Instant Beverages Premix Market - Forecast(2024 - 2030)

Instant Beverages Premix Market Overview

Instant Beverages Premix Market size is estimated to reach $76.4 billion by 2027, growing at a CAGR of 6.0% during the forecast period 2022-2027. Instant beverages are drinks that can be prepared in a fraction of seconds with the help of premixes. Whereas premixes are nothing but substances taken into use during the pre-manufacturing process of food or beverages. These premixes have aromatic nature and contain edible acids, vitamins, and vegetable extracts and are generally in powder, granules, or paste form. They are mixed with solvents to prepare instant/powdered beverages like tea, coffee, instant health drinks, and others. Instant beverages prepared through premixes extend several health benefits like enhanced metabolism, heart, and liver associated benefits, reenergizing the body, and many more. The instant beverages premix market outlook is very fascinating as the consumption of such drinks has become so common that in countries like India it is a ritual to offer tea and coffee to visitors or guests. Moreover, accruing purchasing power and modern lifestyles of people are factors set to drive the growth of the Instant Beverages Premix Industry for the period 2022-2027.

Report Coverage

The report: “Instant Beverages Premix Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Instant Beverages Premix Market.

Key Takeaways

• Geographically, the North America Instant Beverages Premix Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027. However, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period owing to the heavy resilience of young millennials and the growing urban population.
• Accruing consumption of aromatic beverages like tea and coffee is said to be the preeminent driver driving the growth of the Instant Beverages Premix Market. Health snags accompanied by the overuse of instant beverages are said to reduce the market growth.
• Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Instant Beverages Premix Market report.

Instant Beverages Premix Market- Geography (%) for 2021. 

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Instant Beverages Premix Market Segment Analysis-By Type

The Instant Beverages Premix Market based on type can be further segmented into Milk, Health Drinks, Soup, Tea, and Coffee. The coffee segment held the largest share in 2021. The growth is owing to accruing consumption of coffee ascribing to its taste and several health benefits such as reduced chances of heart attack and Alzheimer's, helpful in weight loss, enhanced lifespan, and many more linked with it. Coffee contains around 1.1-2.2% of caffeine which is quite beneficial as the excess caffeine erupts many complications. Moreover, Coffee consumption trends are expanding in college and corporate cafeterias. However, the tea segment is estimated to be the fastest-growing with a CAGR of 7.3% over the forecast period 2022-2027. This growth is owing to the growing popularity in many Asian, Middle East, and Western countries. Additionally, varieties of options are available in tea like green tea, Oolong, black, white, and others which gravitate people toward it.

Instant Beverages Premix Market Segment Analysis-By Distribution Channel

The Instant Beverages Premix Market based on distribution channel can be further segmented into offline platforms (Hypermarkets/Supermarkets, Small retail shops, Convenience stores), online platforms. The offline retail outlets segment held the largest share in 2021. The growth is owing to the across-the-board existence of retail outlets’ in both urban areas and the countryside, and it gives inhabitants convenience to make necessary purchases anytime. Furthermore, the budding emergence of up-to-the-minute retail outlets like supermarkets and hypermarkets offer a 24/7 shopping option to people. Moreover, the online segment is estimated to be the fastest-growing segment with a CAGR of 7.8% over the forecast period 2022-2027. This growth is owing to the aversion of a major percentage of the population to make online purchasing of fast-moving consumer goods (FMCGs), and other grocery items because it removes the option of quality checks. Additionally, various cost advantages can be reaped by making purchases online. For example, Tetley green tea premix can cost INR 400 in retail, however, for promoting the same online, the cost of the product declines by 10% and touches the mark of INR 360.

Instant Beverages Premix Market Segment Analysis-By Geography

The Instant Beverages Premix Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held the largest share with 34% of the overall market in 2021. The growth in this segment is owing to the factors such as the high popularity of instant beverages like tea and coffee in the overall office goes. Additionally, around 64% of Americans actively consume coffee every day. While around 14 billion cups of coffee are roughly consumed in Canada each year. However, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period of 2022-2027. China produces almost produce 2,400,000 metric tonnes of tea on an annual basis, India produces around 900,000 metric tonnes. Therefore, the Industries of these countries do not face any demand and supply complications. This growth is owing to augmenting health awareness, enlarging purchasing power in hands of the Asian public as the economies of countries are booming.

