Press release
Instant Coffee Market – Overview of Vital Industry Drivers
Coffee is a popular beverage on the global platform. Being the most popular beverage, this product is the second most traded commodity in the world after crude oil. On the other hand, Brazil, India, Chile, Argentina are the largest producer of coffee in the world. Ethnicity and culture plays a major role in the consumption of coffee on a global level. Since 1910, the popularity of instant coffee has also taken a steady growth in the market where people from the tea consuming nations are slowly getting acquainted to consume this beverage.
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There has been a positive change in lifestyle of people in developing nations, with youngsters heavily adopting the western culture. Countries like India, China, and a few Middle Eastern countries are seeing a transition to heavy consumption of coffee over tea. Consumers with life style seek beverages that can be easily prepared and are pocket-friendly as well. Instant coffee not only maintains the aroma and flavor of the drink but also gives a branded experience to consumers. The impact of this driver is medium in the short run and is expected to be high by the end of the forecast period.
Increasing competition in the global market is driving leading companies to undertake intensive research and development. In order to have a balanced product portfolio in the market, leading players like Starbucks and Nescafe are constantly innovating and trying to deliver a brand rich experience to consumers. The Fair Trade concept of producing coffee in underdeveloped countries is also adding to the competition in the global market.
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Global Instant Coffee Market: Geographical Analysis
The convenience of preparing the drink due to the ease in its availability has driven the market for this product heavily. Traditional coffee or whole bean coffee machines are usually implanted in most of the households of the major coffee drinking nations. On a recent research, UK has contributed to highest instant coffee consumption in the Western Europe. Instant coffee is easy to prepare and there is no hassle of disposing off the waste, as in the case of the filter coffee. Moreover, the introduction of instant coffee in the market by leading players such as Nestle, Jacobs Douwe Egberts and others are promoting the usage of sachets and jars that will be convenient in preparing coffee quickly.
Millennials are driven by convenience and quality products even in India and China, and they are ready to pay a higher price for a rich experience. However, Instant coffee faces a major setback due to the consumption pattern among the population in geographical regions such as North America, Western Europe and Latin America preferred filter coffee over instant coffee. Consumers in this countries prefer filter coffee because of their traditional habit of accepting coffee as a drink that has the true properties of it as a caffeinated beverage. Furthermore, the hassle of preparing filter coffee from the whole bean is hefty, but the original flavor and aroma lies in the espresso shot which comes from the coffee machines, usually installed in most of the households and other industrial areas in these countries. Due to these factors, the impact of this restraint is high currently and is expected to be medium by the end of the forecast period.
The global instant coffee market is segmented into two types of packaging- Jars and sachets. In terms of distribution channel the market segmented by B2B and retail. B2B distribution channel is further segmented by hotels, restaurant and others. Retail distribution channel is further segmented by online and offline. Offline retail distribution channel is segmented by departmental store, super and hyper market and others.
Global Instant Coffee Market: Competitive Landscape
In order to get a better understanding of the global instant coffee market, a key trends analysis has been included for all the segments. In addition, the market players in the instant coffee market have also been profiled. The leading players in the market include. Nestle S.A. (Vevey, Switzerland), Starbucks Corporation. (Seattle, Washington, U.S), Jacobs Douwe Egberts (DK Amsterdam, Netherlands), Strauss Group Ltd. (Petah Tikva, Israel), Matthew Algie & Company Ltd (London, U.K), The Kraft Heinz Company (Illinois, U.S.), Tata Global Beverages (Kolkata, West Bengal), Tchibo Coffee (Hamburg, Germany), Keurig Green Mountain.(Vermont, U.S.) and Unilever Plc. (London, U.K.) among others.
The global instant coffee market can be segmented as follows:-
By Distribution Channel
B2B
Hotel
Restaurant
Others
Retail
Online
Offline
Departmental Stores
Hyper and Super Market
Others
By Packaging Type
Jars
Sachets
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