Instant Coffee Market Analysis & Forecast: 2025-2032

Instant Coffee Market Size and Forecast – 2025-2032

The Instant Coffee Market is estimated to be valued at USD 41.88 Bn in 2025 and is expected to reach USD 58.73 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 4.95% from 2025 to 2032.

Key Takeaways

• Based on Product Type, the market is segmented into Agglomerated, Freeze Dried, and Spray Dried. Agglomerated instant coffee is produced by a process that involves combining smaller coffee particles into larger granules. While freeze-drying is a process that involves freezing brewed coffee and then reducing the pressure to remove moisture.
• Based on Trade Segment, the market is bifurcated into Modern Trade, and Regular Trade. Modern trade refers to organized retail formats, which include large-scale supermarkets, hypermarkets, online retail platforms, and convenience stores. Moreover, regular trade refers to more traditional and often local retail channels, such as local grocery shops.
• On the basis of packaging type, the jars segment is expected to witness significant market share of 40% in 2025 as it offers convenient way for consumers to store and use their coffee.
• Based on Region, Asia Pacific is expected to witness the fastest growth in the Instant Coffee Market over the forecast period owing to the growing introduction of innovative products across India and Indonesia.

Market Overview

The growth of the instant coffee market is driven by several factors, including increasing consumer demand for convenience and fast preparation. With busy lifestyles, many consumers prefer instant coffee for its ease of use and quick brewing time. The rise in coffee culture globally has also contributed to this growth, as more people seek affordable coffee options. Additionally, innovations in packaging, such as jars and eco-friendly solutions, and the growing popularity of premium instant coffee varieties are fueling market expansion.

Current Events and Their Impact on the Market

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Segmental Analysis

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Instant Coffee Market Insights, By Packaging Type- Growing Demand for Convenient Packaging

In the Instant Coffee Market, the Jars segment is anticipated to hold a significant market share, projected at 40% by 2025. This packaging type remains popular due to its convenience, ease of storage, and ability to maintain the freshness of coffee. Consumers favor jars for their ability to store larger quantities, making them ideal for households and offices. In September 2024, Kenco unvieled its Kenco Gold Indulgence instant coffee into a new 95g jar format. Furthermore, the clear packaging allows for better visibility of the product, which enhances the consumer experience. As the demand for premium instant coffee increases, especially among urban consumers, the jar packaging segment is likely to continue its growth, providing an optimal balance of value and freshness.

Instant Coffee Market Insights, By Product Type, the Market is Segmented into Agglomerated, Freeze Dried, And Spray Dried

 Agglomerated instant coffee is produced by combining smaller coffee particles into larger granules, which enhances solubility and gives a smoother texture when mixed with water. This type is typically more affordable and is commonly found in mass-market products. Moreover, freeze-Dried instant coffee involves freezing brewed coffee and removing moisture under low pressure, which preserves much of the coffee's original flavor and aroma. For instance, in March 2025, NesilCoffee, planned to start producing freeze-dried coffee using the lyophilization method. This process involves freezing brewed coffee at very low temperatures and removing moisture through sublimation in a vacuum. Freeze-dried coffee is more expensive due to its complex production method but is valued for its rich taste and fragrance. Apart from this, spray-Dried instant coffee is made by spraying liquid coffee extract into hot air, causing it to dry instantly and form small particles. While it may not retain as much flavor as freeze-dried coffee, it still offers convenience and a reliable taste, making it a popular choice for many consumers, further positively influencing the instant coffee market share.

Instant Coffee Market Insights, by Trade Segment, the Market is bifurcated into Modern Trade, and Regular Trade

 Modern Trade refers to organized retail formats such as large supermarkets, hypermarkets, and online platforms. These outlets typically offer a wide variety of instant coffee brands, including premium options. They benefit from better distribution networks and often provide consumers with more convenience through self-service models and competitive pricing. For instance, in August 2024, the Togaba Kofi Limited (TKL) launched three-in-one coffee blend at RH Supermarket. On the other hand, Regular Trade includes traditional, often smaller, retail outlets like local grocery stores, mom-and-pop shops, and street vendors. These stores generally cater to local markets, offering basic instant coffee brands at more affordable prices. While the product selection may be more limited compared to modern trade, regular trade outlets offer personalized customer service and can cater to local preferences.

