Coffee Capsules and Pods Market Snapshot (2023 to 2033)
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.
For example, in November 2022, a Nestle brand ‘Nespresso’ introduced biodegradable coffee capsules made from paper. These capsules are perfect for Nespresso coffee machines. These kinds of new product launches will positively benefit market growth.
The market is growing due to the growing demand for ready-to-drink coffee beverages. People have very hectic lives these days because of industrialization and urbanization Therefore, they demand quick refreshments and easy-to-make coffee.
Coffee pods save time and provide good-quality coffee within a few minutes. The market players like Nestle are innovating new products for homemade coffees. For example, in November 2022, Nestle brand Nescafe Dolce Gusto introduced ‘Neo’, the brand's next-generation coffee machines and pods. These coffee pods are paper-based and home-compostable.
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.
Region-wise, Europe is expected to lead the market by accumulating over 40% market share by end of the forecast period, with Germany, the United Kingdom, France, and Russia being the countries with profitable growth opportunities. The dominance is mainly due to the rising demand for new products with technological enhancements, and accelerating demand for easy-to-use coffee pods and capsules along with the growing adoption of automatic bean-to-cup machines. A growing number of coffee bars, small roasters, and baristas in the region, along with the surging interest of consumers in specialty coffee and K-Cups is further expected to fuel the region’s market during the assessment period.
Likewise, Asia Pacific is expected to witness significant CAGR growth of 5.7% during the forecast period. As consumption of coffee products is increasing among health-conscious consumers, manufacturers are planning to develop new & innovative formulations such as coffee capsules, sugar-free coffee premix, and other products in the market.
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.
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How Competitive is the Market?
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.
In September 2022: The Swiss coffee brand CoffeeB introduced single-serve coffee, an innovative compressed coffee ball that uses a seaweed-based casing rather than plastic or aluminum capsules.
In October 2021, Nespresso by Starbucks introduced a new range of coffee capsules known as ‘Nespresso Vertuo’, providing Canadian coffee fans more opportunities to enjoy the signature café taste.
Coffee Capsules and Pods Market Overview (2023 to 2033)
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.
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Coffee Capsules and Pods Market: Market Outlook
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.
What Drives Growth of Coffee Capsules and Pods Market?
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.
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Which Hindrances are Limiting Coffee Capsules and Pods Market Growth?
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.
Which Lucrative Opportunities are Offered by 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.
Key Market Players of Coffee Capsules and Pods Market
Keurig Dr Pepper Inc.
Starbucks Corporation
Nespresso S.A.
KRAFT Foods
Gloria Jeans
Gourmesso Coffee
Nestlé S.A.
LUIGI LAVAZZA SPA
Bestpresso INC.
Strauss Group
The J.M. Smucker Company
Dualit Limited
Key Market Players in Asia-Pacific Region of Coffee Capsules and Pods Market
Coda Plastics Limited
Fresh Brew Co.
Aikou Packaging Co., Ltd
What makes Germany a Major Market for Coffee Capsules Market?
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.
Which Factors are Contributing to Growth of Coffee Capsules and Pods Market in the U.S.?
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.
What Future Opportunities are offered by India and China for 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.
How Covid-19 Impacted 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.
Global Coffee Capsules and Pods Market Segmentation
