Japan Instant Coffee Market Size, Share, COVID-19 Impact, Opportunities, And Trends By Type (Freeze-Dried Instant Coffee, Spray-Dried Instant Coffee, Others), By Distribution Channel (Offline (Foodservice, Retail (Supermarket/Hypermarket, Convenience Stores, Others)), Online), And By Province - Forecasts From 2022 To 2027

Japan’s instant coffee market is projected to grow at a CAGR of 3.85 %, from US$3189.909 million in 2020 to US$4154.707 million in 2027.

The popularity of coffee is spreading and causing the demand for the instant variant to rise in ranks owing to the influence of the western cultures among the younger population.

The influence of the European coffee drinking culture has positively affected the hot beverage consuming practices of Japan. It has led to a rise in the demand for coffee among the younger and adolescent population. This has not only led to the younger consumers drinking instant coffee out of home in speciality cafes and branded coffee shops but also encouraged them to prepare instant coffee at home, which has led to a spike in demand for different types of instant coffee, such as freeze-dried and spray-dried type.

The popularity of consuming tea in Japan is still relevant and is preferred by a majority of middle-aged and older-aged individuals.

Tea is an increasingly popular beverage consumed by middle-aged and older individuals in Japan. Interestingly it is considered a vital part of their culture and a significant ritual among Japanese individuals. The popularity of tea is high in Japan due to its importance in Buddhism culture, and it is famous for mainly medicinal purposes. Tea is consumed as a ritual generally after the guests have had their dinner and are particularly respected all over Japan. Thus, this demand for tea and consumption trends are acting as a restraining factor for market growth.

Product Offerings by the market players in the Japanese Instant Coffee Market

The offering of better and advanced varieties of instant coffee with enhanced flavour and aromas, among others, by existing and new players in different markets is estimated to lead to increased adoption and propel the market growth further over the forecast period.

Some of the product offerings have been mentioned below-

Nestle is one of the largest companies in the world dealing with different food and beverage products. Under their instant coffee product portfolio, they provide a variety of products. Some of them are “Nescafe Excella Fuwa Cafe Latte Caramel Instant Coffee,” offering 20 sticks of 7.7g each. It also offers products such as “Nescafe Excella Fuwa Cafe Latte Deep Flavor Instant Coffee,” and” Nescafe Gold Blend Aroma Gorgeous Café Latte”.

Key Developments in the Market:

• In February 2020, Starbucks launched premium instant coffee with new flavors:  Medium Roast and Dark Roast coffees, including a selection of coffee beverages and a tea latte. Nestlé, its partner since 2018, launched a new Starbucks premium instant coffee collection in markets throughout the world, including Japan, the United Kingdom, Ireland, and several others. 
• In September 2021, Louis Dreyfus Asia and Zephyr Japan, speciality coffee merchants, entered into a joint venture agreement.
• In February 2021, Nestlé Japan introduced a line of Nescafé lattes made with plant-based components in response to Japan's rising interest in plant-based foods. In Japan, the Nescafé plant-based latte collection comprises ready-to-drink beverages that can be enjoyed on the go or at home, soluble mixes that can be produced with just hot water, and capsules for the acclaimed Nescafé Dolce Gusto technology.

COVID-19 Insights:

COVID-19 had a significant impact on the Japanese instant coffee market. The deployment of complete lockdown led to the closure of the multiple institutions, corporations, food outlets, and many other public places, causing the sales to decline in these segments. Nevertheless, the domestic sales witnessed a surge in demand owing to its convenience and consumer stockpiling trend.

Segmentation

• By Type
  • Freeze-Dried Instant Coffee
  • Spray-Dried Instant Coffee
  • Others
• By Distribution Channel
  • Offline
    • Foodservices
    • Retail
      • Supermarket/Hypermarket
      • Convenience Stores
      • Others
  • Online
•  By Province
  • Tokyo
  • Kyoto
  • Osaka
  • Others