Instant Beverages Premix Market Drivers

Augmenting usage of instant beverages ascribing to broadening health cognizance is Anticipated to Boost Product Demand

Tea is the most used instant beverage on planet earth owing to its popularity among adults as well as teenagers. A report claimed that over 145 billion cups of coffee are consumed in the U.S. every year. Moreover, the popularity of tea is growing in the middle east and Asia. By far, China is the biggest consumer of tea ascribing to its colossal population. It consumes around 1.6 billion pounds per year, and Turkey tops the list when it comes to per capita consumption with a massive 6.69 pounds per person annually. Besides, with soaring cases of obesity gravitating people toward green tea. over 39% people of the world’s population are facing obesity problems. The number is expected to plunge in foreseeable future and is estimated to drive the growth of the instant beverages premix market.

Proliferating purchasing power among Asian nations is Expected to Boost Product Demand

The economies of Asian countries like India, China, Japan, Indonesia, Bangladesh, and others are proliferating year by year. Even recently China become the richest country in the world after thumping the U.S. China’s net worth has reached a colossal $514 trillion in 2020 which was around $156 trillion in 2000. Moreover, the country declared itself free from extreme poverty. Similarly, China’s GDP (nominal) per capita income has reached $11,819 which is a tremendous achievement considering the size of its population. GDP per capita in other developing countries like India, and Bangladesh is also soaring which is considered a good factor to drive the growth in the instant beverages premix market.

Instant Beverages Premix Market Challenges

Addictive nature and Health complications due to overuse of instant beverages are Anticipated to Hamper Market Growth

One of the biggest problems of instant beverages is their addictive nature People's minds fall victim to caffeine and crave it every now and then which can lead to several health complications. Some common complications associated with it are insomnia, restlessness, irregular beating of the heart, severe headaches, and many more. According to the American Sleep Association, Insomnia is the most common sleep disorder, with 30% of adults experiencing short-term insomnia. Even though adults need at least seven hours of sleep per night, about 35% of people get less than that. Age appears to be linked to lack of sleep, with 37% of people aged 20–39 reporting low sleep duration and 40% of people aged 40–59 getting too little sleep. Moreover, tea mixed with milk contains tannins which can reduce iron absorption. Besides, it may set many digestions hitched in motion which can lead to bloating of the stomach.

Instant Beverages Premix Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Instant Beverages Premix Market. The top-10 Instant Beverages Premix Market companies of are-

1. Dunkin Brands Group
2. Starbucks Corporation
3. PepsiCo Inc.
4. The Coca-Cola Company
5.Monster Beverages
6. The Republic of Tea
7. Suntory Beverage & Food
8. Keurig Green Mountain
9. Ajinomoto General Foods
10. ITO EN

Recent Developments

• On November 1, 2021, Georgia, United States-based beverage king Coca-Cola acquired the American sports drink company “Bodyarmor SuperDrink.” The beverage giant Paid $5.6 billion to obtain full control of the Bodyarmor SuperDrink. This move will help Coca-Cola to capture a significant market share in the sports drink market and compete with firms like PepsiCo that acquires 65-70% of the market share alone.
• In September 29,2021, Insta-Brew- has announced the launch of its latest product, one demand coffee tubes. Convenience meets the highest standard of all-natural ingredients, with each cube possessing the richest flavor profile in the industry, and slightly sweetened with natural, unprocessed raw sugar cane, InstaBrew is easily the future of delectable, homemade coffee and tea. The coffee cubes are made from 100% on-demand Colombian coffee, giving you the wonders of using new techniques yet adding simplicity to your cup.
• On June 15, 2020, US-based food and beverage company PepsiCo publicized the successful acquisition of Nevada, United States-based drink company Rockstar. PepsiCo paid around $3.86 billion to complete the process. Moreover, the step extends several advantages to PepsiCo to diversify its portfolio as demand for soft drinks is plummeting.
• On July 15, 2019, PepsiCo the famous American beverage firm successfully acquired Cape Town, South Africa-based food and beverage producing company “Pioneer Foods” for a lucrative total of $1.70 billion. Pioneer foods own a diversity of popular brands such as Ceres, Sasko, Safari, etc. in the African continent which now belongs to PepsiCo.

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