Instant Coffee Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 3.15 Billion |
| Market Size (2029) | USD 4.35 Billion |
| CAGR (2024 - 2029) | 5.58 % |
| Fastest Growing Market | South America |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Instant Coffee Market Analysis
The Instant Coffee Market size is estimated at USD 3.15 billion in 2024, and is expected to reach USD 4.35 billion by 2029, at a CAGR of 5.58% during the forecast period (2024-2029).
Convenience is the foremost factor driving the demand for instant coffee that can be easily prepared. The increasing popularity of ready-to-eat products, especially among the working population and students, is another significant factor contributing to the market growth. Additionally, the wide availability of instant coffee, catering to different consumer tastes and preferences through various distribution channels, supports market expansion. Moreover, there is a growing focus on unique, authentic flavours and functional properties of coffee, leading to the premiumization of instant coffee. Both multinational players and local craft brands are emphasizing the creation of authentic flavours to meet diverse consumer demands. For example, in 2023, the Devon-based company Little’s introduced a new Toffee Nut Instant Coffee made from premium beans that are roasted and freeze-dried. The company also introduced instant coffee products in various flavours, including Rich Hazelnut, French Vanilla, spiced Cardamom Bun, and Christmas Spirit. These innovations, along with advancements in packaging such as sachets for single-use, are expected to further boost the sales of instant coffee products worldwide.
Instant Coffee Market Trends
Growing popularity of Flavored Instant Coffees
Flavoured instant coffees are increasingly becoming popular among consumers, as they offer a wide range of choices to consumers, from classic vanilla and hazelnut to seasonal flavours like pumpkin spice and peppermint. Flavoured instant coffee products, including pods, instant mixes, and pre-flavoured ground coffee, make it simple to prepare a beverage quickly, without needing syrups or additional ingredients. Further, the change in consumer preferences towards at-home coffee consumption or at-home brewing is driving the demand for flavoured instant coffees. Flavoured instant coffees allow consumers to recreate the experience of consuming a speciality drink in the comfort of their own home.
Moreover, the availability of a wide range of speciality instant coffees in a variety of flavours like vanilla latte, cappuccino french vanilla and more from Nescafe, Folgers and others are driving the growth of flavoured instant coffee. Also, the rising health consciousness among consumers and the availability of a diverse range of flavoured coffees in sugar-free, low-calorie and fortified versions are boosting the demand for flavoured instant coffees.
Asia-Pacific Dominates the Market
Although tea is a traditional beverage in China, instant coffee is becoming popular among consumers due to changing consumer taste preferences. Moreover, instant coffee is easier to make, store, and consume than other counterparts available in the market. Therefore, it eventually increased the consumption of coffee in China. For instance, according to the International Coffee Association, overall coffee consumption in China grew by 14% from 2022 to 2023. Moreover, online retailing of instant coffee products has significantly impacted the market in India as emerging brands focus on marketing and retailing instant coffee in premium, flavoured, and artisanal blends through different distribution channels.
Furthermore, the rising disposable income in the region and consumers with fast-paced lifestyles are more inclined towards instant coffee, as it offers easy and quick preparation. For Instance, in 2022, Japanese working households had an average monthly disposable income of 501 thousand yen (0.0041 USD Million), which is the highest of the decade and around 64% of it was used to cover living expenses, such as food and housing expenses.
Instant Coffee Industry Overview
The global instant coffee market is fragmented, with international and regional players competing for significant market share. Some key players include Nestlé SA, JM Smucker Company, JAB Holding Company, Starbucks Corporation, and Luigi Lavazza SpA. The major players are indulging in strategies, such as product launches, mergers and acquisitions, expansions, and partnerships, to establish a strong consumer base and esteemed position in the market. Additionally, companies are entering new markets through geographical expansion and product line expansion to enhance their offering and customer reach.
Instant Coffee Market Leaders
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Nestlé SA
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JM Smucker Company
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JAB Holding Company
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Starbucks corporation
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Luigi Lavazza SpA
*Disclaimer: Major Players sorted in no particular order
Instant Coffee Market News
- February 2024: Bank of America and Starbucks Coffee Company announced a partnership agreement allowing customers to earn up to 2% cashback on qualifying purchases with Starbucks Rewards account.
- December 2023: Hindustan Unilever Limited (HUL) expanded its Bru Gold portfolio with a new range of flavoured coffee in vanilla, caramel, or hazelnut.
- July 2023: Kraft Heinz relaunched its Maxwell House brand in North America with new cold beverage innovation in the instant coffee segment, including the introduction of Maxwell House Iced Latte instant coffee in Vanilla, Hazelnut, and Caramel flavours, offering a convenient at-home café-style experience.
- April 2023: In China, Nestlé has introduced a cold-brew instant coffee product, named "Nescafé Ice Roast". It was the nescafé’s first soluble coffee designed to be consumed cold. As per the brands' claim, it can be drunk with water or milk.
