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

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

Report Format: PDF+Excel | Report ID: SR112024A518
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Instant Coffee Market Overview:

The global instant coffee market size reached USD 14.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 21.5 Billion by 2032, exhibiting a growth rate (CAGR) of 4.7% during 2024-2032. There are various factors that are driving the market, which include the increasing demand for enhanced convenience among people with busy lifestyles, rising focus on health and wellness, and the wide availability of products via several distribution channels.

Report Attribute
Key Statistics
Base Year
2023
Forecast Years
2024-2032
Historical Years
2018-2023
Market Size in 2023 USD 14.1 Billion
Market Forecast in 2032 USD 21.5 Billion
Market Growth Rate 2024-2032 4.7%


Instant Coffee Market Analysis:

  • Major Market Drivers: One of the key market drivers includes continuous innovations in flavors. Moreover, there is an increase in the focus on sustainable and ethical sourcing of products, which is acting as another growth-inducing factor.
  • Key Market Trends: The rising demand for enhanced convenience among people with busy lifestyles and the increasing focus on health and wellness are significant instant coffee market trends.
  • Geographical Trends: Europe exhibits a clear dominance, accounting for the biggest market share because of the escalating demand for eco-friendly product packaging.
  • Competitive Landscape: Various market players in the instant coffee industry are Nestle, Starbucks Corporation, Matthew Algie & Company Ltd., Kraft Foods Inc., Tata Consumer Products Limited, Strauss Group Ltd., Jacobs Douwe Egberts, Tchibo Coffee International Ltd., among many others.
  • Challenges and Opportunities: Perception of inferior quality represents a key market challenge. Nonetheless, several collaborations and partnerships among key players, coupled with rising preferences for personalized taste experience, are projected to overcome these challenges and provide market opportunities.
     

Instant Coffee Market Trends:

Rising Consumer Demand for Convenience

On 18 April 2023, Nestlé launched its first instant coffee designed for iced beverages in response to the increasing demand for cold coffee at home. Nescafé ice roast product was initially debuted in China. It offers enhanced convenience to people with busy lifestyles. People are preferring 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, which is propelling the instant coffee market size.

Increasing Focus on Health and Wellness

The industry is expanding because consumers are becoming concerned about their health and placing more emphasis on wellness and health. People are seeking coffee products that offer additional health benefits such as those containing functional components like vitamins and minerals. 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, rising cases of obesity and diabetes among individuals worldwide is catalyzing the demand for green coffee owing to its ability to enhance metabolism and support weight management. In addition, top producers are emphasizing the launch of goods made with natural and healthful components in an effort to reach a larger audience and increase their instant coffee market revenue. For instance, on 21 September 2023, the Devon-based Little’s unveiled a new Limited edition pumpkin spice instant coffee for consumers.

Expansion of Distribution Channels

The expansion of offline distribution channels such as supermarkets, hypermarkets, convenience stores, and general stores is offering lucrative growth opportunities to industry players. Apart from this, the burgeoning e-commerce industry, along with the rising consumer reliance on online shopping platforms, is impelling the instant coffee market growth. In addition, online retail channels are offering a diverse range of products, exciting deals and discounts, free home delivery services, and online payment methods, which are catalyzing the instant coffee demand. Online platforms also provide access to consumer reviews and ratings, helping potential buyers make informed decisions and increasing their confidence in purchasing new or unfamiliar instant coffee products. Furthermore, various companies are collaborating with online channels to expand their market reach. They are also focusing on introducing their products to a diverse distribution channel in order to increase their overall product sales. For example, on 26 April 2024, Little’s Coffee launched toffee nut flavored pods and instant coffee. These products are available on Little’s website, Ocado, and to Amazon.

Instant Coffee Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global and regional levels for 2024-2032. Our report has categorized the market based on packaging, product type, and distribution channel.

Breakup by Packaging:

  • Jar
  • Pouch
  • Sachet
  • Others
     

Pouch accounts for the majority of the 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 represented the largest segment.

A pouch is lightweight and compact because it is made from flexible materials like plastic or foil. Additionally, the compactness of the pouch also reduces space during transportation, which is offering a favorable instant coffee market outlook. Producing and transporting a pouch is affordable than utilizing jars or cans packaging. The coffee's freshness and aroma are guaranteed by the resealable feature in pouches. Furthermore, improvements in packaging technology are leading to the creation of sustainable and long-lasting pouch materials.

Breakup by Product Type:

  • Spray Dried
  • Freeze Dried
     

Spray dried holds the largest share of the industry

A detailed breakup and analysis of the market based on the product type have also been provided in the report. This includes spray dried and freeze dried. According to the report, spray dried accounts for the largest instant coffee market share.

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 avoids the use of any chemicals, making it a clean method. This aligns with the demand for natural and minimally processed food items. Furthermore, companies are investing in advanced spray-drying technologies that enable them to control the size and shape of coffee particles more accurately, which is leading to a positive instant coffee market forecast.

Breakup by Distribution Channel:

  • Business-To-Business
  • Supermarkets and Hypermarkets
  • Convenience Stores
  • Online
  • Others
     

Supermarkets and hypermarkets represent the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes business-to-business, supermarkets and hypermarkets, convenience stores, online, and others. According to the report, supermarkets and hypermarkets represent the largest segment.