Regional Analysis

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Asia Pacific Instant Coffee Market Trends

The Asia Pacific instant coffee market acquired the largest share, driven by evolving consumer preferences and regional economic developments. A significant trend is the shift towards sustainability, with brands increasingly adopting eco-friendly practices. For instance, in Australia, there has been a surge in demand for plant-based coffee alternatives, with sales reaching USD 150 million. Additionally, 30 brands have embraced biodegradable packaging, aligning with consumer expectations for environmentally conscious products.

Europe Instant Coffee Market Trends

In Europe, the trend toward sustainable packaging is a key driver of the instant coffee market. Consumers are increasingly prioritizing eco-friendly solutions, and brands are responding by adopting recyclable and biodegradable packaging. For instance, Nestlé has launched a high-barrier paper refill pack for Nescafé in the UK, enabling customers to refill their glass jars while cutting packaging weight by 97%. This paper packaging is recyclable through local paper waste systems, supporting Nestlé's sustainability objectives. Furthermore, the Nescafé Cappuccino range in Europe is now available in fully recyclable paper cans. Additionally, the demand for premium instant coffee is rising, driven by a growing appreciation for specialty coffee. European consumers are seeking high-quality instant coffee options with unique flavors, which has led brands like Nescafé to offer more diverse product lines, further positively influencing the instant coffee market forecast.

North America Instant Coffee Market Trends

In North America, the key drivers for instant coffee market growth are convenience and the increasing demand for premium products. With busy lifestyles, consumers prefer the ease of instant coffee, especially in single-serve formats and ready-to-drink varieties. Additionally, the rise of coffee culture in North America has led to a growing appetite for higher-quality instant coffee, as consumers are more willing to explore specialty blends and premium options. For instance, brands like Starbucks have expanded their instant coffee offerings to cater to this demand, providing high-quality options for consumers on-the-go.

Brazil Instant Coffee Market Trends

The growth of Brazil’s instant coffee market is primarily driven by strong domestic demand and increased exports. Brazil’s coffee consumption is steadily rising, with instant coffee becoming a staple due to its convenience and affordability. In 2023, the world's largest coffee producer saw a consumption of 21.7 million 60-kilogram bags. Innovations in product offerings, such as new flavors and premium varieties, are attracting younger consumers, especially those under 24, who prefer iced and flavored coffees. Climate conditions have also played a role, with tight supplies pushing up global prices and boosting instant coffee market demand in Brazil.

United Kingdom Instant Coffee Market Trends

The UK instant coffee market is primarily driven by premiumization and flavor innovation. As consumers seek more high-quality coffee experiences, there is a growing demand for gourmet instant coffee options that offer richer flavors and unique blends. Brands are responding by introducing a variety of new flavors, such as seasonal offerings, to cater to evolving tastes. For instance, in December 2024, Nescafe launched Nescafe Kitkat Latte in UK. Additionally, the market is benefiting from the rise of younger consumers, particularly those seeking more convenient coffee options like ready-to-drink varieties or single-serve sachets.

Pricing Analysis

Different Price Levels for Different Buyers
Instant coffee is sold in three main price categories:

• Low-priced ($3–$6 per 100g): Basic and affordable options like Nescafé Classic and Bru Instant are perfect for daily use.
• Mid-range ($7–$12 per 100g): Brands like Nescafé Gold or Tata Coffee Grand offer better taste and smoothness for a slightly higher price.
• Premium ($13–$25+ per 100g): High-end brands like Starbucks VIA, Blue Tokai, and Waka Coffee provide café-style flavor at home and are priced accordingly.

Better Quality Means Higher Price
Coffee made from Arabica beans which are smoother and more flavourful, costs more than Robusta. Also, freeze-dried coffee is more expensive because it keeps the aroma and taste better than cheaper methods. For instance, Starbucks offers Freeze-dried coffee.

Prices Change Depending on the Region
In North America and Europe, many people prefer premium options for convenience and quality. In Asia-Pacific, affordable options like Nescafé and Bru are still top choices.

