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The Coffee Pods and Capsules Market size is projected to increase by USD 9,460.13 million and the market size is estimated to grow at a CAGR of 6.16% between 2022 and 2027.
This coffee pods and capsules market report extensively covers market segmentation by Product (capsule and plastic cup-based coffee pods, foil, and paper-wrapped coffee pods), Type (coffee capsules and coffee pods), and Geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Convenience in using coffee pods is a major factor driving the coffee pods and capsules market. The demand for convenient products has surged since 2008 due to rapid urbanization and infrastructure development in developing economies. Urban consumers now demand ready-packaged food and beverages, and coffee pods have become increasingly popular, especially in North America and Western Europe. Single-serving coffee containers are preferred in cafes and restaurants as they offer simplicity, convenience, and time-efficiency, without requiring extensive barista training or high salaries. As a result, the market for coffee pods and capsules is expected to grow during the forecast period, driven by the demand for time efficiency and convenience.
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Our researchers analyzed the data with 2022 as the base year, along with the key trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
The incorporation of technology and packaging innovations is a primary trend in the coffee pods and capsules market. Changes in demand for coffee pods and capsules and packaging innovations lead to the introduction of new products. The competition is tough as other coffee variants, such as instant coffee and RTD coffee, are also popular. Players are launching technologically innovative products, like CoffeeB's seaweed-based coffee ball and Tim Hortons' new Nespresso-compatible espresso capsules. Nespresso Vertuo from Starbucks by Nespresso was also introduced in October 2021. The market is expected to see the launch of new compostable coffee capsules in the forecast period, which will fuel growth in the coffee pods and capsules market.
The high price of coffee pods and capsules and the availability of cheaper substitutes are key factors hindering market growth. The high price of coffee pods and capsules compared to traditional coffee products is a significant challenge for the market. Consumers in developing economies still prefer traditional whole-bean coffee due to its cheaper price. For instance, a jar of Nescafe Coffee-Classic is approximately USD 3.50, while 12 Nescafe Dolce Gusto Organic Espresso Honduras Capsules cost USD 5.64. Consumers in highly populated nations such as India, China, Indonesia, the Philippines, Japan, and Nigeria prefer conventional coffee products as they are more efficient and prepare more cups of coffee than a package of coffee pods. Therefore, players need to reduce the prices of coffee pods and capsules to attract consumers in developing nations. These factors may hinder the growth of the global coffee pods and capsules market during the forecast period.
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 Coffee Pods and Capsules Market Customer Landscape
Vendors 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.
The coffee pods and capsules market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the capsule and plastic cup-based coffee pods segment will be significant during the forecast period. Coffee capsules are?similar to coffee?pods, as they are pre-packaged, measured doses of coffee. They are contained in a capsule that needs to be thrown away after just one use. This capsule has a foil top and is constructed of aluminum or plastic. As the demand for instant non-alcoholic drinks has increased, coffee capsules have seen significant consumer acceptance. Such factors will increase segment growth during the forecast period.
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The capsule and plastic cup-based coffee pods segment was valued at USD 12,667.55 million in 2017 and continue to grow by 2021. However, the major vendors of coffee pods are introducing biodegradable and compostable coffee pods to attract consumers seeking eco-friendly capsules. Moreover, product innovation and a rising number of vendors offering compostable coffee capsules are the major drivers that are expected to boost the sales of coffee capsules worldwide. Such factors are anticipated to have a positive impact on the growth of the segment during the forecast period. Thus, the market in focus is also expected to grow during the forecast period.
Coffee capsules and coffee pods are similar as they are pre-measured doses of coffee that are packaged and discarded after a single use. They are made of aluminum or plastic and have a foil top. The demand for instant non-alcoholic beverages has led to an increase in consumer acceptance of coffee capsules due to their versatility, ease of use, and compatibility with a wide range of coffee equipment. Coffee capsules are becoming more popular due to the increasing demand for fine, freshly brewed coffee, which has been driven by high-end coffee cafes like Starbucks. Major players in the capsule sector include Nespresso and Nescafe Dolce Gusto, as well as technology-driven brands like Keurig, JacobsDouweEgberts, Tassimo, and Senseo, which are all owned by JAB. Evolving packaging technologies and the ability to compete with high-end or exotic brands have also contributed to the popularity of coffee capsules, which is expected to drive their growth during the forecast period.
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Europe is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The rising household expenditure on food and beverages in the region, coupled with product launches, is anticipated to propel the growth of the coffee pods and capsules market in Europe. Additionally, supermarkets and hypermarkets are the primary distribution channels of coffee pods and are highly preferred in the urban regions of Europe. According to Eurostat data, in 2019, the household expenditure in the EU on food and beverages was 13.2% of the total consumption expenditure. These factors are expected to drive the growth of the coffee pods and capsules market in the region during the forecast period.
The COVID-19 outbreak negatively impact the market growth in 2020. However, the large-scale vaccination drives started in Europe in H2 2020. Almost 60% of the population was vaccinated by May 2021, which resulted in the lifting of lockdowns and other restrictions. Hence, the supply chain of coffee pods and capsules was restored by H2 2021 only. Such factors are anticipated to support the growth of the coffee pods and capsules market in North America during the forecast period.
The coffee pods and capsules market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Coffee Pods And Capsules Market Scope |
|
Report Coverage |
Details |
Page number |
144 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Decelerate at a CAGR of 6.16% |
Market growth 2023-2027 |
USD 9,460.13 million |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
6.97 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 45% |
Key countries |
US, Canada, France, Germany, and Italy |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Luigi Lavazza SpA, The J.M Smucker Co., Nestle SA, Keurig Dr Pepper Inc., JDE PEETs NV, Starbucks Corp., Inspire Brands Inc., Coffee Day Enterprises Ltd., Bestpresso Inc., McDonald Corp., Emeril Lagasse Foundation, and Coffee Capsules Inc. |
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, Market condition analysis for 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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