Instant coffee demand is growing globally.
Transparency Market Research’s report “Instant Coffee Market By Distribution Channel (B2B and Retail) By Packaging Type (Jars and Sachets) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2017- 2025,” found the global instant coffee market revenue was valued at USD $28.12 billion in 2016 and is expected to reach USD $42.5 billion by 2025, growing at a CAGR of 4.8% from 2017 to 2025.
Instant coffee has gained popularity in the market specifically due to the convenience that it provides to the drinkers on different scales. This beverage is acknowledged to offer consumers an advantage in terms of time since the preparation of instant coffee is faster and easier, when compared to regular coffee. Moreover, the availability of instant coffee across different channels has contributed to its rising popularity among consumers. The price of instant coffee is moderately cheaper and can also be consumed on the go.
Additionally, the consumption of coffee over tea in regions like North America, Europe, and Asia Pacific is fueling the demand for instant coffee in the global market. The market for instant coffee witnessed a surge since its inception due to its convenience. Millennials have been conscientious shoppers throughout and they prefer quality rather than quantity. The decline in demand for aerated drinks in the global market has escalated the demand for coffee.
Globally, the purchasing power of individuals is increasing, especially in Europe, North America, and Asia Pacific, where people are more socially inclined and mobile than before. Earlier, coffee drinking was a private affair confined to the home. This has shifted to enjoying the experience in public venues. Millennials are driving the generation where they are changing the meaning of value. Value is not only about the price they are paying; the generation demands a drink that will suit their lifestyle and match their fast-paced life.
On the basis of distribution channel instant coffee categorized into: B2B and retail stores. The B2B segment is further bifurcated into hotels, and restaurants, among others and the retail segment is bifurcated into online and offline channels. The offline channel is further segmented into departmental stores and supermarkets & hypermarkets among others the retail segment accounted for the largest market share in 2016 due to its easy convenience, presence of international brands, discounts and offers from the manufacturers directly. Individuals in tea consuming nations do not prefer using coffee machines at home to ground the whole bean coffee and find it convenient and easier to buy the instant coffee jars and sachets and prepare it at home. Instant coffee is widely available in almost all types of shops and is priced on the lower end as well.
Based on packaging type, the instant coffee market has been segmented into jars and sachets. Jars are a type of packaging used by instant coffee manufacturers to hold the ingredient in a tightly sealed pack in order to store the aroma and taste of the instant coffee. Jars vary in their capacity of storage and are available either in glass bottles or plastic bottles. Sachets are another type of packaging that is usually for one time use of the product. Instant coffee sachets find major application in hotels, commercial and industrial areas and sometimes even for household purposes. It allows for storing the aroma and taste and is easy to carry.