixes, as people do not the time for preparing conventional drinks such as tea or coffee. According to US Bureau of Labor Statistics, the employed populace in the U.S. was 154.43 million in January 2018, which was 152.07 million in January 2017. This is another factor boosting the overall instant beverage premixes market growth.
However, stringent government regulations for ingredient approval in these premixes is expected to hinder growth of the market of instant beverage premixes. For instance, in 2017, Bestherbs Coffee LLC, a U.S.-based company, recalled its instant coffee product ‘Kopi Jantan Tradisional’ as FDA confirmed that it contained desmethyl carbodenafil, which is similar to the active ingredient in Viagra. This expected to be a major restraining factor for growth of the market.
Global Instant Beverage Premixes Market Taxonomy
Global Instant Beverage Premixes market is segmented into:
By Product Type
By Distribution Channel
Instant coffee premix segment dominated the instant beverage premix market in 2016. This is owing to coffee being the preferred drink in the world. According to International Coffee Organization, the consumption of coffee was 155.1 million bags in 2016–2017, which is expected to increase up to 157.6 million bags in 2017–2018. Moreover, players in the market are focusing on launching instant coffee premixes, which is further expected to aid in growth of the market. For instance, in 2015, Tata Global Beverages Limited entered into instant coffee business through the launch of Tata Coffee Grand.
Online stores segment is projected to exhibit high growth over the forecast period. This growth is attributed to increasing inclination of consumers towards online shopping, owing to high availability of options, discounts, home delivery, and others. Therefore, major players are focusing on collaborating with online shopping stores to enhance their businesses and consumer base. For instance, in 2016, Nestle India partnered with Snapdeal for the distribution of its new Nescafé Sunrise Insta-Filter product.
Global Instant Beverage Premixes Market Outlook
Major players in the market are focusing on launching new products in the market, in order to enhance their product portfolios and maintain their positon in the competitive market. For instance, in 2016, Frutarom Industries Ltd. launched NutraT, an instant drink powder, which includes CocoaT, OliveT, CitroT, RosT, and functional ingredients.
Major players in the instant beverage premixes market include Suntory Beverage & Food Ltd., The Republic of Tea Inc., Tata Group, Monster Beverage Co., The Coco-Cola Co., Neel Beverages Pvt. Ltd., Keurig Green Mountain Inc., Starbucks Corp., Dunkin Brands Group Inc., and PepsiCo Inc.