Global Instant Coffee Market (by Type, Packaging Type, Application, Distribution Channel, & Region): Insights & Forecast with Impact Analysis of COVID-19 (2022-2026)

Description

Market Insight:

Instant coffee is brewed coffee that has almost all of its water removed. It is a straightforward technique with no chemical alterations. Coffee that has been deprived of its liquid is known as instant coffee. One notable distinction is that instant coffee is often produced with Robusta coffee beans rather than the more costly Arabica coffee beans.

In developing countries, coffee is still considered as a luxury item. With growing consumer income levels and concurrent shift to more premium product offerings, per capita consumption is rising. The global instant coffee market is expected to reach US$35.97 billion in value and 1.91 million tonnes in volume by 2023, growing at a CAGR of 5.11%, in terms of value and 2.88%, in terms of volume, during the forecast period.

Segment Covered:

By Type: The report splits the global instant coffee market into four different segments based on the type: roast and ground, soluble, ready to drink (RTD) and portioned. The roast and ground segment accounted for approximately of 34% of the instant coffee market in 2021, owing to the health benefits as roast and ground coffee powder contains vitamin B3 which helps the body to support the health of skin and nerves and to manage cholesterol. Roasting coffee changes the physical and chemical properties of coffee beans into roasted coffees, which produces the distinctive flavor of coffee, which would accelerate the demand for instant coffee in the future.
By Packaging Type: The market report has segmented the global instant coffee market into four segments on the basis of packaging type: jar, pouch, sachet, and others. Jar segment held more than half of the share in instant coffee market in 2021, while the fastest growing segment is pouch during the forecast period, as the pouch packaging require significantly lesser raw materials and reduce the overall cost associated with the product packaging while improving the profit margin of the end-use companies.
By Distribution Channel: The instant coffee market report has segmented the global market into two segments on the basis of distribution channel: offline and online. Offline channel held more than three fourth of the share in instant coffee market in 2021, even though the fastest growing segment is online channel due to rising demand for ordering products online as people find it more convenient, and many selling companies will provide good discounts and offers to attract customers.
By Application: As per the report, the global instant coffee market into two segments on the basis of application: commercial, and residential. Commercial segment held approximately 77% of the share in instant coffee market in 2021. The commercial places such as offices, restaurants, cafes, etc. have increased and they usually purchase instant coffee in bulk from the manufacturers as people's demand for coffee has also skyrocketed.

Geographic Coverage:

According to this report, the global instant coffee market can be divided into five major regions, on the basis of geographical areas: Asia Pacific (China, Japan, and Rest of Asia Pacific), North America (The US, Mexico, and Canada), Europe (Germany, UK, France, and Rest of Europe), Latin America, and the Middle East and Africa. The Asia Pacific instant coffee market enjoyed the major share of the global market share, primarily owing to the dominance of India and China which are the Asia-Pacific region's fastest expanding economies. East Europe, Russia, India and China are fast growing geographies for instant coffee.

Top Impacting Factors:

Growth Drivers

Increased use of Internet
Growth of High End Cafe Chains and Coffee Capsule
Increasing Popularity of Instant Coffee among Millennial
Increase in Disposable Income

Challenges

Fluctuations in Raw Material Prices
Threat of Substitutes

Trends

Increasing demand for Flavored Coffee
Premiumization of Instant Coffee in Food and Beverages
Healthy Coffee and Additives
Specialty Drinks And Artisan Coffee Would Be On The Rise
Driver: Increase in Disposable Income

Economic growth and middle-class growing population in developing countries such as China, India, and Brazil drove the increase in disposable income. Because people have a hectic lifestyle and require caffeine to boost their energy, the increase in disposable income has led to an increase in demand for instant coffee. Increased disposable income rises consumer purchasing power and augments the likelihood of consumer spending on leisure activities such as watching movies with coffee, visiting cafes and restaurants with friends and family, etc., which acted as growth driver for instant coffee as instant coffee is easy to make and has various benefits on the health.

