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
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$3.52. The NESCAFÉ Dolce Gusto Pod is a sophisticated extraction cell made of several components that work together to uniquely adjust the pressure to each capsule
Global Coffee Pods and Capsules Market: Opportunity
Rise in consumption of coffee pods and capsules in developing countries
The increasing consumption of coffee pods and capsules in developing countries is anticipated to offer lucrative growth prospects in the foreseeable future. For example, in recent years, the consumption of traditional drip coffee has been decreasing, while automatic espresso machines and pod and capsule machines have been steadily increasing and have gained market share, particularly in China, a predominantly tea-consuming nation.
Effective projection of recycling plastic capsules
The advent of recycling plastic capsules is projected to offer significant growth opportunities for market players over the forecast period. For instance, in 2021, Nespresso launched its first coffee capsules made using 80% recycled aluminum. These capsules were made from 95% recycled material earlier this year, in March. Further, by the end of 2021, Nespresso targets having all machines sold in this new packaging, which, in turn, will boost market growth of pods and capsules. Nestlé Nespresso S.A., trading as Nespresso, is an operating unit of the Nestlé Group, based in Lausanne, Switzerland. Nespresso machines brew espresso and coffee from coffee capsules, a type of pre-apportioned single-use container, or reusable capsules, of ground coffee beans, sometimes with added flavorings
Coffee Pods and Capsules Market Report Coverage
|Market Size in 2023:
|US$ 30.3 Mn
|Historical Data for:
|2018 to 2021
|2023 to 2030
|Forecast Period 2023 to 2030 CAGR:
|2030 Value Projection:
|US$ 59.1 Mn
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
|Restraints & Challenges:
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
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
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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
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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