The Global Instant Beverage Premix Market size is expected to reach $109.9 billion by 2027, rising at a market growth of 6.2% CAGR during the forecast period.
Instant beverage premixes are beverages that can be quickly prepared and promotes metabolism, improve functionality, and keep you hydrated. In addition, premixes containing cocoa, vitamins, edible acids, vegetable extracts, fruit powders, and aromatizing agents are available in powder, paste, and granule form in the instant beverage premix industry. Moreover, most of these instant beverage premixes are blended with water or milk. Enhancing cognitive functionality, improving metabolism, and delivering adequate hydration are just a few of the many advantages of instant beverage premixes. Drinks made with instant beverage premixes have become more popular as a result of these advantages. Further, the beverages are sold as premixed drinks, while others are sold as powdered beverages in sugar-based and sugar-free varieties.
Instant beverage premixes are dry powders that can be mixed with water or other solvents to make a drink. An aromatizing agent, vitamin, chocolate, vegetable extract, and edible acids are all included in instant beverage premixes, which are available in powder, granules, and paste form. Instant beverage premixes are simple to make and take less time to prepare. Moreover, Instant beverage premix aids in improving the functionality and boosting the human body’s metabolism.
The shelf life of instant beverage premix is longer. The most popular premixes among consumers are instant coffee and instant tea. The global instant beverage premix market is predicted to develop due to the long shelf life and convenient packaging of instant beverage premix. In addition, preservatives and other chemicals are added to instant beverage premix to extend its shelf life and improve its other qualities.
Because of the supply chain interruption, the COVID-19 pandemic had a slight impact on the worldwide instant beverage premix market. During the pandemic, all industrial and production operations were shut down. On the other hand, the increase in online sales had a favorable impact on the demand for instant beverage premix. As a result, in the future years, the market is likely to recover from the pandemic. The COVID 19 outbreak has put the majority of the human population on lockdown, with most corporate activities halted. The pandemic has wreaked havoc on the global economy. Due to social distancing norms, industries are operating with a smaller number of workers. In addition, food manufacturers are experiencing a slow rate of production due to a lack of labor capacity. In the short future, disruptions in manufacturing operations and retail services are projected to have a moderate impact on the worldwide instant beverage premix market.
Market Growth Factors
Massive demand for healthy hydration products and innovation in beverages
Customers are progressively inclining towards the consumption of health-oriented beverages such as instant beverage premix, which are seen as necessary products. Additionally, the addition of enticing tag lines such as ready-to-drink & on-the-go beverages drives demand for such beverages. In addition, Customers’ preferences are shifting away from fruit juices and fizzy beverages and toward functional drinks as a result of these causes. Moreover, these beverages provide health benefits like obesity reduction, weight management, and enhanced functionality. Further, the popularity of the trend of healthy beverages is directly proportional to the customers’ acceptance of these beverages.
Growing awareness about health benefits offered by instant beverage premixes
The objective of these beverages is to improve the body’s functionalities such as digestive health, weight management, immune system, and management of heart rate. In addition, these drinks contain amino acids, herbs, vitamins, and minerals. The presence of these nutritional components helps in reducing health issues due to which, customers are changing their preferences and inclining towards these functional drinks. As stated in the Packaging Strategies journal, a significant development is witnessed in the beverage industry as customers are focusing on enhancing their health.
Market Restraining Factors
High cost of Instant Beverage Premix
The Instant beverage premixes are made from naturally sourced ingredients due to which, they are expensive in comparison to other drinks. In addition, the manufacturing and other aspects of these beverages are very complicated, uncertain, and expensive. Moreover, the development of these beverages requires huge investment in research and development, manufacturing equipment, supportive regulatory frameworks, and high consumer demand. Furthermore, the market’s development is hampered by the prevalence of low-quality commodities and the massive time required for fixings approval. In addition, rising health risks and high research and development costs would act as barriers.
Based on Functionality, the market is segmented into Plain and Flavored. In 2020, the flavored segment collected a significant revenue share of the Instant Beverage Premix Market. This is primarily due to consumer desire for a variety of flavor preferences. Moreover, technological advancements in the development of novel flavors are adding to the segment’s growth.
Distribution Channel Outlook
Based on Distribution Channel, the market is segmented into Specialty Stores, Supermarkets/Hypermarkets, Convenience Stores and Online. The Online segment is expected to showcase a promising growth rate in the overall Instant Beverage Premix Market during the forecasting period. One of the major factors boosting product retail through online channels is the ongoing COVID-19 pandemic. Smartphones and broadband connections have become more widely accepted, especially in developing nations, which has boosted online retail sales. The ability to choose from a variety of retail options is critical to the expansion of the online sales channel.
Product Type Outlook
Based on Product Type, the market is segmented into Instant Coffee, Instant Tea, Instant Milk, Instant Health Drinks, Soups and Others. The Instant Tea segment obtained a significant revenue share of the Instant Beverage Premix Market in 2020. This is because instant tea premix like green tea has a number of health benefits for its users, including weight loss and the ability to control glucose levels in the body. The growing use of instant premixes in the corporate sector makes the industry one of the most attractive investment opportunities. As individuals become more health conscious, instant health drinks like protein shakes are a big enticing area.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, the Asia Pacific emerged as the leading region in the overall Instant Beverage Premix Market. This is attributed to the rising knowledge about obesity and the health benefits provided by instant beverage premix. Moreover, the high population in the regional countries that are looking for functional beverages would further fuel the growth of the regional market during the forecasting period.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Ito En, Ltd., Inspire Brands, Inc., The Coca Cola Company, Monster Beverage Corporation, Suntory Beverage & Food Limited, PepsiCo, Inc., Keurig Dr Pepper, Inc., Starbucks Coffee Company, The Republic of Tea, and Ajinomoto Co., Inc. (Ajinomoto General Foods, Inc.)
Scope of the Study
Market Segments covered in the Report:
By Distribution Channel
• Specialty Stores
• Convenience Stores
By Product Type
• Instant Coffee
• Instant Tea
• Instant Milk
• Instant Health Drinks
• North America
o Rest of North America
o Rest of Europe
• Asia Pacific
o South Korea
o Rest of Asia Pacific
o Saudi Arabia
o South Africa
o Rest of LAMEA
• Ito En, Ltd.
• Inspire Brands, Inc.
• The Coca Cola Company
• Monster Beverage Corporation
• Suntory Beverage & Food Limited
• PepsiCo, Inc.
• Keurig Dr Pepper, Inc.
• Starbucks Coffee Company
• The Republic of Tea
• Ajinomoto Co., Inc. (Ajinomoto General Foods, Inc.)
• Exhaustive coverage
• Highest number of market tables and figures
• Subscription based model available
• Guaranteed best price
• Assured post sales research support with 10% customization free