Instant coffee, also known as soluble coffee, coffee crystals, and coffee powder, is a beverage derived from brewed coffee beans that enables the consumer to quickly prepare hot coffee by adding hot water to the powder or crystals and stirring. The convenience provided by instant coffee has made it a popular alternative to ground coffee beans or pods among busy individuals and travelers. The global instant coffee market is estimated to be valued at US$ 42.05 billion in 2024 and is expected to exhibit a CAGR of 8.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity for convenience offered by instant coffee is expected to drive the market growth over the forecast period. Busy lifestyles have increased the demand for easy to prepare beverages. Instant coffee solves the problem of brewing coffee by just adding hot water. It doesn't require filters, coffee maker or pods. The on-the-go consumption trend has further boosted the sales of instant coffee sachets and jars. Manufacturers are launching single-serve and personalized instant coffee packs targeting health-conscious demographics. The availability of various flavors like vanilla, mocha etc. also appeal to new consumers. Revolutionary product launches related to convenience will keep propelling the instant coffee market during the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate as the instant coffee market is dominated by few large players. However, the requirement of large capital investments and established supply chains pose a barrier for new players.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of substitutes like packed coffee powder and ready-to-drink coffee. Buyers can switch between brands based on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as green coffee beans, which are the primary raw materials, have a commodity characteristic with global sourcing options. Suppliers do not have pricing power over the buyers.
Threat of new substitutes: The threat of substitutes is high with substitutes like tea, other beverages gaining popularity.
Competitive rivalry: The rivalry in the market is high among the existing players due to their aggressive pricing strategies.
SWOT Analysis
Strengths: Changing lifestyle and increase in consumption of convenience food have boosted the demand for instant coffee. Wide availability of products through multiple distribution channels.
Weaknesses: High dependency on raw material price volatility impacting margins. Changing consumer preference towards fresh coffee and other beverages.
Opportunities: Emerging markets with rising disposable income present new growth prospects. Innovations in product offerings like flavored varieties and ready-to-drink formats.
Threats: stringent government regulations pertaining to packaging and marketing. Intense competition from established brands and private label products.
Key Takeaways
The Global Instant Coffee Market Size is expected to witness high growth at a CAGR of 8.4% during the forecast period of 2023 to 2030. The increasing health awareness among consumers and rising preference for healthy beverage options act as drivers for instant coffee market.
Regional analysis - Asia Pacific region dominates the global instant coffee market and is expected to grow at the fastest rate during the forecast period. Countries like India, China, Japan and South Korea witness rising demand for instant coffee attributable to changing lifestyles and increasing number of working women population.
Key players - Key players operating in the instant coffee market are De Monchy Aromatics Limited, AOS Products Private Limited, TriVita, Inc., Edens Garden Inc., Prime Natural Beauty, and Phyto Life Sciences P. Ltd. These players are focusing on new product launches with various flavors and ready-to-drink formats to cater to dynamic consumer demands.
Get More Insights Here
The Global Instant Coffee Market Report published by Reports and Data offers extensive knowledge and information about the Instant Coffee market and spans over 100+ pages.
Crucial statistical data relating to market size, market share, growth driving and restraining factors, opportunities, and current and emerging trends are covered thoroughly in the report.
The report offers a comprehensive SWOT analysis and Porter’s Five Forces analysis to offer a better understanding of the competitive landscape of the industry.The report discusses in detail the strategic alliances such as mergers and acquisitions, joint ventures, collaborations, partnerships, corporate and government deals, product launches and brand promotions, and licensing agreements undertaken by the key players to gain a robust footing in the market.
The Instant Coffee market research report also offers a thorough SWOT analysis and Porter’s Five Forces analysis to offer key insights into the company’s progress and position.Get a sample of the report @ https://www.reportsanddata.com/sample-enquiry-form/357Over the recent past, focus on health and wellness has increased and consumers are now preferring healthy dietary options and products that boost immunity.
Rising demand for nutritious and healthy foods and sustainable food packaging are key factors contributing to revenue growth of the industry.Key countries such as India, China, and Brazil are key revenue generating regions of the food and beverages industry owing to rapidly rising population and growing demand for food, increasing purchasing power among individuals, and economic growth of the regions.
The report further discusses in detail the production and consumption patterns, import/export, supply and demand, consumer demand and preference, current and emerging trends, macro- and micro-economic factors, market share, market size, and revenue growth in key regions across the globe such as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.Request a discount on the report @ https://www.reportsanddata.com/discount-enquiry-form/357Key companies in the market are focusing on diversifying their product portfolio by offering new and advanced products such as protein-rich foods, convenience foods, and eco-friendly packaging among others.
Instant coffee is coffee powder that is produced by coffee beans that have been brewed at a higher ratio of coffee to water as compared to the regular coffee.
In the production of instant coffee, there are two methods for drying coffee including spray drying and freeze-drying.
In spray drying method, a spray device is used, in order to dry the coffee extract.
Further, in freeze drying method, the coffee extract is freeze at approximately -40 degree Celsius and then, the ice particles are treated separately in evaporation and drying chambers to produce instant coffee flakes.The instant coffee market is segmented on the basis of type, packaging, distribution channel, and geography.
By distribution channel the market is divided into business-to-business, supermarkets & hypermarkets, independent retailers, departmental stores, and others.
By geography it has been analyzed across North America, Europe, Asia-Pacific, and LAMEA.Some of the major market players that are operating in the world market for instant coffee are focusing on product innovation and are involving various acquisitions and mergers so as to expand their global presence.
