Instant Coffee Market Product Launches, Acquisitions, Key Players, And Growth Strategies 2019 – 2027

Instant Coffee Market Product Launches, Acquisitions, Key Players, And Growth Strategies 2019 - 2027

Instant Coffee Market
Instant Coffee Market, report categorizes global market by Packaging Type (Sachets, Jars, and others), By Distribution Channel (Hypermarket, Supermarket, Specialty Stores, Departmental Stores, Online Channel and Others). Report includes, Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2025

The global instant coffee market was valued at US$ 30.60 billion in 2018, according to Instant Coffee Market Report, by Product Type (Agglomerated, Freeze Dried, and Spray Dried), by Trade (Modern Trade, and Regular Trade), by Packaging Type (Sachet & Pouches, Jars, and Others (Bags, Cans, etc.)), and by Region (North America, South America, Asia Pacific, Europe, and Middle East & Africa) published by Coherent Market Insights.

The global instant coffee market is projected to reach US$ 46.05 billion by 2027, exhibiting a CAGR of 4.7% during the forecast period (2019-2027). Increasing demand for instant coffee owing to modern lifestyle, increase in disposable income is expected to boost the instant coffee market during the forecast period.

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Health benefits offered by instant coffee include decreased risk of developing type 2 diabetes, improving brain function, and increasing metabolism as caffeine can help burn fat. According to a study conducted by National Center for Biotechnology Information in 2014, instant coffee was found to contain more antioxidants as compared to other forms of coffee on account of the processing which it undergoes. Furthermore, a cup of instant coffee contains only 4 calories, and provides small amounts of potassium, magnesium, and niacin (vitamin B3).

However, the high content of acrylamide in instant coffee compared to fresh coffee is hindering market growth. Acrylamide or acrylic amide is an odorless, white, crystal compound with chemical formula C3H5NO, and is produced when sugars and amino acids are heated above 120 degree Celsius. Acrylamide is neurotoxic and can damage peripheral and central nervous system (PNS and CNS) in both humans and animals.

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Browse 60 market data tables* and 50 figures* on “Instant Coffee Market” – Global forecast to 2027.

Key Takeaways of the Market:

Longer shelf life of instant coffee compared to coffee beans or ground coffee, owing to its powdered texture, is another factor aiding the growth of the market. Furthermore, coffee contains various nutrients, such as lipids, carbohydrates, vitamins, amino acids, phenolic compounds, alkaloids and minerals.

Polyphenols in coffee work as antioxidants which fight against free radicals. Owing to rising awareness regarding these health benefits, there is a growing demand for coffee worldwide. For instance, according to the International Coffee Organization (ICO), world coffee consumption, increased from 148,891 thousand bags (60 kg) during 2013-2014 to 157,382 thousand bags (60 kg) during 2016-2017, witnessing a CAGR of 1.9%. Thus, the rising consumption of coffee is expected to support the global growth of instant coffee market.

According to the India Brand Equity Foundation (IBEF), the coffee & tea industry in India increased from US$ 3.4 billion in 2013 to around US$ 5.8 billion in 2017, growing three folds in the last five years. Moreover, according to the same source, the total number of organized cafe chains is expected to grow from 3,500 in 2015 to 6,200 by 2020, resulting in increasing number of opportunities for players in the region engaged in coffee production.

In 2018, Asia Pacific accounted for the largest revenue share of around 30% in the instant coffee market. Major factors driving growth of market in the region include increasing demand for instant coffee from the food and beverage industry in countries such as China, Japan, India, and South Korea that house some of the major coffee companies such as Tata Global Beverages, Hindustan Unilever Limited, and others.

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Major players operating in the global instant coffee market include, Nestle S.A, Keurig Green Mountain Inc., Starbucks Corporation, Jacobs Douwe Egberts, Tata Global Beverages Limited, Strauss Group Ltd, Luigi Lavazza S.P.A., Matthew Algie & Company Limited, Kraft Foods Inc., Tata Global Beverages, Tchibo Coffee International Ltd, Unilever Plc, Leo Coffee, Cothas Coffee Co., Hintz Foodstuff Production Gmbh, Illycaffe S.p.A., Sri Narasu’s Coffee Company Pvt. Ltd., Hindustan Unilever Limited, Zino Davidoff, BM Foods, CCL Products (India) Ltd., and others.

Key players in the market are focused on increasing research and development (R&D) investment in order to enhance their product offerings. For instance, Tata Global Beverages entered the Indian instant coffee market by launching ‘Tata Coffee Grand’ to compete with Nestle’s ‘Nescafe’ and Hindustan Unilever’s ‘Bru’. The instant coffee brand is jointly developed by Tata Global Beverages (TGBL) and group firm Tata Coffee, which manufactures the product.

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