Market Trends of Instant Coffee Industry
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.
