The global coffee capsules and pods market is anticipated to accumulate a market value of US$ 15.1 billion in 2023 and is expected to garner a valuation of US$ 26.8 billion by exhibiting a CAGR of 5.89% in the forecast period 2023 to 2033. The Coffee Capsules and Pods market reflected a growth of 4.1% CAGR in the historical period 2018 to 2022.
The efficiency, quality, and varied choices offered in a single serving of coffee are driving the growth of the coffee capsules and pods market. Consumers are also more interested to purchase coffee machines to recreate the cafe-style experience at home. This trend is expected to boost product demand in the coming years.
| Data Points | Key Statistics |
|---|---|
| Expected Market Value in 2023 | US$ 15.1 billion |
| Projected Market Value in 2033 | US$ 26.8 billion |
| Growth Rate (2023 to 2033) | 5.89% CAGR |
Coffee is the most consumed beverage and its high demand is the primary factor for the growth of the market. One of the key factors responsible for the growing popularity of coffee pods among consumers is their one-time use and disposable features. These days, manufacturers are trying to make environment-friendly and biodegradable coffee capsules.
Apart from this, the wide availability of coffee capsules and pods through offline and online distribution channels is providing lucrative growth prospects to industry investors. Along with this, key market players are launching innovative coffee flavors to increase their overall sales and profitability. They are also investing in promotional campaigns through social media platforms.
Also, market players have adopted new and advanced technologies to launch innovative products like coffee pods and capsules, in recyclable and compostable packaging. Therefore, the introduction of new formulations and the adoption of technologies is expected to augment growth in the region.
Other factors such as rising demand for instant non-alcoholic beverages due to growing disposable income and the rising popularity of coffee pods and capsules are anticipated to provide lucrative opportunities for the Asia-Pacific market in the forthcoming period.
Recent developments and breakthroughs in technology, mergers, acquisitions, tie-ups, and partnerships within the companies involved in manufacturing coffee capsules and pods are expected to create lucrative opportunities for market growth during the forecast period.
According to the latest study by FMI, Coffee Capsules, and Pods Market is anticipated to grow at a CAGR of 6% every year till 2031. The sales of Coffee Capsules and Pods are expected to reach millions of units over the upcoming decade.
The Coffee capsule is a container having a cylindrical shape containing coffee in it and sealed with aluminium foil for protection. Coffee capsules have a measured amount of coffee powdered coffee in them, coffee pods have similar look to the tea bag and are available in round shapes are popular due to their biodegradable features.
The coffee capsules are vacuum packed to safeguard them from external moisture and humidity which may result in the spoiling of the flavour of the coffee. On the other hand, coffee pods require low-pressure brewing while preparing the coffee. Overall, the coffee capsules and coffee pods market is estimated to register growth at a healthy rate over the forecasted period.
The biggest driver of the coffee capsules and pods market is the growth in coffee consumption in recent years and relatively high per capita consumption of coffee among the young consumer groups.
People trying different innovative ways to extract the true flavours of coffee and different formulations to get their favourite type of coffee in lesser time, also the single-serve coffee made possible by pods and convenience to users, results in a sharp rise in demand for coffee capsules and pods, which eventually drives the coffee capsules and pods market.
Less awareness regarding coffee capsules and pods in developing and underdeveloped regions results in a lack of popularity among consumers in these regions.
Moreover, the cost of coffee capsules and pods is comparatively more expensive than other coffee packs sold in the market, making them unaffordable for most people. These few factors will be affecting negatively to growth of the coffee capsules and pods market.
The coffee capsules and pods market players launching innovative products and entry of coffee machines in cafes, restaurants, and other places, and the influence of western trends on other parts of the world provides a huge growth opportunity to key players.
The coffee machines are made easy to handle and user-friendly and those machines utilizing coffee capsules and pods as input offer a great market potential to the manufacturers with the popularity of their products in larger fast-developing markets with huge consumer bases.
The increase in consumption of non-alcoholic beverages such as coffee in the country has increased, with people preferring to have their favorite flavors at their homes according to their convenience.
Also, the awareness regarding the coffee machines and easy disposal of coffee capsules makes them popular among the people in Germany. Moreover, the biodegradable features of coffee pods make them the most preferred coffee product among the environment-friendly consumer base and result in the overall growth of the coffee capsules and pods market.
A growing number of coffee consumers in the country along with that the presence of the world’s biggest and most famous brands in the country drives demand for instant coffee and related products. The entry of newer market players along with the established market of global giants trying to differentiate their products by different flavors, sizes, and compatibilities makes the USA an important market for the coffee capsules and pods market.
China and India are the largest consumer-driven economies having large consumer bases ready to try the latest innovations by coffee capsules and pod manufacturers, currently, due to less awareness there is a very less number of players in the market, and is dominated by international brands.
But over the upcoming decade due to rising coffee consumption, India and China are seen as lucrative markets considering the future perspective for the coffee capsules and pods market.
The covid-19 virus outbreak forced governments to impose complete lockdowns in most countries of the world. The essential services were allowed to be produced and distributed, and the demand from the household sector was significant as people demanded their favorite coffee at their homes, due to this despite the lockdown demand was high and contributed positively to the overall growth of the coffee capsules and pods market.
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