Coffee is one of the most consumed beverages in the world and second largest traded commodity. It is cultivated around 10.3 million hectares worldwide and represents the primary economic income of more than 25 million families. Coffee is crucial to the economy and politics of many developing countries as world’s least developed countries, export coffee and account for a substantial part of their foreign exchange earnings. Traditionally, coffee trees are cultivated only for berries which are processed using dry or wet techniques directly in the growing areas of the final raw product, green coffee this serves as the basis for a variety of coffee products. Instant coffee is a coffee powder or soluble coffee made from ground or roasted coffee beans. Due to changing lifestyle and growing urbanization is influencing the coffee trend. Moreover, growing popularity of instant coffee is majorly seen in working individuals besides growing trends of coffee and different taste along with low cost is further fueling the market growth. Besides simple preparation of instant coffee is another key factor for the growth. Therefore key players are investing in innovation to come with novel and improved instant coffee in terms of aroma, quality and flavor.

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INSTANT COFFEE MARKET SEGMENTAL OVERVIEW

The Instant coffee market is segmented based on by type, by packaging, by distribution channel and geography.

INSTANT COFFEE MARKET BY TYPE

The Instant coffee is available in market according to different types spray-drying, freeze-drying.

Spray-drying is the most common and easy process used for drying any liquor or semisolid fees compared to other industrial drying process. It helps in the production of fine and granular dried powder particles. Thus, spray dryers are being widely used in the food processing encouraging manufacturers to design and develop products. However, the freeze drying segment is expected to dominate the instant coffee market owing to key stage in instant coffee production. Coffee beans are first toasted and ground, then dissolved in hot water. By this process coffee flavour, aroma and colour are extracted from the coffee grounds by this process and a highly concentrated liquor is obtained.

INSTANT COFFEE MARKET BY PACKAGING

Based on packaging instant coffee is accessible by different packaging like jar, pouch and sachet. Pouches accounts for the significant market share in the global instant coffee market as they are lightweight and recyclable in nature. Moreover pouches offer a more convenient and cheaper way of packaging. However, sachet is anticipated to account for the largest share of the instant coffee market due to its quick and easy preparation in a short period of time.

INSTANT COFFEE MARKET BY DISTRIBUTION CHANNEL

Instant coffee market is majorly distributed through supermarkets hypermarkets, departmental stores, independent retailers, business-to-business is bifurcated into hotels and restaurants. Supermarket Hypermarkets is expected to dominate the instant coffee market owing to increasing urbanization. Another factor for the growth is easy accessibility and widespread of market. The manufacturer prefer selling in through stored base especially supermarket hypermarkets due to increasing demand of instant coffee from customer base 

INSTANT COFFEE MARKET BY GEOGRAPHY

Geographically the global Instant coffee market is studied for the following region North America, Europe, Asia Pacific and Rest of the World. Asia Pacific is anticipated to witness the fastest growth owing to increasing demand for instant coffee and significant growth of food and beverages industry in the regions. On the other hand Latin America accounted the significant number of shares in the global instant coffee market due to largest coffee producer available in the region.

INSTANT COFFEE MARKET KEY PLAYER

The major players in Instant coffee market are Nestle S.A, Starbucks Corporation, Jacobs Douwe Egberts, Strauss Group Ltd, Matthew Algie Company Limited, Kraft Foods Inc, Tata Global Beverages, Tchibo Coffee International Ltd, Unilever Plc, Keurig Green Mountain, Inc., Tata Global Beverages Ltd., Trung Nguyen, JDE, Power Root, Vinacafe and Smucker among others.

INSTANT COFFEE MARKET RECENT DEVELOPMENT

January 2021: Boomi coffee has introduces the Araku Boomi instant coffee with unique aroma and flavor for their coffee lovers. This coffee is produced without any artificial substances or additives and is 100% Pure. This coffee is made out of 100% Arabica beans grown by Tribals in the Eastern Ghats of Andhra Pradesh from India and it is just naturally grown; no chemicals, no pesticides on the crop and using only organic manure.

December 2020: Levista had launched flavoured instant coffee supreme variant. The four different variants include Vanilla, Caramel, Hazelnut and Choco-Orange. It has further also launched a new variant of Instant Coffee aptly named ‘Supreme’ which has 70% Coffee content and 30% Chicory. The Flavored coffee is going to be available across Tamil nadu and Karnataka through select retail stores nationally through e commerce platforms.

 Starbucks had launched premium instant coffee with Nestle. Both companies believe that can bring a premium sparkle to the instant coffee category with the global launch of Starbucks branded premium instant coffee.

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