The global instant coffee market is expected to grow at a CAGR of 6.10% over the forecast period to reach a total market size of US$46687.020 million by 2027, increasing from US$30843.418 million in 2020.
Instant coffee is made from coffee beans that have been roasted and ground. It enables consumers to quickly prepare hot coffee just by adding hot water or milk to the crystals or powder. Coffee consumption is changing around the globe, especially in urban areas, and with the growing middle-class population, the market is expected to grow significantly during the forecast period. Also, the growing culture of cafés and coffee shops in developing countries is also attracting major market players to invest, thus propelling the market growth opportunities during the forecast period.
The growing middle-class population is a key factor driving the market’s growth
The middle-class population in developing countries such as India and China is growing, which is increasing the demand for instant coffee for in-house consumption. Rapid urbanization and growing disposable income have also attracted major market players to invest in new facilities in the country, thus propelling the market’s growth opportunities over the forecast period. Furthermore, the expansion of shopping complexes and international coffee brands is also promoting the demand for instant coffee and is inciting the household population towards the consumption of coffee. Also, growing consumer preference for speciality coffee cafes is driving the growth of the market for instant coffee during the forecast period. Besides, a growing trend in consumer behaviour towards an appreciation for good-quality coffee and a desire for a sophisticated coffee taste profile is further helping the instant coffee manufacturers and vendors to grow during the forecast period. Furthermore, instant coffee is simple to prepare, easy to measure, and also easily available, making it a perfect choice for coffee lovers around the globe. They are also useful as baking ingredients, and we usually find their essence in cakes, ice cream, chocolate, and liquors.
Expanding retail business
In recent years, convenience and department stores have witnessed a significant increase in sales. The development and growth of convenience stores and other retail businesses are directly related to economic growth and the speed of urbanization which are projected to propel the market growth opportunities over the forecast period. Besides, with the growing number of smartphone users, time spent on the internet is also increasing, which is driving the growth of e-commerce platforms, which is also expanding the scope of distribution of instant coffee.
Recent deals and investments
North America accounts for a significant market share
By geography, the instant coffee market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. North America is expected to hold a significant share in the market owing to the presence of major players coupled with the growing number of product launches in the region. In addition, changing consumer lifestyles coupled with the growing middle-class population in Mexico are the factors boosting the demand for the product, and the rising availability of a variety of flavours is further expected to drive the market in the region.
The Asia Pacific region holds huge growth potential due to the presence of a significant working population in the region. Expanding international coffee shops and cafes, coupled with the growing number of modern grocery retailing businesses, the market for instant coffee is expected to witness significant growth during the forecast period. Besides, rapid urbanization and growing disposable income have also attracted major market players to invest in new facilities in the region, thus propelling the market’s growth opportunities over the forecast period. Furthermore, the expansion of shopping complexes and international coffee brands is also promoting the demand for instant coffee and is inciting the household population towards the consumption of coffee in the country.
COVID-19 Insights:
COVID-19 had a negative impact on the global instant coffee market. The enforcement of lockdown led to the closure of the institutions, corporations, food outlets, and many other public places, causing the sales to decline in these segments. Nevertheless, this led to increased sales in the domestic segment. The rapid adoption of the e-commerce segment further propelled the growth.
Competitive Insights
Prominent key market players in the instant coffee market include Nestlé SA, Unilever Plc., CCL Products, Kraft Heinz Company, Luigi Lavazza SpA., and Strauss Group Limited. The number of players in the Instant Coffee market is large and growing, with the opportunity to generate significant revenues as a result of growing demand. The players in the global instant coffee market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Key players in this market are focusing on strategic acquisitions, collaborative partnerships, and innovation as a part of their growth strategies to provide better products with new flavours to their consumers worldwide. Major market players in the global instant coffee market have been covered along with their relative competitive positions and strategies. The report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered, along with the recent deals and investments of these important players in the global instant coffee market.
| Report Metric | Details |
| Market size value in 2020 | US$30843.418 million |
| Market size value in 2027 | US$46687.020 million |
| Growth Rate | CAGR of 6.10% from 2020 to 2027 |
| Base year | 2020 |
| Forecast period | 2022–2027 |
| Forecast Unit (Value) | USD Million |
| Segments covered | Type, Distribution Channel, And Geography |
| Regions covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies covered | Nestlé SA, Unilever Plc., CCL Products, Kraft Heinz Company, Luigi Lavazza SpA., Strauss Group Limited, Massimo Zanetti Beverage Group, Tata Global Beverages Limited, Starbucks Corporation, Joe Coffee Company |
| Customization scope | Free report customization with purchase |
Segmentation:
Frequently Asked Questions (FAQs)
Q1. What will be the global instant coffee market size by 2027?
A1. The global instant coffee market is expected to reach a market size of US$46687.020 million by 2027.
Q2. What is the global instant coffee market size?
A2. The instant coffee market was valued at US$30843.418 million in 2020.
Q3. What are the growth prospects for the instant coffee market?
A3. The instant coffee market is expected to grow at a CAGR of 6.10% over the forecast period.
Q4. What factors are anticipated to drive the instant coffee market?
A4. The growing middle-class population is driving the growth of the instant coffee market during the forecast period.
Q5. Which region holds the largest market share in the instant coffee market?
A5. North America is expected to hold a significant share in the market owing to the presence of major players coupled with the growing number of product launches in the region.
Nestlé SA
Unilever Plc.
CCL Products
Kraft Heinz Company
Luigi Lavazza SpA.
Strauss Group Limited
Massimo Zanetti Beverage Group
Tata Global Beverages Limited
Starbucks Corporation
Joe Coffee Company
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