United States 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 Cities - Forecasts From 2023 To 2028

The United States instant coffee market is projected to grow at a CAGR of 3.90% over the forecast period, increasing from US$2,244.890 million in 2021 to reach US$2,933.925 million by 2028.

The United States' demand for instant coffee is anticipated to be driven by its easy availability through many channels, its low price of consumption, and the convenience it offers customers of various sizes. Moreover, sales of instant coffee are being driven by a decrease in the demand for aerated beverages.

Moreover, the growing number of people entering the workforce and leading fast-paced lifestyles, rising income levels, and an increase in investments in advanced manufacturing techniques and the procurement of premium coffee beans are also leading to market growth.

The United States instant coffee market is projected to grow at a CAGR of 3.90% over the forecast period, increasing from US$2,244.890 million in 2021 to reach US$2,933.925 million by 2028.

The United States' demand for instant coffee is anticipated to be driven by its easy availability through many channels, its low price of consumption, and the convenience it offers customers of various sizes. Moreover, sales of instant coffee are being driven by a decrease in the demand for aerated beverages.

Moreover, the growing number of people entering the workforce and leading fast-paced lifestyles, rising income levels, and an increase in investments in advanced manufacturing techniques and the procurement of premium coffee beans are also leading to market growth.

Increasing demand for flavoured coffee

The instant coffee market is becoming more and more premium due to the growing emphasis on distinctive, real flavors and the many useful qualities of coffee in the U.S. Creating distinctive flavours for instant coffee is becoming increasingly important to both local artisan companies and multinational corporations.

Further, businesses are adopting flavors that cater to regional taste preferences more and more. In the US, there is a consistent market for flavoured coffee. From a supply-side perspective, businesses are placing more emphasis on acquiring coffee ingredients so that customers may make the perfect brew at home.  For instance, leading single-serve coffee co-packer NuZee, Inc. announced the launch of its new instant coffee co-packing category in April 2022.  A non-exclusive co-packing and manufacturing partnership with Wild Society Coffee led to this development. Because of this partnership, the redesigned instant coffee package is also available on e-commerce.

Moreover, as the emphasis on health and well-being increases, consumers in the United States are increasingly choosing coffee beverages as a superior alternative to sugary, fizzy drinks. To meet the growing demand of health-conscious consumers, several manufacturers of coffee beverages are creating new products and expanding existing product lines. To appeal to younger clients looking for unique tastes, they provide fresh and distinctive aromas like floral undertones and other unprocessed sensations in addition to the traditional coffee characteristics which has increased coffee consumption, for instance, as per the USDA, coffee consumption increased to 26,723 thousand 60- kilogram bags in 2021-22 to 25,937 thousand 60-kilogram bags in 2020-21.

The United States freeze-dried instant coffee market is anticipated to witness growth

The United States freeze-dried instant coffee market is anticipated to witness a compound annual growth rate of XX% during the forecast period to reach a total value of US$XX million by 2028, from US$XX million in 2021.

The process of freeze-drying is a cutting-edge technique that swiftly converts perfectly roasted coffee beans into finely textured granules. This method ensures the preservation of the authentic aroma and deep flavours of the beans, preventing any loss during the subsequent processing stages. Consequently, each sip of the coffee delivers a smooth, genuine, and delightful taste.

Coffee consumption for Americans has increased significantly in two decades. The reason behind the increasing consumption of instant coffee is to ease of making it at home or in the office. The increasingly young population is getting more and more attracted to coffee as a beverage, and all these factors are attributing to growing coffee consumption. For instance, in March 2022, according to the National Coffee Association of U.S.A Inc., 66% of Americans drank coffee each, more than any other beverage including tap water, and nearly 14% since January 2021, the largest increase since NCA began tracking data.

Companies in the United States are investing heavily in developing and launching new freeze-dried instant coffee products in the market. For instance, in February 2022, Waka Coffee & Tea, a specialist in freeze-dried instant coffee and tea, experienced notable growth following a recent pre-seed investment of $725,000. Headquartered in California, the company is enlarging its workforce, expanding its product portfolio, and improving its distribution networks.

According to the United States Department of Agriculture (USDA), the top coffee exporter in the United States in 2022 was Brazil. Colombia, Vietnam, and Guatemala imported 31%, 19%, 10%, and 6% respectively. With the increase in coffee consumption, the imports of coffee have increased, in 2022, 26.5 million bags of coffee were imported to the United States. Hence, with increasing coffee consumption the market for instant coffee is expected to grow.

Segmentation:

• By Type
  • Freeze-Dried Instant Coffee
  • Spray-Dried Instant Coffee
  • Others
• By Distribution Channel
  • Offline
    • Retail
      • Supermarket/Hypermarket
      • Convenience Stores
      • Others
    • Food Services
  • Online
• By Cities
  • Arkansas
  • Nebraska
  • Ohio
  • Delaware
  • West Virginia
  • New York
  • Michigan
  • Los Angeles
  • Chicago
  • Others