A wide variety of instant coffee brands and flavors are readily accessible at supermarkets and hypermarkets. Before making a purchase, these stores provide consumers the chance to physically view and feel products. They also provide eye-catching discounts and bargains, which draw in a larger consumer base.

Breakup by Region:

Instant Coffee Market

  • Europe
  • Asia Pacific
  • North America
  • Latin America
  • Middle East and Africa
     

Europe leads the market, accounting for the largest instant coffee market share

The report has also provided a comprehensive instant coffee market analysis of all the major regions, which include Europe, Asia Pacific, North America, Latin America, and the Middle East and Africa. According to the report, Europe represents the largest regional market for instant coffee.

The fast-paced lifestyle of Europeans is one of the key factors catalyzing the demand for instant coffee. Consumers are constantly seeking time-saving and convenient solutions, and instant coffee offers a quick and 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. 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. These factors are providing instant coffee market recent opportunities in the region. Besides this, companies in the region are engaging in partnerships and collaborations with other players to increase their production. For instance, on 29 September 2023, Louis Dreyfus Company (LDC), located in Rotterdam, Netherlands and Instanta Sp. z o.o. (Instanta) inaugurated ILD Coffee Vietnam, a joint venture freeze-dried instant coffee facility located in Binh Duong province, Vietnam, with an annual production capacity of 5,600 metric tons of freeze-dried instant coffee. 

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the instant coffee industry 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.
     

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Instant coffee companies are diversifying their product offerings by introducing new flavors and functional benefits in their portfolios. They 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, key players 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 manufacturers are engaging in partnerships to widen their market reach. For instance, on 27 March 2024, Louis Dreyfus Company (LDC) signed a binding agreement to fully acquire Brazilian instant coffee exporter Cacique for an undisclosed sum. Cacique operates two production facilities in Brazil and has a portfolio of 65 instant coffee products, which it exports to more than 70 markets across the globe.

Instant Coffee Market Recent Developments:

  • 8 January 2023: Tata Consumer Products announced the launch of its premium instant coffee ‘Tata Coffee Grand Premium’, a 100% coffee blend with flavor-locked decoction crystals. The product was launched keeping in mind the taste preference of consumers in non-South markets who tend to prefer a 100% coffee blend over a coffee ‘chicory blend’.
  • 7 May 2024: Nescafé launched its new ‘Nescafé Espresso Concentrate’. The product is designed to capture the out of home cold coffee experience. This premium liquid coffee concentrate brings barista-style personalized iced coffees to consumers’ homes. Consumers can simply add a small shot of Espresso Concentrate to milk to have a creamy iced Latte or in water for a robust Americano, or even mix it in a refreshing twist with lemonade or juice.
  • 24 July 2023: illycaffè signed a new partnership with Hangzhou Onechance Tech to its increase e-commerce sales in China.


Instant Coffee Market Report Scope:

Report Features Details
Base Year of the Analysis 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Units Million Kg, Billion USD
Scope of the Report Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
  • Packaging
  • Product Type
  • Distribution Channel
  • Region
Packagings Covered Jar, Pouch, Sachet, Others
Product Types Covered Spray Dried, Freeze Dried
Distribution Channels Covered Business-To-Business, Supermarkets and Hypermarkets, Convenience Stores, Online, Others
Regions Covered Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Companies Covered Nestle, Starbucks Corporation, Matthew Algie & Company Ltd., Kraft Foods Inc., Tata Consumer Products Limited, Strauss Group Ltd., Jacobs Douwe Egberts, Tchibo Coffee International Ltd. etc.
Customization Scope 10% Free Customization
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)


Key Benefits for Stakeholders:

  • IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the market from 2018-2032.
  • The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
  • The study maps the leading, as well as the fastest-growing, regional markets.
  • Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the instant coffee industry and its attractiveness.
  • The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.

Key Questions Answered in This Report

The global instant coffee market was valued at USD 14.1 Billion in 2023.

We expect the global instant coffee market to exhibit a CAGR of 4.7% during 2024-2032.

The introduction of several new instant coffee flavors, such as mocha, green bean, Italian roast, etc., to expand the consumer base, is currently driving the global instant coffee market.

The sudden outbreak of the COVID-19 pandemic has led to the changing consumer inclination from conventional brick-and-mortar distribution channels towards online retail platforms for the purchase of instant coffee.

Based on the product type, the global instant coffee market can be segmented into spray dried and freeze-dried. Currently, spray dried instant coffee exhibits a clear dominance in the market.

Based on the packaging, the global instant coffee market has been divided into jar, pouch, sachet, and others. Among these, pouches hold the majority of the total market share.

Based on the distribution channel, the global instant coffee market can be categorized into business-to- business, supermarkets and hypermarkets, convenience stores, online, and others. Currently, supermarkets and hypermarkets account for the largest market share.

On a regional level, the market has been classified into Europe, Asia Pacific, North America, Latin America, and the Middle East and Africa, where Europe currently dominates the global market.

Some of the major players in the global instant coffee 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., etc.

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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
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