all report title image
  • Published On : Mar 2023
  • Code : CMI1458
  • Industry : Food and Beverages
  • Pages : 150
  • Formats :

Instant Coffee Market size was valued at USD 36.23 Billion in 2022 and is projected to reach USD 53.32 Billion by 2030, growing at a CAGR of 4.95% from 2023 to 2030. The quick and easy preparation in a short span of time is the crucial aspect of the rise in the market revenue of Instant Coffee as well as high antioxidant content will foster market growth. The Instant Coffee Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Instant Coffee Market: Growth Drivers

Introduction of new flavors to expand their consumer-base

Instant coffee manufacturers are introducing new coffee flavors in the market such as mocha, green bean, Italian roast, French vanilla, ginger-bread cookie, cardamom bun and chocolate caramel, in order to expand their consumer-base. 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 market growth.

Affordable and Convenient

As single-serve packets are more affordable and provide convenience to the consumers, they are experiencing a strong demand in homes, cafés, hotels and restaurants. Moreover, they allow the consumers to try out new flavors without spending on bulk packs. The consumption of premium instant coffee products is proliferating at a rapid pace in emerging markets such as the Middle East, Eastern Europe and South East Asia due to inflating disposable incomes, growing urbanization and altering food patterns of the consumers in these regions.

Instant Coffee Market: Market Restraints

High content of acrylamide

High content of acrylamide in instant coffee as compared to the other forms of coffee is a major factor hindering growth of the instant coffee market. Acrylamide is a neurotoxic and can damage peripheral and central nervous system (PNS and CNS) in both humans and animals. Overexposure to acrylamide can cause damage to nervous system and it may increase the risk of cancer. According to a study conducted by National Center for Biotechnology Information in 2014, instant coffee was found to contain 100% more acrylamide (358 mg/kg) than fresh roasted coffee. This scenario is likely to restrain the growth of instant coffee industry in the near future.

Figure 1. Global Instant Coffee Market (%), By Segment Type

Instant Coffee  | Coherent Market Insights

Among packaging type, the jars segment is expected to witness significant market share in the Instant Coffee Market. In 2022, the segment accounted for 40% share in the Instant Coffee Market in terms of revenue. This was majorly attributed to high consumption of coffee in the Asia Pacific region. Therefore, significant growth in consumption of coffee due to increasing population is expected to boost the instant coffee market during the forecast period.

Instant Coffee Market: Regional Insights

Asia Pacific is expected to witness the fastest growth in the Instant Coffee Market over the forecast period. This is owing to an increasing demand for instant coffee and significant growth of the food and beverage industry in India and China. According to International Coffee Organization, in 2015, China produced more coffee than Kenya and Tanzania combined, and consumed more than Australia, owing to increasing disposal income of consumers.

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Instant Coffee Market Report Coverage

Report Coverage Details
Base Year: 2022 Market Size in 2022: US$ 36.23 Bn
Historical Data for: 2017 to 2021 Forecast Period: 2023 to 2030
Forecast Period 2023 to 2030 CAGR: 4.95% 2030 Value Projection: US$ 53.32 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East & Africa: GCC Countries, Israel,  South Africa, North Africa, and Central Africa and Rest of Middle East
Segments covered:
  • By Product Type: Agglomerated, Freeze Dried, Spray Dried
  • By Trade: Modern Trade, Regular Trade
  • By Packaging Type: Sachet & Pouches, Jars, Others (Bags, Cans, etc.)
Companies covered:

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., and others

Growth Drivers:
  • Introduction of new flavors to expand their consumer-base
  • Affordable and Convenience
Restraints & Challenges:
  • High content of acrylamide in instant coffee compared to the other forms of coffee

Figure 2. Global Instant Coffee Market Share (%), By Region

Instant Coffee  | Coherent Market Insights

Instant Coffee Market: - Impact of Coronavirus (Covid-19) Pandemic

The impact of the COVID-19 lockdown on the instant coffee market was significant in the first quarter of 2020, but it gradually lessened in the subsequent quarters with limited impact on full-year growth. During the lockdown, while institutional sales suffered due to closed offices and public places, domestic consumption witnessed strong growth by the companies. Also, the current trend toward online shopping for at-home consumption, on the other hand, is forcing retailers, roasters, and consumers to adapt to this new reality. As a result, this factor is expected to increase global coffee consumption. Nestlé SA, for example, reported strong retail demand for food and beverage products around the world, achieving 4.4% organic group sales growth in the first quarter of 2020. Coffee sales were especially strong as people stockpiled essential items during the pandemic.

