Instant Coffee Market Growth Analysis - Forecast Trends and Outlook (2025-2034)

The instant coffee market attained a value of USD 13.15 Billion in 2024. The industry is expected to grow at a CAGR of 4.90% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 21.22 Billion.

The instant coffee market is positively driven by the surging consumer preference for quick as well as easy-to-prepare beverages. With fast-paced lifestyles, instant coffee is offering a hassle-free alternative to traditional brewing. The increasing demand for single-serve packets and ready-to-drink options is further boosting this trend, especially in urban markets with the dominance of time-saving products. Tapping into this expanding coffee market, in February 2025, Nestlé disclosed plans of launching its Starbucks ready-to-drink coffee in India.

In Brazil, the world's second-largest coffee consumer, demand continues to rise steadily. According to industry data, the country recorded a 1.1% increase in domestic coffee consumption between November 2023 and October 2024, reaching 21.9 million 60-kg bags. This growth is reflective of broader changes in consumption habits, with instant and specialty coffee varieties gaining popularity across both metropolitan and semi-urban regions. The adoption of Western lifestyles increased international travel, and social media influence are accelerating the popularity of coffee culture in markets like India and China, where tea traditionally dominated. The emergence of coffee chains, cafes, and ready-to-drink coffee offerings has contributed to a cultural shift, making coffee a more socially embedded beverage.

The influx of supportive agricultural policies and trade agreements is impacting coffee production and pricing, further adding to the market growth. Several countries are benefitting from government initiatives promoting coffee exports and quality improvements. In July 2024, Brazil's Ministry of Agriculture allocated R$6.8 billion to support coffee growers through financing, commercialization, and acquisition of coffee beans. Favourable trade terms are also enabling producers in reaching global consumers with diverse instant coffee offerings.

Key Trends and Recent Developments

January 2025

Greek coffeehouse chain Coffee Island partnered with Indian franchise operator Vita Nova to introduce its European coffee culture to India by opening the first outlet in Gurgaon for offering specialty beverages, such as Spanish Bombon and Freddo Espresso Ristretto. The brand plans to expand to in Nepal, Bangladesh, and Sri Lanka.

July 2024

Blue Bottle Coffee introduced its NOLA Craft Instant Coffee Blend for offering a quick way to enjoy its New Orleans-style iced coffee at home. The blend of coffee, chicory, and sugar comes in sachets and is available online and at select international cafes in the United States, Japan, South Korea, and China.

January 2023

Tata Consumer Products launched its premium instant coffee, Tata Coffee Grand Premium, featuring flavour-locked decoction crystals designed to preserve the coffee's taste and aroma. The launch targeted consumers in non-South Indian markets, where pure coffee blends are preferred over chicory-based ones.

July 2022

Brooklyn-based small-batch roaster Partners Coffee introduced a specialty instant coffee to preserve the rich flavours of its signature blends, including Brooklyn, Jumpstart, and El Ramo through a meticulous brewing and dehydration process. This innovation catered to coffee enthusiasts seeking premium taste without the wait.

Innovation in Flavors and Formats

The growing focus of manufacturers on introducing new flavours as well as functional blends with added vitamins and adaptogens for attracting diverse consumer tastes is boosting the instant coffee industry. For instance, in May 2025, NesilCoffee expanded its product range with three new instant coffee flavours, such as hazelnut, pistachio and pumpkin to meet the surging popularity in the Middle East. Additionally, spray-dried powders, freeze-dried granules and sachets are evolving to improve solubility and taste.

Rise of Premium and Specialty Instant Coffees

The surging consumer willingness to pay for premium products that emphasize origin, roasting methods, and sustainability is increasing the instant coffee market share. Supporting this trend, in January 2022, leading DTC coffee brand Sleepy Owl launched its premium instant coffee for expanding its product portfolio. The third wave coffee movement is also influencing the product popularity, with brands including Starbucks VIA and Blue Bottle offering high-quality instant blends. This trend is further tapping into the surging interest of consumers in gourmet experiences in instant form.

Sustainability and Ethical Sourcing

Environmental concerns are pushing manufacturers in the instant coffee industry to adopt sustainable sourcing practices and transparent supply chains. For instance, in March 2023, Volcafe launched its Responsible Sourcing programme with Verified and Excellence labels for promoting sustainability and accountability in global coffee sourcing. Certifications are also becoming standard in attracting eco-conscious consumers. Major companies are focusing on sustainability commitments, further investing in farmer welfare while reducing the carbon footprints in production.

