Instant Coffee Market

Global Instant Coffee Market Overview

Instant Coffee Market Size was valued at USD 9.2 billion in 2023. The Instant Coffee industry is projected to grow from USD 10.2856 Billion in 2024 to USD 20.085398 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.80% during the forecast period (2024 - 2032). The rising frequency of various products to different consumer tastes and preferences and their capacity to be disseminated through several distribution channels to facilitate in-home consumption are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Instant Coffee Market Trends

• Increasing Demand for Flavored Coffee to boost the market growth

The increased focus on unique, authentic flavors and various functional properties of Coffee has aided in the premiumization of the instant coffee business. giants and regional craft brands are becoming more critical in designing authentic flavors for instant Coffee. Companies are increasingly adopting flavors that meet localized taste preferences. In the US, there is a consistent demand for flavored coffees. From the supply perspective, businesses are putting more of n emphasis on acquiring coffee ingredients to enable customers to cook the ideal beverage. Hence, during the projection period, flavored Coffee is anticipated to become more popular. The businesses are growing their portfolios through mergers and acquisitions with other international brands.

The Instant Coffee Market size was valued at USD 27.09 Billion in 2021 and is projected to reach USD 37.61 Billion by 2030, growing at a market CAGR of 4.13% from 2022 to 2030. The quick and easy preparation in a short period is the crucial aspect of the rise in Instant Coffee market revenue. High antioxidant content will foster market growth.

Instant Coffee Market Segment Insights

Instant Coffee By Category Insights

Based on Category type, the Instant Coffee market segmentation is divided into two sub-segments Traditional, Decaffeinated. It has been found that decaffeinated Coffee is more expensive than traditional Coffee simply because the production of decaf is costlier. Such findings are influencing the growth of the decaffeinated coffee market. Since brands are opting for Colombian Arabica coffee beans. Brands launching new products are gaining awareness about these insights and strategically targeting premium customers opting for high-quality decaffeinated Coffee that generates the majority share of contribution to the Instant Coffee market revenue.

January 2022: Instant coffee brand Sleepy Owl introduced premium instant Coffee, expanded its products, and increased brand accessibility. The Coffee is now offered in three flavors: Original, French Vanilla, and Hazelnut. There are no preservatives or artificial flavors in these.

March 2022: Melbourne's coffee roaster Beat Coffee introduced a specialty instant coffee that combines convenience, quality, and flavor in a single sachet. The freeze-drying process instantly captures the Coffee's vibrancy, preserving the caramel and honey-flavored notes.

Instant Coffee By Type Insights

The Instant Coffee market segmentation, based on type, the type segment is divided into spray-dried and freeze-dried. The spray-dried segment dominated the market with a share of around 56% in 2021. Spaying liquid coffee droplets prepare spray-dried instant Coffee in scorching and dry air. The liquid evaporates, leaving fine coffee particles as the end product. Spray-dried Coffee is the most popular Instant Coffee, given that it employs a simple production process and is cheaper than free-dried Instant Coffee. The economic nature of spray-dried Coffee makes it affordable for most consumers and hence is more profitable to the producer. Better technological advancements that simplify spray-drying, continuance, and compatible processes will propel the segment's instant Coffee to impact the market growth positively.

Figure 1: Instant Coffee Market, by type, 2022& 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

April 2021:Nescafe expanded its instant coffee market portfolio by launching a Roastery Collection range designed to give consumers the flavor of the artisan coffee they would expect from a coffee shop. The Nescafe Gold Blend Roastery collection includes two instant coffee blends, Light Roast and Dark Roast, each made with Arabica beans, which increases the instant coffee industry in the forecast period.

