The global instant coffee market is expected to grow at a CAGR of 5.13% over the forecast period to reach a total market size of US$42,391.456 million by 2025, increasing from US$31,399.183 million in 2019. 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 café 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 growth
The middle-class population in developing countries such as India and China is growing which is increasing 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 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 towards specialty coffee cafes coupled is driving the growth of the market for instant coffee during the forecast period. Besides, a growing trend of consumer behavior towards an appreciation for good-quality coffee and a desire for the 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 is also easily available making it a perfect choice for coffee lovers around the globe. They are also useful as baking ingredients and we usually found their essence in cakes, ice cream, chocolate, and liquors.
Expanding retail business
In recent years, convenience and departmental 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 speed of urbanization which is projected to propel the market growth opportunities over the forecast period. Besides, with the growing number of smartphone users, time spent on the internet also an increase that drives the growth of e-commerce platforms which is also opening the scope of distribution of instant coffee.
Recent deals and investments
August 2019: World’s largest private label instant-coffee manufacturer, CCL Products announced its plan to increase its focus on India and Vietnam with an expansion plan of US$20 million.
February 2020: Nestlé announced the launch of Starbucks premium instant coffee (soluble). The new range consists of Dark and Medium Roast coffee as well as a variety of coffee beverages. All new launches will be available in multi-serve tins and single-serve formats in markets including the UK, Australia, Brazil, Chile, Mexico, Japan, Malaysia, New Zealand, Greater China (Mainland China, Hong Kong, and Taiwan), Singapore, Ireland, Thailand, and South Africa.
March 2020: Cusa Tea announced the expansion of its major category with the launch of Cusa Coffee made with the same evaporative dehydration technology. All seven instant packets come in every box, and each one makes an 8-ounce cup of perfectly steeped coffee in less than three seconds. Cusa Coffee is further launching Light Roast, Medium Roast, and Dark Roast in April 2020, followed by several more flavors in 2020.
May 2020: Homegrown coffee chain Kopi Kenangan raised nearly US$109 million in its latest series B funding for its international expansion and technology investment. Also, the company is planning to open more than one thousand kiosks in the next two years.
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 flavors are further expected to drive the market in the region.
The Asia Pacific region is holding 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 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.
Prominent key market players in the Instant Coffee market include Nestlé SA, Unilever Plc., CCL Products, Kraft Heinz Company, The Coca-Cola Company, Luigi Lavazza SpA., Strauss Group Limited, Massimo Zanetti Beverage Group, Tata Global Beverages Limited, and JAB Holding Company. 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 flavors to their consumers worldwide. Major market players in the global instant coffee market have been covered along with their relative competitive position 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.
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