Keeping Robust: Global Trends in Instant Coffee

  • ID: 3927624
  • Report
  • Region: Global
  • 58 pages
  • Euromonitor International
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One third of the global coffee market, instant coffee continues to grow by appealing to new coffee consumers in the developing world, while it fights to stave off declining sales in Europe, North America and Australasia. The increasingly Asian orientation of the global market for instant coffee will have profound effects, including in the competitive landscape, where unquestioned global leader Nescafé is facing off against an assortment of small, localised rivals.

The Keeping Robust: Global Trends in Instant Coffee global briefing offers an insight into to the size and shape of the Hot Drinks market, highlights buzz topics, emerging geographies, categories and trends as well as pressing industry issues and white spaces. It identifies the leading companies and brands, offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change and criteria for success. The analysis can focus on both retail and foodservice.

Product coverage: Coffee, Other Hot Drinks, Tea.

Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?
- Get a detailed picture of the Hot Drinks market;
- Pinpoint growth sectors and identify factors driving change;
- Understand the competitive environment, the market’s major players and leading brands;
- Use five-year forecasts to assess how the market is predicted to develop.
Note: Product cover images may vary from those shown
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Keeping Robust: Global Trends in Instant Coffee

October 2016
Introduction
Global Overview
Competitive Landscape
Regional Highlights
Future Prospects
Note: Product cover images may vary from those shown
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One third of the global coffee market, instant coffee continues to grow by appealing to new coffee consumers in the developing world, while it fights to stave off declining sales in Europe, North America and Australasia. The increasingly Asian orientation of the global market for instant coffee will have profound effects, including in the competitive landscape, where unquestioned global leader Nescafé is facing off against an assortment of small, localised rivals.

Instant coffee is growing solidly thanks largely to Asian consumers:

In countries of the developed world, instant coffee is struggling because of pressure from fresh, while at the same time there are large populations in the developing world who are entering the coffee market for the first time and are turning to instant because it is inexpensive and easy to prepare. As a result of these consumers, many of whom are located in Asia, the global market will continue to grow for the foreseeable future.

Eastern Europe is losing its prominence in the global market:

With Russians increasingly drinking fresh coffee and economic woes besetting much of the region, Eastern Europe has already lost its spot as the top market by value and will soon lose the top spot by volume as well. While the nations of the Balkans are still seeing strong growth, their small size is not enough to compensate for the sales declines of big markets such as Russia and Ukraine. This poses a particular problem, for example, for JDE, which has a much higher share of the market here than anywhere else.

Premiumisation is the way forward in developed markets:

With high-end coffee shops and pod machines growing in popularity in North America, Western Europe and Australasia to the detriment of instant, the category’s best hope to turn things around will be to introduce some aspects of the “third wave” into its products. This may prove a tall task however, as many consumers now believe instant to be inherently low quality.

Lines are blurring with fresh coffee:

Producers looking to add value or win back defected instant drinks are adding more of the features of fresh coffee into instant. This includes micro-granulated blends to re-create the aroma and taste of fresh and increasing numbers of café-inspired instant blends that seek to mimic the coffee shop experience at home.

In most places, it is a battle of Nescafé versus everyone else:

With half of the world’s market, Nestlé is the unquestioned leader of the global market for instant. However, it faces new challenges to maintain top spot both from recently-formed global rival JDE, as well as a host of small companies that look to challenge Nestlé in individual markets where they can leverage their local knowledge against the global giant.
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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