Global Instant Coffee Market is Expected to Reach USD 42.50 Million by 2025: Transparency Market Research

According to a new market report published by Transparency Market Research “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”,the global instant coffee market was valued at USD 28.12 Billion in 2016 and is expected to reach USD 42.50 billion by 2025, growing at a CAGR of 4.8% from 2017 to 2025.

Instant coffee is a popular drink amongst the people who do not have a strong tradition of drinking coffee. Instant coffee is a drink for the tea drinkers and it considered to be appealing and satisfies the evolving taste of these new coffee drinkers. Coffee is not just a beverage but a multi-purpose product that can be used endlessly. Countries like India and China are culturally inclined towards drinking tea and their acceptance of instant coffee is due to the alluring taste and varieties displayed by instant coffee. It is unlike the other western regions where the consumption of filter coffee is more than instant coffee. Instant coffee is widely available across all channels of distribution like retail and B2B and it is not expensive like the filter coffee.

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By geography, the instant coffee market is segmented into, North America, Western Europe, Rest of Europe, Asia Pacific, Middle East, Africa and Latin America. Asia Pacific and Middle East dominated the instant coffee market in 2016that accounted for more than 50% of the global market share. Asia Pacific instant coffee market includes China, India, Japan and Rest of Asia pacific. Rest of Europe with countries like Poland, Russia, Bulgaria and others held the second largest market share in 2016of the global instant coffee market. Middle East includes U.A.E and Rest of Middle East. Africa Includes South Africa and Rest of Africa. Latin America instant coffee market includes Brazil and Rest of Latin America.

Asia pacific includes China, Japan, India and Rest of Asia Pacific. This region displays the highest CAGR and market share in the forecast period from 2017 to 2025.Since the cultural factors dominates the heavy drinking of tea over coffee, the usage of instant coffee is more in countries like India and China. It is undoubtedly easier to prepare and its availability of the product in the region is more in comparison to other regions. Companies like Unilever and Nestle dominate the market of instant coffee. In terms of value, China and India dominated the market with a total of 50% of market share in the Asia-Pacific region. Other regions like Middle East and Latin America also have higher penetration of instant coffee in the market with companies like Strauss Group and Starbucks Corporation that are trying to manufacture ready-to-brew coffees. Equally, the opening of new shopping malls and hotel chains also are adding to the usage of instant coffee in the market.

North America market for instant coffee is predominantly driven by Millennial who prefer drinking  an easy to prepare drink. However, the market for North America prefers filter coffee or single cup coffee that is prepared by the coffee machines and pods.. The latest trend of North America also prefers the new line of machines and capsules that pours cold carbonated drinks Therefore, owing to these factors, the revenue and market share for North America is relatively lower as compared to other regions like Asia-Pacific, Middle East and Western Europe.

Western Europe is expected to witness substantial growth during the forecast period from 2017 to 2025, owing to factors such convenient preparation as it is less time consuming. In addition, the online distribution has not witnessed a dynamic growth as compared to offline retail stores because people prefer buying these regular products from the stores due to the availability of variety of stock and at different price levels.

Major market participants profiled in this report are Nestle S.A. (Switzerland), Starbucks Corporation (Washington, U.S), Jacobs DouweEgberts (Amsterdam, Netherlands), Strauss Group Limited (Petah Tikva, Israel), Matthew Algie& Company Ltd (London, UK), Kraft Heinz (Illinois, US), Tata Global Beverages (Bangalore, India), Tchibo coffee (Hamburg, Germany), Keurig Green Mountain (Vermont, US) are few among others.

Global Instant Coffee market can be segmented as follows;-

Global Instant Coffee Market, by Distribution Channel

  • B2B
    • Hotel
    • Restaurant
    • Others
  • Retail
    • Online
    • Offline
      • Departmental Stores
      • Hyper and Super Market
      • Others

Global Instant Coffee Market, by Packaging Type

  • Jars
  • Sachets

Global Instant Coffee Market, by Geography

  • North America
    • U.S.
    • Rest of North America
  • Western Europe
    • U.K.
    • Germany
    • France
    • Netherland
    • Rest of Western Europe
  • Rest of Europe
    • Russia
    • Poland
    • Bulgaria
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • Rest of APAC
  • Middle East and Africa
    • A.E.
    • South Africa
    • Rest of Middle East and Africa
  • Latin America
    • Brazil
    • Rest of Latin America

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