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Tuesday, 14 February 2017

Instant Coffee Market - Positive Long-Term Growth Outlook 2024

Coffee is the most enjoyed beverage in the world that bestows a sensory experience to its drinker. Its components have been repeatedly researched and it has undoubtedly proven itself to be one of the best drinks. It is consumed in huge quantities because of its unique aroma, taste and flavors. Even though the demand for coffee in US and Europe have been considerably huge, instant coffee has also continued to gain an equal market share among the new coffee drinkers in the developing countries. Instant coffee is a soluble type of coffee powder that is either roasted or grounded in form. It has recently gained popularity over the traditional style of consuming coffee as it is easier and quicker to prepare. The grounded beans of coffee are extracted along with hot water to derive the desired coffee flavor and aroma. Furthermore, these coffee extract is then dried either by spray drying or freeze drying to prepare and pack the coffee granules in glass jars or sachets. Individuals worldwide are found accepting instant coffee rather than the traditional one as it is helping them to save time and resources in preparing the originally brewed coffee.


Instant coffee market is observed to gain an unprecedented growth in the global market and has several driving factors that are increasing the acceptance of this market. Clearly, instant coffee has been dominating the market because of its convenience over fresh coffee. Due to the recent change in the lifestyle and urbanization penetrating the developing regions, youngsters are preferring instant coffee and changing the social trend. Moreover, due to its availability in sachets, instant coffee can be carried and prepared at workplace or during travel. Simultaneously the hassle of disposing the leftover coffee is also reduced on consumption of instant coffee. Innovation is another driver in maintaining the perennial demand of instant coffee in the market. Although, it’s high popularity in the market the coffee industry is facing high competition and commodification in the environment due to the availability of substitute products in the market. Additionally, consumers falling in the lower income group category find it difficult to buy and experience the culture to sipping a sophisticated beverage. Nevertheless, coffee will always maintain its popularityas a widely consumed beverage globally.

The instant coffee market can be segmented on the basis of typesand distribution channel. By product, the instant coffee is available either spray dried or freeze dried. Under spray dried the coffee extract gets sprayed with stream of hot air in a cylindrical tower. In this process the quality and aroma of the coffee is preserved better. On the other hand, freeze drying involves the coffee extract to be frozen below -40°C and then crushed into granules. Even in this product type, the aroma and flavor is maintained due to low temperature and gentle drying conditions. The evolving retail concept all over the world has channelized the successful distribution of instant coffee in to the market through departmental stores, hypermarkets, convenience stores, specialty stores and online retail.

In terms of geography, instant coffee market is consumed in all the regions of the world. North America, Europe, Asia- Pacific, Latin America, Middle East and Africa have succeeded in attracting the consumers for its consumption. Asia Pacific and Middle East have been recently getting acquainted with the modernized lifestyle where consuming instant coffee at cafeterias and coffee joints are a trend. Europe and North America is forecasted to dominate this market where countries like UK, US, Turkey are heavy consumers of instant coffee.

Prominent vendors in the market for instant coffee are Nestle, Starbucks, JDE, Strauss Coffee, AMT Coffee, Kraft Heinz, Tata Coffee, Tchibo Coffee, Trung Nguyen, Lavazza are among the many other suppliers that are technologically advancing to produce instant coffee.

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