Challenge: Threat of Substitutes

The number of coffee substitutes is growing, which poses a threat to the coffee industry. Tea is one of the major substitutes for the coffee industry, which is harming the coffee industry. In many regions of the world, tea is preferred over coffee, and coffee is only consumed on occasion. There are numerous coffee substitutes. Coffee is not for everyone, and it is not suitable for everyone because many people are lactose intolerant and have other food intolerance. Other hot and cold beverages, such as roast and ground coffee, soft drinks, carbonated drinks, nutritional and energy drinks, green tea, and iced tea, are becoming increasingly popular, posing a significant challenge to the global instant coffee market.

Trend: Specialty Drinks And Artisan Coffee Would Be On The Rise

Another trend that is expected to explode in the future is the use of local roasters. This would assist artisans in creating signature specialty drinks and marketing the brewing methods and flavors of beans provided by local residents. For towns with a small coffee scene, this would be an excellent way to promote one another and bring coffee lovers to shops to sample what their town has to offer. New and innovative brewing method such as Cold and Nitro brewing is used by coffee shops and people. Cold-brew takes longer than other methods and needs to be readily available to truly make a profit. Hence, generating the demand for instant coffee in the market.

The COVID-19 Analysis:

Due to the pandemic, instant coffee exports saw a fall in 2020 and the supply chain was disturbed. There were government restrictions imposed on operation of hotels, restaurants and cafes as well as a significant drop in the presence of employees in the office. While in 2021, the instant coffee market rebounded because the manufactures produced variety of flavors of instant coffee according to the changing customer tastes and made it available in the online channel. Also, increasing number of coffee chains and restaurants generated demand for instant coffee.

Analysis of Key Players:

The market for instant coffee is fragmented, with the presence of large number of players. The key players offer a wide range of instant coffee components such as Roast and Ground instant coffee, and ready to drink instant coffee. Further, the major players are investing heavily in R&D of products and incorporation of new technologies. Various businesses are concentrating on sustainable growth initiatives such as new launches, product approvals, and other things like patents and events. Acquisitions, partnerships, and collaborations were among the external growth strategies observed in the industry. These initiatives have opened the road for market participants to expand their business and customer base. Further, key players of the instant coffee market are:

Starbucks Corporation
Unilever Plc
Tata Consumer Products
Nestle S.A.
The Karaft Heinz Company
Ajinomoto Co. Inc
Strauss Coffee Ltd
Jacobs Douwe Egberts
PT Java Prima Abadi
Dougsuh Companies Inc
PT Mayora Indah TBK
JM Smuckers Company
Tchibo Coffee International Ltd

Nestle maintained its leadership in the instant coffee market even after the launch of so many coffee brands across the world. However, many manufacturing companies are innovating and launching products according to the taste and preferences of their customers. For example, Strauss Coffee had launched Unique coffee beans in Romania and Poland in which the products are personally tailored to the consumer's taste (coffee origin, roasting method, grinding thickness, etc.) and delivered to the consumer directly after roasting to preserve maximum freshness, sold online and through the retail channel.

