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  • Published On : Sep 2023
  • Code : CMI5086
  • Pages :137
  • Formats :
      Excel and PDF
  • Industry : Food and Beverages

The global coffee pod and capsules market is projected to reach around US$ 59.1 Million by 2030, in terms of revenue, exhibiting a CAGR of 7.6% during the forecast period (2023-2030).

Global Coffee Pods and Capsules Market: Drivers

  • Increasing prevalence of single-serving coffee in households: The global market for coffee pods and capsules is experiencing a surge due to the increasing prevalence of single-serving coffee in households. Consumers are increasingly willing to invest in coffee machines in order to replicate the experience of a coffee shop at home, thus contributing to the overall growth of the market. Major players are introducing pods that are compatible with existing machines, including Nespresso, which is once again driving market growth.
  • Increasing demand of organic food and beverages: The global consumption of organic food and beverages, particularly coffee and tea, is increasing at a rapid rate due to alterations in lifestyle habits. This will contribute to the growth of the market. Furthermore, increasing awareness of the benefits of healthy food, alterations in dietary habits, and a desire to sample novel products are further contributing to the growth of specialty and organic coffee pods and capsules.

Global Coffee Pods and Capsules Market: Restraints

Wastage of plastic capsules leading to environmental damage

Environmental concern associated with the plastic capsules that end up in landfills every year, contributing to the growing plastic pollution, is expected to restrict market growth. The plastic in coffee pods takes more than 500 years to break down, releasing harmful amounts of methane gas as it does so. Thus, to tackle this issue, several new entrants are innovating sustainable packing solutions. For instance, in September 2022, Cafe Royal invented a coffee pod in the shape of a ball. This ball is coated in a thin shell made of a vegetable layer, which is 100% compostable. The product is a true zero-waste capsule.

High cost related to coffee pods and capsules

The high cost of coffee pods is one of the biggest challenges adversely affecting the overall growth of the market, as using coffee pods is more expensive than using ground coffee or whole coffee beans. For instance, Nescafe Dolce Gusto PRELUDIO costs US$ 4.85, while Nescafe Coffee Classic (a 100-gram jar) costs US$3.52. The NESCAFÉ Dolce Gusto Pod is a sophisticated extraction cell made of several components that work together to uniquely adjust the pressure to each capsule

Global Coffee Pods and Capsules Market: Opportunity

Rise in consumption of coffee pods and capsules in developing countries

The increasing consumption of coffee pods and capsules in developing countries is anticipated to offer lucrative growth prospects in the foreseeable future. For example, in recent years, the consumption of traditional drip coffee has been decreasing, while automatic espresso machines and pod and capsule machines have been steadily increasing and have gained market share, particularly in China, a predominantly tea-consuming nation.

Effective projection of recycling plastic capsules

The advent of recycling plastic capsules is projected to offer significant growth opportunities for market players over the forecast period. For instance, in 2021, Nespresso launched its first coffee capsules made using 80% recycled aluminum. These capsules were made from 95% recycled material earlier this year, in March. Further, by the end of 2021, Nespresso targets having all machines sold in this new packaging, which, in turn, will boost market growth of pods and capsules. Nestlé Nespresso S.A., trading as Nespresso, is an operating unit of the Nestlé Group, based in Lausanne, Switzerland. Nespresso machines brew espresso and coffee from coffee capsules, a type of pre-apportioned single-use container, or reusable capsules, of ground coffee beans, sometimes with added flavorings

Coffee Pods and Capsules Market Report Coverage

Report Coverage Details
Base Year: 2022 Market Size in 2023: US$ 30.3 Mn
Historical Data for: 2018 to 2021 Forecast Period: 2023 to 2030
Forecast Period 2023 to 2030 CAGR: 10% 2030 Value Projection: US$ 59.1 Mn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East and Africa : GCC, South Africa and Rest of Middle East and Africa
Segments covered:
  • By Types: Pods, Capsules
  • By Distribution Channel: On-trade, Off-trade, On -trade 
Companies covered:

Nestlé SA, JAB Holding Company, The Kraft Heinz Company, Inspire Brands Inc. (DUNKIN’ BRANDS), Luigi Lavazza SpA, Starbucks Corporation, Gloria Jean's Coffees, and Strauss Group 

Growth Drivers:
  • Growing usage of single-serve coffee in households
  • Increasing demand for specialty and organic coffee pods and capsules
Restraints & Challenges:
  • Environmental concerns associated with the plastic capsule
  • High cost of the coffee pods and capsule

Global Coffee Pods and Capsules Market: Trends

New product launches by key players are expected to be a key trend in the market

New product launches by key players are expected to be a key trend in the market. For instance, in April 2022, Bluestone Lane launched a range of Nespresso-compatible coffee pods amid rising customer demand for the at-home coffee format. Bluestone Lane is an Australian-inspired coffee shop, cafés & lifestyle brand committed to providing a genuine daily escape for all our locals a growing number of partnerships and agreements among key players will favor market growth. For instance, in November 2021, Nestlé and Jacobs  Douwe  Egberts UK partnered to create first -of -its kind recycling program for coffee pods. Jacobs Douwe Egberts B.V. manufactures and distributes coffee. The Company offers retail products and professional solutions, such as coffee machines, ingredients, and professional services. Jacobs Douwe Egberts serves customers worldwide.

