Europe Instant Coffee Market By Packaging Type (Jars And Sachets), By Distribution Channel (B2B And Retail Channels), By Coffee Type (Spray Dried And Freeze Dried) and By Country (UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic and Rest of Europe) – Size, Share, Trends, Growth, Forecast (2024 to 2029)

Updated On: January, 2024
ID: 3611
Pages: 145

Europe Instant Coffee Market Growth and Forecast (2023 - 2028):

The Europe Instant Coffee Market was worth USD 8.01 billion in 2022 and foreseen to be developing at a compound annual growth rate of 6.3% to arrive at USD 10.27 billion by 2028.

Market Overview:

Instant coffee is a coffee powder produced from coffee beans extracted with a higher ratio of coffee to water compared to regular coffee. Instant coffee is coffee powder or water soluble coffee made from coffee beans. One can make a cup of coffee by stirring instant coffee in hot water. Instant coffee has become an integral part of most of the Europeans with the sedentary lifestyle and hectic work life. The on-the-go trend in the area has encouraged several companies to introduce different varieties. While fresh coffee is having an impact on the global coffee industry, instant coffee is gaining importance around the world due to its simple and fast manufacturing method. Instant coffee is produced by spray drying and lyophilization methods. Both methods preserve the quality, aroma and flavor of the coffee. Some of the advantages of instant coffee are that it has a lower weight and shipping volume than coffee beans and has a longer shelf life. It has been used for many years. The popularity of instant coffee these days has led to the transition from traditional coffee to instant coffee. With the growing acceptance of instant coffee, there is also an "instant" trend in the tea drinking industry. The increasing disposable income and consumer awareness about the advantages associated with the intake of coffee is also providing lucrative opportunities for the target market in this area.

Market Drivers:

The Europe instant Coffee market in driven by the expanding fame in the market explicitly because of the comfort given to the consumers on various scales, the accessibility of instant coffee across various channels, and the moderate cost of utilization combined with the decrease in demand for aerated drinks among local population. The change in lifestyle and growing urbanization are another factor influencing the trend of instant coffee in Europe, which is why its consumption stands out especially among young people. New coffee consumers, especially in UK, find instant coffee more attractive. Some of the factors driving the growth of the Europe Instant Coffee market are the convenience of instant coffee and a quick and simple brewing method compared to fresh coffee. Consumers only need to boil water, add instant coffee, and stir. Because it has many advantages and can satisfy the growing taste buds. Modernization is another important factor helping to sustain the growing demand for instant coffee around the region. Middle-class populations in developing countries have a very high demand for coffee consumption at home. The convenience of eating in general and drinking coffee attracts consumer interest in instant coffee. This market growth is supported by the diversity of products for various consumer tastes and preferences, as well as the adaptability to be distributed through various distribution channels to support domestic consumption. The population of several instant coffee consuming countries is expected to increase in the coming years. This is expected to broaden the general consumer base for instant coffee and strengthen market growth. The growing interest in the unique and true taste of coffee and its various functional properties has contributed to the primacy of the instant coffee market. Factors such as the growth of the food and beverage industry have led to an increase in the number of restaurants and cafes, one of the main drivers of the growth of the global instant coffee market. Manufacturers are constantly working to generate new and attractive ideas to improve and develop instant coffee in terms of quality, aroma and flavour. This is all so that your instant coffee tastes similar to fresh brewed coffee. Currently, a single service system very suitable for transportation and consumption has been developed. So, this has led to high growth in both sectors, both outside the home and at home. This innovation is another factor driving the growth of the Europe Instant Coffee market. Instant coffee is gaining popularity among consumers because it is easier to prepare than traditional forms of coffee. Additionally, people's busy lifestyles, low product prices, and high antioxidant content have become the main drivers of Europe Instant Coffee market growth. The increasing advances in technology has resulted in long working hours, supporting the intake of coffee is driving the Europe Instant Coffee market growth. Several companies are installing coffee machines in their offices to encourage people who working continuously or long hours. This is estimated to act positively for the European instant coffee market in future.

Market Restraints:

The necessary market penetration and the awareness to coffee propagated by a portion of the general population are a portion of the limitations faced by the Europe Instant Coffee market. Over consumption of coffee can also lead to some side effects, which is acting as a challenge to this industry in the European nations.

Europe Instant Coffee Market Segmentation Analysis:

The Europe Instant Coffee market is divided based on Coffee Type, Distribution channels and packaging type.

Based on distribution channel, the instant coffee market is divided into B2B and retail locations The B2B fragment is additionally bifurcated into hotels and cafés among others, and the retail portion is bifurcated into on the online and offline channels. The offline channel is again divided into departmental stores and supermarkets and hypermarkets among others.

In view of packaging type, the European instant coffee market has been fragmented into jars and sachets. Based on the coffee type, the regional market is separated as spray dried and freeze dried.

Covid-19 Impact on Europe Instant Coffee Market:

As the impacts of coronavirus are witnessed around the world, the food and beverage industry is facing one of its worst times with the reduced production and disruption in supply chain. While at-home utilization has been demonstrating a spike in the course of recent days, out of home activities has been halted. As the outside services has truly produced the most elevated edge, this will have quick effect on the F&B, though a few providers are hoping to moderate this by redirecting their provisions to retail locations. Agricultural yield is discouraged, supply chains are broken, to a great extent because of quickly changing shopper conduct and request. When the circumstance starts to normalize, out-of-home utilization will start developing again, yet it is probably not going to cover lost deals in the coming months. With a financial depression approaching, food and drink revenues are likely to decrease. Food and refreshment organizations have to return to their sourcing strategies, rationalize their product ranges, and evaluate the flexibility of their supply chains just as their course to market channels. E-commerce and distribution networks should be upgraded and smoothed out. Considering the effect of changing raw material costs and different expenses to serve as well as ways to upgrade demand, organizations will be compelled to return to their evaluation and marketing procedures.

Regional Analysis:

Geographically the Europe Instant Coffee Market is segmented into UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic and Rest of Europe. Starting from 2010, Europe holds the second leading position in the worldwide market share in terms of value. The quick development in new appropriation channels is set to additionally lift the market development in Europe. The increasing consumer demand for new flavors is supposed to promote the European market for instant coffee. Europe has very little production of instant coffee and Germany instant coffee market is one of the prominent contributors to this region. However, this market scenario did not affect per capita consumption as the European instant coffee market is saturated with higher imports from countries such as Vietnam, Brazil and Colombia. A growing population and the availability of different flavors, types of coffee and brewing styles are driving the European market for instant coffee.

Key Players in the Market:

Major Key Players in the Europe Instant Coffee Market are

  • Nestle SA. (Vevey, Switzerland)
  • Starbucks Corporation (Seattle, Washington US)
  • Matthew Algies Company Ltd (London, UK)
  • The Kraft Heinz Company (Illinois, U.S.)
  • Tata Global Beverages (Kolkata, West Bengal)
  • Tchibo Coffee (Hamburg, Germany)
  • Jacobs Douwe Egberts (DK Amsterdam Netherlands)
  • Strauss Group Ltd. (Petah Tikva, Israel)
  • Keurig Green Mountain (Vermont U.S.)
  • Unilever Plc (London, U.K.)



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