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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
Market Report I 2024-03-02 I 145 Pages I IMARC Group
The global instant coffee market size reached US$ 14.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 21.5 Billion by 2032, exhibiting a growth rate (CAGR) of 4.7% during 2024-2032. 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:
IMARC Group 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. Our 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?
1 Preface
2 Scope and Methodology
2.1 Objectives of the Study
2.2 Stakeholders
2.3 Data Sources
2.3.1 Primary Sources
2.3.2 Secondary Sources
2.4 Market Estimation
2.4.1 Bottom-Up Approach
2.4.2 Top-Down Approach
2.5 Forecasting Methodology
3 Executive Summary
4 Introduction
4.1 Overview
4.2 Key Industry Trends
5 Global Coffee Industry
5.1 Market Overview
5.2 Production Volume Trends
5.3 Market Breakup by Region
5.4 Market Breakup by Coffee Bean Type
5.5 Market Forecast
6 Global Instant Coffee Industry
6.1 Market Overview
6.2 Market Performance
6.2.1 Volume Trends
6.2.2 Value Trends
6.3 Impact of COVID-19
6.4 Price Analysis
6.4.1 Key Price Indicators
6.4.2 Price Structure
6.4.3 Price Trends
6.5 Market Breakup by Packaging
6.6 Market Breakup by Product Type
6.7 Market Breakup by Distribution Channel
6.8 Market Breakup by Region
6.9 Market Forecast
6.10 SWOT Analysis
6.10.1 Overview
6.10.2 Strengths
6.10.3 Weaknesses
6.10.4 Opportunities
6.10.5 Threats
6.11 Value Chain Analysis
6.11.1 Raw Material Procurement
6.11.2 Manufacturing
6.11.3 Marketing
6.11.4 Distribution
6.11.5 Exports
6.11.6 End-Use
6.12 Porter's Five Forces Analysis
6.12.1 Overview
6.12.2 Bargaining Power of Buyers
6.12.3 Bargaining Power of Suppliers
6.12.4 Degree of Competition
6.12.5 Threat of New Entrants
6.12.6 Threat of Substitutes
6.13 Key Market Drivers and Success Factors
7 Market Breakup by Packaging
7.1 Jar
7.1.1 Market Trends
7.1.2 Market Forecast
7.2 Pouch
7.2.1 Market Trends
7.2.2 Market Forecast
7.3 Sachet
7.3.1 Market Trends
7.3.2 Market Forecast
7.4 Others
7.4.1 Market Trends
7.4.2 Market Forecast
8 Market Breakup by Product Type
8.1 Spray Dried
8.1.1 Market Trends
8.1.2 Market Forecast
8.2 Freeze Dried
8.2.1 Market Trends
8.2.2 Market Forecast
9 Market Breakup by Distribution Channel
9.1 Business-To-Business
9.1.1 Market Trends
9.1.2 Market Forecast
9.2 Supermarkets and Hypermarkets
9.2.1 Market Trends
9.2.2 Market Forecast
9.3 Convenience Stores
9.3.1 Market Trends
9.3.2 Market Forecast
9.4 Online
9.4.1 Market Trends
9.4.2 Market Forecast
9.5 Others
9.5.1 Market Trends
9.5.2 Market Forecast
10 Market Breakup by Region
10.1 Europe
10.1.1 Market Trends
10.1.2 Market Forecast
10.2 Asia-Pacific
10.2.1 Market Trends
10.2.2 Market Forecast
10.3 North America
10.3.1 Market Trends
10.3.2 Market Forecast
10.4 Latin America
10.4.1 Market Trends
10.4.2 Market Forecast
10.5 Middle East and Africa
10.5.1 Market Trends
10.5.2 Market Forecast
11 Competitive Landscape
11.1 Market Structure
11.2 Market Share of Key Players
12 Instant Coffee Manufacturing Process
12.1 Product Overview
12.2 Detailed Process Flow
12.3 Various Types of Unit Operations Involved
12.4 Mass Balance and Raw Material Requirements
13 Project Details, Requirements and Costs Involved
13.1 Land Requirements and Expenditures
13.2 Construction Requirements and Expenditures
13.3 Plant Layout
13.4 Plant Machinery
13.5 Machinery Pictures
13.6 Raw Material Requirements and Expenditures
13.7 Raw Material and Final Product Pictures
13.8 Packaging Requirements and Expenditures
13.9 Transportation Requirements and Expenditures
13.10 Utility Requirements and Expenditures
13.11 Manpower Requirements and Expenditures
13.12 Other Capital Investments
14 Loans and Financial Assistance
15 Project Economics
15.1 Capital Cost of the Project
15.2 Techno-Economic Parameters
15.3 Product Pricing and Margins Across Various Levels of the Supply Chain
15.4 Taxation and Depreciation
15.5 Income Projections
15.6 Expenditure Projections
15.7 Financial Analysis
15.8 Profit Analysis
16 Key Player Profiles
16.1 Nestle
16.2 Starbucks Corporation
16.3 Matthew Algie & Company Ltd.
16.4 Kraft Foods Inc.
16.5 Tata Consumer Products Limited
