As per MRFR Analysis, the Global Instant Coffee Market was valued at USD 9.2 billion in 2023 and is projected to grow from USD 10.2856 billion in 2024 to USD 20.085398 billion by 2032, with a CAGR of 11.80% during the forecast period (2024 - 2032). The market is driven by the rising demand for flavored coffee and the convenience of in-home consumption. The segment of decaffeinated coffee is gaining traction due to its premium positioning, while spray-dried instant coffee remains the most popular type due to its cost-effectiveness. Supermarkets/hypermarkets dominate distribution channels, accounting for 55% of revenue in 2021, with North America leading the market share.
The Instant Coffee Market is witnessing significant trends driven by consumer preferences and product innovations.
Key players include Nestlé SA, Starbucks Corporation, Jacobs Douwe Egberts BV, Strauss Group Ltd, Kraft Foods Group Inc., Tata Beverages Ltd, and Unilever Plc.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Instant Coffee Market Trends
The increased focus on unique, authentic flavors and various functional properties of Coffee has aided in the premiumization of the instant coffee business. giants and regional craft brands are becoming more critical in designing authentic flavors for instant Coffee. Companies are increasingly adopting flavors that meet localized taste preferences. In the US, there is a consistent demand for flavored coffees. From the supply perspective, businesses are putting more of n emphasis on acquiring coffee ingredients to enable customers to cook the ideal beverage. Hence, during the projection period, flavored Coffee is anticipated to become more popular. The businesses are growing their portfolios through mergers and acquisitions with other international brands.
The Instant Coffee Market size was valued at USD 27.09 Billion in 2021 and is projected to reach USD 37.61 Billion by 2030, growing at a market CAGR of 4.13% from 2022 to 2030. The quick and easy preparation in a short period is the crucial aspect of the rise in Instant Coffee market revenue. High antioxidant content will foster market growth.
Based on Category type, the Instant Coffee market segmentation is divided into two sub-segments Traditional, Decaffeinated. It has been found that decaffeinated Coffee is more expensive than traditional Coffee simply because the production of decaf is costlier. Such findings are influencing the growth of the decaffeinated coffee market. Since brands are opting for Colombian Arabica coffee beans. Brands launching new products are gaining awareness about these insights and strategically targeting premium customers opting for high-quality decaffeinated Coffee that generates the majority share of contribution to the Instant Coffee market revenue.
January 2022:Â Instant coffee brand Sleepy Owl introduced premium instant Coffee, expanded its products, and increased brand accessibility. The Coffee is now offered in three flavors: Original, French Vanilla, and Hazelnut. There are no preservatives or artificial flavors in these.
March 2022:Â Melbourne's coffee roaster Beat Coffee introduced a specialty instant coffee that combines convenience, quality, and flavor in a single sachet. The freeze-drying process instantly captures the Coffee's vibrancy, preserving the caramel and honey-flavored notes.
The Instant Coffee market segmentation, based on type, the type segment is divided into spray-dried and freeze-dried. The spray-dried segment dominated the market with a share of around 56% in 2021. Spaying liquid coffee droplets prepare spray-dried instant Coffee in scorching and dry air. The liquid evaporates, leaving fine coffee particles as the end product. Spray-dried Coffee is the most popular Instant Coffee, given that it employs a simple production process and is cheaper than free-dried Instant Coffee. The economic nature of spray-dried Coffee makes it affordable for most consumers and hence is more profitable to the producer. Better technological advancements that simplify spray-drying, continuance, and compatible processes will propel the segment's instant Coffee to impact the market growth positively.
Figure 1: Instant Coffee Market, by type, 2022& 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
April 2021:Nescafe expanded its instant coffee market portfolio by launching a Roastery Collection range designed to give consumers the flavor of the artisan coffee 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, which increases the instant coffee industry in the forecast period.
Based on the distribution channel instant coffee industry is divided into segments into supermarkets/hypermarkets, online, business-to-business, and convenience stores. In 2021, the supermarkets/hypermarkets segment dominated the market, accounting for around 55% of revenue. Supermarkets/hypermarkets are large, widely distributed, and have a higher consumer reach than others. The inclination of consumers towards shopping at a one-stop shop, as it conveniently offers all brands and their respective products in one place, is the reason for its dominance. The growing urbanization and expanding retail chains will also propel the segment's growth. Numerous brands offer product demonstrations at supermarkets/hypermarkets to attract consumers, which could impetus the growth of the instant coffee industry.
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America Instant Coffee market accounted for USD 4.2 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. The affordable, accessible, easy, and tasty nature of instant Coffee can be considered the prime factor for the development of the market.
Further, the significant countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: INSTANT COFFEE MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Instant Coffee market leads in terms of market share. The reason is that Europeans have a long-standing (centuries-old) tradition of drinking Coffee. Therefore, European people increasingly demand instant Coffee - cheap and easy. Further, the Germany Instant Coffee market held the largest market share, and the UK Instant Coffee market was the fastest-growing market in the European Region.
