United Kingdom Instant Coffee Market - Forecasts from 2022 to 2027

United Kingdom instant coffee market is projected to grow at a CAGR of 4.14% to reach a value of US$1,634.731 million by 2027, from US$1,231.016 million in 2020.

Increased consumption of instant coffee by a high number of households

According to the British Coffee Association, about 80% of households consume instant coffee, primarily because older individuals (those above 65) find it easier to brew coffee at home rather than going out to a café or coffee shop. In addition, instant coffee pods and ground coffee have rapidly gained popularity among the millennials and are pushing the demand even further, which is leading to market growth.

The majority of the individuals among the younger, middle-aged, and older populations prefer to consume tea.

Tea is an increasingly popular hot and cold beverage consumed on many counters globally by the older, middle-aged, and adolescent population as well. Most individuals among the older and middle-aged population prefer consuming tea to coffee, which is a staple for most of them during breakfast or in the afternoon. In addition, there are market players such as Lipton and Twinnings, which are among the famous brand that offers a variety of tea to cater to the different tastes of the consumers. Thus, this factor slightly hampers the market's growth over the forecast period.

Product Launches by the market players in the UK Instant Coffee Market

The market players are involved in offering better and advanced varieties of instant coffee with enhanced flavor and aromas to bolster their market position and cater to the demands of the consumers are estimated to lead to increased consumption and propel the market growth further over the forecast period.

Some of the product launches have been mentioned below

• In August 2019, UK-based Nores Coffee Roasters and Volia teamed up to launch an exclusive lot of instant coffee offerings that were sourced from Narino in Columbia. This instant coffee is user-friendly and convenient and can be carried anywhere, as just a cup of warm water is needed to make coffee.
• In August 2019, Nestlé, which is one of the largest companies involved in the manufacture and sale of food and beverage products globally, announced the launch of their new plant-based instant coffees that are available in the UK and Ireland markets. The three products that have been launched under their Nestlé Gold product line are called Nestlé Gold Coconut Latte, Nestlé Gold Oat Latte, and Nestlé Gold Almond Latte.
• In February 2020, Nestlé, one of the largest companies involved in the manufacture and sale of food and beverage products globally, announced the launch of their new product called the Starbucks premium instant (soluble) coffee. The new range of products that have been launched includes Medium Roast and Dark Roast coffees, as well as some other coffee beverages. The product has been launched in the UK market and other markets as well.
• In February 2021, Nestle UK and Ireland introduced the range of Starbucks premium instant coffee. The coffee drinks, Caffe Mocha, Cappuccino, Caffè Latte, Caramel Latte, and Vanilla Latte varieties, were inspired by hallmark Starbucks drinks. All the offerings are developed using superior quality and ethically sourced arabica beans.

Freeze Dried Instant Coffee to grow at a significant pace over the forecast period owing to the tastes and preferences of the individuals

Freeze-dried instant coffee is a processing method that keeps the coffee beans at low temperatures and does not allow them to get into contact with hot air, thereby retaining its flavour and aroma. By processing method, freeze-dried instant coffee is estimated to grow at a significant pace over the forecast period owing to the fact that an increasing number of individuals prefer a flavorful coffee with a rich taste and aroma.

COVID-19 Insights:

COVID-19 had a negative impact on the UK instant coffee market. With the enforcement of the lockdown and social distancing measures, amid the rapidly spreading virus, thousands of coffee houses, cafes, and various other food outlets were forced to close down due to little or no foot traffic and decreased revenues. Nevertheless, the growing adoption of the e-commerce segment amid the pandemic augmented the domestic sales of instant coffee.

Segmentation

By Type

• Freeze-Dried Instant Coffee
• Spray-Dried Instant Coffee

By Distribution Channel

• Offline
• Foodservices
• Retail
• Supermarket/Hypermarket
• Convenience Stores
• Online

By Province

• London
• Glasgow
• Newcastle