Instant Coffee Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Growing Popularity of Single-Origin Coffee
4.1.2 Product Differentiation and Marketing Strategies
4.2 Market Restraints
4.2.1 Presence of Substitutes Hampering Market Growth
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Flavoring
5.1.1 Flavored Instant Coffee
5.1.2 Unflavored Instant Coffee
5.2 Packaging
5.2.1 Sachets
5.2.2 Pouches
5.2.3 Jars
5.3 Production Technology
5.3.1 Freeze Dried Instant Coffee
5.3.2 Spray-Dried Instant Coffee
5.4 Distribution Channel
5.4.1 Supermarkets/Hypermarkets
5.4.2 Convenience/Grocery Stores
5.4.3 Specialist Retailers
5.4.4 Online Channels
5.4.5 Other Distribution Channels
5.5 Geography
5.5.1 North America
5.5.1.1 United States
5.5.1.2 Canada
5.5.1.3 Mexico
5.5.1.4 Rest of North America
5.5.2 Europe
5.5.2.1 Germany
5.5.2.2 United Kingdom
5.5.2.3 France
5.5.2.4 Spain
5.5.2.5 Russia
5.5.2.6 Italy
5.5.2.7 Rest of Europe
5.5.3 Asia-Pacific
5.5.3.1 China
5.5.3.2 India
5.5.3.3 Japan
5.5.3.4 Australia
5.5.3.5 Rest of Asia-Pacific
5.5.4 South America
5.5.4.1 Brazil
5.5.4.2 Argentina
5.5.4.3 Rest of South America
5.5.5 Middle East and Africa
5.5.5.1 Saudi Arabia
5.5.5.2 South Africa
5.5.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Nestlé SA
6.3.2 Unilever PLC
6.3.3 Starbucks Corporation
6.3.4 Kraft Heinz Company
6.3.5 Tata Consumer Products Limited
6.3.6 Luigi Lavazza SpA
6.3.7 The Coca-Cola Company
6.3.8 Tchibo GmbH
6.3.9 Strauss Group Limited
6.3.10 JAB Holding Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Instant Coffee Industry Segmentation
Instant coffee is a beverage derived from brewed coffee beans and can be consumed easily by adding hot water or milk to powder or crystals.
The global instant coffee market is segmented by flavouring (flavoured and unflavored instant coffee), packaging type (sachets, pouches, and jars), distribution channel (supermarkets/hypermarkets, convenience/grocery stores, online channels, and other distribution channels), and geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The report offers the market size in value terms in USD for all the above-mentioned segments.
| Flavoring | |
| Flavored Instant Coffee | |
| Unflavored Instant Coffee |
| Packaging | |
| Sachets | |
| Pouches | |
| Jars |
| Production Technology | |
| Freeze Dried Instant Coffee | |
| Spray-Dried Instant Coffee |
| Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Convenience/Grocery Stores | |
| Specialist Retailers | |
| Online Channels | |
| Other Distribution Channels |
| Geography | |||||||||
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Instant Coffee Market Research Faqs
How big is the Instant Coffee Market?
The Instant Coffee Market size is expected to reach USD 3.15 billion in 2024 and grow at a CAGR of 5.58% to reach USD 4.35 billion by 2029.
What is the current Instant Coffee Market size?
In 2024, the Instant Coffee Market size is expected to reach USD 3.15 billion.
Who are the key players in Instant Coffee Market?
Nestlé SA, JM Smucker Company, JAB Holding Company, Starbucks corporation and Luigi Lavazza SpA are the major companies operating in the Instant Coffee Market.
Which is the fastest growing region in Instant Coffee Market?
South America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Instant Coffee Market?
In 2024, the Asia Pacific accounts for the largest market share in Instant Coffee Market.
What years does this Instant Coffee Market cover, and what was the market size in 2023?
In 2023, the Instant Coffee Market size was estimated at USD 2.97 billion. The report covers the Instant Coffee Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Instant Coffee Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the biggest challenges for Instant Coffee manufacturers in emerging markets?
The biggest challenges for Instant Coffee manufacturers in emerging markets are a) Overcoming price sensitivity b) Establishing brand recognition
What are the biggest challenges for Instant Coffee manufacturers in emerging markets?
The biggest challenges for Instant Coffee manufacturers in emerging markets are a) Overcoming price sensitivity b) Establishing brand recognition
Instant Coffee Industry Report
The global instant coffee market is experiencing rapid growth, driven by the busy lifestyles and higher income levels of today's working population. This demand is further fueled by a vibrant coffee culture among young adults and investments in enhanced production techniques and premium coffee beans. As per industry statistics, instant coffee brands are capitalizing on this momentum by offering products that combine convenience with the traditional taste and aroma of coffee, requiring no special brew equipment. Innovations in freeze-drying, spray-drying, and packaging technologies are increasing product shelf life and appeal. Additionally, a shift towards health-conscious consumerism is prompting brands to infuse their offerings with beneficial vitamins and minerals. The expanding distribution channels, especially the e-commerce sector, are making it easier for consumers to access a wide variety of instant coffee options. The industry's segmentation illustrates a strong preference for spray-dried varieties and highlights supermarkets and hypermarkets as primary retail spaces. The surge in demand for flavored coffee signifies the market's adaptation to diverse consumer preferences, showcasing the dynamic nature of instant coffee brands in catering to various tastes. For detailed statistics on market share, market trend, and revenue growth, refer to Mordor Intelligence™ Market Reports, with detailed industry analysis and forecasts available in a free report PDF download.
Instant Coffee Market Report Snapshots
