Capsule Coffee Machine Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast 2024-2028

Capsule Coffee Machine Market Size 2024-2028 

The capsule coffee machine market size is forecast to increase by USD 1.72 Billion at a CAGR of 7.51% between 2024 and 2028. The market thrives on convenience, with users valuing its simplicity and consistent flavor. However, challenges like environmental concerns persist, prompting a focus on sustainable packaging solutions. The trends indicate a move towards online platforms and an increase in specialty coffee consumption driven by a focus on health. Innovations such as smart capsule machines, which can be controlled via mobile apps, are transforming the market, appealing to consumers who value convenience and are tech-savvy. Competitive pressures fuel product advancements, with a focus on flavor, quality, and personalized options. While price remains a competitive factor, targeted marketing strategies through market segmentation are effective. The coffee culture shapes trends, influencing everything from roasting techniques to aroma preferences, catering to coffee enthusiasts around the globe. To ensure continuous growth, adapting to evolving consumer habits and adopting digital approaches are crucial.

What will be the Size of the Market during the Forecast Period?

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The coffee capsule machine market is experiencing noticable growth, increased by the rise in cafes and dining spots that cater to millennials' desire for quick pick-me-ups and mental clarity. Specialty coffee is making its mark not just in commercial settings but also in offices, boosting the demand for fast-brewing equipment like capsule machines and coffee pods. Single-serve coffee choices, such as freshly ground coffee capsules and instant coffee, are gaining popularity among those seeking convenience and an energy boost during work breaks. Cultural shifts towards favoring specialty coffee and the adoption of capsule machines with digital displays are also shaping the market, enhancing the user experience.

Market Segmentation

The distribution channel segment of the market is characterized by diverse channels catering to the growing demand for convenient and flavorful coffee experiences. Capsule coffee makers, available in both closed and open source systems, offer consumers a hassle-free brewing solution, aligning with the convenience factor sought after by the middle class and households. The proliferation of coffee shops and eateries further contributes to the distribution network, as these establishments integrate capsule coffee machines to meet the rising demand for premium coffee beverages. The availability of various flavors and varieties enhances consumer choices, attracting more individuals to embrace capsule coffee machines for their brewing needs. Additionally, the International Coffee Organization's efforts to promote coffee consumption worldwide have fueled market growth, with consumers increasingly turning to capsule coffee machines to enjoy high-quality coffee in the comfort of their homes or workplaces. Despite the stress of modern life, the accessibility of capsule coffee machines has made it easier for individuals to indulge in their favorite beverage, driving the consumption of coffee globally.

By Distribution Channel

In the dynamic landscape of market growth analysis and forecasting, the offline segment emerges as a pivotal player, poised for significant expansion. Specialty appliance stores, renowned for their expertise in kitchen and home appliances, serve as prime outlets for Single Serve Coffee Maker and Espresso Machine enthusiasts. These establishments boast knowledgeable staff capable of guiding customers toward the ideal Brewing System for their preferences.

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The offline segment, valued at USD 2.05 billion in 2018, showcases a thriving landscape, particularly in stores specializing in kitchen supplies. These outlets not only offer an array of machines but also stock accessories, enhancing the overall Market experience. Moreover, the presence of these machines in larger grocery stores and hypermarkets further facilitates accessibility, driving coffee capsule machine market growth and forecasting.

Which are the Key Regions for the Market?

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The APAC region, contributing a substantial 30% to global market growth, presents promising opportunities for industry players. Market research and growth analysts at Technavio delve into regional trends, shedding light on drivers shaping the market trajectory. Meanwhile, North America emerges as a hotspot for capsule machine demand, with the US leading the charge. The region's penchant for diverse flavors, coupled with the allure of convenience and efficiency offered by these capsules, propels market growth and fosters a thriving market.

In essence, the convergence of brands, innovative brewing methods, and consumer preferences fuels the ascent of the market, promising continued market growth and forecasting on a global scale.

Market Dynamics and Customer Landscape

The coffee capsule machine market thrives on the rising coffee consumption, driven by the convenience factor favored by urban consumers, especially the middle class. Capsule coffee makers offer flavors and varieties, catering to diverse tastes. With both Closed Source and Open Source systems available, households and the commercial sector enjoy quick brewing equipment. Millennials, seeking mental alertness and energy, embrace single-serve coffee solutions like capsule machines. This market witnesses a surge in demand, fueled by the proliferation of coffee shops and eateries. Innovative features such as digital displays and fresh ground coffee capsules cater to evolving consumer preferences, reflecting cultural trends towards quick refreshment and specialty coffee.

Key Market Driver

The market experiences robust growth driven by the convenience capsule coffee machines offer. Users appreciate the simplicity - just insert a capsule, press a button, and enjoy consistent coffee flavor and texture every time. However, challenges such as environmental impact awareness and sustainability concerns persist. To navigate this, digital marketing strategies and innovative product solutions are crucial. Market trends indicate a shift towards online sales platforms and specialty coffee consumption, influenced by health and wellness trends. Retail distribution channels must adapt to meet changing consumer preferences.

