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The freeze dried coffee market size is estimated to grow by USD 3.02 billion at a CAGR of 4.5% between 2023 and 2028. Cafe chains have experienced significant growth in recent years, driven by increasing consumer preferences for convenient and high-quality coffee experiences. This trend is further fueled by the rising demand for instant coffee, which caters to the busy lifestyles of modern consumers. E-commerce platforms have also played a crucial role in the growth of the coffee industry, enabling customers to order their favorite coffee blends online and have them delivered right to their doorstep. The convenience and accessibility offered by these platforms have expanded the reach of coffee brands and made specialty coffee accessible to a wider audience. Additionally, the integration of technology in cafes, such as contactless payments and mobile ordering, has streamlined the customer experience and added to the appeal of cafe chains. Overall, the coffee industry is poised for continued growth, driven by these key trends and consumer preferences.
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The market is witnessing significant growth due to the increasing preference for convenience and quick brew options among consumers. This market includes various forms of freeze-dried coffee such as Flavored and Non-Flavored. The packaging types include Sachets, Pouches, Jars, and others. Convenience stores and online channel are the major distribution channels for this market. Instant coffee is the largest segment in the market, followed by roasted coffee beans and fine powder. The Middle class population's growing disposable income and increasing coffee consumption trends are driving the market's growth. Health-conscious choices and innovative flavors are also influencing the market's growth. Digital channels and e platforms are gaining popularity for their convenience and accessibility. Sustainability initiatives by key players are also contributing to the market's growth. The working population's increasing demand for quick and easy coffee options is also fueling the market's growth. Overall, the market is expected to witness steady growth in the coming years due to these factors. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growth of cafe chains is notably driving market growth. Coffee culture has witnessed significant growth, with cafes such as Costa, Nero, and Starbucks becoming popular destinations for coffee lovers worldwide. Roasted coffee beans are transformed into fine powder through various methods, including spray drying and packaging technology, ensuring a long shelf life. This powder, when reconstituted with hot water, releases the coffee flavor desired in traditional brewed coffee, lattes, cappuccinos, and mochas.
Furthermore, Premium beverage products catering to eco-conscious consumers now incorporate green tea extract and sustainable farming practices, such as fair trade and eco-friendly packaging, to meet evolving market demands. As urban lifestyles prioritize sophisticated, easily accessible, and respectable recreational settings, cafes have emerged as ideal alternatives to outdoor leisure. These settings offer a clean, classy environment, providing an excellent backdrop for social interactions and enjoying a cup of coffee. Thus, such factors are driving the growth of the market during the forecast period.
Increased demand and need for easily available and portable drinks is the key trend in the market. Freeze-dried coffee has gained popularity among coffee lovers due to its convenience and long shelf life. Unlike roasted coffee beans that require grinding and brewing with hot water, freeze-dried coffee is available as a fine powder that can be easily reconstituted by adding hot water. This makes it an ideal choice for individuals with busy lifestyles who want to enjoy their favorite coffee beverages, such as lattes, cappuccinos, or mochas, on-the-go. Freeze-dried coffee is not only convenient but also eco-friendly. It does not require any special equipment, and its packaging options include jars, pouches, sachets, and eco-friendly materials.
Moreover, the coffee industry is increasingly focusing on sustainable farming practices, fair trade, and eco-friendly packaging to cater to the growing number of eco-conscious consumers. Spray drying and advanced packaging technology are used to preserve the coffee flavor and aroma in freeze-dried coffee. Green tea extract is sometimes added to enhance the taste and health benefits. Freeze-dried coffee is a premium beverage product that embodies the rich coffee culture and offers a traditional brewed coffee experience in a convenient and portable format. Thus, such trends will shape the growth of the market during the forecast period.
Rise in coffee beans pricing is the major challenge that affects the growth of the market. Coffee production faces numerous challenges, leading to a significant increase in the price of roasted coffee beans in 2023. Decreasing availability from major producing countries, caused by factors such as rising temperatures, unpredictable rainfall, and new pests, has created a demand-supply imbalance in the global market. Consequently, the price of coffee has surpassed that of any other commodity.
Despite these challenges, coffee culture continues to thrive, with coffee lovers around the world enjoying their favorite beverages like lattes, cappuccinos, and mochas. Premium beverage companies are responding to this trend by introducing freeze-dried coffee, which offers a long shelf life and maintains the coffee flavor even after rehydration with hot water. This innovative solution caters to eco-conscious consumers who prefer sustainable farming practices, fair trade, and eco-friendly packaging. Packaging technologies like spray drying and advanced packaging solutions, such as jars, pouches, and sachets, are being employed to ensure the coffee's freshness and sustainability. Green tea extract is also being added to some freeze-dried coffee products to enhance their taste and health benefits. General stores are stocking up on these premium beverage products to meet the growing demand. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
JAB Holding Co. - The company offers Douwe Egberts pure gold freeze dried coffee.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth of the Offline segment will be significant during the forecast period. The global Freeze Dried Coffee market is witnessing significant growth due to the increasing demand for convenience and on-the-go coffee solutions among the working population. This market caters to both Flavored and Non-Flavored coffee preferences, available in various packaging options such as Sachets, Pouches, and Jars.