Instant Coffee Market: Recent Developments

  • In January 2022, instant coffee brand Sleepy Owl launched premium instant coffee, expanding its product portfolio and widening its accessibility as a brand, which is available in three flavors, namely Original, French Vanilla, and Hazelnut, and these do not contain any artificial flavors and preservatives.
  • In March 2022, Melbourne's coffee roaster Beat Coffee launched a specialty instant coffee that captures quality, flavor, and convenience in a single sachet. The freeze-drying process involved in it enables the vibrancy of the coffee to be captured instant, which keeps the caramel and honey-flavored notes.
  • In April 2021, Nescafe expanded its portfolio with the launch of a Roastery Collection range in a move designed to give consumers the flavor of the artisan coffee that they would expect from a coffee shop. The Nescafe Gold Blend Roastery collection includes two instant coffee blends, Light Roast and Dark Roast, each made with Arabica beans.

Instant Coffee Market: Key Companies

Major players operating in the instant coffee market include, 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., and others.

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.

Instant coffee is also called as soluble coffee. It is available in the form of crystals, and powder. Instant coffee is coffee powder that is produced from coffee beans that have been brewed at a higher Coffee-to-Water ratio compared to regular coffee. Instant coffee is produced using two methods such as spray drying and freeze-drying. In the spray drying method, a spray device is used for drying the coffee extract. The device transfers hot air into the container and converts the product into fine powder. In the freeze drying method, the coffee extract is frozen at around -40 degree Celsius and then the ice particles are treated separately in evaporation and drying chambers to produce instant coffee flakes.

Despite the dominance of fresh coffee in the coffee industry, instant coffee is quickly becoming popular all over the world. Transportation of instant coffee is cheaper, as it has lower shipping weight and volume than beans or ground coffee. Moreover, instant coffee offers convenience in preparation, which increases its demand among the urban consumers. 

Market Dynamics

Among packaging type, the jars segment is expected to witness significant market share in the Instant coffee Market. In 2022, the segment accounted for 40% share in the Instant coffee Market in terms of revenue. This was majorly attributed to high consumption of coffee in the Asia Pacific region. Therefore, significant growth in consumption of coffee due to increasing population is expected to boost the instant coffee market during the forecast period.

Among regions, in 2022, Asia Pacific held dominant position in the Instant coffee Market, in terms of revenue share. This was owing to increasing consumption of instant coffee in the region. Asia Pacific is expected to record fastest growth in the market over the forecast period. Growing demand for instant coffee in China and India is majorly supporting the regional growth of the market.

Key features of the study:

  • This report provides in-depth analysis of the instant coffee market and provides market size (US$ Billion) and Cumulative Annual Growth Rate (CAGR%) for the forecast period (2023 – 2030), considering 2022 as the base year
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by key players
  • It profiles key players in the Instant coffee Market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study include, 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., and others
  • Insights from this report would allow marketers and management authorities of the companies to make informed decisions regarding their future product launches, technology up-gradation, market expansion, and marketing tactics
  • The Instant coffee Market report caters to various stakeholders in this industry including investors, suppliers, instant coffee manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the instant coffee market

Detailed 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
      • U.S.
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Rest of South America
    • Europe
      • Germany
      • Italy
      • France
      • Rest of Europe
    • Asia Pacific
      • China
      • India
      • Japan
      • South Korea
      • Rest of Asia Pacific
    • Middle East & Africa
      • Middle East
      • Africa
  • Company Profiles
    • Nestle S.A.*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • 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.

 “*” marked represents similar segmentation in other categories in the respective section.

Frequently Asked Questions

The Instant Coffee Market is estimated to reach US$ 53.32 Billion by 2030.
Major players operating in the Market include 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., and others.
High content of acrylamide in instant coffee compared to the other forms of coffee is one of the major factors that is expected to hamper growth of the market.
Introduction of new flavors to expand their consumer-base and Affordable and Convenience are the major factors that is expected to market.
The market is estimated to exhibit a CAGR of 4.95% over the forecast period (2023-2030).
Among regions, Asia Pacific accounted for the largest market share in the market in 2022.

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