Report Overview

The U.S. instant coffee market size was valued at USD 5.78 billion in 2022. The market is expected to grow from USD 6.01 billion in 2023 to USD 8.06 billion in 2030, exhibiting a CAGR of 4.28% during the forecast period.

Instant coffee is prepared using two processes, spray dried and freeze dried. Instant coffee is made to dissolve in milk or water, providing convenience to consumers. The increasing demand for specialty coffee in the U.S. will boost the market growth during the forecast period.

Fortune Business Insights™ mentioned this in a report titled, “U.S. Instant Coffee Market, 2023-2030.”

List of Key Players Present in the Report:

  • Massimo Zanetti Beverage USA (Italy)
  • Blue Bottle Coffee, Inc. (U.S.)
  • Westrock Coffee Company (U.S.)
  • Finlays (U.S.)
  • Keurig Dr Pepper Inc. (U.S.)
  • Nestle S.A. (Switzerland)
  • Bkon (U.S.)
  • Boston’s Best Coffee Roasters (U.S.)
  • The J.M. Smucker Company (U.S.)
  • The Kraft Heinz Company (U.S.)
  • Kerry Group plc (Ireland)

Segments

Longer Shelf Life of Soluble/Powder Coffee to Boost The Segment Growth

Based on type, the market is segmented into liquid and soluble/powder. The soluble/powder segment holds the largest U.S. instant coffee market share. The segment’s growth is attributed to the longer shelf life of soluble/powder coffee, driving the demand for instant coffee. The increasing demand for convenient coffee products also drives the demand for instant coffee products in the U.S.

Growing Technology Advancements by E-Commerce Companies to Aid Online Retail Segment Growth

Based on distribution channel, the market is divided into HoReCa and retail. The retail segment I further classified into supermarkets/hypermarkets, convenience stores, specialty stores, and online retail. The online retail segment is anticipated to exhibit the highest CAGR during the analysis period. The segment’s growth is attributed to the convenient delivery services coupled with the adoption of rapidly growing technology by e-commerce companies.

Report Coverage

The report offers:

  • Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
  • Comprehensive insights into regional developments.
  • List of major industry players.
  • Key strategies adopted by the market players.
  • The latest industry developments include product launches, partnerships, mergers, and acquisitions.

Drivers & Restraints

Increasing Coffee Consumption During Pandemic to Boost Market Growth

The increasing consumption of coffee in the U.S., owing to the changing lifestyles, premium product development, and technological development, is expected to drive the U.S. instant coffee market growth. According to the International Coffee Organization, the U.S. is the second-largest coffee consumer and has grown significantly in years. The busy lifestyle and long working hours make coffee chains more popular in the U.S.

However, the increasing launch of new and advanced coffee-making machine that provide café like taste at home and is more convenient is hindering market growth during the forecast period.

The Rise of Instant Coffee in the U.S.: A Trend Analysis

In recent years, the U.S. instant coffee market has been experiencing a significant upsurge in demand and growth. This popular beverage choice has seen a resurgence in popularity, with more and more consumers opting for the convenience and ease of instant coffee over traditional brewed options. Let’s delve into the trends and growth factors fueling this rise in the U.S. instant coffee market.

Convenience is Key

One of the primary drivers behind the growth of the U.S. instant coffee market is the convenience it offers to consumers. In today’s fast-paced world, where time is of the essence, instant coffee provides a quick and easy solution for those looking to get their caffeine fix on the go. With just hot water and a spoon, you can have a steaming cup of coffee ready in seconds, making it the perfect choice for busy professionals and on-the-move individuals.

Quality Improvements

Gone are the days when instant coffee was synonymous with subpar taste and quality. Thanks to advancements in technology and production methods, instant coffee brands have been able to greatly improve the flavor profile and overall quality of their products. From freeze-dried to spray-dried options, consumers now have a wide range of choices when it comes to instant coffee, with many brands offering premium blends that rival freshly brewed coffee in taste and aroma.

Competitive Landscape

Growing Key Players’ Focus on New Product Launches to Propel Market Growth

The U.S. instant coffee market comprises key players, including Massimo Zanetti Beverage USA, Kraft Heinz, Nestle S.A., and others. The increasing focus of leading market players on launching new products and expanding their regional presence to cater to increasing consumer demand is expected to drive market growth during the forecast period.

Key Industry Development

March 2022 – Massimo Zanetti Beverage USA Limited launched a new state-of-the-art coffee distribution facility at the Virginia Port Logistics Park, Virginia, the U.S. The new facility handled the bulk product distribution and e-commerce fulfillment of the Italian coffee roaster in the U.S. market.

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