Instant
coffee is coffee powder that is produced by coffee beans that have
been brewed at a higher ratio of coffee to water as compared to the
regular coffee. In the production of instant coffee, there are two
methods for drying coffee including spray drying and freeze-drying.
In spray drying method, a spray device is used, in order to dry the
coffee extract. The device transfers the hot air into the container
and converts the product into fine powder. Further, in freeze drying
method, the coffee extract is freeze at approximately -40 degree
Celsius and then, the ice particles are treated separately in
evaporation and drying chambers to produce instant coffee flakes.
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Market
Dynamics:
Convenience
is the major factor propelling growth of the instant coffee market,
as it is easy to prepare as compared to fresh coffee. The fast paced
lifestyles of consumers is fuelling demand for convenient food
products, which in turn, is supporting market growth. Furthermore,
the longer shelf life of instant coffee as compared to the bean or
ground coffee, owing to its powdered texture, is another factor,
aiding in the growth of the market. Furthermore, coffee contains
various nutrients, such as lipids, carbohydrates, vitamins, amino
acids, phenolic compounds, alkaloids and minerals. Polyphenols in
coffee, works as an antioxidants which fight against free radicals.
Owing to the rising awareness regarding these health benefits, there
is a growing demand for coffee worldwide. For instance, according to
the International Coffee Organization (ICO), world coffee
consumption, had increased from 148,891 thousand bags (60 kg) during
2013-2014 to 157,382 thousand bags (60 kg) during 2016-2017,
witnessing a CAGR of 1.9%. Thus, the rising consumption of the
coffee, is anticipated to support the global growth of instant coffee
market, as well.
However,
the high content of acrylamide in the instant coffee as compared to
the fresh coffee is hindering market growth. Acrylamide or acrylic
amide is an odorless, white, crystal compound with chemical formula
C3H5NO and is produced in the food products, when sugars and amino
acids are heated above 120 degree Celsius. Acrylamide is neurotoxic
and can damage peripheral and central nervous system (PNS and CNS) in
both humans and animals.
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Market
Outlook:
Asia-Pacific
market is expected to record the fastest growth during the forecast
period, witnessing highest CAGR among all. Growing demand for instant
coffee in China and India is majorly supporting the regional growth
of the market. For instance, according to the United States
Department of Agriculture (USDA), the export of soluble coffee
(instant coffee) in India had increased from 1,667 thousand 60 kg
bags during 2013-2014 to 1,833 thousand 60 kg bags during 2016-2017.
In 2017, Starbucks announced to purchase more than 1300 stores in
China, in a deal worth US$ 1.30 Bn, in order to cater the growing
demand for coffee. Further, according to the International Coffee
Organization (ICO), in 2015, the instant coffee had contributed
approximately 99% and 98% in the total retail sales of Chinese coffee
market by volume and value respectively. Thereby, growing coffee
market in China, is supporting the overall growth of instant coffee
market as well.
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