Instant Coffee Market by Product and Geography - Forecast and Analysis 2020-2024

The instant coffee market share is expected to increase by USD 8.88 billion from 2019 to 2024, and the market's growth momentum will accelerate at a CAGR of 5.01%.

This market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by product (spray-dried and freeze-dried) and geography (APAC, Europe, North America, and South America). The market report also offers information on several market vendors, including ITC Ltd., Jacobs Douwe Egberts BV, Keurig Dr Pepper Inc., Luigi Lavazza Spa, Massimo Zanetti Beverage Group, Nestlé SA, Starbucks Corp., The J. M. Smucker Co., The Kraft Heinz Co., and Unilever Group among others.

What will the Instant Coffee Market Size be During the Forecast Period?

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Instant Coffee Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a neutral impact on the market growth during and after post-COVID-19 era. The increasing popularity of instant coffee among millennials is notably driving the market growth, although factors such as the rising threat from substitute products may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the instant coffee industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Market Driver

One of the key factors driving the market is the increasing popularity of instant coffee among millennials. The increasing popularity of instant coffee among millennials, particularly in China and the US, will drive the global market during the forecast period. The spending power of millennials is higher than that of baby boomers, and it is expected to increase during the forecast period. Furthermore, coffee consumption is increasing among millennials, with instant coffee increasingly becoming popular. Moreover, flavored instant drinks are in high demand by millennial consumers. In addition, vendors offer new products that target the millennial population. Moreover, instant coffee is becoming popular among millennials in China. Massimo Zanetti Beverage, an instant coffee brand has outlets in China which focus on millennial consumers influenced by western lifestyles and dining habits. Likewise, in India, millennials demand flavored instant drinks in coffee shops such as Starbucks. Therefore, the increasing popularity of instant coffee among millennials will support the growth of the global instant coffee market during the forecast period.

Key Market Trend

Increasing the preparation of instant espresso coffee at home is another factor supporting the market growth in the forecast period. Espresso (a type of instant coffee) is difficult to make at home because it requires specialized espresso machines to make pure espresso coffee. Furthermore, as evidenced by the rise in the purchase of espresso machines by individual consumers in developed countries such as the US prepare espressos at home. Furthermore, convenience in food habits, which includes coffee consumption, is driving consumers towards instant coffee. In Canada, for example, one out of every seven consumers owns a home espresso machine. Furthermore, a number of companies, including Nestlé and Starbucks Coffee, have introduced new espresso coffee pods for use in espresso machines at home. For instance, PEET'S COFFEE has introduced four new espresso blend capsules for Nespresso Original Line machines. The new range includes Ricchezza, Crema Scura, Ristretto, and Nerissimo. Therefore, the rising brewing of espresso at home can have a positive impact on the global market during the forecast period.

Key Market Challenge

The rising threat from substitute products will be a major challenge for the market during the forecast period. The growing popularity of other hot and cold beverages, such as roast and ground coffee, soft drinks, carbonated drinks, nutritional and energy drinks, green tea, iced tea, coffee pods, and cold coffee, has been a major challenge for the global market for the last couple of decades. With the advent of energy drinks such as Stokely-Van Camp's Gatorade and RED BULL, the consumption of instant coffee has seen a slight decline in several developed markets across the world. Furthermore, the rising demand for coffee pods and iced tea and the increasing number of vendors offering various innovative flavours in iced tea, green tea, and organic tea segments threaten the growth of the global market. Moreover, the rising demand for cold coffee and the emergence of several cafés worldwide that offer variants, such as frappé and cold-brewed drinks, have reinforced the threat to the global instant coffee market.

This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2020-2024.

Parent Market Analysis

Technavio categorizes the global instant coffee market as a part of the global soft drinks market. Furthermore, innovations and new product launches, health benefits from juices as sweeteners, and the proliferation of organized retailing outlets are some of the factors driving the parent market growth. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.

Who are the Major Instant Coffee Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• ITC Ltd.
• Jacobs Douwe Egberts BV
• Keurig Dr Pepper Inc.
• Luigi Lavazza Spa
• Massimo Zanetti Beverage Group
• Nestlé SA
• Starbucks Corp.
• The J. M. Smucker Co.
• The Kraft Heinz Co.
• Unilever Group

This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented and the vendors are deploying growth strategies such as price, quality, innovation, service, packaging, brand /image, distribution, and promotion to compete in the market.

Product Insights and News

• ITC Ltd.- In March 2021, the company entered into a partnership with the Government of Karnataka, India, to execute a Watershed Development Programme, covering over 1 million acres and 100 watersheds across the state.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Instant Coffee Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the global soft drinks market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated other innovative approaches being followed by manufacturer providers to ensure a sustainable market presence.

Which are the Key Regions for Instant Coffee Market?

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47% of the market's growth will originate from APAC during the forecast period. Japan, India, and China are the key markets for the market in APAC. Market growth in this region will be faster than in Europe and North America and slower than the growth of the South American regions.

The shift in consumer preferences from tea to instant coffee will facilitate the market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 cases has led to a disruption in the production process in various industries, including food and beverage (which includes instant coffee), household products, personal care, pharmaceuticals, agrochemicals, and oilfield chemicals. Most business operations and investments were stalled. However, with control over the spread of the pandemic, coupled with the removal of lockdown restrictions, the market in the region is expected to recover during the forecast period.

What are the Revenue-generating Product Segments in the Instant Coffee Market?

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The market share growth by the spray-dried segment during the forecast period. The lower prices of spray-dried instant coffee products than freeze-dried counterparts and the rising number of new vendors adopting the spray-dried technology will likely drive the global spray-dried market during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights on post-COVID-19 impact on each segment.

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What are the Key Data Covered in this Instant Coffee Market Report?

• CAGR of the market during the forecast period 2020-2024
• Detailed information on factors that will drive market growth during the next five years
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behaviour
• The growth of the instant coffee industry across APAC, Europe, North America, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of market vendors

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