Instant Coffee Market Thriving Worldwide by Top Players like Keurig Green Mountain Inc., Alpine Start Inc., Starbucks Corp, Nestle S.A., Tata Global Beverages Ltd., Unilever Plc, Tchibo Coffee International Ltd, Luigi Lavazza S.p.A., The J.M. Smucker Comp
Instant coffee is coffee powder that is produced by coffee beans that have been brewed at a higher ratio of coffee to water as compared to the regular coffee. In the production of instant coffee, there are two methods for drying coffee including spray drying and freeze-drying. In spray drying method, a spray device is used, in order to dry the coffee extract.
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Convenience is the major factor propelling growth of the instant coffee market, as it is easy to prepare as compared to fresh coffee. The fast paced lifestyles of consumers is fuelling demand for convenient food products, which in turn, is supporting market growth. Furthermore, the longer shelf life of instant coffee as compared to the bean or ground coffee, owing to its powdered texture, is another factor, aiding in the growth of the market.
Asia-Pacific market is expected to record the fastest growth during the forecast period, witnessing highest CAGR among all. Growing demand for instant coffee in China and India is majorly supporting the regional growth of the market. For instance, according to the United States Department of Agriculture (USDA), the export of soluble coffee (instant coffee) in India had increased from 1,667 thousand 60 kg bags during 2013-2014 to 1,833 thousand 60 kg bags during 2016-2017. In 2017, Starbucks announced to purchase more than 1300 stores in China, in a deal worth US$ 1.30 Bn, in order to cater the growing demand for coffee.
In 2016, Europe held the significant market share in the global instant coffee market. This is majorly attributed to the high consumption of coffee in the region. According to the International Coffee Organization (ICO), Europe recorded the highest consumption of coffee among all the regions during 2013 to 2017 and the total coffee consumption had increased from 50,179 thousand 60 kg bags during 2013-2014 to 51,693 thousand 60 kg bags in 2016-2017.
Key Players and Business Strategies:
The major companies operating in this market include Keurig Green Mountain Inc., Alpine Start Inc., Starbucks Corp, Nestle S.A., Tata Global Beverages Ltd., Unilever Plc, Tchibo Coffee International Ltd, Luigi Lavazza S.p.A., The J.M. Smucker Company and Strauss Holdings Ltd.
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Based on the packaging type, instant coffee market is segmented into:
Based on the distribution channel, instant coffee market is segmented into:
• Specialty Stores
• Department Stores
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