Instant Coffee Market Report by Packaging (Jar, Pouch, Sachet, and Others), Product Type (Spray Dried, Freeze Dried), Distribution Channel (Business-To-Business, Supermarkets and Hypermarkets, Convenience Stores, Online, and Others), and Region 2024-2032

The global instant coffee market size reached US$ 14.1 Billion in 2023. Looking forward, the publisher expects the market to reach US$ 21.5 Billion by 2032, exhibiting a growth rate (CAGR) of 4.8% during 2023-2032. The increasing working population and fast-paced lifestyles of individuals, rising income levels of individuals, and the growing investments in advanced production processes and sourcing premium coffee beans are some of the major factors propelling the market.

Instant coffee, also known as soluble coffee, is made from roasted coffee beans, which are ground into a fine powder and then brewed using hot water to extract the coffee flavor. It offers ease of use, long shelf life, and the ability to retain the taste and aroma of traditional brewed coffee. It allows coffee lovers to prepare a cup of coffee quickly and easily by simply adding hot water. It provides versatility and can be enjoyed as a regular black coffee or as lattes, cappuccinos, and mochas. Besides this, it requires minimal equipment, which makes it an easy solution to satisfy coffee cravings in various settings.

The increasing income level of individuals is driving the demand for premium beverage products. Additionally, there is a rise in coffee culture among the millennial population, which is positively influencing the market. Furthermore, various leading manufacturers are investing in advanced production processes and sourcing premium coffee beans to attract a wider consumer base. Apart from this, innovation in manufacturing processes, such as freeze-drying and spray-drying, are allowing producers to retain more of the original aroma and taste of products. Moreover, advancements in packaging technology are improving product shelf life and convenience, which is strengthening the growth of the market.

Instant Coffee Market Trends/Drivers:

Increasing consumer demand for convenience

The increasing working population and the fast-paced lifestyles of individuals worldwide represent one of the key factors driving the demand for products that require less time and effort for preparation. Instant coffee offers a quick, simple, and hassle-free way of preparing a cup of coffee by adding coffee powder in hot water. Moreover, manufacturers are introducing innovative product offerings, such as the development of single-serve packaging and ready-to-mix sachets that further simplify the preparation process. Apart from this, the preparation of instant coffee does not involve any special equipment or appliances, such as a coffee machine and grinder.

Rising consciousness about health and wellness

The increasing health consciousness among the masses represents one of the key factors positively influencing the market. Consumers are seeking coffee products with added health benefits, such as those infused with vitamins, minerals, and other functional ingredients. This is driving the demand for coffee products that contain ingredients like green tea extract, ginseng, and guarana, on account of their health benefits. Apart from this, the rising prevalence of obesity and diabetes is driving the demand for green coffee as it boosts metabolism and supports weight management. Furthermore, leading manufacturers are focusing on the introduction of products formulated with natural ingredients to attract a wider consumer base.

The expansion of distribution channels

The easy availability of ready-to-prepare foods and beverages is positively influencing the market. The expansion of offline distribution channels, such as supermarkets, hypermarkets, convenience stores, and general stores is offering lucrative opportunities to manufacturers. Apart from this, the burgeoning e-commerce industry and the growing consumer reliance on online shopping platforms is offering a favorable market outlook. Additionally, online retail channels are offering a diverse range of products, exciting deals and discounts, free home delivery services, and online payment methods, which is attracting a wider consumer base. Furthermore, various companies are collaborating with online channels to expand their market reach and increase overall product sales.

Instant Coffee Industry Segmentation:

The publisher provides an analysis of the key trends in each segment of the global instant coffee market report, along with forecasts at the global and regional levels from 2024-2032. The report has categorized the market based on product type, packaging and distribution channel.

Breakup by Packaging:

• Jar
• Pouch
• Sachet
• Others

Pouch holds the largest market share

The report has provided a detailed breakup and analysis of the market based on the packaging. This includes jar, pouch, sachet, and others. According to the report, pouch accounts for the majority of the market share. Pouches are lightweight and compact as they are made from flexible materials like plastic or foil, which makes them a preferred packaging solution. Additionally, the compactness of pouches also reduces space during transportation, which indirectly contributes to reduced carbon emissions. Apart from this, they are generally cheaper to produce and transport than other packaging types like jars or cans. Furthermore, many pouches come with a resealable feature, ensuring the freshness and aroma of the coffee are preserved over multiple uses. This feature enhances the shelf-life of products. Moreover, advancements in packaging technology are resulting in the development of more durable and sustainable pouch materials.

