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Instant Beverage Premixes Market - Global Industry Insights, Trends, Outlook and Opportunity Analysi

Author: Apeksha Motghare
by Apeksha Motghare
Posted: Mar 21, 2019
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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.

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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.

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 market.

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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Author: Apeksha Motghare

Apeksha Motghare

Member since: Jan 11, 2018
Published articles: 348

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