The market is driven by the rising demand for convenience foods and beverages, along with the growing popularity of coffee among the younger generation.

The increasing health awareness among consumers is also driving the market. The rising disposable income and the growing number of coffee shops, cafes, and restaurants are expected to further fuel the market growth. Furthermore, the introduction of new flavors, such as mocha, caramel, vanilla, and almond, is projected to drive the market during the forecast period.

The premiumization trend among consumers is expected to create opportunities for premium offerings, such as gourmet and organic instant coffee, in the market. The manufacturers are also focusing on providing sustainable packaging solutions to attract more consumers.

However, the availability of low-cost substitutes, such as tea and cocoa, is expected to hamper the market growth. The presence of stringent regulations regarding the use of artificial ingredients is also anticipated to restrict the market growth.

Based on type, the freeze-dried segment held the largest share of the global instant coffee market in 2019. The segment is projected to maintain its dominance during the forecast period as it provides a longer shelf-life and better flavor than spray-dried coffee.

Based on distribution channel, the convenience stores segment is projected to register the highest CAGR of 5.9% during the forecast period. Convenience stores offer a wide variety of products, including instant coffee, which makes them the most preferred distribution channel.

Some of the key players in the global instant coffee market are Illycaffe S.p.A., Nestlé S.A., Jacobs Douwe Egberts B.V., The J.M. Smucker Company, Starbucks Corporation, Tata Global Beverages Limited, Unilever, The Kraft Heinz Company, Tchibo GmbH, and The Coca-Cola Company.