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The Offline segment was valued at USD 9.48 billion in 2018. Convenience Stores and Online Channels are the major distribution channels for this market, catering to the instant gratification of caffeine cravings. Freeze dried technology preserves the coffee's aroma and flavor, making it a popular choice for At-Home Coffee consumers. Coffee shops and restaurants also offer this option for their customers, especially for those seeking health-conscious choices. The Middle Class Population's growing disposable income and increasing coffee consumption trends are fueling the demand for this market. Business-to-Business and Specialty Stores are significant contributors to the market's growth, with innovative flavors and quick brew options attracting a broad consumer base. Blue Bottle Coffee, Starbucks, and other leading brands offer flavored and unflavored varieties, catering to diverse tastes and preferences. Sustainability initiatives and unique formulations are also key factors driving the market's growth, with e commerce platforms and digital channels enabling easy access to these offerings. Single origin coffee, spray dried, and soluble coffee are other popular segments in this market, with coffee bean prices influencing the market dynamics. Overall, the Freeze Dried Coffee Market is expected to continue its growth trajectory, driven by consumer preferences for convenience, innovation, and sustainability.
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APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market encompasses a wide range of offerings, including both Flavored and Non-Flavored variants. These coffee products are available in various packaging options such as Sachets, Pouches, and Jars. Convenience Stores and Online Channels serve as significant retail spaces for these offerings, catering to the increasing demand for At-Home coffee solutions and Caffeine cravings. Freeze Dried Coffee, produced using advanced Freeze Dried technology, retains the original Aroma and flavor of the coffee beans. Instant coffee, a popular choice for the Working population, is available in both Freeze Dried and Spray Dried formats. Coffee shops and restaurants catering to the Middle Class population also offer Freeze Dried Coffee, often in Specialty Blends and Unique Formulations. Business-to-Business and Specialty Stores are crucial sales channels for this market, while Online Sales Channels, including e-commerce platforms, have gained prominence due to their convenience and accessibility. Sustainability initiatives and innovative flavors are key trends in this market, with players like Blue Bottle Coffee focusing on Single Origin Coffee and health-conscious choices. Digital channels and innovative marketing strategies are essential for reaching consumers, with a focus on quick brew options and unique formulations. The market's growth is influenced by the increasing preference for Sustainable Practices and the rising Caffeine cravings among consumers. Coffee bean prices and the availability of various Coffee Blends also impact the market dynamics.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Coffee Pods Market: Coffee Pods Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Germany, Italy, France, China - Size and Forecast
Roast and Ground Coffee Market: Roast and Ground Coffee Market Analysis Europe, APAC, North America, South America, Middle East and Africa - US, Japan, Germany, Italy, Brazil - Size and Forecast
Raw Coffee Beans Market: Raw Coffee Beans Market Analysis South America, APAC, Middle East and Africa, North America, Europe - Ethiopia, Vietnam, Indonesia, Brazil, Colombia - Size and Forecast
The market is witnessing significant growth due to the convenience and ease of preparation offered by this coffee variant. Freeze dried coffee retains the original aroma and taste of coffee beans, making it a popular choice among coffee lovers. The quality of freeze-dried coffee is enhanced by the precise roasting techniques of coffee roasters, ensuring a rich and consistent flavor in the final product. The market can be segmented based on product type into Flavored and Non-Flavored. The market for Flavored coffee is expected to grow at a faster pace due to the increasing demand for innovative flavors and quick brew options. The market can also be segmented by packaging type into Sachets, Pouches, Jars, and others. Sachets and Pouches are the most preferred packaging types due to their portability and convenience. The Retail space continues to dominate the sales channel with a significant share of the market, with Convenience Stores and Specialty Stores being the major contributors.
The Online Sales Channel is also gaining popularity due to the convenience and availability of a wide range of coffee blends and sustainable practices. The Working population and Middle Class population are the primary consumers of this coffee variant due to their caffeine cravings and hectic schedules. Instant coffee, whether flavored or unflavored, is a preferred choice for both home coffee consumption and in Coffee shops and restaurants. Spray dried coffee is a close competitor to freeze dried coffee, but the latter offers a better taste and aroma, making it a preferred choice for coffee enthusiasts. The market is also witnessing sustainability initiatives and e-commerce platforms offering unique formulations and single origin coffee, catering to the health-conscious consumers. The coffee bean prices and digital channels are key factors influencing the market dynamics. Overall, the Freeze Dried Coffee Market is expected to continue its growth trajectory in the coming years. Health-conscious consumers can find non flavored and flavored varieties of spray dried instant coffee and freeze dried instant coffee on e-commerce platforms for consumers have health conscious choices.
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Market Scope |
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Report Coverage |
Details |
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Page number |
135 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
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Market growth 2024-2028 |
USD 3.02 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.23 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 36% |
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Key countries |
US, Japan, France, China, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Cafe Altura, Colombian Coffee, Continental Coffee Pvt. Ltd., Giraldo Farms, JAB Holding Co., Mount Hagen Coffee, Power Root Bhd., Promotora De Cafe Colombia SA, Prosol, Rage Coffee, Strauss Group Ltd., Tastle Coffee, Tata Sons Pvt. Ltd., Tchibo Coffee Service SRL, The J.M Smucker Co., The Kraft Heinz Co., Trung Nguyen Vietnamese Coffee, Unilever PLC, Waka Coffee Inc., and Woolworths Group Ltd. |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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