Instant Coffee Market Size, Share, Growth, and Industry Analysis, By Type (Spray-drying & Freeze-drying), By Sales Channel (Supermarket & Online Sales), and Regional Insight and Forecast to 2035

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INSTANT COFFEE MARKET OVERVIEW

The global instant coffee market size at USD 32.77 billion in 2025 and is projected to reach USD 34.15 billion in 2026, growing further to USD 49.22 billion by 2035 at an estimated CAGR of 4.2% from 2026 to 2035.

The instant coffee market is a rapidly growing segment within the world coffee industry. Such growth is driven by increased demand from consumers for convenience and speed in preparation methods. Instant coffee has become very popular among busy professionals, students, and travellers because it offers a quick and easy way for them to consume coffee without any brewing equipment. Made by dehydrating brewed coffee into a soluble form, instant coffee keeps all the rich flavours of regular coffee but can easily be transported and has a much longer shelf life, which makes it ideal for busy lives and portability. Innovations in flavour profiles, packaging, and sustainability will continue to drive the growth of the market. Key players in the market are concerned with the various consumer needs, such as organic, fair trade, and premium instant coffee; the potential growth for this market is enormous owing to changing lifestyles and the popularization of global coffee culture.

KEY FINDINGS

COVID-19 IMPACT

Instant Coffee Industry Had a Positive Effect Due to Increased Demand for At-home Consumption during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The instant coffee market greatly benefited from the COVID-19 situation and its restrictions, such as lockdowns and social distancing, which boosted the number of people consuming coffee at home. When cafes and restaurants were shut down, consumers resorted to instant coffee due to convenience and it being cheaper than brewing new coffee. Some examples of new opportunities involved here are the constantly growing demand for coffee with the onset of remote working and stay-at-home culture. Also, instant coffee, in particular, implies comfort in times of market turmoil, which also stimulated growth. That change also contributed to the expansion of the market as the consumers also began buying instant coffee online. In general, pandemic has had positive effect for the instant coffee market and stimulated its growth.

LATEST TRENDS

Market growth is driven by premiumization, sustainability, convenience, and health-focused innovations

There have been emerging trends in the instant coffee market where many are moving up the value chain mainly to produce premium and specialty instant coffee to suit consumers who are looking for a better value for their products. The most apparent one is the differentiation of preferences toward different types of instant coffee, reflecting consumers’ concerns in the field of environmental protection and organic products consumption. Packaging has become another area of concern for brands as companies strive to provide packaging that is environmentally friendly, including biodegradable and recyclable materials that will attract the green buyer. There is also continued market focus on convenience in a cup and single-serve coffee pods and sachets, say consumers. However, there is an increase in the number of flavored instant coffee options directed towards the younger, more experimental coffee-drinking demographic. Other forces that define the market include special healthy elements such as added vitamins, low sugar content, etc.

• According to the Coffee Board of India, the nation’s coffee consumption increased by around 8%, reflecting a notable shift toward higher demand for instant coffee among urban consumers.
• As per a report from the United States Department of Agriculture, global coffee bean exports from major producing countries rose by approximately 6%, boosting supply for instant coffee manufacturers worldwide.

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INSTANT COFFEE MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Spray-drying & Freeze-drying

• Spray-drying: Spray-drying is one of the most commonly used processes for the preparation of an instant coffee product. This includes spraying the liquid coffee into a hot airstream chamber where the water in the extract evaporates fast, leaving behind fine coffee powder. It preserves almost all of the tastes of the coffee while considering both the affordability and practicality of the production process. Instant coffee through the spray-dried method is generally cheaper and the one used in preparing mass products.

• Freeze-drying: Freeze-drying is an even better method to save some of the aroma and taste of coffee: the liquid coffee extract is frozen and then water is removed from the coffee extract under vacuum. This method produces better instant coffee with a smooth flavor and aroma than the spray-dried coffee. Most of the freeze-dried coffee is usually marketed as a premium product because of its enhanced flavor preservation. It was also observed to have a higher shelf stability and is preferred by the consumer with regard to ‘true’ baked products’ taste.

