Arabica Freeze Dried Coffee Market

Market Overview

The Global Arabica Freeze Dried Coffee Market Size is projected to grow at CAGR of approx. 3.8% during the forecast period.

Instant coffee made from high-quality coffee beans like Excelsa, Liberica, Robusta, Arabica, and others is called freeze dried coffee. Freeze-dried coffee lasts longer than regular coffee beans. The freeze-dried coffee is difficult to break with the fingertips and does not easily break into small pieces. By freezing coffee extract at -40 degrees Celsius and then cutting it into pellets, freeze-dried coffee is made. The frozen pellets are dried once more using a very low temperature and a vacuum. The quality of the aroma is maintained by the temperature and drying conditions.

The global Arabic freeze-dried coffee market's growth prospects have improved as a result of the rising demand for instant coffee. There is no denying the widespread appeal of coffee across all regions. Besides, the touchy development of bistro chains like Costa, Nero, and Starbucks has expanded worldwide espresso ubiquity. The global market for Arabic freeze-dried coffee is anticipated to benefit from the extensive marketing efforts of large cafes. Travel pouches are the most common application for freeze-dried coffee among coffee enthusiasts. Preparation is simple, quick, and easy. In the coming years, the global market for freeze-dried coffee's total revenue volume may rise.

Market Dynamics

Market Drivers

• Increasing popularity

The popularity of ready-to-eat and ready-to-drink products has increased due to their convenience, quickness, affordability, and accessibility, which is good news for the instant coffee market. However, despite their hectic schedules, consumers today demand healthier products and will not compromise on product quality. Numerous nutrients and antioxidants are present in Arabic freeze-dried coffee. It boosts metabolism, improves liver health, reduces disease risk, and enhances brain function. 

Additionally, instant coffee contributes to improved mental health and longevity. The market will grow in a positive way as more people learn about the advantages of instant coffee. In addition, instant coffee varieties that contain more antioxidants and less caffeine are becoming healthier. They come in a variety of flavours and have a low caffeine content. These elements will additionally give a stimulus to the market's development as the wellbeing cognizant interest group will float towards these items.

• New Flavours

Market expansion is fuelled by the introduction of new freeze-dried coffee flavours like green beans, mocha Italian roast, French vanilla, gingerbread cookie, cardamom bun, and chocolate caramel to attract more customers.

Market Restraints

• Acrylamide Concentration High

The presence of acrylamide in greater quantities in instant coffee than in freshly brewed coffee would impede the expansion of the Arabica Freeze Dried coffee Market Growth. When coffee beans are roasted, acrylamide is produced, which is a dangerous substance. Higher consumption can be hazardous to the nervous system. Additionally, it may increase cancer risk.

Coffee has become more and more important to humans' ability to function effectively in this fast-paced world. Numerous individuals have experienced negative effects as a result of the growing trend of drinking coffee four to five times a day to complete important work, meetings, and deadlines without sleeping. Insomnia, headaches, rapid heart rate, anxiety, dehydration, restlessness, and shakiness can all result from excessive coffee consumption. The market's expansion will be hampered by rising concerns about the negative effects of excessive coffee consumption. Coffee is avoided by many consumers because they find it addictive.

Market Opportunities

Coffee consumption has also increased over the past few years in tandem with the rise in the workforce. As a result of the growth of the instant coffee market, numerous coffee industry players have joined the market, resulting in a highly fragmented instant coffee market. The crowded instant coffee market has made it harder for companies to come up with new products, flavours, packaging, and other marketing strategies to keep customers coming back. New flavours like Macha, hazelnut, mint, caramel, Italian roast, green bean, and French vanilla have been introduced by market players. In a similar vein, market participants have introduced miniature sachets to make instant coffee more affordable.

The market's expansion will also be hampered by the rising popularity of drinks like flavoured tea, green tea, and others.

Market Scope

Segmental Analysis

Segment by Type

• Blue Mountain

This type of Arabica coffee is grown in Jamaica's Blue Mountain region, which has a unique climate and soil that produce a high-quality coffee with a mild flavor and low acidity. It is generally considered a premium coffee and commands a higher price compared to other Arabica varieties.

• Typica

This type of Arabica coffee originated in Ethiopia and is characterized by its sweet and fruity flavor profile. It is typically grown at high altitudes and is known for its balanced acidity.

• Bourbon

This type of Arabica coffee is grown in Latin America and has a sweet and chocolatey flavor profile with a medium acidity. It is known for its smooth and creamy texture.

• Others

This segment includes other varieties of Arabica coffee such as Caturra, Catuai, and Mundo Novo.

Segment by Application

• Residential

This segment includes consumers who purchase freeze-dried Arabica coffee for home consumption. This could be in the form of instant coffee or as part of a coffee brewing system.

• Restaurant

This segment includes coffee shops, cafes, and restaurants that serve freeze-dried Arabica coffee to customers.

• Coffee Station

This segment includes places where coffee is self-served, such as office break rooms or hotel lobbies.

• Others

This segment includes other applications for freeze-dried Arabica coffee, such as in vending machines or as part of meal kits.

Regional Analysis

The Global Arabica Freeze Dried Coffee Market is segmented by region as North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.

North America

The market in North America is expected to experience steady growth due to the increasing demand for high-quality coffee among consumers. The United States and Canada are the major contributors to the growth of the market in this region.

Europe

The European Arabica Freeze Dried Coffee Market is expected to witness significant growth during the forecast period, owing to the growing preference for high-quality coffee among consumers. Countries such as Germany, Italy, France, and the UK are expected to contribute significantly to the growth of the market in this region.

Asia Pacific

The Asia Pacific Arabica Freeze Dried Coffee Market is expected to experience significant growth, owing to the increasing popularity of coffee culture in countries such as Japan, China, and India. The growing middle-class population and increasing disposable income of consumers are also contributing to the growth of the market in this region.

Latin America

The market in Latin America is expected to witness significant growth, owing to the rich coffee culture in countries such as Brazil and Colombia. The increasing awareness among consumers regarding the health benefits of coffee is also expected to drive the growth of the market in this region.

Middle East and Africa

The market in the Middle East and Africa region is expected to witness moderate growth during the forecast period. The increasing popularity of coffee among consumers in countries such as Saudi Arabia, UAE, and South Africa is expected to drive the growth of the market in this region.

Key Players

1. Tata Coffee
2. SaturnBird Coffee
3. Buencafé
4. JACOBS DOUWE EGBERTS
5. Grandos
6. Kraft Heinz
7. Starbucks
8. Nestlé
9. Davidoff
10. Sudden Coffee
11. UCC
12. Illy
13. The J.M. Smucker Company
14. AGF.