India Instant Coffee Market Size Likely to Expand at a CAGR of 7.5% By 2033

As per the current market research conducted by the CMI Team, the India Instant Coffee Market size is expected to record a CAGR of 7.5% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 2.6 Billion. By 2033, the valuation is anticipated to reach USD 5.1 Billion.

India Instant Coffee Market: Growth Factors and Dynamics

• Changing Consumer Lifestyles: The evolution of consumer lifestyles, characterized by hectic schedules and time constraints, has led to an increased demand for convenient and quick coffee options. Instant coffee emerges as a practical choice, aligning with the fast-paced urban life, where instant preparation meets the need for a swift and accessible coffee experience.

• Rising Coffee Culture: The burgeoning coffee culture in India, particularly among the younger demographic, has significantly elevated the status of instant coffee. With an increasing number of consumers exploring and embracing diverse coffee experiences, instant coffee has become a popular choice for those seeking a quick and satisfying brew, both at home and on the go.

• Product Innovation: Manufacturers within the instant coffee market are actively engaged in product innovation, introducing a plethora of options beyond traditional variants. Flavored instant coffees, specialty blends, and unique formulations are hitting the shelves, catering to the diverse palate of consumers and sparking interest in experimenting with different coffee profiles.

• Urbanization and Retail Expansion: The ongoing trend of urbanization, accompanied by a significant expansion of retail outlets and convenience stores, has played a pivotal role in making instant coffee readily available to a broader consumer base. The increased accessibility in urban areas has fueled the market’s growth, with consumers easily finding their preferred instant coffee products.

• E-commerce Boom: The rapid growth of e-commerce platforms has provided consumers with a convenient avenue to explore and purchase a wide array of instant coffee products online. This surge in online retailing not only enhances accessibility but also offers a diverse range of choices, contributing substantially to the expansion and dynamism of the instant coffee market.

• Brand Marketing and Celebrity Endorsements: Aggressive marketing strategies, including celebrity endorsements and influential brand campaigns, have become integral to shaping consumer perceptions. As popular personalities associate themselves with instant coffee brands, consumer trust and brand loyalty increase, influencing purchasing decisions and contributing significantly to the overall growth of the instant coffee market in India.

India Instant Coffee Market: Partnership and Acquisitions

• In 2023, Major players in the coffee industry, including IDH, Hindustan Unilever Limited, Sucden, ECOM, Tata Coffee, and NKG, join forces to revitalize Karnataka’s coffee sector. The Memorandum of Understanding (MOU) is supported by the Coffee Board of India, indicating a collaborative effort to drive positive transformation in the region.

• In 2021, Sleepy Owl Coffee secures $6.5 million in Series A funding and joins the ONDC network, facilitating broader product accessibility through all ONDC seller apps. This strategic move enhances Sleepy Owl’s national presence, aligning with its mission to promote coffee consumption in India and create diverse consumer touchpoints.

Report Scope

India Instant Coffee Market: COVID-19 Analysis

The COVID-19 pandemic has had a significant impact on the India Instant Coffee Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Disrupted Supply Chains: The instant coffee market in India faced disruptions in supply chains during the pandemic, impacting the timely sourcing of raw materials and production processes. This led to challenges in maintaining consistent product availability.

• Shift in Consumer Behavior: Changing consumer behaviors and preferences during lockdowns influenced the purchasing patterns in the instant coffee market. Reduced out-of-home consumption and increased emphasis on essentials had a notable impact on demand dynamics.

• E-commerce Embrace: The market witnessed an accelerated shift towards e-commerce platforms, providing a channel for consumers to access instant coffee conveniently. Strengthening online presence and partnerships with e-commerce players helped brands reach consumers amidst lockdowns.

• Product Diversification and Innovation: To adapt to evolving consumer preferences, instant coffee brands focused on product diversification and innovation. The introduction of new flavors, specialty blends, and value-added products appealed to changing tastes and rejuvenated market interest.

• Digital Marketing and Promotions: Digital marketing played a pivotal role in reconnecting with consumers. Brands utilized social media and online platforms to launch targeted campaigns, and promotions, and engage with consumers directly, reinforcing brand loyalty and reigniting interest in instant coffee products.

• Health and Wellness Focus: Responding to heightened health consciousness, instant coffee brands emphasized health and wellness aspects. Promoting the nutritional benefits, low-calorie options, and wellness-oriented marketing helped regain consumer trust and drive renewed interest in the market.

• Collaborations with Cafés and Restaurants: Collaboration strategies were employed, with coffee machine manufacturers partnering with cafés and restaurants to promote their products. Showcasing machines in these establishments created awareness and allowed potential buyers to experience the equipment, fostering confidence and driving post-pandemic sales.

• Collaboration with Retail Chains: Establishing partnerships with retail chains and supermarkets became a recovery strategy for the instant coffee market. Strengthening ties with these outlets ensured wider product visibility, availability, and the opportunity to tap into the foot traffic returning to brick-and-mortar stores post-lockdowns.

In conclusion, the COVID-19 pandemic has had a mixed impact on the India Instant Coffee Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the India Instant Coffee Market:

• Nestle India Limited
• Hindustan Unilever Limited
• Tata Consumer Products Limited
• CCL Products (India) Limited
• The Coca-Cola Company (Georgia Coffee)
• BRU Coffee
• AVT Natural Products Limited
• Leo Coffee
• Madhu Jayanti International Limited (M.J.IL)
• Fresh & Honest Coffee Limited (South Indian Beverages Pvt. Ltd.)
• TGL Co.
• Wagh Bakri Tea Group
• ITC Limited
• Sri Narasu’s Coffee Company Limited
• Sunbean Beaten Caffe (ITC Limited)
• Others

The India Instant Coffee Market is segmented as follows:

By Flavouring

• Flavoured Instant Coffee
• Unflavoured Instant Coffee

By Packaging Type

• Sachets
• Pouches
• Jars

By Production Technology

• Freeze-Dried Instant Coffee
• Spray-dried Instant Coffee

By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Specialist Retailers
• Online Channels
• Others