By Sales Channel

Based on Sales Channel, the global market can be categorized into Supermarket & Online Sales

• Supermarket: A significant outlet of instant coffee is supermarkets, which give convenience to buyers. Currently, they stock many brands of instant coffee, both standard and luxury, to suit the variety of consumers’ needs. Promotion and sales coupons also encourage impulsive buying, a factor that makes supermarkets preferred destinations when buying coffee. Moreover, supermarkets remain an effective way of reaching mass market consumers who prefer conventional retail channels.

• Online Sales: Furthermore, in sales, the market share for instant coffee has increased because of the tendencies to use the internet and home deliveries. Purchasing brands, flavors, and sizes of their choice is now easier for most consumers, and they can do it all from the comfort of their homes. The widespread use of subscription services, as well as digital promotions, also produces an additional outlet for online sales. Thus, the Internet selling platforms are used by not only the traditional leaders of the instant coffee market but also the emerging brands.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factor

Convenience drives market growth among professionals and students globally

The instant coffee market has been experiencing a rise in demand due to one major factor: convenience. Instant coffee means that most people can get to take coffee whenever they want and do not need special apparatus to brew. With the increasing popularity of working from home and other mobile lifestyles, instant coffee is an easy solution to this problem. They liked this convenience, which makes it popular with the professionals and students.

• According to data from an official trade portal, instant coffee accounts for nearly 31% of total coffee preparations exported from India, highlighting strong export dependency on this segment.
• As per an industry association report, the jar packaging format contributes about 58% share of instant coffee packaging, showing consumers’ preference for convenient and resealable containers.

Premium instant product and sustainability drive market growth through quality innovations

The other factor contributing to the market growth is the growing market for premium instant coffee. Due to the changing palates of drinkers, there is demand for better quality instant coffee in terms of qualities like organic and specialty coffee. The Instant Coffee Market growth is driven by such factors as sustainability and health-conscious product selection, which call brands to upgrade their choice with premium products. High-quality options are increasing the size of the instant coffee market beyond just the types of traditional offerings.

Restraining Factor

Perceived inferior taste of instant product limits its market growth potential

The major limitation for the market for instant coffee is that many consumers consider instant coffee to be inferior in taste and quality to fresh coffee. Most coffee drinkers and regular consumers personally like freshly ground coffee as opposed to instant coffee. This perception hinders the utilization of instant coffee among those people with a keen preference for the authentic taste. Even though it is attempted to enhance this barrier through the development of new production methods and techniques, this barrier remains as the major constraint for the market.

• According to the United States Department of Agriculture, Robusta coffee production in key producing regions declined by around 4%, causing fluctuations in raw material supply for instant coffee producers.
• As per trade data, instant coffee exports recorded a moderate growth of only 4%, indicating slower momentum compared to other processed beverage categories.

Green-conscious consumers drive market growth through sustainable innovations

Opportunity

A microeconomic factor that may help the organization grow in the instant coffee market is the ever-increasing green consciousness of consumer’s needs. Having woken up to environmental consciousness, the brands get an opportunity to come up with biodegradable packaging and sourced coffee. Also, having organic and fair-trade-certified instant coffee makes it appealing to the healthy conscience consumers and Starbucks’ customers. This trend may push the market forward, especially when corporations aim to meet people’s expectations regarding their values. To get some insights, the instant coffee industry has a chance to target more sustainable consumers.

• According to an industry report, instant coffee holds strong potential as the unflavored segment alone contributes nearly 85% share, leaving room for flavored and specialty variants to expand.
• As per government trade statistics, coffee preparations — including instant varieties — make up about one-third (33%) of total coffee exports, representing a major opportunity for value-added instant products in global markets.

Competition from fresh product limits market growth despite convenience

Challenge

One of the major issues with the instant coffee market is serious competition from fresh coffee products. A huge number of consumers prefer freshly brewed coffee; this is attributed to its better and quality taste, thus restraining the expansion of the instant coffee market. Further, there is always the barrier that the instant coffee cannot taste as good or is not as good as the normal coffee. One important challenge in branding is that the taste and quality of products should be improved on a regular basis. Convenience versus true to flavor is still a factor that needs to be overcome if it is to grab a wider market share.

