The Increasing Consumer Preference for the Instant Beverage Premix Market
Over the projection period, the instant beverage premix market is predicted to increase at a CAGR of 5.73% to reach US$79,505.968 million by 2027, up from US$53,845.057 million in 2020.
Instant beverage premixes are ready-to-drink beverages that stimulate metabolism, improve functioning, and offer healthy hydration. The market is divided largely by product type, which includes instant tea, instant milk, instant coffee, and instant health soups and beverages. The demand for instant beverage premix is being driven by increased health awareness and worry about obesity. Instant beverage premixes are dried powders containing beverage tastes that may be mixed with water or other solvents. Instant beverage premixes come in powder, flakes, and puree forms and include an aromatizing agent, vitamins, chocolate, vegetable ingredient, and digestible acids. Instant beverage premixes are simple to prepare. Furthermore, Instant beverage premix aids in the enhancement of functioning and the stimulation of the human body’s metabolism. Most of the instant premix drinks have a longer shelf life than other beverages, which is also one of the reasons for consumer preference. One of the most popular premixes amongst customers is instant coffee and instant tea. The long shelf life and convenient packing of instant beverage premix are projected to drive the worldwide instant beverage premix market.
The market for these beverages is increasing dramatically because of rising urbanization and an improvement in people’s lifestyles, which has raised demand and consumption for various nutritious beverage items that are simple to make
Moreover, due to the increasing investment opportunities and market expansion of these companies, the instant beverage premix market is expected to surge. For instance, in February 2022, Waka Coffee & Tea, a new instant coffee and tea brand, raised $725,000 in a pre-seed round. The firm used its initial round of outside financing to fund more product launches and employee expansion. Waka intends to introduce three new goods and design marketing shortly.
The rising ready-to-drink beverage market is anticipated to surge the market growth during the projected period
Because of the reduced preparation time and ease for consumers, instant beverage premix is popular with young people and corporate houses. Instant beverage premix allows users to create beverages in less time at the workplace or home. While traveling, people preferred a homely cup of tea or coffee, which is likely to boost the growth of the worldwide instant beverage premix market. The rising demand for flavored instant beverage premix in cafés, restaurants, and airports is likely to propel the worldwide instant beverage premix market forward. For instance, Radico Khaitan Limited, an IMFL maker, produced cocktail mixes under the Magic Moments brand in October 2022. It comes in three flavors: cola, cosmopolitan, and mojito. The startup intends to fill a need in the low-alcohol-beverage industry left by the absence of vodka-based drinks.
As per the instant coffee segment, as the firm increases its offers in the fast-growing sector popular with on-the-go consumers, Italian coffee giant Lavazza launched its ready-to-drink product suited to the US market in April 2022. Lavazza also offers RTD coffee in places like England. The coffee will be USDA-certified organic and Rainforest Alliance-certified Arabica. According to Davide Riboni, chairman of BU Americas at Lavazza Group and CEO of Lavazza US, the business spent two years analyzing the competitive RTD coffee industry to produce a “distinctive and unique” solution.
Additionally, Arctic Blue Beverages introduced Hang Oat Vanilla, their first oat-based ready-to-drink beverage, in March 2022. (RTD). The product is now accessible in Finland and will be more extensively available in Europe later this year. The novelty cocktail is based on Arctic Blue Gin, which has won several awards. The oat-based beverage mixes the flavors of untamed northern nature with clean Finnish water. The drink comes in a Tetra Pak container.
The launch of innovative products by various companies will expand the market share in the upcoming years
Beverage companies have launched several innovative products that have propelled the market to grow during the projected period. In addition to building partnerships with other firms, these companies have also widened their market spectrum over the years which has positively influenced the market trend.
For instance, Tata Consumer Products announced the debut of their premium instant coffee ‘Tata Coffee Grand Premium’ in January 2021, along with an enticing ASMR campaign. The campaign was developed in collaboration with the firm Media Monks. The new launch is accompanied by a film made with the autonomous sensory meridian response (ASMR) that depicts the subjective experience of Tata Coffee Grand Premium from bean to cup. The new product is a 100% coffee mix with flavor-locked decoction crystals, according to the manufacturer.
Wagh Bakri Tea Group launched its Instant Tea in two varieties in August 2021: Wagh Bakri Instant Express Tea and Wagh Bakri Instant Saffron Tea. With a leaf from the greatest tea estates handpicked and individually reviewed by group executives, Wagh Bakri Tea is now the third largest packaged tea firm in India, with a revenue of over Rs 1500 crore and a tea distribution of over 40 million kgs, according to company reports. The two new tastes complement the existing Wagh Bakri quick premix flavors of Elaichi, Masala, Lemongrass, and Ginger. For the health-conscious consumer, this variety is also available in a ‘No Added Sugar’ option.
During the forecast period, the instant beverage premix market in Asia Pacific is predicted to have a dominating share
The instant beverage premix market is divided into five areas based on geography: North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. According to the United States Department of Agriculture Foreign Agricultural Service, India’s Robusta coffee production is expected to rise 170,000 bags (60 kilograms) to 4.9 million in 2022/23 due to continued yield gains. India has been the world’s fifth-largest producer for several years, trailing Brazil, Vietnam, Uganda, and Indonesia. During the forecast period, Asia Pacific is expected to hold a significant amount of market share due to the increase in tea and coffee production over the years which will lead the market to generate more revenue for the next five years.
