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Global Instant Coffee Market: Retail Stores to Remain Most Preferred Distribution Channel, states TMR

Posted on Mar 17, 2017

According to a new research study by Transparency Market Research (TMR), the global instant coffee market demonstrates a highly consolidated competitive landscape. In 2016, the top five players, namely, Nestlé S.A., Starbucks Corp., Jacobs Douwe Egberts, Unilever Plc., and Tata Global Beverages, collectively accounted for more than 90% of the overall market.

Over the coming years, the market is likely to witness a substantial increase in the rivalry between the leading participants, fueled by their rising involvement into mergers, acquisitions, and partnerships for their geographical expansion and better visibility, states the report.

As per TMR’s estimations, the overall opportunity in the global market for instant coffee was worth US$28.12 bn in 2016. Rising at a CAGR of 4.80% during the period from 2017 to 2025, the market is likely to reach US$42.5 bn by the end of the forecast period. Retail stores are the most preferred distribution channel for the sales of instant coffee and are expected to continue like this over the forthcoming years.

instant coffee market

Increase in Preference of Consumers for Instant Coffee to Ensure Asia Pacific’s Lead

The research report also provides a comprehensive study of the geographical spread of the worldwide market for instant coffee. Latin America, North America, Asia Pacific, the Middle East and Africa, Western Europe, and the Rest of the Europe have been considered as the key geographical segments of this market in this study. In 2016, Asia Pacific dominated the global market with a share of nearly 36%. Analysts expect this regional market to remain on top throughout the forecast period, thanks to the increasing preference of consumers for instant coffee, especially in China and India.

The demand for instant coffee in the Rest of Europe is also increasing at a steady rate. Especially in Poland, Russia, and Bulgaria, the rate of demand is quite high and is projected to keep on increasing in the near future. Amongst others, North America, on account of a higher preference for filter coffee, is likely to experience sluggish growth in its market for instant coffee over the next few years. The Middle East and Africa, on the other hand, will show a healthy progress in the uptake of instant coffee, upgrading its market in the years to come, notes the research study.

Changing Lifestyle of Consumers to Influence Demand for Instant Coffee

“The changing lifestyle of consumers, especially younger ones vigorously conforming .o western culture, is having a significant impact on the uptake of instant coffee, reflecting greatly on its sales,” states the author of this research study. The shift in consumer preference from tea to coffee, particularly in emerging economies, such as India, China, Ukraine, and several Middle Eastern countries is, consequently, boosting the market for instant coffee considerably across the world.

Consumers, nowadays, are ever busy with their fast-paced lives and are seeking beverages that can be prepared easily in less time with no fuss. Instant coffee provides these comforts to consumers without being tough on pockets. This, as a result, has led to a rocketing demand for instant coffee across the world and the scenario is not expected to change anytime soon in the future.

Apart from this, the rise in awareness level pertaining to the harmful effects of aerated drinks is projected to fuel the consumption of instant coffee over the forthcoming years. However, the growing concerns regarding the usage of acrylamide in instant coffee, which is injurious to human health is anticipated to hamper the growth of this market in the years to come.

The study presented here is based on a report by Transparency Market Research (TMR), titled “Instant Coffee Market (Distribution Channel - B2B (Hotels and Restaurants) and Retail (Online and Offline); Packaging Type - Jars and Sachets) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 - 2025.

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

By Geography

  • North America
    • U.S.
    • Rest of North America
  • Western Europe
    • U.K.
    • Germany
    • France
    • Netherland
    • Rest of Western Europe
  • Rest of Europe
    • Russia
    • Poland
    • Bulgaria
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • Rest of APAC
  • Middle East and Africa
    • UAE
    • South Africa
    • Rest of Middle East and Africa
  • Latin America
    • Brazil
    • Rest of Latin America

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Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.

Each TMR syndicated research report covers a different sector - such as pharmaceuticals, chemicals, energy, food & beverages, semiconductors, med-devices, consumer goods and technology. These reports provide in-depth analysis and deep segmentation to possible micro levels. With wider scope and stratified research methodology, TMR’s syndicated reports strive to provide clients to serve their overall research requirement.

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