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Commentary

Between Drinks

Demand for instant coffee on the rise, study shows

Younger generation influences global demand for instant coffee

By Lauren Sabetta, Managing Editor
Lauren Sabetta Between Drinks
March 16, 2023

Being an avid coffee enthusiast, I can say that I am one of those people who firmly believes that drinking at least a cup or two in the morning is crucial for starting my day. Having started my relationship with coffee as a teenager in high school, today, I still turn to brewing myself a fresh pot every morning, despite all of the more recent options offered, like ready-to-drink (RTD) options, cold brews, etc. 

Although I’ve never really turned to instant coffee for my coffee fix, interestingly, today’s younger generation is not only turning to options like cold brews, but also instant coffee to get their fix, influencing the global instant coffee market, according to a recent Fact.MR study.

“Growing urbanization and changing lifestyles are some pivotal factors influencing the demand for instant coffee, especially among youngsters, around the world. These new customers find instant coffee more attractive,” Fact.MR states. “Modernization is another significant factor, which is fueling the rising demand for instant coffee.”

Further, in its global market study, “Instant Coffee Market To Accumulate $69.2 Billion By 2033,” Fact.MR notes that the global instant coffee market is forecasted to expand at a compound annual growth rate (CAGR) of 5% during the forecast period 2023 to 2033.

Moreover, noting the increasing demand for in-home coffee consumption in developing economies, Fact.MR points to the convenience in preparation as a factor causing consumers to adopt instant coffee. 

“Coffee is consumed for reducing fat, increasing microbiome diversity, providing essential nutrients, and improving energy levels. Many people are addicted to coffee and need it to stay awake at work,” it states. “Thus, owing to the hectic work culture, organizations and places of work ensure easy access to instant coffee facilities for employees. Consumers also prefer to carry their coffee with them due to the rising trend of on-the-go food.” 

Some of the key takeaways from the Fact.MR study, are as follows:

  • The global instant coffee market is valued at $42.5 billion in 2023.
  • Demand for instant coffee is estimated to reach a market valuation of $69.2 billion by the end of 2033.
  • Sales of instant coffee are projected to increase at a CAGR of 5% from 2023 to 2033. 
  • Demand for instant coffee in Germany is forecasted to increase at a CAGR of 3.6%. 
  • Sales of instant coffee in Canada are projected to expand at a CAGR of 4% through 2033. 

Highlighting some of the prominent manufacturers of instant coffee, such as Starbucks Corp., The J.M. Smucker Co. and The Kraft Heinz Co., Fact.MR also notes that prominent market players now are involved in expanding their footprints overseas, introducing new products to enhance sales of instant coffee during the coming 10 years. 

With so much activity on the horizon, maybe I’ll trade in my coffee pot for some instant packets.


KEYWORDS: coffee sales consumer trends instant coffee

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Sabetta lauren

Lauren Sabetta, managing editor for Beverage Industry, writes for the magazine’s print and online components. She earned her Bachelor of Science in Communication, Journalism from Appalachian State University.

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