Global Instant Coffee Market 2016-2020
Overview of the global instant coffee market
Technavio’s market research analyst predicts the global instant coffee market to grow at a CAGR of almost 6% between 2016 and 2020. Changing lifestyle and consumption patterns of time-pressed consumers are increasing the demand for coffee. The convenient preparation of instant coffee and its availability in multiple flavors and formats are the most significant factors driving growth in this market. Also, the shelf life of instant coffee is longer than that of ground coffee because it is in a powder texture. Several well-known coffee brands are marketing instant coffees as specialty coffees, which has widened the scope for this market. For instance, Nestlé has come up with a Barista style instant coffee, Azera. Starbucks has also introduced many different flavors for consumers. Some manufacturers are making constant innovations in the product segment in terms of aroma, flavor, and color of instant coffee, which will inevitably attract more consumers.
In terms of geography, Europe accounts for the largest share in the global market where the UK, Turkey, Belarus, and Ukraine are the leading instant coffee-consuming countries. The region depends mainly on imports to meet the growing demand as the harsh climatic conditions restricts the cultivation of coffee. Russia is the most prominent market for instant coffee, and the easy availability of three-in-one coffee sachets are propelling more consumption among contemporary Russian consumers. With several manufacturers setting up instant coffee-based vending machines in convenience stores, offices, and high-traffic public areas, the market in Europe will witness huge growth in the coming years.
Competitive landscape and key vendors
The global instant coffee market is extremely fragmented and comprises multiple players. The market is expected to witness a sizable increase in the production capacity as several market suppliers are focusing on technological advancements in producing instant coffee. A surge in the production volume will enable vendors to meet the constantly growing demand for instant coffee. This market is primarily dominated by the key players who are acquiring new brands to maintain their dominance in the global instant coffee market.
Leading vendors in the market are -
- Keurig Green Mountain
Other prominent vendors in the instant coffee market include AJINOMOTO GENERAL FOODS, AMT Coffee, COLCAFÉ S.A.S. - INDUSTRIA COLOMBIANA DE CAFÉ, InterNatural Foods, The J.M. Smucker Company, Kraft Heinz, Lavazza, Strauss Coffee, Tata Coffee, Tchibo Coffee, and Trung Nguyen.
Product segmentation and analysis of the instant coffee market
The global instant coffee market is dominated by the spray-drying segment, which will continue to dominate the market during the forecast period. Spray-drying instant coffee is common among most coffee manufacturers owing to its powdered texture that can be quickly dissolved in hot water or milk. Its easy preparation method and cost-effectiveness make spray-drying instant coffee more preferable among the busy consumers.
Segmentation by distribution channel and analysis of the instant coffee market
- Department stores, hypermarkets, and supermarkets
- Convenience stores
- Specialty stores
- Online retail
Department stores, hypermarkets, and supermarkets dominate the global instant coffee market, in terms of sales. The growing retail industry and the opening of numerous retail outlets across the globe are the major factors contributing to the growth of this channel. Also, consumers prefer these retail formats as they offer a wide assortment of products under one roof. The presence of numerous options is also an important driving force in the growth of this segment. Kohl's, Walmart, and Tesco are some of the popular retail outlets offering a broad range of instant coffee.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global instant coffee market?
- What are the key market trends impacting the growth of the global instant coffee market?
- What are the challenges to market growth?
- Who are the key vendors in the global instant coffee market?
- What are the market opportunities and threats faced by the vendors in the global instant coffee market?
- Trending factors influencing the market shares of the Americas, APAC, Europe, and MEA.
- What are the key outcomes of the five forces analysis of the global instant coffee market?
Technavio also offers customization on reports based on specific client requirement.