Global Coffee Pods and Capsules Market: Key Developments 

  • In November 2022, Neo, the brand's new generation of coffee machines and pods, have been launched by Nestlé Dolce Gusto. This new range combines high-quality, state-of-the-art technology with sustainability to deliver the ultimate coffee shop experience at home. In a first for Nestlé, Neo's new line of coffee pods is made from paper-based materials, is home compostable, and requires 70% less packaging per kilogram than existing capsules.
  • In July 2021, Pret A Manger, a UK based sandwich and coffee chain, partnered with JDE Peet's, an American-Dutch company that owns beverage brands, mostly coffee, tea and hot chocolate, the world's preeminent pure-play coffee and tea company, to introduce a new line of aluminum coffee pods designed to use Pret's 100% organic coffee. This new range is compatible with Nespresso®, and is now available in over 500 Tesco supermarkets across the United Kingdom, as well as online via Ocado.
  • In July 2022, BLK & Bold Specialty Beverages, a coffee micro-roastery and national wholesaler of specialty coffee and teas, and Keurig Dr Pepper Inc., which operates as a beverage company, announced the launch of BLK & Bold coffees in K-Cup® pods for the Keurig® brewing system.
  • In June 2021, JDE Peet's and Campos mutually agreed to the acquisition of Campos Coffee, a coffee manufacturer, subject to certain pre-conditions. The transaction is anticipated to be finalized in the month of July 2021

Global Coffee Pods and Capsules Market: Regional Analysis

In recent years, the European market has seen a surge in demand for specialized coffee products and single-serving methods. Germany and France have been the most prominent regional players in this market. As the value of coffee pod and capsule products increases, a number of private-label companies are expanding their presence in other European markets.

Figure 1. Global Coffee Pods and Capsules Market Share (%), By Region, 2023

COFFEE PODS AND CAPSULES MARKET

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Regionally, Europe dominated the global coffee pods and capsules market in terms of revenue, in 2022, followed by  North America and Asia Pacific, respectively.

Global Coffee Pods and Capsules Market: Segmentation

The coffee pods and capsules market is segmented on the basis of type, distribution channel and region. Further it is divided on the basis of type: pods and capsules, on the basis of distribution channel: On-trade and Off-trade and on the basis of region: North America, Europe, Asia Pacific, Latin America, Middle East and Africa.

Figure 2. Global Coffee Pods and Capsules Market Share (%), By Types, 2023

COFFEE PODS AND CAPSULES MARKET

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On the basis of types, in 2022, the capsules segment accounted for the largest market share of 59% in terms of value, followed by the pods.

Global Coffee Pods and Capsules Market: Impact of Coronavirus (COVID-19) Pandemic

COVID-19 has had a significant impact on the Global coffee Pods and capsules market. The pandemic has led to a heightened level of social isolation, with many people choosing to remain indoors and drink coffee at home instead of going to a cafe or office. This has led to an increase in the demand of coffee capsules as customers seek simple and convenient methods of making coffee. Additionally, the pandemic has caused a disruption in the supply chain, with raw materials and finished goods being unable to reach customers due to lockdowns and restrictions on shipping.

Global Coffee Pods and Capsules Market: Key Companies

Key Companies operating in global coffee pods and capsules market are Nestlé SA, JAB Holding Company, The Kraft Heinz Company, Inspire Brands Inc. (DUNKIN’ BRANDS), Luigi Lavazza SpA, Starbucks Corporation, Gloria Jean's Coffees, and Strauss Group

*Definition: Coffee pods contain seven grams of coffee, as opposed to only one or two grams in coffee capsules. Secondly, they are environmentally friendly. Coffee pods can be easily recycled and can even serve as natural fertilizer for plants. Additionally, coffee pods are cheaper than capsules. Unlike capsules, which contain a powdery material, coffee pods are reusable and work with any pod filter.

Frequently Asked Questions

The global coffee pods and capsules market is estimated to surpass US$ 59.1Million by 2030, exhibiting a CAGR of 10% between 2023 and 2030.

Growing usage of single-serve coffee in households and increased demand for specialty and organic coffee pods and capsules are the main factors driving the global coffee pods and capsules market growth.

The global coffee pods and capsules market is expected to exhibit a CAGR of 10% during the forecast period (2023-2030).

Key Companies are Nestlé SA, JAB Holding Company, The Kraft Heinz Company, Inspire Brands Inc. (DUNKIN’ BRANDS), Luigi Lavazza SpA, Starbucks Corporation, Gloria Jean's Coffees, and Strauss Group

Environmental concerns associated with the plastic capsule and high cost of the coffee pods and capsules may hinder market growth. 

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