Instant Coffee: Versatility and Convenience Drive Growth

Instant coffee is positioned as a value-added drink

The convenience, versatility of flavour and format, and branded experience provided by instant coffee enable it to be positioned as a premium hot drink option, particularly for new coffee drinkers in predominantly lower income tea- drinking markets.

Instant coffee supplanted by fresh coffee in higher income markets

In higher income markets, convenient fresh coffee options, like fresh ground coffee pods, are taking share away from instant coffee, because they are perceived to offer better quality and flavour.

Asia Pacific leads current and future growth

The easy preparation of instant coffee, as well as its ability to be tailored to local taste preferences, has made it the coffee of choice in most markets in Asia Pacific, where coffee consumption is still low.

Consumption is stalling in traditional market strongholds

Retail sales growth for instant coffee in the two largest markets – Russia and Japan – is showing signs of slowing down, as consumers are increasingly interested in fresh coffee options.

Branded experience is key

Instant coffee has the most consolidated competitive landscape of all hot drinks, due to the importance of brand to the consumer experience. Nestlé is the overwhelming leader, holding a 42% retail value share in 2013.

Potential lies in continued innovation

Opportunities for instant coffee to gain more popularity among new consumers, as well as reclaim those exiting the category, lies in continued innovation, both in terms of developing new flavours and improving quality.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings

Why buy this report

• Identify factors driving change now and in the future
• Understand motivation
• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
• Take a step back from micro trends
• Get up to date estimates and comment