Instant Coffee Market is Estimated to Witness High Growth Owing to Opportunity for Convenience
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| Instant Coffee Market |
Instant coffee is a powdered
coffee product made either by freeze-drying or spray drying to produce granules
or powder. It allows for easy soluble preparation by adding hot water. Instant
coffee has gained immense popularity among working professionals around the
globe due to its quick preparation that suits their fast-paced lifestyle. The
product is widely available in various flavors and combinations that appeal to
a broad consumer base. The global instant coffee market is estimated to be
valued at US$ 42.05 Bn in 2023 and is expected to exhibit a CAGR of 8.4% over
the forecast period 2023 to 2030, as highlighted in a new report published by
Coherent Market Insights.
Market Dynamics:
The rising demand for convenience
foods has been fueling the growth of the global instant coffee market over the
recent years. With changing dietary habits and busy schedules, consumers prefer
ready-to-drink and easy-to-make food and beverage products, which is augmenting
the demand for instant coffee products. Instant coffee can be prepared easily
within minutes by adding hot water that suits fast-paced urban living. Another
key driver supporting the market growth is the increasing millennial population
who prefer consume on-the-go products. Moreover, the expansion of retail
channels such as supermarkets, hypermarkets, and online stores has improved the
accessibility of instant coffee, thereby propelling the market growth.
SWOT Analysis
Strength: Instant coffee provides
convenience and portability to consumers. It has a long shelf life and does not
require any preparation. Rising disposable incomes in emerging markets like
India and China are fueling demand for convenient food and beverage options
like instant coffee.
Weakness: Instant coffee lacks
the depth of flavor of freshly brewed coffee and is considered an inferior
substitute by purists and aficionados. It contains lesser antioxidants and
polyphenols compared to regular coffee. The processing needed to dehydrate
coffee loses some nutrients.
Opportunity: Growing health
awareness is boosting demand for products fortified with nutrients. Instant
coffee producers can introduce variants with added superfoods, herbs, and
nutrients to cater to this demand. Rising numbers of coffee shops also provide
an opportunity to supply instant coffees for consumption outside the home.
Threats: Consumers are
increasingly preferring specialty and artisanal coffee over commercial instant
options. Regular coffee producers can encroach on market share by offering
convenient capsule-based systems. Stringent regulations on caffeine levels in
certain countries can restrict product development.
Key Takeaways
The Global
Instant Coffee Market Size is expected to witness high growth over the
forecast period supported by increasing urbanization and changing lifestyles.
The rising demand for convenience food accessories is expected to propel the
instant coffee market growth. The popularity of coffeehouses is also driving
demand for on-the-go coffee formats like instant coffee that can be taken
outside homes. Rising health consciousness among consumers demanding products
fortified with nutrients also provides opportunities for instant coffee
producers to innovate.
Regional analysis: The Asia Pacific region dominates the global
instant coffee market due to high consumption in countries like India and
China. Rapid urbanization and economic growth in developing Asian countries are
fueling the demand for western lifestyle commodities like coffee. North America
is another major region for instant coffee owing to its high caffeine-consuming
population and presence of leading brands. Europe is expected to grow at a
significant rate over the forecast period with increasing popularity of coffee
culture across the region.
Key players operating in the instant coffee market are Nestlé,
Jacobs Douwe Egberts, Starbucks, Mount Hagen, and Strauss Group. Nestlé leads
the market with its globally popular brands like Nescafé and Nescafé Gold which
dominate household kitchen shelves. Jacobs Douwe Egberts also has a strong
presence across Europe and other international markets through its coffee
brands like Senseo. Starbucks has expanded beyond its café store model to
market a range of grocery instant coffee products.
Get More Insights Here
https://www.newsstatix.com/instant-coffee-market-size-share-growth-outlook-2023
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