Additionally, brand loyalty and customer satisfaction play significant roles in a competitive market landscape. Addressing these factors while embracing market research insights will unlock the market's growth potential while ensuring a positive coffee experience for enthusiasts.

Significant Market Trends

The market growth is significantly influenced by the rise of smart and connected capsule coffee machines. These machines offer remote control via smartphone apps, enabling users to start brewing, customize settings, and receive maintenance notifications from their mobile devices. Additionally, connectivity appeals to tech-savvy consumers valuing convenience.

Moreover, personalization options through smartphone apps allow users to adjust brew strength, temperature, and cup size, tailoring their coffee experience. Some machines even integrate with voice assistants like Amazon Alexa or Google Assistant. Such advancements positively impact global market trends, driven by the increasing preference for convenience and personalized coffee experiences among consumers worldwide.

Major Market Challenge

Environmental threats associated with capsule coffee are one of the key challenges hindering market growth. One of the most significant challenges for the growth of the capsule machine market is the environmental threat associated with the most important part of the capsule this machine. In addition, a growing environmental threat as they generate more waste on a per-serving basis than traditional packaging options.

Moreover, the waste management mechanisms across the world are not able to tackle the problem of the increasing number of waste arising out of these capsules. Furthermore, these capsules made from plastic and aluminum negatively impact the environment. For example, the degrading time for aluminum capsules can span even more than 100 years. Hence, such factors are negatively impacting the market growth potential. Therefore, it is expected to hinder the market growth during the forecast period.

Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Avantco Equipment: The company offers CMA1L2U automatic coffee maker with 3 decanter warmer, which uses a 3/8th inch of water connection to fill the reservoir and brew up to 60 cups per hour, thus ideally used for restaurants and cafes.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Bravilor Bonamat BV
• Bunn O Matic Corp.
• Dualit Ltd.
• Electrolux AB
• Food Equipment Technologies Co.
• Hamilton Beach Brands Holding Co.
• Illycaffe Spa
• Jacobs Douwe Egberts AU Pty Ltd.
• Keurig Dr Pepper Inc.
• Koninklijke Philips N.V.
• LUIGI LAVAZZA S.p.A.
• Nestle SA
• Ningbo AAA Group Electric Appliance Co. Ltd.
• Pacific Coffee
• Schaerer AG
• SEB Developpement SA
• Starbucks Corp.
• Tassimo
• The Middleby Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The market is experiencing significant growth, driven by factors such as the convenience factor and the rising demand among urban consumers for quick brewing equipment. Capsule coffee machine and pods, offer a wide range of flavors and varieties, appealing especially to millennials and the middle class. With the rise in cafes and eateries, the commercial sector is witnessing increased adoption of capsule coffee machines. These machines not only provide energy and mental alertness but also cater to the growing stress levels among individuals. The International Coffee Organization recognizes the impact of singleserve coffee on the market, reflecting the evolving consumer knowledge worldwide.

The market is witnessing a dynamic shift with the adoption of open-source systems, catering to diverse preferences. Coffee shops worldwide are embracing capsule coffee machines due to their convenience and ability to offer instant coffee solutions. Consumption of coffee is at an all-time high, driven by the growing demand for quick refreshment among urban consumers, particularly during office breaks. These machines often feature a digital display, enhancing user experience. Additionally, cultural trends favor the use of fresh ground coffee capsules, reflecting evolving tastes. With the rise of the office coffee culture, capsule coffee machines are becoming indispensable in workplaces, providing employees with access to premium coffee beverages at their convenience.

The market is experiencing remarkable growth, driven by factors such as technological advancement and evolving consumer preferences. Open Source System solutions have revolutionized the hospitality industry, enabling establishments like Cafe Royal to offer a diverse range of specialized beverages. Developing nations are witnessing increased adoption due to the convenience and affordability of capsule coffee machines. Consumers are becoming more knowledgeable about different varieties and blends, leading to a surge in online orders. However, environmental issues persist, particularly regarding plastic and aluminum capsules contributing to landfills. Recycling efforts are underway to address this issue. Despite this, capsule coffee machines continue to gain popularity among casual customers, catering to aging demographics seeking convenience in the home brewing process.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Distribution Channel Outlook 
  • Offline
  • Online
• End-user Outlook 
  • Commercial
  • Household
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	166
Base year	2023
Historic period	2018 - 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 7.51%
Market growth 2024-2028	USD 1.72 Billion
Market structure	Fragmented
YoY growth 2023-2024(%)	6.43
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	APAC at 30%
Key countries	US, Canada, China, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Avantco Equipment, Bravilor Bonamat BV, Bunn O Matic Corp., Dualit Ltd., Electrolux AB, Food Equipment Technologies Co., Hamilton Beach Brands Holding Co., Illycaffe Spa, Jacobs Douwe Egberts AU Pty Ltd., Keurig Dr Pepper Inc., Koninklijke Philips N.V., LUIGI LAVAZZA S.p.A., Nestle SA, Ningbo AAA Group Electric Appliance Co. Ltd., Pacific Coffee, Schaerer AG, SEB Developpement SA, Starbucks Corp., Tassimo, and The Middleby Corp.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market forecast between 2024 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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