Breakup by Product Type:

• Spray Dried
• Freeze Dried

Spray dried dominates the market

The report has provided a detailed breakup and analysis of the market based on the product type. This includes spray dried and freeze dried. According to the report, spray dried represented the largest segment. There is an increase in the demand for spray dried instant coffee among health-conscious consumers due to its natural processing. Spray drying is a physical process that does not involve the use of any chemicals, which makes it a clean method that aligns with the growing consumer demand for natural and minimally processed foods. Apart from this, through the spray drying process, coffee retains much of its original aroma and taste, making it an appealing choice for coffee aficionados. Furthermore, companies are investing in advanced spray-drying technologies that enable them to control the size and shape of coffee particles more accurately.

Breakup by Distribution Channel:

• Business-To-Business
• Supermarkets and Hypermarkets
• Convenience Stores
• Online
• Others

Supermarkets and hypermarkets hold the largest share in the market

A detailed breakup and analysis of the market based on the distribution channel has also been provided in the report. This includes business-to-business, supermarkets and hypermarkets, convenience stores, online, and others. According to the report, supermarkets and hypermarkets accounted for the largest market share. The main factors that are driving the growth of this segment are the easy availability of an extensive range of instant coffee brands, types, and flavors available in these stores. Additionally, they offer individuals the opportunity to physically see, feel, and sometimes sample products before making a purchase. Apart from this, supermarkets and hypermarkets are usually located in easily accessible, high-traffic areas. Furthermore, they offer exciting deals and discounts, which attract consumers to make purchases. They also invest in marketing strategies, to attract a wider consumer base and increase their overall profitability. Moreover, the provision of ancillary services, such as customer assistance, home delivery, and easy return policies enhance the shopping experience, foster customer loyalty, and drive repeat visits.

Breakup by Region:

• Europe
• Asia Pacific
• North America
• Latin America
• Middle East and Africa

Europe exhibits a clear dominance, accounting for the largest instant coffee market share

The report has also provided a comprehensive analysis of all the major regional markets, which include Europe, Asia Pacific, North America, Latin America, and Middle East and Africa. According to the report, Europe accounted for the largest market share.

The fast-paced lifestyle of Europeans is one of the key factors increasing the demand for instant coffee. Consumers are constantly seeking time-saving and convenient solutions, and instant coffee offers a quick, hassle-free option. Additionally, the leading instant coffee manufacturers are continually introducing new flavors, blends, and varieties to cater to the diverse taste preferences of European consumers. Some of them are sourcing premium coffee beans and using freeze-drying techniques to ensure the product retains its taste and freshness. Apart from this, Europe has a significant number of eco-conscious consumers who prefer sustainable and ethically sourced products. Several instant coffee brands are responding to this demand by ensuring sustainable farming practices, fair trade, and using eco-friendly packaging.

Competitive Landscape:

Companies in the instant coffee market are diversifying their product offerings, as consumers show increasing interest in new flavors and functional benefits. These firms are incorporating popular ingredients such as matcha, turmeric, and different kinds of adaptogens, with a focus on catering to the health-conscious segment of consumers. Additionally, companies are consistently innovating in packaging designs and formats to enhance convenience and consumer appeal while reducing environmental footprint. Furthermore, they are continuously improving their supply chains, ensuring fair trade, and adopting carbon-neutral production processes. Apart from this, many of the leading market players are experimenting with direct-to-consumer models due to the rising consumer reliance on online shopping channels.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Nestle
• Starbucks Corporation
• Matthew Algie & Company Ltd
• Kraft Foods Inc
• Tata Consumer Products Limited
• Strauss Group Ltd
• Jacobs Douwe Egberts
• Tchibo Coffee International Ltd

Recent Developments:

In February 2020, Nestle announced the introduction of Starbucks premium instant coffee (soluble). Dark and Medium Roast coffee, and a variety of coffee beverages, are part of the new line.

In July 2021, Starbucks and Nestle Corporation announced the launch of RTD coffee beverages in Latin America, Oceania, and Southeast Asia.

In January 2023, Tata Consumer Products Limited launched a premium instant coffee, Tata Coffee Grand Premium, with flavor-locked decoction crystals, which differentiates it from its competitors.

Key Questions Answered in This Report

1. What was the size of the global instant coffee market in 2023?
2. What is the expected growth rate of the global instant coffee market during 2024-2032?
3. What are the key factors driving the global instant coffee market?
4. What has been the impact of COVID-19 on the global instant coffee market?
5. What is the breakup of the global instant coffee market based on the product type?
6. What is the breakup of the global instant coffee market based on the packaging?
7. What is the breakup of the global instant coffee market based on the distribution channel?
8. What are the key regions in the global instant coffee market?
9. Who are the key players/companies in the global instant coffee market?