16.6 Strauss Group Ltd.
16.7 Jacobs Douwe Egberts
16.8 Tchibo Coffee International Ltd.
Figure 1: Global: Instant Coffee Market: Major Drivers and Challenges
Figure 2: Global: Coffee Market: Production Volume Trends (in Million Kg), 2018-2023
Figure 3: Global: Coffee Market: Production Breakup by Region (in %), 2023
Figure 4: Global: Coffee Market: Consumption Breakup by Region (in %), 2023
Figure 5: Global: Coffee Market: Breakup by Coffee Bean Type (in %), 2023
Figure 6: Global: Coffee Market: Production Breakup by Coffee Type Across Various Region
Figure 7: Global: Coffee Market: Arabica Coffee Production Breakup by Region (in %), 2023
Figure 8: Global: Coffee Market: Robusta Coffee Production Breakup by Region (in %), 2023
Figure 9: Global: Coffee Market Forecast: Production Volume Trends (in Million Kg), 2024-2032
Figure 10: Global: Instant Coffee Market: Production Volume Trends (in Million Kg), 2018-2023
Figure 11: Global: Instant Coffee Market: Value Trends (in Billion US$), 2018-2023
Figure 12: Global: Instant Coffee Market: Average Prices (in US$/Kg), 2018-2023
Figure 13: Instant Coffee Market: Price Structure
Figure 14: Global: Instant Coffee Market: Production Breakup by Region (in %), 2023
Figure 15: Global: Instant Coffee Market: Consumption Breakup by Region (in %), 2023
Figure 16: Global: Instant Coffee Market: Breakup by Product Type (in %), 2023
Figure 17: Global: Instant Coffee Market: Breakup by Packaging (in %), 2023
Figure 18: Global: Instant Coffee Market: Breakup by Distribution Channel (in %), 2023
Figure 19: Global: Instant Coffee Market Forecast: Production Volume Trends (in Million Kg), 2024-2032
Figure 20: Global: Instant Coffee Market Forecast: Value Trends (in Billion US$), 2024-2032
Figure 21: Global: Instant Coffee Industry: SWOT Analysis
Figure 22: Global: Instant Coffee Industry: Value Chain Analysis
Figure 23: Global: Instant Coffee Industry: Porter's Five Forces Analysis
Figure 24: Europe: Instant Coffee Market: Volume Trends (in Million Kg), 2018 & 2023
Figure 25: Europe: Instant Coffee Market Forecast: Volume Trends (in Million Kg), 2024-2032
Figure 26: Asia-Pacific: Instant Coffee Market: Volume Trends (in Million Kg), 2018 & 2023
Figure 27: Asia-Pacific: Instant Coffee Market Forecast: Volume Trends (in Million Kg), 2024-2032
Figure 28: North America: Instant Coffee Market: Volume Trends (in Million Kg), 2018 & 2023
Figure 29: North America: Instant Coffee Market Forecast: Volume Trends (in Million Kg), 2024-2032
Figure 30: Latin America: Instant Coffee Market: Volume Trends (in Million Kg), 2018 & 2023
Figure 31: Latin America: Instant Coffee Market Forecast: Volume Trends (in Million Kg), 2024-2032
Figure 32: Middle East and Africa: Instant Coffee Market: Volume Trends (in Million Kg), 2018 & 2023
Figure 33: Middle East and Africa: Instant Coffee Market Forecast: Volume Trends (in Million Kg), 2024-2032
Figure 34: Global: Instant Coffee (Spray Dried) Market: Volume Trends (in Million Kg), 2018 & 2023
Figure 35: Global: Instant Coffee (Spray Dried) Market Forecast: Volume Trends (in Million Kg), 2024-2032
Figure 36: Global: Instant Coffee (Freeze Dried) Market: Volume Trends (in Million Kg), 2018 & 2023
Figure 37: Global: Instant Coffee (Freeze Dried) Market Forecast: Volume Trends (in Million Kg), 2024-2032
Figure 38: Global: Instant Coffee (in Jars) Market: Volume Trends (in Million Kg), 2018 & 2023
Figure 39: Global: Instant Coffee (in Jars) Market Forecast: Volume Trends (in Million Kg), 2024-2032
Figure 40: Global: Instant Coffee (in Pouches) Market: Volume Trends (in Million Kg), 2018 & 2023
Figure 41: Global: Instant Coffee (in Pouches) Market Forecast: Volume Trends (in Million Kg), 2024-2032
Figure 42: Global: Instant Coffee (in Sachet) Market: Volume Trends (in Million Kg), 2018 & 2023
Figure 43: Global: Instant Coffee (in Sachet) Market Forecast: Volume Trends (in Million Kg), 2024-2032
Figure 44: Global: Instant Coffee (Other Packaging Types) Market: Volume Trends (in Million Kg), 2018 & 2023
Figure 45: Global: Instant Coffee (Other Packaging Types) Market Forecast: Volume Trends (in Million Kg), 2024-2032
Figure 46: Global: Instant Coffee Market: Business-To-Business Sales (in Million Kg), 2018 & 2023