Technological Advances in Processing

Advancements in freeze-drying and spray-drying for improving aroma and flavour retention while enhancing consumer acceptance is impacting the instant coffee market outlook. Innovations in packaging and the higher usage of resealable containers are also helping to extend shelf life and maintain freshness. In March 2025, India’s Coffee Board unveiled premium GI-tagged single-serve coffee drip bags for strengthening the domestic consumption of pure coffee across the country, adding to the market growth.

Impact of E-commerce Growth

The surge in online sales due to greater internet penetration and changing buying behaviours is propelling the instant coffee market value. As per industry reports, the number of internet users across the world stood at 5.44 billion in 2024, highlighting the vast potential customer base engaging in digital commerce. Online marketplaces are also offering an extensive range of instant coffee brands, from premium to budget-friendly options. Digital marketing, influencer campaigns, and social media are also playing a crucial role in increasing awareness and trial of instant coffee products.

Instant Coffee Industry Segmentation

The report titled “Instant Coffee Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Packaging

• Jar
• Pouch
• Sachet
• Others

Key Insight: The jar segment leads the instant coffee market due to its widespread acceptance, value-for-money appeal, and household suitability. Typically sold in glass or plastic jars, this format allows consumers to scoop desired quantities while preserving aroma with air-tight seals. These jars offer cost efficiency and convenience, especially for families or offices with frequent consumption. The premium look of glass jars further enhances shelf appeal, reinforcing brand perception. In May 2025, Continental Coffee expanded its premium brand, Continental Spéciale, with four new flavoured instant variants in 50g jars, available online and offline across India, further driving the segment growth.

Market Breakup by Product Type

• Spray Dried
• Freeze Dried

Key Insight: Spray-dried instant coffee market value is growing due to its cost-effectiveness and wide availability. This process is economical and suitable for mass production, making it ideal for budget-conscious consumers and institutional use. Several brands are predominantly offering spray-dried products for catering to daily coffee drinkers across the rural markets. In June 2025, Vintage Coffee Private Limited launched its new Natural Liquid Coffee to expand current offerings of spray-dried solutions. Furthermore, spray-dried variants dominate due to their affordability, extended shelf life, and appeal in price-sensitive regions.

Market Breakup by Distribution Channel

• Business-to-Business
• Supermarkets and Hypermarkets
• Independent Retailers
• Departmental Stores
• Online
• Others

Key Insight: Supermarkets and hypermarkets are major distribution channels of the instant coffee market as they offer a wide range of brands and packaging formats under one roof. With extensive shelf space, discounts, and visibility, these stores are the go-to option for consumers buying in bulk or for household use. In May 2024, premium coffee pioneer NESPRESSO entered in Indian supermarkets to serve domestic and professional consumers. The organized retail structure enables strategic product placements and in-store promotions, driving volume sales. These outlets also serve urban and suburban customers while ensuring convenience, competitive pricing, and consistent product availability across demographic segments.

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Key Insight: Asia Pacific instant coffee market size is driven by rising urbanization, changing lifestyles, and the growing middle-class population. According to industry reports, Asia's total urban population is likely to surpass 2.6 billion in 2030. India, China, Japan, and South Korea are witnessing increased demand for convenient, ready-to-drink coffee products. The region also records strong e-commerce growth, making instant coffee widely accessible. Local and global brands are also continuing to invest heavily in new flavours, packaging, and retail strategies to expand their market share.

Instant Coffee Market Share

Rising Demand for Instant Coffee Pouch & Sachets

The pouch segment occupies a significant share in the instant coffee industry as it balances affordability and portability. Leading brands are offering pouch refills for targeting budget-conscious and brand-loyal consumers. Supporting this trend, in March 2023, Nescafé introduced refill pouches for its instant coffee products. Furthermore, pouch packaging has grown especially popular in price-sensitive markets, such as India and Southeast Asia, contributing steadily to overall market share.

Sachets represent another leading segment of the instant coffee market given their convenience and accessibility. Ideal for single-use and on-the-go consumption, sachets cater to travellers, students, and office goers. This packaging is strategically important for penetrating rural areas and first-time users due to low unit prices. Additionally, sachets enable trial purchases, helping brands build loyalty over time. The utility and portability of sachets also make them a critical component of market outreach and brand expansion strategies.

Freeze-dried Instant Coffee to Record High Preference

The freeze-dried segment of the instant coffee market is expanding rapidly for offering superior aroma and flavour retention. Though expensive, freeze-dried coffee appeals to discerning consumers seeking café-like quality at home, driving innovations and expansion. For instance, in March 2025, NesilCoffee launched a major freeze-dried coffee facility in Turkmenistan for offering premium coffee products and beverages across online and offline retail channels. The segment is further gaining traction among urban and health-conscious buyers looking for high-end coffee experiences.

