Instant Coffee Market Size Worth $98.7 Billion by 2028 - Million Insights

FELTON, Calif., March 29, 2022 /PRNewswire/ -- The global instant coffee market size is expected to reach USD 98.7 billion by 2028 and is expected to grow at a CAGR of 6.1% from 2021 to 2028, according to a new report by Million Insights. This can be credited to the health benefits of the product, such as it boosts metabolism and is high in antioxidants. Instant coffee has become quite popular among consumers owing to rapid urbanization and economic growth. Due to the hectic lifestyle, most people prefer to consume Ready-to-Eat and Drink (RTE & RTD) products, which will boost the demand further. In addition, the low prices of instant coffee have increased sales, which, in turn, is driving the growth of the market. The rising number of coffee shops, restaurants, and café is also boosting the product demand.

Instant Coffee Market Report Highlights

• Europe occupied a significant share of the global market in 2020 as coffee culture has surged across the region with more specialty coffee houses setting up shops in countries, such as Germany, Italy, France, and the U.K.
• The soluble coffee specialties segment is likely to register the fastest CAGR from 2021 to 2028. The demand for the soluble coffee specialty is growing due to an increase in health and wellness trends.
• The online distribution channel segment is likely to register the fastest CAGR from 2021 to 2028.
• This growth is credited to the convenient buying option and discounts offered by online platforms, which attract more consumers.
• Commercial application is expected to be the fastest-growing segment from 2021 to 2028 on account of the growing number of cafes and restaurants across the globe.

Instant Coffee Market Growth & Trends

The COVID-19 pandemic has had a substantial influence on businesses as well as humans. The governments of various countries had imposed restrictions, such as social distancing and lockdowns. In the short term, out-of-home consumption is declined considerably as a growing number of countries implemented a full or partial lockdown. Moreover, offices, restaurants, and coffee shops remain closed to minimize the spread of the COVID-19. On the other hand, supermarket- and retail-level information suggests that panic-purchasing and storing has led to high demand in some of the countries. However, as the services and businesses are resuming, the market is expected to recover in the future. The soluble coffee specialties segment dominated the global market in 2020 and is estimated to grow at a significant CAGR from 2021 to 2028.

This is attributed to the increasing number of restaurants and coffee shops. Moreover, changing lifestyles and growing consumer disposable income levels are driving the market growth. The online distribution channel is anticipated to grow at the highest CAGR of 6.9% from 2021 to 2028. With the rising number of smartphone users, time spent on the internet has increased, which has enhanced the growth of online platforms. Moreover, the benefits of online distribution channels, such as doorstep delivery, discounts on product prices, cashback offers, and so on, boost the product sales through these channels.

Furthermore, the expansion of online retail giant, Amazon, across different regions with the emergence of new online retailers and company-owned online shopping websites is likely to drive the segment growth in the coming years. Commercial application contributed to a significant market share in 2020. This is attributed to the changing lifestyle, habits, and increased income of consumers, which is driving the demand for instant coffee at commercial places, such as cafes and restaurants, is growing.

Asia Pacific is expected to register the highest CAGR of 6.4% from 2021 to 2028. This can be attributed to the increasing demand for instant coffee and the significant growth of the beverage industry in Asia Pacific. In addition, changing lifestyles and rapid urbanization are some of the other factors boosting the product demand in the region. China, Japan, and India are positively contributing to the growth of the APAC regional market.

Read synopsis or request for a free sample of market research report, "Instant Coffee Market Size, Share & Trends Analysis Report By Type (Soluble Coffee, Soluble Coffee Specialties), By Distribution Channel (Offline, Online), By Application (Residential, Commercial), And Segment Forecasts, 2021 - 2028", published by Million Insights.

Instant Coffee Market Segmentation

Million Insights has segmented the global Instant Coffee market on the basis of type, distribution channel, application, and region:

•  Instant Coffee Type Outlook (Revenue, USD Million, 2017 - 2028)
• Soluble Coffee
• Soluble Coffee Specialties
•  Instant Coffee Distribution Channel Outlook (Revenue, USD Million, 2017 - 2028)
• Offline
• Online
•  Instant Coffee Application Outlook (Revenue, USD Million, 2017 - 2028)
• Residential
• Commercial
•  Instant Coffee Regional Outlook (Revenue, USD Million, 2017 - 2028)
• North America
• U.S.
• Europe
• Germany
• Italy
• France
• Asia Pacific
• China
• Japan
• Central & South America
• Brazil
• Colombia
• Middle East & Africa
• South Africa

List of Key Players of Instant Coffee Market

• Nestle S.A.
• Starbucks Corp.
• Jacobs Douwe Egberts
• Unilever Plc.
• Strauss Group Ltd.
• The Kraft Heinz Company
• Tata Global Beverages Ltd.
• Keurig Green Mountain Inc.
• The J. M. Smucker Company
• Power Root (M) Sdn. Bhd.

Browse more Research Reports published by Million Insights

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