Fast, Fresh, & Growing: Instant Coffee's Explosive Rise in Emerging Markets

In a world where convenience is king, it’s little wonder that instant coffee has become a staple in most households.

While coffee connoisseurs may eschew this quick and easy way to make a morning brew, it’s still gaining popularity. So, why is instant coffee becoming more popular in emerging markets? Let’s dive in and find out.

The History of Instant Coffee

Although we think of instant coffee as a relatively new innovation, it was invented in the 18th century. However, it didn’t gain popularity until WWI. It was included in soldiers' ration packs for a quick and easy way to make coffee on the battlefield. By the 1930s, Nestle had developed a Brazilian arabica instant coffee, and during WWII, this powdered form of coffee had become a staple in soldiers’ and civilian ration packs.

During the 1960s, freeze-drying fresh coffee became the norm. This process turned fresh coffee into instant coffee powder, maintaining more of the coffee’s flavor and improving the quality of the brew [1].

There are a few reasons why instant coffee is so popular. It’s easy to store and transport, it’s quick and easy to make, and it’s generally cheaper (per cup) than ground coffee or whole-bean options.

The Introduction of High-End Instant Coffee Brands

Instant coffee has been seen as fast, cheap, and poor-quality since it started appearing in grocery stores during the 1940s. While freeze-drying meant that more of the coffee’s taste and quality remained, the process still removed a large portion of its flavor profile. This, combined with people burning the coffee with scalding hot water rather than dissolving it in colder water first, has given instant coffee a bad name.

The Rise of High-End Instant Coffee

In recent years, more high-end coffee brands have been diving into the world of instant coffee.

According to Statista, the at-home revenue of instant coffee is expected to grow annually by 2.69% (CAGR 2024-2029). Large brands like Nestle and Starbucks have launched premium instant coffee options, while smaller roasteries have been experimenting with artisanal instant coffee products.

Companies are likely to invest more in instant coffee because the cheaper production, shipping, packaging, and storage costs improve profit margins. With the rising costs of living, high-quality coffee beans are a luxury that many people can no longer afford. People are turning to high-quality instant coffee that has similar complex flavors but is more cost-effective.

High-End Instant Coffee is Starting to Attract Connoisseurs

As more premium instant coffee options enter the market, coffee connoisseurs are open to trying the “new” format. With more complex flavor profiles, attractive aromas, thicker bodies, and more convenient brewing, this new, high-end form of instant is starting to convert former “coffee snobs.”

You’ll even find premium, artisanal blends such as “Gayo coffee” from Indonesia offered in an instant format [2].

I used to turn my nose up at instant coffee, believing it was an inferior product. Although I still prefer a traditional brew, after trying high-end instant coffee from a couple of local producers, I was inspired to make my own.

Instant Coffee in Emerging Markets

Instant coffee sales have grown significantly in Eastern Europe and the Middle East over the past few years. More people in these regions are drinking coffee at home and are seeking convenience over traditional coffee house culture.

The second-largest region of growth for instant coffee is Asia and the Pacific. Between 2017 and 2022, sales of instant coffee have grown by 3.63% in these regions. The growing popularity of coffee in traditional tea-drinking cultures like Japan and South Korea, combined with the busyness of modern life, means that instant coffee is quickly becoming a kitchen staple.

The global value of instant coffee is forecast to grow from $14.22 Billion in 2023 to $21.49 Billion by 2031. This sharp increase is due to the rising popularity of instant coffee in the US and China — two of the largest consumer markets on Earth.

Convenience Culture in the Coffee World

It’s impossible to talk about instant coffee without talking about convenience. It’s one of the quickest and easiest ways to make coffee.

Nowadays, we’re all rushing around between work and social activities — time is a valuable resource. We’re also living in a “fast” society where we expect things instantly — be that food, coffee, or transport. Immediacy culture is rife with products and services at our fingertips. All of these societal factors feed into our coffee-consuming habits, paving the way for the rise of instant coffee.

Although nothing can beat a brew made from freshly ground beans, I regularly drink instant coffee for convenience. Whether it’s an Instant Vietnamese Espresso for a morning caffeine hit or an indulgent Instant Latte in the evening.

This is not just a consumer-led revolution, though. Several hospitality businesses, like hotels and restaurants, are switching to high-quality instant coffee over traditional brewing methods for convenience. From the sachets in hotel rooms to after-dinner coffee at a fast-food restaurant, convenience is a huge part of these industries.

As the taste of instant coffee improves with high-end extraction methods and blends, there’s little incentive to buy expensive coffee beans. Businesses and consumers are saving money by avoiding expensive brewing equipment, high-quality coffee beans, and timely brewing processes.

Instant Coffee with Higher Living Costs

One of the main reasons why people buy instant coffee is because of the price. As it’s cheaper to ship and has a longer shelf life, it’s usually a more affordable option in grocery stores. With the cost of living increasing, instant coffee is becoming more attractive to a wider range of people.

In terms of bulk buying, instant coffee also lasts longer, giving you more servings in a can versus a bag of coffee. On the whole, you’ll only need one teaspoon of instant coffee versus two teaspoons of ground for a fresh brew. This makes ground coffee an expensive habit, with many consumers switching to instant during times of financial hardship.

What Does the Rise of Instant Coffee Mean for the Industry?

Overall, the rise of instant coffee shows a shift towards convenience. While premium instant coffee alternatives are a welcome sight for coffee lovers looking for an authentic brew in minutes, instant coffee still has a long way to go to compete with independent coffee shops.

If more people feel like they can get a barista experience at home using high-end instant coffees from brands like Cafely, Kenco, and Starbucks, they're less likely to spend money in coffee shops. Combining this with the high cost of living, the adoption of instant coffee in the workplace, and the overall convenience of instant coffee could spark a downturn in the out-of-home coffee sector.

References:

1. Bettaieb, I., Benabderrahim, M. A., Guillén-Bejarano, R., Rodríguez-Arcos, R., Jiménez-Araujo, A., Bouaine, M., ... & Elfalleh, W. (2024). The effect of freeze-drying process and arabica coffee enrichment on bioactive content, aroma volatile, and sensory characteristics of date seed coffee. Food Bioscience, 57, 103473.
2. Langi, T. M., Paat, F. J., Kusuma, S. D., Oessoe, Y. Y., Liwu, S. L., Mamuaja, C. F., ... & Mamarimbing, R. (2023). The effect of Arabica and Robusta coffee blends on caffeine content, acidity, and organoleptic properties of instant coffee. Journal of Agriculture, 2(02), 183-192.

Author Bio:

Mimi Nguyen is the co-founder of Cafely, a brand dedicated to bringing authentic Vietnamese coffee to the masses.

Through Cafely, she aims to inspire individuals from all walks of life. Whether it’s high-quality whole bean robusta, single-origin blends, or high-quality instant coffee, Mimi is bringing the taste of Southeast Asia to the West without compromising on quality.