Instant Coffee By Distribution Channel Insights

Based on the distribution channel instant coffee industry is divided into segments into supermarkets/hypermarkets, online, business-to-business, and convenience stores. In 2021, the supermarkets/hypermarkets segment dominated the market, accounting for around 55% of revenue. Supermarkets/hypermarkets are large, widely distributed, and have a higher consumer reach than others. The inclination of consumers towards shopping at a one-stop shop, as it conveniently offers all brands and their respective products in one place, is the reason for its dominance. The growing urbanization and expanding retail chains will also propel the segment's growth. Numerous brands offer product demonstrations at supermarkets/hypermarkets to attract consumers, which could impetus the growth of the instant coffee industry.

Instant Coffee Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America Instant Coffee market accounted for USD 4.2 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. The affordable, accessible, easy, and tasty nature of instant Coffee can be considered the prime factor for the development of the market.

Further, the significant countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: INSTANT COFFEE MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Instant Coffee market leads in terms of market share. The reason is that Europeans have a long-standing (centuries-old) tradition of drinking Coffee. Therefore, European people increasingly demand instant Coffee - cheap and easy. Further, the Germany Instant Coffee market held the largest market share, and the UK Instant Coffee market was the fastest-growing market in the European Region.

The Asia-Pacific Instant Coffee Market is expected to grow at the fastest CAGR from 2022 to 2030. The reason for this is that the middle class is expanding rapidly. They have westernized and international tastes and are increasingly clamoring for Coffee, increasing the Instant Coffee market. Coffee barista joints like Coffee Day are becoming popular in India and China. Moreover, the China Instant Coffee market held the largest market share, and the India Instant Coffee market was the fastest-growing market in the Asia-Pacific region.

Since Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.

Instant Coffee Key Market Players& Competitive Insights

Major market players are spending a lot of money on flavor tasting to increase their product lines, which will help the Instant Coffee market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Instant Coffee industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the Instant Coffee industry to benefit clients and expand the market sector. The Instant coffee industry has provided the most significant healthcare benefits in recent years. The Instant Coffee markets major players such as Nestlé SA (Switzerland), Starbucks Corporation (US), Jacobs Douwe Egberts BV (Netherlands), Strauss Group Ltd (Israel), Matthew Algie & Company Ltd (Scotland), Kraft Foods Group Inc. (US), Tata Beverages Ltd (India), Tchibo Coffee International Ltd (US), Unilever Plc (UK), Keurig Dr. Pepper (US) and others are working on expanding the market demand by investing in research and development activities.

Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain.

In May 2018, Starbucks Corporation established a coffee collaboration with Nestlé S.A. to accelerate and expand Starbucks brands' presence in Consumer Packaged Goods (CPG) and Foodservice. With a shared commitment to ethical and sustainable coffee sourcing, this cooperation will alter, extend, and elevate both at-home and away-from-home Coffee and related categories worldwide.

Blue Bottle Coffee, Inc., is a coffee roaster and retailer once headquartered in Oakland, California, United States. In 2017, a majority stake in the company was acquired by Nestlé. It is considered a significant player in third-wave Coffee. The company focuses on single-origin beans.

In October 2022, Blue Bottle Coffee, which Nestlé mainly owns, debuted an instant espresso that allows consumers to make premium drinks at home without needing expensive machines or brewing expertise, according to a statement.

In March 2020, Cusa Tea announced the development of Cusa Coffee, which uses the same evaporative dehydration process as Cusa Tea. Each box contains all seven instant packets, each preparing an 8-ounce cup of expertly brewed Coffee in less than three seconds. Cusa Coffee will also release Light Roast, Medium Roast, and Dark Roast in April 2020, followed by numerous additional flavors in 2020.

Key Companies in the Instant Coffee market include

• Nestlé SA (Switzerland)

• Starbucks Corporation (US)

• Jacobs Douwe Egberts BV (Netherlands)

• Strauss Group Ltd (Israel)

• Matthew Algie & Company Ltd (Scotland)

• Kraft Foods Group Inc. (US)

• Tata Beverages Ltd (India)

• Tchibo Coffee International Ltd (US)

• Unilever Plc (UK)

• Keurig Dr. Pepper (US)

Instant Coffee Industry Developments

March 2020 Cusa Tea announced the development of Cusa Coffee, which uses the same evaporative dehydration process as Cusa Tea. Each box contains all seven instant packets, each preparing an 8-ounce cup of expertly brewed Coffee in less than three seconds. Cusa Coffee will also release Light Roast, Medium Roast, and Dark Roast in April 2020, followed by numerous additional flavors in 2020.