Thriving Instant Coffee Sales through Online & Independent Retailers

The online segment of the instant coffee market has emerged as a powerful and fast-growing channel for sales, especially in urban centres and among tech-savvy consumers seeking convenience, variety, and curated shopping experiences. Leading platforms are offering vast product selections, doorstep delivery, and user reviews to guide purchases, favouring the segment growth. Driving this trend, in January 2025, Swiggy partnered with Blue Tokai to deliver freshly brewed coffee in 15 minutes via SNACC, its quick-commerce platform.

Independent retailers, such as local grocery shops and convenience stores, are playing a key role in the instant coffee market, particularly in semi-urban and rural areas. These stores primarily stock cost-effective, high-turnover brands for catering to daily consumption needs. Independent retailers are also deeply embedded in community networks and rely on strong distributor relationships. Accessibility, familiarity, and credit-based purchasing options are also making the segment indispensable in emerging markets, such as India and Southeast Asia.

Instant Coffee Market Regional Analysis

Magnifying Instant Coffee Consumption in Europe & North America

Europe holds a massive share of the instant coffee market, driven by high per capita coffee consumption and the strong preference for quick yet quality brews, mainly in the United Kingdom, Germany, and Russia. As per industry reports, Europe recorded 30.4% of the worldwide coffee consumption, amounting to 3.2 million tonnes, in 2023/2024. This rise is urging regional consumers to favour sustainability, prompting companies to launch ethically sourced and eco-packaged products. Instant coffee is especially popular for at-home and office use due to its speed and convenience.

North America, particularly the United States and Canada, contribute to the instant coffee industry due to the rising interest in fresh-brewed and specialty coffees. Brands including Starbucks VIA and Blue Bottle NOLA Craft Instant are targeting premium niches by offering high-quality, specialty-style instant options. Additionally, single-serve sachets and on-the-go formats are gaining popularity among busy consumers. Innovation and premiumization efforts are further helping instant coffee in carving a more defined space in the North American beverage landscape.

Competitive Landscape

Key players in the instant coffee market are employing strategies that focus on innovation, branding, and market expansion. Product innovation is assisting companies in developing premium blends, single-origin options, and flavoured variants to attract discerning consumers. Sustainability has grown increasingly important as leading brands are adopting eco-friendly packaging and ethical sourcing of coffee beans to appeal to environmentally conscious buyers. Market players are investing heavily in branding and marketing by leveraging social media and influencer partnerships to build customer loyalty.

Convenience remains a critical selling point, with companies introducing ready-to-drink formats and single-serve sachets catering to on-the-go lifestyles. Geographic expansion is another major strategy, particularly in emerging markets like Asia-Pacific and Latin America, where coffee consumption is rising. Strategic partnerships with local distributors and e-commerce platforms help strengthen distribution channels and enhance accessibility. Additionally, companies are emphasising pricing strategies to cater to a broad consumer base for offering both budget and premium product lines. Some players are further exploring digital transformation via data analytics to tailor offerings and predict demand.

Nestlé

Founded in 1866, Nestlé is headquartered in Vevey, Switzerland and offers a wide range of food and beverage products, including its well-known Nescafé line of instant coffees. Nestlé focuses on nutrition, health, and wellness, and it maintains a strong global presence with operations in over 180 countries.

Starbucks Corporation

Founded in 1971, Starbucks Corporation is headquartered in Seattle, the United States. Best known for its specialty coffeehouses, Starbucks offers instant coffee options under its VIA brand. The company provides a broad portfolio, including brewed beverages, teas, snacks, and retail coffee products available in grocery and online channels worldwide.

Kraft Foods

Kraft Foods, originally founded in 1903, became part of the Kraft Heinz Company in 2015, with joint headquarters in Chicago and Pittsburgh, the United States. The company offers a diverse selection of food and beverage items, including instant coffee under the Maxwell House brand, targeting both convenience and affordability for mass-market consumers.

Tata Consumer Products Limited

Tata Consumer Products Limited, headquartered in Mumbai, India, was founded in 1962. The company operates in the beverages and food sectors for offering popular instant coffee products under the Tata Coffee Grand label whilst combining local insights with global reach as a part of the larger Tata Group conglomerate.

Other players in the instant coffee market are Tchibo Coffee International Ltd, Strauss Group, Jacobs Douwe Egberts, Matthew Algie & Company Ltd, and Kraft Foods Inc., among others.

Key Features of the Instant Coffee Market Report

• Detailed quantitative analysis of market size, share, and future growth trends.
• Regional insights highlighting key markets and emerging opportunities worldwide.
• Comprehensive segmentation by product type, distribution channel, and packaging format.
• Competitive landscape with profiles of leading instant coffee market players.
• Supply chain analysis and evaluation of raw material trends and pricing.
• Consumer behaviour insights and demand patterns across different demographics.

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