• According to trade authorities, the coffee export segment witnessed fluctuations of around 40% due to unstable raw material prices and logistics constraints, posing challenges for instant coffee manufacturers.
• As per industry assessments, approximately 30% of consumers still perceive instant coffee as lower quality compared to freshly brewed coffee, creating an image barrier for premiumization efforts.

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INSTANT COFFEE MARKET REGIONAL INSIGHTS

• North America

North America's market growth is driven by convenience preferences

North America holds the largest Instant Coffee Market Share due to the consumers’ increasing preference for convenience and quick coffee products. This growth is spurred by the rise of convenient consumption of coffee and beverages while on the move and data compiled from e-commerce platforms. Notably, the United States Instant Coffee Market is significant since people in the United States increasingly look for instant and premium coffee products. The increase in the number of people using remote work and numerous activities in the United States also increases the use of instant coffee products. Consequently, the United States continues to play the crucial role in maintaining dominance of North America in this market.

• Europe

Europe's market growth is driven by convenience and sustainability trends

Europe has a large share in the instant coffee market, as it has a good coffee-drinking tradition and a rather high coffee-drink’ consumption rate. Convenience is yet again a major driver, and with single-serve solutions now picking up, the trend is set to grow in the region. The market of instant coffee today is defined by prospective consumers in Germany, France, and the UK, who are interested in quality, premium, and environmentally friendly products. Europe’s demand is also raised by the trend to healthier products free of chemicals, organics, and environmentally sound products. Moreover, the robust retail and online sales experience increases the growth prospects of the market for instant coffee in the region.

• Asia

Asia's market growth is driven by urbanization and westernization trends

The instant coffee market is also an evidently growing market segment in Asia, mainly due to the increase in urbanization and the middle-class population. China, India, and Japan are showing signs that people require easily accessible coffee products due to high-demand consumer activities. Because it is cheaper than traditionally brewed coffee and ready for consumption as soon as it is made, instant coffee is more suitable for new frontier markets in the region. Secondly, the tendency toward a ‘westernization’ of the coffee market in terms of preference among young people is further promoting the market. Thus, Asia is emerging as a strategic market for domestic and global fast-moving instant coffee brands.

KEY INDUSTRY PLAYERS

Major players drive market growth through innovation, sustainability, and expansion

The major players in the instant coffee market, such as Nestlé, Starbucks, and Mondelez, are contributing to and affecting change in this space through innovations, product differentiation, and geographical expansion. They are continuously innovating new flavors, premium ranges, and sustainable packaging as they keep pace with changing consumer needs. In addition to these developments, they create exciting e-commerce channels and tie-ups with retailers to increase market penetration. Most importantly, it is the focus on sustainability, ethical sourcing, and health that is expected to reshape the market. By means of effective marketing and strategic alliances, these players are progressively driving global penetration of instant coffee, especially in emerging markets.

• Nestlé: According to company data, Nestlé holds about 25% share of the global instant coffee market, maintaining leadership through continuous product innovation.
• JDE Peet’s: As per industry estimates, JDE Peet’s captures roughly 17% share of the global instant coffee market, ranking second in the competitive landscape.

List of Top Instant Coffee Companies

• Nestle (Switzerland)
• JDE (Netherlands)
• The Kraft Heinz (U.S.)
• Tata Global Beverages (India)
• Unilever (U.K.)

KEY INDUSTRY DEVELOPMENT

August, 2023: A recent development in the market of industrial instant coffee was observed in when Tim Hortons introduced a new line of seasonal instant coffee products, including unique flavours like maple pumpkin cold brew soluble coffee. This is a product extension to the company’s growth strategy to expand its portfolio when responding to customer desire for seasonal coffee products. This is a factor we can see progressing across the globe as firms look to creatively satisfy consumers’ desire for expertise and prestige in coffee.

REPORT COVERAGE       

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.