DUBLIN, April 15, 2022--(BUSINESS WIRE)--The "Instant Coffee Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" report has been added to ResearchAndMarkets.com's offering.

The global instant coffee market is projected to grow at a CAGR of 5.28% during the forecast period (2022-2027).

The impact of the COVID-19 lockdown on the instant coffee market was significant in the first quarter of 2020 but it gradually lessens in the subsequent quarters with limited impact on full-year growth.

During the lockdown, while institutional sales suffered due to closed offices and public places, domestic consumption witnessed strong growth by the companies. Also, the current trend toward online shopping for at-home consumption, on the other hand, is forcing retailers, roasters, and consumers to adapt to this new reality.

As a result, this factor is expected to increase global coffee consumption. Nestle SA, for example, reported strong retail demand for food and beverage products around the world, achieving 4.4 percent organic group sales growth in the first quarter of 2020. Coffee sales were especially strong as people stockpiled essential items during the pandemic.

The middle-class population in developing countries has a huge demand for in-home coffee consumption. Convenience in food habits in general and coffee consumption, in particular, is gravitating consumers towards instant coffee.

The versatility of the product to different consumer tastes and preferences as well as because of its adaptability to be distributed through a wide range of distribution channels to aid in-home consumption has been supporting this market growth.

Increasing Demand for Flavored Coffee

The increased focus on unique, authentic flavors and various functional properties of coffee has aided in the premiumization of the instant coffee market. Multinational players and local craft brands are putting more emphasis on designing authentic flavors for instant coffee.

Flavors that meet localized taste preferences are increasingly being adopted by companies. There is a steady demand for flavored coffees in United States. According to Daymon/ Mintel survey in United States in 2020, 47% of people showed interest on Vanilla flavored coffee, followed by Mocha coffee with 43% and 25% of the last 5 coffee packages purchased among retailers is flavored.

14% of retail single serve capsule consumers said the availability of flavors is an important consideration while selecting a coffee brand. From the supply point of view, companies are increasingly focusing on procuring coffee ingredients to help consumers simmer up the brew that is just right for them. Thus, flavored coffee is likely to gain prominence in the market during the forecast period.

Asia-Pacific to Drive Market Growth

Asia-Pacific is set for robust market growth over the forecast period. Many countries in the Asia-Pacific region have been traditional consumers of tea but the increased penetration of instant coffee in markets such as India has boosted the overall sales of the coffee category. Also, coffee has become a part of the culture in Mainland China. China provides a strong opportunity for the major instant coffee retailers, as the country has witnessed a shift in preferences, citing the millennial consumption patterns.

Japan is the fifth largest importer of coffee and coffee products. As per International Coffee Organization In 2020-21, Japan imported 6751 bags ( in thousand 60 kgs) of green coffee beans.Similar to imports, Japan consumed 7479 bags ( in thousand 60 kgs bags) in 2021. the average per capita consumption of green beans is projected at 2kg in 2020, which is indicative of Japan's potential in retaining its position as the biggest market in South-East Asia.

Coffee is popular among Australians as well. Consumers in the country have a wide variety of preferences for the coffee that they consume. The companies are expanding their footprints in the market with new and innovative product launches, in order to strengthen their presence in the region.

The Global instant coffee market is consolidated with the top international players holding significant share in the global market. Nestle SA is one of the leader in the instant coffee market with its brand Nescafe.

In many regions across the world, all other brands put together occupy a significant market share, which is equal or slightly less than Nescafe.

Key players operating the instant coffee market include Nestle SA, Starbucks Corporation, Kraft Foods Inc., Tata Consumer Products Ltd, Unilever Plc. among others. These companies are actively investing in online distribution channels, targeting consumers who seek convenience. Thus, the key players are embarking on forming strategic partnerships with online portals, as one of their key strategies is to achieve consolidation and cater to the demands of consumers across various demographics.

For more information about this report visit https://www.researchandmarkets.com/r/tzb0dx

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