1. Executive Summary

2. Introduction

2.1 Instant Coffee: An Overview
- 2.1.1 Benefits from Instant Coffee
- 2.1.2 Segmentation of Instant Coffee

3. Global Market Analysis

3.1 Global Instant Coffee Market: An Analysis
- 3.1.1 Global Instant Coffee Market by Value
- 3.1.2 Global Instant Coffee Market by Type (Roast and Ground, Soluble, Ready to Drink (RTD), Portioned)
- 3.1.3 Global Instant Coffee Market by Packaging Type (Jar, Pouch, Sachet and Others)
- 3.1.4 Global Instant Coffee Market by Application (Commercial and Residential)
- 3.1.5 Global Instant Coffee Market by Distribution Channel (Offline and Online)
- 3.1.6 Global Instant Coffee Market by Region (Asia pacific, Europe, North America, Latin America, Middle East and Africa)
- 3.1.7 Global Instant Coffee Market by Volume
3.2 Global Instant Coffee Market: Type Analysis
- 3.2.1 Global Roast and Ground Instant Coffee Market by Value
- 3.2.2 Global Soluble Instant Coffee Market by Value
- 3.2.3 Global Portioned Instant Coffee Market by Value
- 3.2.4 Global Ready to Drink Instant Coffee Market by Value
3.3 Global Instant Coffee Market: Packaging Type Analysis
- 3.3.1 Global Jar Instant Coffee Market by Value
- 3.3.2 Global Pouch Instant Coffee Market by Value
- 3.3.3 Global Sachet Instant Coffee Market by Value
- 3.3.4 Global Others Instant Coffee Market by Value
3.4 Global Instant Coffee Market: Application Analysis
- 3.4.1 Global Commercial Instant Coffee Market by Value
- 3.4.2 Global Residential Instant Coffee Market by Value
3.5 Global Instant Coffee Market: Distribution Channel Analysis
- 3.5.1 Global Offline Instant Coffee Market by Value
- 3.5.2 Global Online Instant Coffee Market by Value

4. Regional Market Analysis

4.1 North America Instant Coffee Market: An Analysis
- 4.1.1 North America Instant Coffee Market by Value
- 4.1.2 North America Instant Coffee Market by Region (The US, Mexico and Canada)
- 4.1.3 The US Instant Coffee Market by Value
- 4.1.4 The US Instant Coffee Market by Distribution Channel (Offline and Online)
- 4.1.5 The US Offline Instant Coffee Market by Value
- 4.1.6 The US Online Instant Coffee Market by Value
- 4.1.7 Mexico Instant Coffee Market by Value
- 4.1.8 Canada Instant Coffee Market by Value
4.2 Asia Pacific Instant Coffee Market: An Analysis
- 4.2.1 Asia Pacific Instant Coffee Market by Value
- 4.2.2 Asia Pacific Instant Coffee Market by Region (Japan, China and Rest of Asia Pacific)
- 4.2.3 Japan Instant Coffee Market by Value
- 4.2.4 China Instant Coffee Market by Value
- 4.2.5 Rest of Asia Pacific Instant Coffee Market by Value
4.3 Europe Instant Coffee Market: An Analysis
- 4.3.1 Europe Instant Coffee Market by Value
- 4.3.2 Europe Instant Coffee Market by Region (France, UK, Germany and Rest of Europe)
- 4.3.3 United Kingdom Instant Coffee Market by Value
- 4.3.4 Germany Instant Coffee Market by Value
- 4.3.5 France Instant Coffee Market by Value
- 4.3.6 Rest of Europe Instant Coffee Market by Value
4.4 Latin America Instant Coffee Market: An Analysis
- 4.4.1 Latin America Instant Coffee Market by Value
4.5 Middle East and Africa Instant Coffee Market: An Analysis
- 4.5.1 Middle East and Africa Instant Coffee Market by Value

5. Impact of COVID-19

5.1 Impact of COVID-19 on Instant Coffee Market
- 5.1.1 Impact of COVID-19 on Instant Coffee
- 5.1.2 Consumption Trends in Instant Coffee
- 5.1.3 Post COVID-19

6. Market Dynamics

6.1 Growth Drivers
- 6.1.1 Rapid Urbanization
- 6.1.2 Increased use of Internet
- 6.1.3 Increase in Disposable Income
- 6.1.4 Growth of High End Cafe Chains and Coffee Capsule
- 6.1.5 Increasing Popularity of Instant Coffee among Millennial
6.2 Challenges
- 6.2.1 Fluctuations in Raw Material Prices
- 6.2.2 Threat of Substitutes
- 6.2.3 Caffeine Addiction and Rising Health Care Concerns
6.3 Market Trends
- 6.3.1 Increasing demand for Flavored Coffee
- 6.3.2 Increasing preparation of Instant Espresso Coffee at Home
- 6.3.3 Sustainable Coffee
- 6.3.4 Premiumization of Instant Coffee in Food and Beverages
- 6.3.5 Healthy Coffee and Additives
- 6.3.6 Specialty Drinks and Artisan Coffee Would Be On the Rise