Consumer Behaviour Trends and Purchasing Patterns Analysis

One of the key consumer behaviour trends in instant coffee market involves the rise of “home cafe” culture among Gen Z consumers. This not only involves creating a cafe-like experience at home, but also comprises making coffee and customising it as per one’s choice. According to a report published by Mintel in 2023, there are over 67% of Gen Z consumers in the United States who customize their coffee and share it on social media platforms like Instagram and Tiktok.

There is a rise in the demand for flavoured and premium instant coffee. Consumers are no longer looking just for caffeine, they now need a flavoured instant coffee. And keeping this in hindsight, brands, too, are responding to such consumers by offering several options.

Economic considerations and busy lifestyles are driving consumers toward instant coffee as a convenient and affordable alternative to café visits. The ease of preparation and lower cost make it an attractive option for many.

Consumer Analysis by Demographics of Age

The analysis of coffee consumption, specifically instant coffee, across different age groups, provides us with several different patterns and preferences. Here are a few observations.

1. The consumers falling in the age group of 10-25, or Gen Z as they are known, are increasingly growing. They prefer cold brews, flavoured or ready-to-drink coffee. Their buying channels include social media influencers, online platforms, and their favourite influencers. Trends like the Dalgona coffee, was a hit amongst the Gen Z. According to Deccan Herald, 25% Gen Z consumers prefer coffee over tea, thus indicating a shift in beverage choices over the years.
2. The next age group is 26-41. It is one of the largest consumer segments in the instant coffee market. The consumers in this category have a preference for premium and sustainable instant coffee. The demand by millennials has led to the spread of over 100 stores of brands like Blue Tokai in India.
3. The middle-aged consumer base, falling between the ages of 42 to 57, has a special preference for traditional coffee brands. They also exhibit loyalty towards the brands they like and are often retained. They mostly buy instant coffee from supermarkets or convenience stores.

Instant Coffee Market Trend

Growing Product Innovations

Instant coffee manufacturers are introducing new coffee flavours in the market, such as mocha, green bean, Italian roast, French vanilla, gingerbread cookie, cardamom bun and chocolate caramel, in order to expand their consumer base. For instance, in October 2024, Tata Consumer Products (TCP) launched Tata Coffee Grand Cold Coffee in three flavors: Swiss Caramel, French Vanilla, and Belgian Chocolate. This new product brings internationally inspired flavors to consumers. Moreover, these value-added products tend to fetch a higher margin than basic products, allowing them to increase the profitability of the manufacturers, in turn, contributing to the instant coffee market growth.

Affordable and Convenient

One of the key growth drivers in the instant coffee market is affordability and convenience. As lifestyles become increasingly fast-paced, consumers are seeking quick, easy, and cost-effective ways to enjoy coffee. Instant coffee provides a perfect solution, offering a budget-friendly alternative to traditional brewed coffee without compromising on taste or quality.

Moreover, as the cost of living rises globally, consumers are more inclined to choose instant coffee over higher-priced alternatives like freshly brewed coffee or specialty drinks. The variety of packaging options, such as sachets, jars, and bulk containers, adds to the convenience and affordability, catering to diverse consumer preferences and budgets. Besides this, the growing penetration towards sustainable packaging is also of the key factors adding to the instance coffee market share. For example, in March 2023, Nescafé introduced instant coffee refill pouch. This pouch is said to use approximately 60% less plastic than the lid of a 200g glass coffee jar, further boosting the instant coffee market revenue.

Instant Coffee Market Challenges: High content of acrylamide

High content of acrylamide in instant coffee, as compared to the other forms of coffee, is a major factor hindering the growth of the instant coffee market. Acrylamide is a neurotoxin and can damage the peripheral and central nervous systems (PNS and CNS) in both humans and animals. Overexposure to acrylamide can cause damage to the nervous system, and it may increase the risk of cancer.

