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Instant beverage premix market on the rise

Among the drivers cited are consumers’ increasing awareness of health, a growing distribution channel, and easy access to products through retail websites.

In terms of volume, in 2014 instant tea held the largest market share. Photo courtesy of Starbucks.
In terms of volume, in 2014 instant tea held the largest market share. Photo courtesy of Starbucks.

According to a new market report published by Transparency Market Research titled, “Instant Beverage Premix Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2021,” the instant beverage premix market in terms of revenue was valued at $59.38 billion in 2014, which is expected to reach $85.80 billion by 2021, at a CAGR of 5.7% from 2015 to 2021. In term of volume, the market was valued at 1.96 billion kg in 2014, which is expected to reach 225 billion kg by 2021, growing at a CAGR of 2.0% from 2015 to 2021.

One of the major drivers cited is increasing health awareness among consumers, which is expected to fuel demand for instant beverage premix in the developing countries.

The instant beverage premix market can be categorized on the basis of instant product type, namely coffee, milk, tea, soup, health drinks, and others. Among the various product types in terms of revenue, instant coffee held the largest market share followed by instant tea in 2014; this is expected to be the same in the estimated period of 2015 to 2021. Demand for instant coffee is primarily driven by its health benefits. Drinking instant coffee makes people fresh and energetic, says the report.

Among various product types in terms of volume, instant tea held the largest market share, followed by soup in 2014; this is expected to continue from 2015 to 2021.

Based on geography, the global instant beverage premix market is segmented into North America, Europe, Asia-Pacific, and Rest of the World (RoW). At present, Asia Pacific holds the largest market share and is expected to hold this position through 2021. followed by Europe. Factors such as the increasing distribution channel and availability of products on different websites such as Amazon, eBay, and WalMart among others are also expected to bolster the growth of the instant beverage premix market globally.

In addition, packaging design is a key driver for sales to attract consumers. In a saturated product segment with a number of products in the same category, packaging is the only differentiator that helps a consumer chooses one brand over the other. This is expected to create awareness for the instant beverage premix products during the forecast period. The impact of this driver is high at present and is expected to be medium in the coming years.

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