Spain 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 (Retail, Food Services), Online), And By Province - Forecasts From 2023 To 2028

Spain instant coffee market is estimated to grow at a CAGR of 1.54% to reach US$256.406 million in 2028 from US$230.339 million in 2021.

The demand for instant coffee is increasing owing to the rising working-class population in the country coupled with the increasing disposable income of younger professionals. Additionally, instant coffee is used for daily purposes such as improving energy levels, increasing microbiome diversity, and providing essential nutrients along with the benefits of the ease of making this coffee at home, in the office, or on the go among millennials and Generation Z. These factors are expected to aid the market growth of instant coffee in the country.

Moreover, the coffee imports in the country increased significantly from 2020-21. Spain imported coffee worth US$1.14 billion and became the 9th largest importer of coffee in the world. The major exports for coffee in Spain were France which exported coffee worth US$254 million, followed by Vietnam with coffee exports worth US$150 million. Therefore, the rising imports of coffee are also expected to have a significant impact on the instant coffee market in the forecast period.

Increasing demand among young professionals

The variety of coffee options available to people on the go and the presence of a wide range of distribution channels in the country are supporting market growth. Major players such as Starbucks and Nestle are launching new products that make instant coffee for better in-home experiences, and the on-the-go beverage trend among younger professionals will continue to impact the demand positively. For instance, in April 2021, Nestlé came up with a new line of instant coffees that have a barista-style taste. The company used its unique roasting technology to make these coffees with special flavours. Nestlé worked with the coffee business in Zone EMENA, focusing on the UK market where the coffees are now available.

According to the Organization for Economic Cooperation and Development (OECD), the unemployment rate in the country fell from 8.80% in 2020 to 4.90% in 2022. The increased number of people engaged in corporate offices is increasing the demand for cafes and increasing the need for instant coffee to be consumed in offices. Moreover, the rising focus on unique and authentic flavours, coupled with various functional qualities of coffee, has played a role in boosting the prominence of the instant coffee market. Hence, in the coming years with the launch of unique coffee flavors and growing demand among younger professionals, the market for instant coffee is expected to grow in Spain in the projected period.

Madrid's instant coffee market is projected to grow steadily. 

The market for instant coffee in Madrid is driven by the increasing demand from urban consumers for quick and easy coffee options. Innovation in products, such as specialized blends, stimulates customers' curiosity. Increased accessibility is a result of retail expansion and marketing initiatives. Furthermore, product choices are influenced by trends in health and well-being.

Madrid's desire for instant coffee is fueled by urbanization and hectic lifestyles, and the quick preparation time fits in perfectly with the fast-paced atmosphere of the city. Increasing urban life highlights the convenience of readily available and transportable instant coffee options. One factor contributing to these products' broad availability is the growth of retail establishments in metropolitan regions. Marketing tactics frequently focus on time-pressed professionals, highlighting how instant coffee can streamline daily routines and the workplace. Additionally, as per the Central Intelligence Agency, the population of major urban areas in Spain is 6.751 million in Madrid; 5.687 million in Barcelona; and 838,000 in Valencia.

To set themselves apart, market participants in Madrid's instant coffee industry concentrate on product innovation and branding. Widespread availability is ensured through strategic distribution arrangements with retail stores and online platforms. Discounts, sales, and eco-friendly projects appeal to a wide range of customer tastes. Brand loyalty is influenced by consumer involvement across several channels and localized marketing initiatives. Furthermore, in the highly competitive market, adopting technology for online sales platforms improves accessibility and convenience. For instance, with Prosol’s 100% Arabica recipes, the company is the manufacturer and seller of the greatest instant coffee, offering a broad variety of items that sublimate. The business also specializes in coffee drinks, instant cereals, and customized specials to meet the needs of each client. To further enhance the flavour of instant coffee, the company is planning to create an aromatic essence straight from freshly roasted coffee beans.

Furthermore, Seda's high level of expertise in the production of soluble coffee and its customized packaging styles have made it a leader in the Private Label Instant Coffee market. Seda consistently innovates to meet the highest standards possible. The company’s staff has extensive knowledge of the Soluble Coffee process and its entire supply chain. It further supports ethical growth and sustainable business practices that generate long-term benefits for all parties.

Segmentation:

• By Type
  • Freeze-Dried Instant Coffee
  • Spray-Dried Instant Coffee
  • Others
• By Distribution Channel
  • Offline
    • Foodservices
    • Retail
  • Online
• By Province
  • Madrid
  • Barcelona
  • Valencia
  • Others