Market Report Scope

Instant Coffee Market Key Developments

• In April 2025, ZUS Coffee introduced Ngupi by ZUS® (Ngupi), a ready-to-drink and instant coffee available across Malaysia and Southeast Asia. Using its unique TRIBLENDLOC™️ technology, it preserves the authentic taste of local Malaysian coffees like Kopi Putih, Kopi Cham, Kopi O, and Kopi Coklat in convenient instant sachets.
• In January 2025, US-based Minus Coffee introduced a new beanless coffee alternative, the Minus Instant Vanilla Oat Milk Latte. This innovative product uses upcycled plant-based ingredients, including date seeds and grape seeds, to mimic the taste of coffee while reducing environmental impact.
• In January 2025, Coffee Island announced its plans to launch 20 outlets in the South Asian market by March 2026, with a target of 250 by 2029, aiming to capitalize on the growing demand for premium coffee and hospitality experiences.
• In January 2025, Nestlé Japan launched Nescafé Gold Blend Caffeine Half, an instant coffee that contains half the caffeine of regular coffee.

Definition: Instant coffee is coffee powder that is produced by coffee beans that have been brewed at a higher Coffee-to-Water ratio as compared to regular coffee. Instant coffee is coffee powder or soluble coffee made from coffee beans, which enables people to make a cup of coffee by just stirring instant coffee in hot water.

Analyst Viewpoint

• Europe is one of the largest consumer of instant coffee, particularly in markets like Germany, the UK, and Russia. In 2023, Europe accounted for over 40% of the instant coffee consumption, and the instant coffee market is expected to continue growing due to the demand for premium blends and sustainability initiatives. For example, companies like Nestlé and JDE Peet’s are focusing on improving product offerings, catering to the demand for organic and sustainably sourced coffee.
• One of the most notable developments in the coffee export sector in 2024 has been the impressive performance of Brazil, which continues to solidify its dominance as the world’s largest coffee exporter. In 2024, Brazil exported USD 11.4 billion worth of coffee, making it the 6th most exported product in the country, out of over 1,200 products. This underscores the significant role that coffee—both instant and traditional—plays in Brazil’s economy. The main destinations for Brazil’s coffee exports in 2024 include the United States (USD 1.9B), Germany (USD 1.81B), Belgium USD 1.1B), Italy (USD 954M), and Japan (USD 563M). These figures highlight Brazil’s strong foothold in major coffee-consuming markets, particularly in North America and Europe, where the demand for both instant and specialty coffee products remains high. This is further enhancing the instant coffee market share.

Market Segmentation:

• Global Instant coffee Market, By Product Type:
  • Agglomerated
  • Freeze Dried
  • Spray Dried
• Global Instant coffee Market, By Trade:
  • Modern Trade
  • Regular Trade
• Global Instant coffee Market, By Packaging Type:
  • Sachet & Pouches
  • Jars
  • Others (Bags, Cans, etc.)
• Global Instant coffee Market, By Region:
  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East
  • Africa
• Company Profiles
  • Nestle S.A.
  • Keurig Green Mountain Inc.
  • Starbucks Corporation
  • Jacobs Douwe Egberts
  • Tata Global Beverages Limited
  • Strauss Group Ltd.
  • Luigi Lavazza S.P.A.
  • Matthew Algie & Company Limited
  • Kraft Foods Inc.
  • Tata Global Beverages
  • Tchibo Coffee International Ltd
  • Unilever Plc.
  • Leo Coffee
  • Cothas Coffee Co.
  • Hintz Foodstuff Production Gmbh
  • Illycaffe S.p.A.
  • Sri Narasu's Coffee Company Pvt. Ltd.
  • Hindustan Unilever Limited
  • Zino Davidoff
  • BM Foods
  • CCL Products (India) Ltd.

Sources

 Primary Interview with following Stakeholders

• Industry professionals, instant coffee producers, distributors, retailers, and consumer focus groups.

Databases

• IBEF & Invest India
• Trade Map (ITC)

Magazines

• Forbes
• Fortune India
• Food & Beverage Insider

Journals

• Journal of Food Science & Technology
• Beverages (MDPI)
• Nutritional Reviews

Newspapers

• Reuters
• The Guardian
• Business Insider

Associations

• International Coffee Organization (ICO)
• Specialty Coffee Association (SCA)
• Coffee Board of India

Public Domain Sources

• Nescafé UK
• GourmetPro
• PMCID
• Daily Coffee News