India Instant Coffee Market Size, Share, COVID-19 Impact, Opportunities, And Trends By Type (Freeze-Dried Instant Coffee, Spray-Dried Instant Coffee, Others), By Distribution Channel (Offline (Retail, Food Services), Online), And By Zone - Forecasts From 2022 To 2027

The India instant coffee market is projected to grow at a compound annual growth rate of 12.86% over the forecast period to attain a market size of US$905.168 million in 2027, from US$388.219 million in 2020. Instant coffee in India is estimated to fuel in the forecast period owing to the growing coffee consumption in the country. The growing hospitality industry is further augmenting the market growth in the forecast period. Growing coffee consumption in households is further adding to the increase in the market growth in the forecast period. The growing out-of-home coffee consumption in the country is further providing an impetus to fuel the market growth during the course of the forecast period. The increasing adoption of a busy lifestyle among the citizens of the country, along with rising urbanization is contributing to the increase in coffee consumption in the office and home environment. This is because of the fact that coffee provides alertness, hence its gaining popularity among consumers as one of the refreshing drinks. Furthermore, with increasing awareness regarding the health benefits of coffee among a wide consumer base, the demand for coffee is rising, further supporting the market’s growth during the forecast period.

Instant coffee in the form of powder is quite convenient to make and hence holds immense importance with the changing lifestyle of people in India. With the growing urbanization and the adoption of a busy schedule, the market for instant coffee holds strong growth prospects to proliferate in the forecast period. However, due to lockdown and self-quarantine measures in the current novel coronavirus pandemic scenario, the market is expected to experience a slight decline.  Also, the change in consumer buying patterns will contribute to impeding market growth in 2020. The closure of public places in order to avoid huge public gatherings has led to the closure of cafes, coffee houses, and restaurants, further restraining the market’s growth in the current year.

The presence of companies offering a wide range of instant coffee products is further augmenting the market growth in the forecast period. For example, Nestle India offers a variety of instant coffee products through its Nescafe brand. The product variants include Nescafe Classic, Nescafe Gold, Nescafe Sunrise, and Nescafe Gold Cappuccino. Another company by the name of Hindustan Unilever Limited, with its brand “BRU”, is quite popular among consumers on a wide scale. BRU coffee is available in the form of two variants for instant coffee, BRU instant, and BRU Gold. The brand is a leader in providing authentic coffee to Indian customers. It was launched in 1962 under the brand name, Brooke Bond Green Label.   

COVID-19 SCENARIO

COVID has a positive effect on the instant coffee market in India. Coffee, as well as quick coffee makers, have reaped the benefits. Due to time constraints and increased home responsibilities, some hardcore' filter coffee' devotees have shifted to the speedier and more convenient instant coffee, boosting instant coffee sales. While corporate sales suffered as a result of closed workplaces and commercial spaces, home consumption grew rapidly for many businesses.

Key Development

• February 2022- Coffee brand Nescafe has launched a new campaign urging India’s youth to fuel up their dreams with 'Badal life ki raftaar' (change the pace of life) campaign. Reconnecting with coffee lovers across the country, the campaign aims to motivate the youth to push their limits, surpass challenges and achieve their dreams without compromising on the journey.
• June 2021- Tata Coffee Limited, a part of Tata Consumer Products Ltd, launched its e-commerce website, "www.coffeesonnets.com," on Wednesday. The website starts with three 'The Sonnets-The Voice of Our Estates' variations of luxury single origin gourmet coffee.

Segmentation:

• By Type
  • Freeze-Dried Instant Coffee
  • Spray-Dried Instant Coffee
  • Others
• By Distribution Channel
  • Offline
    • Retail
    • Food Services
  • Online
• By Zone
  • North
  • East
  • West
  • South

Tata Coffee

Nestle

Vidya Coffee

Hindustan Unilever Limited

MKC Food Products