The instant beverage premix market is expected to grow at a CAGR of 5.73% over the forecast period to reach US$79,505.968 million by 2027 from US$53,845.057 million in 2020. Instant beverage premixes consisting of various beverage products such as instant tea, instant coffee, and instant health drinks among others are drinks that have rich high protein, minerals, and vitamin intake, are easy to prepare, increase metabolism rate, and enhance brain functionality. The demand for these drinks is growing significantly owing to rapid urbanization and improvement in the lifestyle of the people which has increased the demand and consumption for many healthy beverage items which are easy to prepare. According to the World Bank data, in 2021, with a percentage share of 57%, the global urban population was 4.43 billion from the total global population and the number is expected to increase by 1.5 times to 6 billion by 2045. Rapid urbanization coupled with growing awareness towards a healthy lifestyle will provide a major boost to the demand and consumption of instant beverage premix such as instant health drinks. Furthermore, instant beverage premix is becoming an integral part of people’s daily life, owing to the great amount of convenience and relief it provides. Such beneficial features of the instant beverage premix will propel its market demand in the future, thereby creating a surge in its market growth during the forecast period.

Based on the product type the instant beverage premix market is segmented as instant coffee, instant tea, instant health drinks, soups, and others. The instant coffee segment is expected to grow at a relatively higher rate during the forecast period of the instant beverage premix market. The specialty of instant coffee is that it is easily soluble, easy to make, has a high protein intake and the caffeine content in the coffee enhances brain functioning. Owing to its highly impactful benefits, instant coffee is highly demanding in various countries and regions. For instance, according to the July 2020 report of the UK’s Information Commissioner’s Office, the soluble coffee shipment held a 9.1% share of the total coffee shipment globally which represented a 1% increase over the soluble coffee shipment in 2019.

Rapid economic development and urbanization have increased the purchasing power of the people, thereby positively impacting market growth. Instant beverage premix is very popular among people living in cities as their busy lifestyle makes them shift words beverage options that are easily available and easy to prepare. Instant beverage premixes such as instant coffee and instant tea are considered the best option for people owing to their high convenience, easy availability, and rich aromatic compounds. Various major economies in the world are witnessing rapid urbanization owing to the major policies and investments undertaken by the governments for improving the living standard of the people. For instance, according to the World Bank data, in 2021, the urban population in the United States had an 83% share of the total population in the country, and as per the same source, in 2021, China’s urban population held 63% percent share of the total population. Both countries are the major consumers of tea and coffee and with such rapid urbanization, the demand for instant beverage options such as instant coffee and instant tea will also increase in US and China, thereby having a positive impact on the growth of the instant beverage premix market during the forecast period.

Though the instant beverage premix provides higher convenience and longer shelf life among other benefits, however, instant beverage premix such as instant coffee contains harmful chemicals such as acrylamide which can be harmful to the nervous system. Moreover, the probability of using preservatives and other adding compounds to increase flavor variety can also hamper the consumption rate of instant beverage premix, thereby restraining its market growth during the forecast period.

Recent development and expansion

• Sleepy Owl, in January 2022, launched its Premium Instant Coffee which comes in three flavors namely Hazelnut, Original and French Vanilla. The product is made from 100% Arabic beans using microground technology.
• In December 2020, Levista Coffee launched a new variant of its instant coffee product namely “Supreme”, which contains 70% coffee content and the rest 30% is chicory. Levista with such a unique product launch aims to grasp a major market share in the Indian market.
• Society Tea, in February 2020, launched a new instant tea premix product namely “Cleanse”, which contains healthy ingredients such as turmeric which is rich in skin cells as well as increases immunity & energy of the body.

Covid-19 Imapct on the Instant Beverage Premix Market

The lockdown restrictions imposed by the COVID-19 pandemic resulted in a slowing of development. The social distancing and restrictions on public movement, led to the closure of various retail stores and supermarkets, owing to which the retail sales of various instant beverage premix items such as tea and coffee saw a significant decrease. For instance, according to the Federation of All India Tea Traders Association, in 2020, tea consumption saw a 25-30% decrease owing to a sharp decline in the consumption scale. Such a decrease in the consumption level negatively impacted the instant beverage premix market, however, the market is showing a steady increase in its growth due to the ease in the COVID restrictions, which is steadily increasing the demand and consumption of instant beverage premix.

Instant Beverage Premix Market Scope:

Segmentation

• By Product Type
  • Instant Coffee
  • Instant Tea
  • Instant Health Drinks
  • Instant Soups
  • Others
• By Distribution Channel
  • Online Retail
  • Supermarkets
  • Convenience Stores
  • Specialty Stores
• By End-User
  • Residential
  • Commercial
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • United Arab Emirates
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Thailand
    • Taiwan
    • Others