7. Competitive Landscape

7.1 Global Instant Coffee Players by Market Share
7.2 Europe Instant Coffee Players by Market Share
7.3 China Instant Coffee Players by Market Share
7.4 Global Instant Coffee Market Players: Product Comparison

8. Company Profiles

8.1 Nestle S.A
- 8.1.1 Business Overview
- 8.1.2 Operating Segments
- 8.1.3 Business Strategy
8.2 Ajinomoto Co., Inc.
- 8.2.1 Business Overview
- 8.2.2 Operating Segments
- 8.2.3 Business Strategy
8.3 PT. Mayora Indah TBK
- 8.3.1 Business Overview
- 8.3.2 Operating Segments
- 8.3.3 Business Strategy
8.4 Tata Consumer Products
- 8.4.1 Business Overview
- 8.4.2 Operating Segments
- 8.4.3 Business Strategy
8.5 Starbucks Corporation
- 8.5.1 Business Overview
- 8.5.2 Operating Segments
- 8.5.3 Business Strategy
8.6 Unilever PLC
- 8.6.1 Business Overview
- 8.6.2 Operating Segments
- 8.6.3 Business Strategy
8.7 The Kraft Heinz Company
- 8.7.1 Business Overview
- 8.7.2 Operating Segments
- 8.7.3 Business Strategy
8.8 Jacobs Douwe Egberts
- 8.8.1 Business Overview
- 8.8.2 Operating Segments
- 8.8.3 Business Strategy
8.9 JM Smuckers Company
- 8.9.1 Business Overview
- 8.9.2 Operating Segments
- 8.9.3 Business Strategy
8.10 Strauss Coffee Ltd.
- 8.10.1 Business Overview
- 8.10.2 Operating Segments
8.11 Tchibo Coffee International Ltd
- 8.11.1 Business Overview
- 8.11.2 Business Strategy
8.12 Dongsuh Companies, Inc.
- 8.12.1 Business Overview
8.13 PT Java Prima Abadi
- 8.13.1 Business Overview
Table of Figures
Figure 1: Benefits of Instant Coffee
Figure 2: Segmentation of Instant Coffee
Figure 3: Global Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 4: Global Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 5: Global Instant Coffee Market by Type; 2021 (Percentage, %)
Figure 6: Global Instant Coffee Market by Packaging Type; 2021 (Percentage, %)
Figure 7: Global Instant Coffee Market by Application; 2021 (Percentage, %)
Figure 8: Global Instant Coffee Market by Distribution Channel; 2021 (Percentage, %)
Figure 9: Global Instant Coffee Market by Region; 2021 (Percentage, %)
Figure 10: Global Instant Coffee Market by Volume; 2017-2021 (Million Tonnes)
Figure 11: Global Instant Coffee Market by Volume; 2022-2026 (Million Tonnes)
Figure 12: Global Roast and Ground Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 13: Global Roast and Ground Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 14: Global Soluble Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 15: Global Soluble Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 16: Global Portioned Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 17: Global Portioned Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 18: Global Ready to Drink Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 19: Global Ready to Drink Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 20: Global Jar Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 21: Global Jar Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 22: Global Pouch Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 23: Global Pouch Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 24: Global Sachet Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 25: Global Sachet Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 26: Global Others Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 27: Global Others Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 28: Global Commercial Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 29: Global Commercial Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 30: Global Residential Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 31: Global Residential Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 32: Global Offline Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 33: Global Offline Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 34: Global Online Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 35: Global Online Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 36: North America Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 37: North America Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 38: North America Instant Coffee Market by Region; 2021 (Percentage, %)
