Instant coffee suits for busy schedules of growing urbanites
The Indian instant coffee market is projected to grow at a compound annual growth rate of 12.86% from 2022 to 2027 to attain a market size of US$905.168 million in five years especially demand driven by busy urbanites.
The market was valued at US$388.219 million in 2020, according to a ResearchAndMarkets report “India Instant Coffee Market – Forecasts from 2022 to 2027”, released on 20 Jan 2023.
There is a growing coffee consumption in the country, led by expanding hospitality industry.
Growing coffee consumption in households is further adding to increasing the market growth, added the report.
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.
With rising urbanization, more and more people are drinking coffee in office and home environment as they adopt a busy lifestyle.
The fact is that coffee provides alertness, and 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, according to the report.
Instant coffee in the form of powder is quite convenient to make and hence holds immense importance with the changing lifestyle of the people in India.
With the growing urbanization and the adoption of a busy schedule, the market for instant coffee holds strong growth prospects.
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.
The COVID-19 has had a positive effect on the instant coffee market in India.
Coffee, as well as quick coffee makers, have benefited. 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, said the report.
While corporate sales suffered as a result of closed workplaces and commercial spaces, home consumption grew rapidly for many businesses.
The report featured: Tata Coffee, Nestle, Vidya Coffee, Hindustan Unilever Limited and MKC Food Products. fiinews.com
