Instant Coffee Market Expected to Reach to US$42.5 bn by the end of 2025

The global instant coffee market is highly fragmented and includes multiple players. The market is projected to witness a significant increase in the production capability as various market suppliers are now concentrating on using advanced technologies for producing high quality instant coffee. A boost in the volume of production will also enable the market vendors to cater the ever increasing demand for instant coffee across the world. The global instant coffee market is mainly dominated by the prominent players who are working towards acquiring new brands to continue their market dominance and enhance their share in the global instant coffee market.

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The global market for instant coffee stood at an initial market valuation of US$28.12 bn in the year 2016. This valuation is expected to reach to an overall valuation of US$42.5 bn by the end of 2025. This growth of the global market for instant coffee is projected to be achieved with the help of an impressive CAGR of 4.8% over the course of the given forecast period of 2017 to 2025.

Depending upon the channels of retail, the global market for instant coffee can be segmented into business to business (B2B) and retail. Of these, the global market is expected to be dominated by retail channel of distribution over the course of the given forecast period. This growth of the retail segment can be attributed to the array of attractive discounts and offers retail segment provides.

In terms of geography, the global market for the instant coffee is expected to be dominated by Asia Pacific. The region accounted for nearly 36.0% of the overall market in the year 2016. In the coming years as well the global market for instant coffee is expected to be dominated by the Asia Pacific region due to the increasing demand for instant coffee from nations such as China and India.

More Spending Power and Growing Urbanization to Drive Market Growth

Instant coffee has become quite popular among the masses on account of increasing urbanization and economic growth. This boils down to the fact that people have more money to spend and also they prefer instant beverages instead of waiting for other ones.

Ever evolving consumption patterns and lifestyle across the world has been one of the driving factors for increased demand for instant coffee. Easy preparation of instant coffee and its ready availability in variety of flavors and formats are some of the major driving factors for the growth of global instant coffee market. Moreover, instant coffee has a higher shelf life because of its powdered texture which makes it more commercial and popular among the vendors. Many popular instant coffee brands are advertising their specialty instant coffees which has led to propel the global instant coffee market. For instance, Nestle has teamed up with Barista style instant coffee, Azera. Starbucks too has introduced a wide range of flavors to its customers. Some manufactures are constantly trying new variations in the product segment by changing aroma, color, and flavor to attract more customers. Such activities thus, are driving the growth of global instant coffee market.

Increasing Use of Acrylamide to Pose Problems for Market Growth

However, there are some factors which might negatively affect the growth of the global market for instant coffee. The increasing concerns over the use of acrylamide in the making of instant coffee is projected to be a big cause of concern for the growth of the global market.