January 2017 Nestle S.A. agreed to acquire Caravan Marketing Co., an Egyptian instant coffee firm that offers products under the Bonjorno brand. The acquisition will capitalize on the complementary qualities of the Nescafe and Bonjorno brands, accelerating the development of Egypt’s soluble coffee industry.

Instant Coffee Market Segmentation

Instant Coffee By Category Outlook

• Traditional

• Decaffeinated

Instant Coffee By Type Outlook

• Freeze-dried

• Spray-dried

Instant Coffee By Distribution Channel Outlook

• Store-Based

• Non-Store-Based

Instant Coffee Regional Outlook

• North America

  • US

  • Canada

• Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

  • Australia

  • Rest of Asia-Pacific

• Rest of the World

  • Middle East

• Africa

• Latin America

Instant Coffee Market Segmentation

Instant Coffee by Category Outlook (USD Billion, 2019-2030)

• Traditional

• Decaffeinated

Instant Coffee by Type Outlook (USD Billion, 2019-2030)

• Freeze-dried

• Spray-dried

Instant Coffee by Distribution Outlook (USD Billion, 2019-2030)

• Channel

• Store-Based

• Non-Store-Based

Instant Coffee Regional Outlook (USD Billion, 2019-2030)

• North America Outlook (USD Billion, 2019-2030)

  • North America Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • North America Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • North America Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • US Outlook (USD Billion, 2019-2030)

  • US Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • US Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • US Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • CANADA Outlook (USD Billion, 2019-2030)

  • CANADA Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • CANADA Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • CANADA Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

• Europe Outlook (USD Billion, 2019-2030)

  • Europe Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • Europe Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • Europe Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • Germany Outlook (USD Billion, 2019-2030)

  • Germany Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • Germany Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • Germany Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • France Outlook (USD Billion, 2019-2030)

  • France Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • France Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • France Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • UK Outlook (USD Billion, 2019-2030)

  • UK Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • UK Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • UK Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • ITALY Outlook (USD Billion, 2019-2030)

  • ITALY Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • ITALY Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • ITALY Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • SPAIN Outlook (USD Billion, 2019-2030)

  • Spain Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • Spain Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • Spain Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • Rest Of Europe Outlook (USD Billion, 2019-2030)

  • Rest Of Europe Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • REST OF EUROPE Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • REST OF EUROPE Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

• Asia-Pacific Outlook (USD Billion, 2019-2030)

  • Asia-Pacific Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • Asia-Pacific Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • Asia-Pacific Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • China Outlook (USD Billion, 2019-2030)

  • China Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • China Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • China Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • Japan Outlook (USD Billion, 2019-2030)

  • Japan Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • Japan Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • Japan Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • India Outlook (USD Billion, 2019-2030)

  • India Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • India Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • India Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • Australia Outlook (USD Billion, 2019-2030)

  • Australia Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • Australia Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • Australia Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • Rest of Asia-Pacific Outlook (USD Billion, 2019-2030)

  • Rest of Asia-Pacific Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • Rest of Asia-Pacific Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • Rest of Asia-Pacific Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

• Rest of the World Outlook (USD Billion, 2019-2030)

  • Rest of the World Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • Rest of the World Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • Rest of the World Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • Middle East Outlook (USD Billion, 2019-2030)

  • Middle East Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • Middle East Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • Middle East Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • Africa Outlook (USD Billion, 2019-2030)

  • Africa Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • Africa Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • Africa Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based

  • Latin America Outlook (USD Billion, 2019-2030)

  • Latin America Instant Coffee by By Category

    • Traditional

    • Decaffeinated

  • Latin America Instant Coffee by By Type

    • Freeze-dried

    • Spray-dried

  • Latin America Instant Coffee by Distribution

    • Channel

    • Store-Based

    • Non-Store-Based