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Instant Beverage Premixes Market

Instant beverage premixes market, by product type (Instant Coffee, Instant Tea, Instant Milk, Instant Health Drinks, Instant Soups, and Others), by form (Powder, Paste, and Granular), and by distribution channel.
Instant Beverage Premixes Market, By
Product Type - Global Industry Insights,
Trends, 2018-2026
As the name suggests, instant beverage premixes are drinks that can easily be
prepared usually by adding water. These premixes are available in various forms such
as paste, powder, and granular. Owing to benefits offered by instant beverage
premixes, adoption rate of these drinks is increasing substantially. For instance, ginger
tea premix are rich in anti-oxidants and offers weight reduction and lowering the risk of
heart disease.
The corporate sector is the largest consumer segment in the market for instant
beverage premixes. This is owing to time saving and easy preparation of these remixes,
as people do not the time for preparing conventional drinks such as tea or coffee.
According to US Bureau of Labor Statistics, the employed populace in the U.S. was
154.43 million in January 2018, which was 152.07 million in January 2017. This is
another factor boosting the overall instant beverage premixes market growth.
However, stringent government regulations for ingredient approval in these premixes is
expected to hinder growth of the market of instant beverage premixes. For instance, in
2017, Bestherbs Coffee LLC, a U.S.-based company, recalled its instant coffee product
‘Kopi Jantan Tradisional’ as FDA confirmed that it contained desmethyl carbodenafil,
which is similar to the active ingredient in Viagra. This expected to be a major
restraining factor for growth of the market.
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Instant coffee premix segment dominated the instant beverage premix market in 2016.
This is owing to coffee being the preferred drink in the world. According to International
Coffee Organization, the consumption of coffee was 155.1 million bags in 2016–2017,
which is expected to increase up to 157.6 million bags in 2017–2018. Moreover, players
in the market are focusing on launching instant coffee premixes, which is further
expected to aid in growth of the market. For instance, in 2015, Tata Global Beverages
Limited entered into instant coffee business through the launch of Tata Coffee Grand.
Online stores segment is projected to exhibit high growth over the forecast period. This
growth is attributed to increasing inclination of consumers towards online shopping,
owing to high availability of options, discounts, home delivery, and others. Therefore,
major players are focusing on collaborating with online shopping stores to enhance their
businesses and consumer base. For instance, in 2016, Nestle India partnered with
Snapdeal for the distribution of its new Nescafé Sunrise Insta-Filter product.
Global Instant Beverage Premixes Market Outlook
Asia Pacific is expected to be the largest market in the instant beverage premixes over
the forecast period. India and China are projected to be the growth engines in the
region. This is due to traditional inclination of the populace towards coffee and
increasing number of manufacturers setting up production facilities in the region.
According to the government of India, among the total consumption of coffee, instant
coffee comprises 57%. Moreover, in 2016, Nestle India launched Nescafe Sunrise
Insta-Filter, to expand their business in the Indian coffee market. This product offers the
taste of filter coffee with a convenience of an instant coffee. In 2017, Tata Coffee
Limited, subsidiary of Tata Group, announced to set up an instant coffee plant in
Vietnam with a capacity of 5,000 metric tons per annum. This has resulted in growth of
the instant coffee segment in Asia Pacific, further driving growth of the instant beverage
premixes market.
Europe is expected to be the second largest region in terms of revenue growth in the
global instant beverage premixes market, owing to rampant increase in consumption of
instant tea and coffee in this region. According to Coherent Market Insights, Russia is
one of the biggest tea markets around 88% of the Russians consuming tea. This is
further resulting in rise in number of instant tea premix consumers in Russia and
thereby, significantly contributing to growth of the Europe instant beverage premix
North America is projected to exhibit significant growth in the instant beverage premixes
market, owing to increasing working population and presence of major market players in
this region. Major players in this region are focusing on expanding their business in the
emerging countries of Asia Pacific and Africa. For Instance, in 2017, The Kraft Heinz
Co. entered into an agreement with Suntory Beverage & Food Ltd. — a Kotobuki Realty
company — to acquire its instant coffee business and Cerebos food business in New
Zealand and Australia. Moreover, in 2016, Jacobs Douwe Egberts BV — a Mondelez
International company — entered into agreement to acquire Super Group’s instant food
and beverage firm for US$ 1.09 billion.
Major players in the market are focusing on launching new products in the market, in
order to enhance their product portfolios and maintain their positon in the competitive
market. For instance, in 2016, Frutarom Industries Ltd. launched NutraT, an instant
drink powder, which includes CocoaT, OliveT, CitroT, RosT, and functional ingredients.
Major players in the instant beverage premixes market include Suntory Beverage &
Food Ltd., The Republic of Tea Inc., Tata Group, Monster Beverage Co., The
Coco-Cola Co., Neel Beverages Pvt. Ltd., Keurig Green Mountain Inc., Starbucks Corp.,
Dunkin Brands Group Inc., and PepsiCo Inc.
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and competitive analysis through various recommendations related to emerging market
trends, technologies, and potential absolute dollar opportunity.
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Seattle, WA 98154
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