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. The device transfers the hot air into the container and converts the product into fine powder. Further, in freeze drying method, the coffee extract is freeze at approximately -40 degree Celsius and then, the ice particles are treated separately in evaporation and drying chambers to produce instant coffee flakes.
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The instant coffee market is segmented on the basis of type, packaging, distribution channel, and geography. By packaging the market is segmented into spray-drying and freeze-drying. By packaging the market is classified into jar, pouch, sachet, and others. By distribution channel the market is divided into business-to-business, supermarkets & hypermarkets, independent retailers, departmental stores, and others. By geography it has been analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Some of the major market players that are operating in the world market for instant coffee are focusing on product innovation and are involving various acquisitions and mergers so as to expand their global presence. Some of the market players that are now dominating the world market are Keurig Green Mountain, Starbucks Corp., Tata Global Beverages, Tchibo coffee, Jacobs DouweEgberts, Matthew Algie& Co. Ltd., Nestlé S.A., The Kraft Heinz Co., Strauss Group Ltd., and Unilever Plc.
The world market for instant coffee stood at an initial market valuation of around US$ 28120 Million in the year 2016. This market valuation is anticipated to reach an overall valuation of around US$ 42500 Million by the end of the year 2025. This growth of the world market for instant coffee is projected to be achieved with the assistance of a sound CAGR of 4.8% over the course of the given forecast period that extends from the year 2017 to 2025.
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Consumption Pattern to Fuel Market Growth
Instant coffee has become quite popular amongst the common people due to rising urbanization and economic growth. This comes down to the fact that people have more money to spend and also they prefer instant beverages as opposed to those that have waiting time.
Ever evolving lifestyle and consumption patterns across the globe has been one of the driving factors for augmented demand for instant coffee. Easy preparation of instant coffee and its ready availability in a wide variety of flavors and formats are a few of the major driving factors for the growth of international instant coffee market. Furthermore, instant coffee comes with a higher shelf life due to its powdered texture and that makes it more commercial and popular amongst the vendors. Many of the popular instant coffee brands are advertising their specialty instant coffees which have resulted in the boost of world instant coffee market.
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