The Asia-Pacific Instant Coffee Market is expected to grow at the fastest CAGR from 2022 to 2030. The reason for this is that the middle class is expanding rapidly. They have westernized and international tastes and are increasingly clamoring for Coffee, increasing the Instant Coffee market. Coffee barista joints like Coffee Day are becoming popular in India and China. Moreover, the China Instant Coffee market held the largest market share, and the India Instant Coffee market was the fastest-growing market in the Asia-Pacific region.
Since Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.
Instant Coffee Key Market Players& Competitive Insights
Major market players are spending a lot of money on flavor tasting to increase their product lines, which will help the Instant Coffee market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Instant Coffee industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the Instant Coffee industry to benefit clients and expand the market sector. The Instant coffee industry has provided the most significant healthcare benefits in recent years. The Instant Coffee markets major players such as Nestlé SA (Switzerland), Starbucks Corporation (US), Jacobs Douwe Egberts BV (Netherlands), Strauss Group Ltd (Israel), Matthew Algie & Company Ltd (Scotland), Kraft Foods Group Inc. (US), Tata Beverages Ltd (India), Tchibo Coffee International Ltd (US), Unilever Plc (UK), Keurig Dr. Pepper (US) and others are working on expanding the market demand by investing in research and development activities.
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain.
In May 2018, Starbucks Corporation established a coffee collaboration with Nestlé S.A. to accelerate and expand Starbucks brands' presence in Consumer Packaged Goods (CPG) and Foodservice. With a shared commitment to ethical and sustainable coffee sourcing, this cooperation will alter, extend, and elevate both at-home and away-from-home Coffee and related categories worldwide.
Blue Bottle Coffee, Inc., is a coffee roaster and retailer once headquartered in Oakland, California, United States. In 2017, a majority stake in the company was acquired by Nestlé. It is considered a significant player in third-wave Coffee. The company focuses on single-origin beans.
In October 2022, Blue Bottle Coffee, which Nestlé mainly owns, debuted an instant espresso that allows consumers to make premium drinks at home without needing expensive machines or brewing expertise, according to a statement.
In March 2020, Cusa Tea announced the development of Cusa Coffee, which uses the same evaporative dehydration process as Cusa Tea. Each box contains all seven instant packets, each preparing an 8-ounce cup of expertly brewed Coffee in less than three seconds. Cusa Coffee will also release Light Roast, Medium Roast, and Dark Roast in April 2020, followed by numerous additional flavors in 2020.
Key Companies in the Instant Coffee market include
Nestlé SA (Switzerland)
Jacobs Douwe Egberts BV (Netherlands)
Strauss Group Ltd (Israel)
Matthew Algie & Company Ltd (Scotland)
Kraft Foods Group Inc. (US)
Tata Beverages Ltd (India)
Tchibo Coffee International Ltd (US)
Unilever Plc (UK)
Keurig Dr. Pepper (US)
Instant Coffee Industry Developments
March 2020Â Cusa Tea announced the development of Cusa Coffee, which uses the same evaporative dehydration process as Cusa Tea. Each box contains all seven instant packets, each preparing an 8-ounce cup of expertly brewed Coffee in less than three seconds. Cusa Coffee will also release Light Roast, Medium Roast, and Dark Roast in April 2020, followed by numerous additional flavors in 2020.
January 2017 Nestle S.A. agreed to acquire Caravan Marketing Co., an Egyptian instant coffee firm that offers products under the Bonjorno brand. The acquisition will capitalize on the complementary qualities of the Nescafe and Bonjorno brands, accelerating the development of Egypt’s soluble coffee industry.
Traditional
Decaffeinated
Freeze-dried
Spray-dried
Store-Based
Non-Store-Based
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 9.2 billion |
| Market Size 2024 | USD 10.2856 billion |
| Market Size 2032 | USD 20.08539848 billion |
| Compound Annual Growth Rate (CAGR) | 11.80% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2023 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | By Category, By Type, By Distribution Channel, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Nestlé SA (Switzerland), Starbucks Corporation (US), Jacobs Douwe Egberts BV (Netherlands), Strauss Group Ltd (Israel), Matthew Algie & Company Ltd (Scotland), Kraft Foods Group Inc. (US), Tata Beverages Ltd (India), Tchibo Coffee International Ltd (US), Unilever Plc (UK), Keurig Dr. Pepper (US) |
| Key Market Opportunities | Quick and easy preparation in a short period is the crucial aspect. Instant Coffee has high antioxidant content |
| Key Market Dynamics | Increasing Demand for Flavored Coffee |
Instant Coffee Market Highlights:
Frequently Asked Questions (FAQ) :
The Instant Coffee market size was valued at USD 9 .2 Billion in 2023.
The market is projected to grow at a CAGR of 11.80 % from 2024-2032.
Europe had the largest share of the market.
The key players in the market are Nestlé SA (Switzerland), Starbucks Corporation (US), Jacobs Douwe Egberts BV (Netherlands), Strauss Group Ltd (Israel), Matthew Algie & Company Ltd (Scotland), Kraft Foods Group Inc. (US), Tata Beverages Ltd (India), Tchibo Coffee International Ltd (US), Unilever Plc (UK), Keurig Dr. Pepper (US).
The quick and easy preparation in a short period 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 is Segmented based on Category, Type, Distribution Channel, and Geography.
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