Market Trends of Instant Coffee Industry
Growing Popularity of Single-Origin Coffee
Single-origin coffee is often associated with higher quality and distinct flavor profiles compared to blended coffee. As a result, instant coffee brands are responding by offering single-origin options to cater to the demand for higher-quality products. For example, in February 2023, Blue Bottle Coffee launched its small batch as the Nestl茅-owned brand aimed to deliver an ultra-special coffee. The new specialty coffee was claimed to be sourced from a region in Yemen known for its 7,500-foot elevations and dry climate. The offering was a part of Blue Bottle鈥檚 Exceedingly Rare program of single-origin coffees, often available in minuscule quantities. Moreover, as per market analysis, consumers nowadays are becoming more discerning about their coffee choices and are interested in learning about the origin and characteristics of their coffee. Therefore, platers offer single-origin coffee with transparency and a unique story behind each cup, appealing to consumers who value authenticity and traceability in their coffee experience. These factors are anticipated to provide a positive market outlook during the study period.
Asia-Pacific Dominates the Market
Although tea is a traditional beverage in China, instant coffee is becoming popular among consumers due to changing consumer taste preferences. Instant coffee is easier to make, store, and consume than other counterparts available in the market. This has led to increased consumption of coffee in China. For instance, according to the International Coffee Association, overall coffee consumption in China grew by 14% from 2022 to 2023. Moreover, online retailing of instant coffee products has significantly impacted the market share in India as emerging brands focus on marketing and retailing instant coffee in premium, flavored, and artisanal blends through different distribution channels. Furthermore, industry data indicates that adults and younger consumers are adopting coffee as an alternative to Japanese tea owing to an increased inclination toward Western culture. For instance, according to the Ministry of Finance, Japan's import volume of instant coffee increased from 10.45 thousand tons in 2019 to 12.59 thousand tons in 2022, reflecting a steady growth rate.
