Instant Coffee Market Size, Share, Growth Analysis, By Type(Spray-Dried and Freeze-Dried), By Packaging Type(Sachets and Jars) - Industry Forecast 2024-2031

Instant Coffee Market size was valued at USD 13.5 Billion in 2022 and is poised to grow from USD 14.22 Billion in 2023 to USD 21.49 Billion by 2031, at a CAGR of 5.30% during the forecast period (2024-2031).

The instant coffee market is highly fragmented, with the presence of a large number of regional and international players. The market is highly competitive due to the low entry barriers, with many new players entering the market. The market players are focusing on product innovation, improving quality, and expanding their distribution channels to gain a competitive edge. The players are also involved in partnerships and collaborations to expand their market presence. The increasing demand for organic and sustainable coffee products is providing new growth opportunities for the market players. 'Nestle S.A. (Switzerland)', 'The J.M. Smucker Company (US)', 'Keurig Dr Pepper Inc. (US)', 'Strauss Group Ltd. (Israel)', 'Tata Consumer Products Ltd. (India)', 'Starbucks Corporation (US)', 'Tchibo Coffee International Ltd. (Germany)', 'Luigi Lavazza S.p.A. (Italy)', 'The Kraft Heinz Company (US)', 'Strauss Coffee B.V. (Netherlands)', 'Dunkin' Brands Group, Inc. (US)', 'Jacobs Douwe Egberts B.V. (Netherlands)', 'Matthew Algie & Company Ltd. (UK)', 'Unilever PLC (UK)', 'Vinacafe Bien Hoa Joint Stock Company (Vietnam)', 'The Coca-Cola Company (US)', 'Strauss Cafe Israel Ltd. (Israel)', 'Farmer Bros. Co. (US)', 'Trung Nguyen Group Corp. (Vietnam)', 'Illycaffè S.p.A. (Italy)'

The primary driver behind the growth of the instant coffee market is the convenience it offers to consumers, enabling them to prepare a cup of coffee quickly and easily. Busy lifestyles and the need for on-the-go consumption of food and beverages have fueled the demand for instant coffee. Compared to traditional brewed coffee, instant coffee requires less preparation time and effort, making it an ideal choice for consumers who are always on the move. This convenience factor is expected to continue to drive the growth of the instant coffee market in the coming years.

The major trend witnessed in the instant coffee market is growing preference for instant coffee in the non-coffee drinking regions, owing to its convenience, low cost, and benefits such as it helps to reduce the stress level and boost the brain functioning. The regions such as Middle East and emerging economies of the Asia Pacific region are witnessing strong growth for the instant coffee market. Increasing urbanization and growing disposable income are some key factors driving the market growth in these regions.

North America dominated the instant coffee market. The region's growth can be attributed to the rising demand for convenient and ready-to-drink coffee products. The US is the largest market for instant coffee in North America, accounting for the majority of the region's consumption. Canada is also a significant contributor to the growth of the instant coffee market in North America.