Figure 39: The US Instant Coffee Market by Value; 2020-2021 (US$ Billion)
Figure 40: The US Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 41: The US Instant Coffee Market by Distribution Channel; (Percentage, %)
Figure 42: The US Offline Instant Coffee Market by Value; 2020-2021 (US$ Billion)
Figure 43: The US Offline Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 44: The US Online Instant Coffee Market by Value; 2020-2021 (US$ Million)
Figure 45: The US Online Instant Coffee Market by Value; 2022-2026 (US$ Million)
Figure 46: Mexico Instant Coffee Market by Value; 2020-2021 (US$ Million)
Figure 47: Mexico Instant Coffee Market by Value; 2022-2026 (US$ Million)
Figure 48: Canada Instant Coffee Market by Value; 2020-2021 (US$ Million)
Figure 49: Canada Instant Coffee Market by Value; 2022-2026 (US$ Million)
Figure 50: Asia Pacific Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 51: Asia Pacific Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 52: Asia Pacific Instant Coffee Market by Region; (Percentage, %)
Figure 53: Japan Instant Coffee Market by Value; 2020-2021 (US$ Billion)
Figure 54: Japan Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 55: China Instant Coffee Market by Value; 2020-2021 (US$ Million)
Figure 56: China Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 57: Rest of Asia Pacific Instant Coffee Market by Value; 2020-2021 (US$ Billion)
Figure 58: Rest of Asia Pacific Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 59: Europe Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 60: Europe Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 61: Europe Instant Coffee Market by Region; 2021 (Percentage, %)
Figure 62: United Kingdom Instant Coffee Market by Value; 2020-2021 (US$ Billion)
Figure 63: United Kingdom Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 64: Germany Instant Coffee Market by Value; 2020-2021 (US$ Billion)
Figure 65: Germany Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 66: France Instant Coffee Market by Value; 2020-20201(US$ Billion)
Figure 67: France Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 68: Rest of Europe Instant Coffee Market by Value; 2020-2021 (US$ Billion)
Figure 69: Rest of Europe Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 70: Latin America Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 71: Latin America Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 72: Middle East and Africa Instant Coffee Market by Value; 2017-2021 (US$ Billion)
Figure 73: Middle East and Africa Instant Coffee Market by Value; 2022-2026 (US$ Billion)
Figure 74: Change in Growth Rate of Exports of Coffee by Region; 2019-2020 (Percentage, %)
Figure 75: Consumption Trends in Instant Coffee
Figure 76: Developed Economies and Developing Economies Urban Population; 2015, 2020 & 2050 (Million)
Figure 77: Global Internet Users; 2017-2022 (Million)
Figure 78: Global Social Media Users; 2017-2022 (Million)
Figure 79: The US per Capita Disposable Income; Dec'2017-Dec'2021 (US$)
Figure 80: Global Average Prices of Arabica and Robusta Coffee; 2017-2025 (US$ per Kg)
Figure 81: Global Instant Coffee Players by Market Share; 2021 (Percentage, %)
Figure 82: Europe Instant Coffee Players by Market Share; 2021 (Percentage, %)
Figure 83: China Instant Coffee Players by Market Share; 2021 (Percentage, %)
Figure 84: Nestle S.A Net Sales by Segment; 2021 (Percentage, %)
Figure 85: Ajinomoto Co., Inc. Net Sales by Segments; 2021 (Percentage, %)
Figure 86: PT. Mayora Indah TBK Net Sales by Segments; 2021 (Percentage, %)
Figure 87: Tata Consumer Products Revenue by Segments; 2021 (Percentage, %)
Figure 88: Starbucks Corporation Revenue by Product Type; 2021 (Percentage, %)
Figure 89: Unilever PLC Turnover by Segments; 2021(Percentage, %)
Figure 90: The Kraft Heinz Company Net sales by Segments; 2021 (Percentage, %)
Figure 91: Jacobs Douwe Egberts Net sales by Segments; 2021 (Percentage, %)
Figure 92: JM Smuckers Company Net sales by Segments; 2021 (Percentage, %)
Figure 93: Strauss Coffee Ltd. Net Sales by Segments; 2020 (Percentage, %)
Table 1: Global Market Players: Product Comparison; 2021