Instant Coffee Powder Market Size, Share, Growth, And Industry Analysis, By Type (Freeze, Spray, Chicory), By Application (Foodservice, Retail), Regional Forecast To 2031

Updated On: 08 April 2024

Instant Coffee Powder Market Report Overview

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global instant coffee powder market size was USD 32482.66 million in 2021 and market is projected to touch 75780.89 Million by 2031, exhibiting a CAGR of 8.84% during the forecast period.

The market for instant coffee powder is rapidly growing and provides consumers with a convenient and economical means of preparing a delicious cup of coffee. Ideal for those who do not wish to go through the process of brewing or grinding the beans, the powder, usually available in sachets and jars, can easily be dissolved in hot water to create a beverage rich in antioxidants, caffeine, and energy. The instant coffee powder can be used for many applications, ranging from ingredients in recipes to just a simple hot beverage. It can be used in cappuccinos, mochas, espressos, or blended with other ingredients for a creatively delicious coffee experience.

On the whole, the instant coffee powder offers a professional, rich, and smooth coffee experience without the hassle of traditional coffee-making. As such, it is an excellent option for those seeking an easy-to-prepare, yet flavourful, a cup of coffee. The market for instant coffee powder is flourishing, with exponential growth over the past few years, and is expected to continue its upward trajectory in the coming years. This is due to its convenient usability, affordability, and availability, establishing it as a highly sought-after global commodity.

Furthermore, coffee connoisseurs are increasingly favoring coffee powder as it offers the same flavor and aroma of regular coffee in a convenient, take-away form. Plus, given its time-saving aspects compared to regular coffee brewing methods, instant coffee powder is also ideal for customers who require a quick coffee fix but do not have the luxury of spare time. Consequently, manufacturers have been investing significantly in researching and developing new and improved coffee powder for coffee lovers. All these factors have undoubtedly bolstered the instant coffee powder market share and made it one of the most profitable industries.

COVID-19 Impact: Pandemic Drastically Affects Instant Coffee Powder Market, Causing Struggles for Producers

The pandemic of COVID-19 has had an extensive effect across industries, and the instant coffee powder market has also been affected. In recent months, due to the implementation of travel bans and lockdowns worldwide as well as a decrease in global demand for food items, the demand for instant coffee powder has dropped. As a result, the instant coffee market is predicted to witness slow growth in comparison to the pre-COVID-19 times.

Fluctuations in the market have made it hard for producers to forecast the demand for their products, which has caused lower production and smaller profits for manufacturers. Consequently, smaller companies are struggling to stay competitive in such a volatile market. In the coming months, it is essential for market players to implement effective strategies in order to endure.

Latest Trends

"Instant Coffee Powder Market Explodes with Innovations and Emerging Trends"

The Instant Coffee Powder Market is among the most dynamic in the world, with emerging trends and innovations occurring regularly. Market analysis reveals that the instant coffee powder market growth is projected to rise sharply in the short term, driven by the heightened appeal for convenience and the changing dietary tastes of consumers.

Consequently, companies operating in this space are likely to focus on product development and line development, to make instant coffee powder more accessible to a larger consumer market. Novelties, such as additive-free coffee powders, flavored coffee infusions, freeze-dried coffee, and healthful coffee powders are quickly gaining appeal across the industry. Furthermore, new technologies are being developed and adopted to enhance the shelf-stability of instant coffee powder products.

Modern instant coffee powder products are undergoing essential changes to ensure the highest levels of product quality and maximum shelf life. Leading players in this market are utilizing advanced technologies such as e-packing and food-grade packaging, coupled with the addition of antioxidants and nutritional data, to ensure superior product performance. Moreover, the introduction of capsule-based products such as "3 in 1 Coffee" and "Instabyte Coffee", enables users to enjoy a hot cup of coffee within minutes. As a result, these developments not only enhance product quality and longevity but also impart a higher level of convenience for the modern consumer.

Instant Coffee Powder Market SEGMENTATION

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• By Type:

According to type, the market can be segmented into Freeze, Spray, Chicory

• By Application:

Based on application, the market can be divided into Foodservice, Retail

Driving Factors

"Instant Coffee Powder Gains Traction as Single-Serve Pods, Sachets, and Sticks Rise in Popularity"

The global instant coffee powder market is witnessing substantial growth in recent years due to the rising demand for convenience-oriented products, increasing disposable income, and surging population. The rise in health consciousness and awareness of healthy diets, coupled with the increasing awareness of the benefits of coffee, are among the key factors driving the market.

Moreover, the growing popularity of single-serve coffee pods, instant coffee sachets, and coffee sticks is further boosting the demand for instant coffee powder. The growing number of coffee shops, cafes, and restaurants, coupled with the increasing demand for specialty coffee, has further helped the market gain traction.

