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Phase-Xs | Biologics & Biosimilars | Coherent Market Insights

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

  • Instant Coffee
  • Instant Tea
  • Instant Milk
  • Instant Health Drinks
  • Instant Soups
  • Others

By Form

  • Powder
  • Sugar-Based Form
  • Sugar Free Form
  • Paste
  • Granular

By Distribution Channel

  • Hypermarkets
  • Supermarkets
  • Online Stores
  • Convenience Stores
  • Others

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

  • Asia Pacific is expected to be the largest market in the instant beverage premixes over the forecast period. India and China are projected to be the growth engines in the region. This is due to traditional inclination of the populace towards coffee and increasing number of manufacturers setting up production facilities in the region. According to the government of India, among the total consumption of coffee, instant coffee comprises 57%. Moreover, in 2016, Nestle India launched Nescafe Sunrise Insta-Filter, to expand their business in the Indian coffee market. This product offers the taste of filter coffee with a convenience of an instant coffee. In 2017, Tata Coffee Limited, subsidiary of Tata Group, announced to set up an instant coffee plant in Vietnam with a capacity of 5,000 metric tons per annum. This has resulted in growth of the instant coffee segment in Asia Pacific, further driving growth of the instant beverage premixes market.
  • Europe is expected to be the second largest region in terms of revenue growth in the global instant beverage premixes market, owing to rampant increase in consumption of instant tea and coffee in this region. According to Coherent Market Insights, Russia is one of the biggest tea markets around 88% of the Russians consuming tea. This is further resulting in rise in number of instant tea premix consumers in Russia and thereby, significantly contributing to growth of the Europe instant beverage premix market.
  • North America is projected to exhibit significant growth in the instant beverage premixes market, owing to increasing working population and presence of major market players in this region. Major players in this region are focusing on expanding their business in the emerging countries of Asia Pacific and Africa. For Instance, in 2017, The Kraft Heinz Co. entered into an agreement with Suntory Beverage & Food Ltd. — a Kotobuki Realty company — to acquire its instant coffee business and Cerebos food business in New Zealand and Australia. Moreover, in 2016, Jacobs Douwe Egberts BV — a Mondelez International company — entered into agreement to acquire Super Group’s instant food and beverage firm for US$ 1.09 billion.

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.

Key Developments:

  • September 2019: Contracts/Agreements; The Coco Cola Company entered into a partnership agreement with CraftWorks Holdings to be as the strategic beverage partner for all brands.
  • April 2018: Product Launch; Coca-Cola launched its new ready-to-drink frozen beverage in Japan in order to enhance its product portfolio.
  • September 2018: Acquisitions/Mergers/Takeovers; Coco Cola Company entered into an agreement with Alize to acquire the Tropico brand of beverages in France.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users