The global instant coffee market size was valued at USD 61.7 billion in 2020 and is expected to grow at a CAGR of 6.1% from 2021 to 2028. Changing the consumption pattern of consumers is the main driving factor of the market. Instant coffee has become quite popular among consumers owing to rapid urbanization and economic growth. Due to the hectic lifestyle, most people prefer to consume Ready-to-Eat and Drink (RTE and RTD) products, such as instant coffee that can be consumed just by adding hot water. In addition, the low prices of instant coffee have increased sales, which, in turn, is driving the growth of the market. The rising number of coffee shops, restaurants, and café is also boosting the product demand. Major companies are focusing on increasing their market share and providing more options to resonate with customers and meet their rising demand.
Moreover, instant coffee offers several health benefits, such as improved brain function, increased metabolism, fat burning, and reduced risk of various diseases. Some of the advantages of instant coffee over coffee beans are lower shipping weight & volume and longer shelf life. The COVID-19 pandemic has had a substantial influence on businesses as well as humans. The governments of various countries had imposed restrictions, such as social distancing and lockdowns.
In the short term, out-of-home consumption is declined considerably as a growing number of countries implemented a full or partial lockdown. Moreover, offices, restaurants, and coffee shops remain closed to minimize the spread of the COVID-19. On the other hand, supermarket- and retail-level information suggests that panic-purchasing and storing has led to high demand in some of the countries. However, as the services and businesses are resuming, the market is expected to recover in the future.
The soluble coffee specialties segment dominated the market and accounted for a revenue share of more than 63% in 2020. It is also expected to grow at the fastest CAGR of 6.3% from 2021 to 2028. This is attributed to the increasing number of restaurants and coffee shops. In addition, changing lifestyles and growing consumer disposable income levels are driving the segment growth.
The soluble coffee segment is expected to witness the second-fastest CAGR of more than 5.5% from 2021 to 2028. Because of the various health benefits of soluble coffee, it is mostly used for home consumption. In addition, it is easy to prepare as compared to soluble coffee specialty. Thus, the segment is expected to have promising growth in the market.
The offline distribution channel segment accounted for the largest revenue share of more than 79% in 2020. Offline channels include specialty stores, departmental stores, wholesalers, hypermarket/supermarkets, etc. These stores provide a choice of physical verification and trials & facility of products to the end users, which drives product sales through these offline channels. Moreover, rapid urbanization and industrialization in the developing nations have led to increased penetration of the retail sector and offline distribution network, which contributes to the segment growth.
On the other hand, the online segment is expected to register the fastest CAGR of 6.9% from 2021 to 2028. With the rising number of smartphone users, time spent on the internet has increased, which has enhanced the growth of online platforms. Moreover, the benefits of online distribution channels, such as doorstep delivery, discounts on product prices, cashback offers, and so on, boost the product sales through these channels. Furthermore, the expansion of online retail giant, Amazon, across different regions with the emergence of new online retailers and company-owned online shopping websites is likely to drive the segment growth in the coming years.
The commercial application segment contributed to the largest revenue share of more than 69% in 2020. This is attributed to the changing lifestyle, habits, and increased income of consumers, which is driving the demand for instant coffee at commercial places, such as cafes, restaurants, and office spaces, is growing.
The residential application segment is expected to register the second-fastest CAGR from 2021 to 2028. This growth is credited to the rising demand in households due to various benefits offered by the product. Moreover, due to the hectic lifestyle, most people prefer RTD beverages products, such as instant coffee, which can be consumed just by adding hot water. This also drives the product demand in the residential application segment.
Asia Pacific is estimated to be the fastest-growing regional market at a CAGR of 6.4% from 2021 to 2028. This can be attributed to the increasing product demand and significant growth of the beverages industry in Asia Pacific. In addition, changing lifestyles and rapid urbanization are other key factors driving the instant coffee trend in the region, which is noticeable mainly in the younger generation. China, Japan, and India are the key contributors to the APAC regional market growth.
Moreover, major manufacturers are expanding their businesses in this region due to growth higher growth potential. Europe accounted for the maximum revenue share of the global market in 2020. This was credited to the comfort given to the consumers of various scales and the accessibility of instant coffee across different distribution channels. Well-developed countries, such as Germany, Italy, and France, are the major consumers in the Europe regional market.
The global market is characterized by the presence of global and several small- & medium-scale regional players. The key manufacturers operating in this market are focusing on product innovation and are involved in various business strategies, such as mergers and acquisitions, to expand their global presence. Most of the manufacturers are introducing new flavors in their products, such as cardamom, French vanilla, and chocolate caramel, to attract more consumers. Some of the prominent players in the global instant coffee market include:
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Report Attribute |
Details |
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Market size value in 2020 |
USD 65.17 Billion |
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Revenue forecast in 2028 |
USD 98.67 Billion |
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Growth rate |
CAGR of 6.1% from 2021 to 2028 |
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Base year for estimation |
2020 |
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Historical data |
2017 - 2019 |
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Forecast period |
2021 - 2028 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2021 to 2028 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Type, distribution channel,application, and region |
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Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
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Country scope |
U.S.;Germany;Italy; France.;China;Japan; Brazil;Colombia; South Africa |
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Key companies profiled |
Nestle S.A.; Starbucks Corp.; Jacobs Douwe Egberts; Unilever Plc.; Strauss Group Ltd.; The Kraft Heinz Company; Tata Global Beverages Ltd.; Keurig Green Mountain, Inc.; The J. M. Smucker Company; Power Root (M) Sdn. Bhd. |
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Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope. |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Million Insights has segmented the global instant coffee market report on the basis of type, distribution channel, application, and region:
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