"Instant Coffee Powder Gaining Popularity Among Health-Conscious Millennials and Gen Z, Driving Market Growth"

The increasing trend of snacking and the growing popularity of instant coffee powder among health-conscious people are also aiding the growth of the market. The increasing popularity of instant coffee powder among millennials and Gen Z is also contributing to the growth of the market.

Furthermore, the rising demand for organic and natural products is anticipated to further propel the market in the near future. The rapid shift from ready-to-drink coffee to instant coffee powder, due to its convenience, is also expected to fuel the market growth.

Additionally, the rising trend of gifting coffee-related products and the increasing demand for cold brewed coffee are expected to provide lucrative opportunities for the instant coffee powder market. On the other hand, the high price of instant coffee powder and the availability of counterfeit products are some of the factors that are likely to hamper market growth.

Restraining Factors

"Market Struggles to Survive Amid Rising Costs, Evolving Consumer Preferences, and Growing Popularity of Gourmet Coffee"

The Instant Coffee Powder market has experienced steady growth in recent years, however, it is not without its challenges. As consumer preferences evolve and demand shifts toward specialty coffee and high-end beverages, the demand for instant coffee products has diminished significantly. Furthermore, the rising costs of raw materials, production, and distribution have caused prices to increase, thus reducing the market’s demand and success. Additionally, the increasing popularity of gourmet coffee and the development of other beverages such as the Starbucks Frappuccino have had a marked impact on the demand for instant coffee powder. As a result, the market continues to face a number of challenges that must be addressed in order to ensure its future success.

Moreover, the increasing levels of health consciousness among consumers have driven them to seek healthier, more natural options. Consequently, the demand for instant coffee powder has declined, as many consumers are opting for coffee that is less processed, free of additives, and naturally free of harmful components. This shift in preference has created an opportunity for producers to offer more nutritious options to gain a competitive advantage and reach a broad audience of health-conscious consumers.

Instant Coffee Powder Market Regional Insights

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"Europe Leads the Way in Market, with Germany, Spain and U.K. at the Forefront of Demand Growth"

The global instant coffee powder market is experiencing sustained growth, and one region which has stood out from the rest is Europe which holds the majority of instant coffee powder market share. Countries such as Germany, Spain, and the U.K. are leading the way when it comes to demand for the product. Looking ahead, Europe is expected to remain the top consumer and experience the fastest growth rate within the next five years. The expected expansion can be attributed to the region's high population density, higher disposable incomes, and rapidly increasing urbanization. Furthermore, the rise in income and wealth levels in Europe is projected to further boost the market.

The consumption of instant coffee powder is on the rise due to convenience, availability, and increasing health consciousness. Individuals with increasingly busy, on-the-go lifestyles are further contributing to the growing demand. Moreover, the increasing international coffee bean price, in combination with the rapid growth of coffee vending machines, is driving increased consumption of instant coffee.

Overall, it is expected that the Europe instant coffee powder market will be the largest and fastest-growing worldwide. The market share in the region is expected to significantly benefit from ongoing changes in consumer lifestyles and consumption patterns. In addition, new innovative product launches are likely to further bolster the region's market growth in the near future.

Key Players In The Market

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

The global instant coffee powder market has seen unprecedented growth in recent years, thanks to the growing demand for convenient and instant beverages. The rapid growth of the food service industry and increasing demand for both single-serve and pods have further boosted the market. As a result, key players in the instant coffee powder market are leveraging a wide range of techniques to gain a competitive edge over their counterparts.

These techniques are mainly split into two categories: promotional activities and product variants. Promotional activities involve offering discounts, initiating sweepstakes and special offers, delivering exceptional after-sales services, and leveraging various digital marketing platforms. Product variants may consist of different flavor profiles and package sizes to better cater to individual needs and preferences.

By leveraging these techniques, market players are able to create an advantage for themselves and gain a larger share of the market. As such, it is essential for businesses to stay ahead of the curve and stay abreast of the latest trends in the market, in order to remain competitive in the industry. The key players in the instant coffee powder market are striving to launch more varieties of products at competitive prices, and are focusing on developing unique blends to suit the tastes of global consumers.

Companies such as Nestle, Tata Global Beverages, Kraft Foods, Associated British Foods, and CIRKOPACK are engaging in intense competition, utilizing promotional activities and competitive pricing to gain a competitive edge. Additionally, they are leveraging novel product variants to capitalize on the demand for convenience and variety from consumers.

Key Players:

• Nestle
• Tata Global Beverages
• Kraft Foods
•  Associated British Foods
• CIRKOPACK

Report Coverage

This report examines an understanding of the Instant coffee powder market’s size, share, growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics.