Smithsonian magazine started a recent article with the question, “is there a future for instant coffee?” For most of us reading this site, the answer is probably no (right?!) but this is an interesting point of departure for a tour of the current instant coffee market and its history. They point out that the instant market has grown 7-10% per year recently:
But who is buying this stuff? China.
The country that historically drank about two cups of coffee per year per person is now the fourth-largest global market for ready to drink (RTD) coffee in terms of volume. The reason? Convenience. A 2012 poll found that 70 percent of Chinese workers said they were overworked and more than 40 percent stated they had less leisure time than previous years. Plus, most new buyers are used to boiling water to make tea, often owning just a teapot and not the appliances needed to make a fresh pot of coffee. By 2017, the Chinese RTD coffee market is projected to increase by 129 percent in volume.
This reminds me of Korean coffee culture, where, alongside a robust specialty coffee industry, instant coffee outsells rice at major retailers and ready-to-drink coffee is available in a vast array of formats (see the photo I took above of a vending machine that also serves coffee). Convenience may be a major factor, but price is also a big driver given that lower salaries and higher coffee prices make whole bean coffee a luxury for many. Still, I wonder what the Chinese specialty coffee market will look like in five to ten years?
You can read more about the history of instant coffee at the Smithsonian magazine.
5 comments
John S. says:
Jul 8, 2014
Hmmm, interesting article. Price is always going to be a huge driver for most people along with sheer convenience. So I think that despite it not being to my personal tastes instant coffee is here to stay for a good while yet.
Stephen Eng says:
Jul 24, 2014
Interesting read, Aaron. I feel that because there are so many ways to enjoy coffee to match an equal number of various lifestyles that each part of the coffee market will be able to sustain themselves. There will be people who seek to master the art of brewing and those who just need a cup of joe to kick start their work day.
Kavos nauda says:
Oct 24, 2014
I agree with the comments that there are many different individual demands for coffee. It can be both a special drink or even ritual and just simple cup to get energy boost. There are no coffee drinking traditions in China, so country chooses the easiest way of coffee consuption. It’s a matter of time, I think.
anne says:
Dec 11, 2014
Aside from price, I always consider foremost the taste. Something I found from this new coffee shop I discovered in Melbourne. Name of shop is 68 DEGREES COFFEE SHOP! They offer so affordable and best tasting coffee yet! https://www.facebook.com/68degreesCoffeeShop Comparable to those original brewed coffee we used to enjoy and have from ancient times. haha. I just love it.
Bob says:
Jun 22, 2016
They can go instant or go Turkish. Of course, then you need a grinder. So much for convenience and cheap. I wonder how canned coffees might affect the equation?