Figure 47: Global: Instant Coffee Market Forecast: Business-To-Business Sales (in Million Kg), 2024-2032
Figure 48: Global: Instant Coffee Market: Sales through Supermarkets and Hypermarkets (in Million Kg), 2018 & 2023
Figure 49: Global: Instant Coffee Market Forecast: Sales through Supermarkets and Hypermarkets (in Million Kg), 2024-2032
Figure 50: Global: Instant Coffee Market: Sales through Convenience Stores (in Million Kg), 2018 & 2023
Figure 51: Global: Instant Coffee Market Forecast: Sales through Convenience Stores (in Million Kg), 2024-2032
Figure 52: Global: Instant Coffee Market: Online Sales (in Million Kg), 2018 & 2023
Figure 53: Global: Instant Coffee Market Forecast: Online Sales (in Million Kg), 2024-2032
Figure 54: Global: Instant Coffee Market: Sales through Other Distribution Channels (in Million Kg), 2018 & 2023
Figure 55: Global: Instant Coffee Market Forecast: Sales through Other Distribution Channels (in Million Kg), 2024-2032
Figure 56: Global: Instant Coffee Market: Breakup by Key Players (in %), 2023
Figure 57: Instant Coffee Manufacturing Plant: Detailed Process Flow
Figure 58: Instant Coffee Manufacturing Process: Conversion Rate of Products
Figure 59: Instant Coffee Manufacturing Process: Proposed Plant Layout
Figure 60: Instant Coffee Manufacturing: Packaging Requirement
Figure 61: Instant Coffee Manufacturing: Breakup of Capital Costs (in %)
Figure 62: Instant Coffee Industry: Profit Margins at Various Levels of the Supply Chain
Figure 63: Instant Coffee Production: Manufacturing Cost Breakup (in %)
Table 1: Global: Coffee Market: Key Industry Highlights, 2023 and 2032
Table 2: Global: Instant Coffee Market: Key Industry Highlights, 2023 and 2032
Table 3: Global: Instant Coffee Market Forecast: Breakup by Packaging (in Million Kg), 2024-2032
Table 4: Global: Instant Coffee Market Forecast: Breakup by Product Type (in Million Kg), 2024-2032
Table 5: Global: Instant Coffee Market Forecast: Breakup by Distribution Channel (in Million Kg), 2024-2032
Table 6: Global: Instant Coffee Market Forecast: Breakup by Region (in Million Kg), 2024-2032
Table 7: Global: Instant Coffee Market: Competitive Structure
Table 8: Global: Instant Coffee Market: Key Players
Table 9: Instant Coffee Manufacturing Plant: Costs Related to Land and Site Development (in US$)
Table 10: Instant Coffee Manufacturing Plant: Costs Related to Civil Works (in US$)
Table 11: Instant Coffee Manufacturing Plant: Costs Related to Cleaning Section (in US$)
Table 12: Instant Coffee Manufacturing Plant: Costs Related to Roasting Section (in US$)
Table 13: Instant Coffee Manufacturing Plant: Costs Related to Grinding Section (in US$)
Table 14: Instant Coffee Manufacturing Plant: Costs Related to Extraction Section (in US$)
Table 15: Instant Coffee Manufacturing Plant: Costs Related to Evaporation and Aroma Treatment Section (in US$)
Table 16: Instant Coffee Manufacturing Plant: Costs Related to Spray Drying Section (in US$)
Table 17: Instant Coffee Manufacturing Plant: Costs Related to Packaging Section (in US$)
Table 18: Instant Coffee Manufacturing Plant: Costs Related to Other Section (in US$)
Table 19: Instant Coffee Manufacturing Plant: Summary of Machinery Costs (in US$)
Table 20: Instant Coffee Manufacturing Plant: Raw Material Requirements
Table 21: Instant Coffee Manufacturing Plant: Costs Related to Salaries and Wages (in US$)
Table 22: Instant Coffee Manufacturing Plant: Costs Related to Other Capital Investments (in US$)
Table 23: Details of Financial Assistance Offered by Financial Institutions
Table 24: Instant Coffee Manufacturing Plant: Capital Costs (in US$)
Table 25: Instant Coffee Manufacturing Plant: Techno-Economic Parameters
Table 26: Instant Coffee Manufacturing Plant: Taxation and Depreciation
Table 27: Instant Coffee Manufacturing Plant: Income Projections (in US$)
Table 28: Instant Coffee Manufacturing Plant: Expenditure Projections (in US$)
Table 29: Instant Coffee Manufacturing Plant: Cash Flow Analysis Without Considering the Income Tax Liability
Table 30: Instant Coffee Manufacturing Plant: Cash Flow Analysis on Considering the Income Tax Liability
Table 31: Instant Coffee Manufacturing Plant: Profit and Loss Account
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