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The Coffee Pods and Capsules Market size is projected to increase by USD 13.80 billion at a CAGR of 8.09% between 2023 and 2028. The convenience of using coffee pods, which offer quick and easy preparation of coffee with minimal mess, is driving market growth. The growing demand for and availability of these due to organized retailing, such as supermarkets and online retailers, is also boosting market expansion. Additionally, the increasing number of new product launches, including new flavors, blends, and types of coffee pods, is fueling market growth by attracting new customers and catering to evolving consumer preferences. Overall, these factors are contributing to the rapid growth of the market worldwide.
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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, these 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 13.87 billion in 2018. However, the major companies are introducing biodegradable and compostable coffee pods to attract consumers seeking eco-friendly capsules. Moreover, product innovation and a rising number of companies offering compostable coffee capsules are the major drivers that are expected to boost sales 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 these capsules due to their versatility, ease of use, and compatibility with a wide range of equipment. They 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 these capsules, which is expected to drive their growth during the forecast period.
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Europe is estimated to contribute 48% 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 market in Europe. Additionally, supermarkets and hypermarkets are the primary distribution channels 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 market in the region during the forecast period.
The market is driven by factors such as quality, efficiency, and variety. Products like K-Cups, Nespresso Capsules, and T-Discs offer convenience and a cafe-style experience at home. They contribute to improved energy levels and brain functioning. Non-alcoholic drinks from premium coffee shops and online distribution channels are gaining popularity. Industry investors are exploring novel tastes to cater to consumer preferences. These products provide a quick and convenient solution for busy lives, complementing traditional coffee-making equipment. Manufacturers are focusing on new and innovative flavors, including classic blends and specialty options, to enhance the personalized experience. 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.
Convenience in using coffee pods is a major factor driving the market. The demand for convenient products has increased significantly, driven by rapid urbanization and infrastructure development in developing countries. Urban consumers now prefer ready-packaged food and beverages, with these becoming especially popular, particularly in North America and Western Europe.
Moreover, this trend is driven by manufacturers offering new and innovative flavors to meet consumer preferences, including classic blends as well as specialty and exotic flavors. Single-serving coffee containers are favored in cafes and restaurants because they are simple, convenient, and time-efficient, eliminating the need for extensive barista training or high wages. Consequently, the market is projected to expand in the forecast period, fueled by the desire for time-saving and convenient solutions. Hence, such factors are driving the market during the market forecasting period.
The incorporation of technology and packaging innovations is a primary trend in the market. Changes in demand for these products 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.
Moreover, 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 market during the forecast period.
The high price of coffee pods and capsules and the availability of cheaper substitutes are key factors hindering market growth. The high price of these 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 these to attract consumers in developing nations. These factors may hinder the growth of the market during the market 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.
Market Customer Landscape
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.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Coffee Pods Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Germany, Italy, France, China - Size and Forecast
Roast and Ground Coffee Market Analysis Europe, APAC, North America, South America, Middle East and Africa - US, Japan, Germany, Italy, Brazil - Size and Forecast
Freeze Dried Coffee Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, Japan, France, China, UK - Size and Forecast
The market is experiencing significant growth driven by increasing acceptance among health-conscious and fitness-focused consumers, particularly in the millennial generation. This segment offers quick and convenient coffee solutions, catering to hectic schedules and lifestyle patterns. Consumers are also inclined towards eco-friendly alternatives such as organic coffee capsules and sustainably sourced products. The market is characterized by a surge in demand for single-serve coffee products, including specialty coffee variants. With the rise of e-commerce platforms and subscription services, the market offers a wide range of novel formulations and flavor preferences to cater to diverse tastes. In the realm of coffee aficionados, the selection of pods has expanded beyond traditional grounds as it have Anti-cancer effects. From Dolce Gusto to ESE and Senseo, the choices are as diverse as the flavors they offer. Offline distribution channels ensure accessibility, while novel tastes tantalize taste buds, providing an adventurous journey for every sip. But it's not just about variety—it's about personalization. These pods cater to individual preferences, allowing coffee lovers to craft their perfect cup. With each pod, a unique experience unfolds, transforming the daily ritual of coffee into a delightful exploration of taste and aroma.
The market is witnessing a rise in demand due to the increasing acceptance of convenient coffee solutions, especially among health-conscious consumers and millennials. Consumers are gravitating towards organic coffee pods and capsules, driven by their preference for healthy foods and sustainably sourced products. The market offers a variety of options to cater to diverse taste preferences, including specialty coffee variants and decaf options. With the convenience of online retailing and non-store-based distribution channels, consumers can easily access a wide range of coffee types compatible with various coffee machines. The market is evolving rapidly, offering consumers a convenient cafe-style experience with options for instant non-alcoholic drinks and novel coffee tastes. This market segment appeals particularly to fitness-focused consumers seeking healthy beverages that support metabolism and fat burning. Social media channels play a crucial role in promoting these products, highlighting features like compostable lids and sustainable coffee cultivation practices.
Compostability legislation drives innovation in barrier protection and sealing properties, ensuring products meet carbon content standards. Materials such as plant-based lids and biodegradable options cater to eco-friendly preferences, minimizing food waste with compostable pods and refillable capsules. Consumer goods like fruit preserves and peanut butter increasingly use sustainable packaging solutions. The market landscape depends on the Fitness focused consumers, Single-serving coffee containers, Biodegradable materials, and Busy workplaces. Single-serving coffee containers, including ground coffee and filter paper pods, emphasize freshness and brewing parameters, supported by connectivity options in smart coffee machines with personalized brewing settings. Premiumization is evident in the market with ethical sourcing practices and fair trade certifications influencing choices in on-the-go coffee solutions. The market encompasses both on-trade (cafes, hotels) and off-trade (households, workplaces) distribution channels, reflecting diverse consumer needs for eco-friendly alternatives and premium coffee experiences. As espresso consumption rises globally, the market continues to innovate with sustainable practices and technological advancements to meet evolving consumer preferences.
Industry Scope |
|
Report Coverage |
Details |
Page number |
154 |
Base year |
2023 |
Historic period |
2017 - 2021 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.09% |
Market growth 2024-2028 |
USD 13804.2 million |
Market structure |
USD Concentrated |
YoY growth 2023-2024(%) |
7.32 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 48% |
Key countries |
US, France, Germany, Italy, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bestpresso Inc., Coffee Capsules Inc., Coffee Day Enterprises Ltd., Emeril Lagasse Foundation, Inspire Brands Inc., JDE PEETs NV, Keurig Dr Pepper Inc., LUIGI LAVAZZA S.p.A., McDonald Corp., Nestle SA, Starbucks Corp., and The J.M Smucker Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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