Enjoy complimentary customisation on priority with our Enterprise License!
The coffee pods market is estimated to grow at a CAGR of 5.22% between 2022 and 2027. The size of the market is forecast to increase by USD 9,996.33 million. The growth of the market depends on several factors, including the convenience of using coffee pods, the increasing number of new product launches, and the growing demand and availability due to organized retailing.
This report extensively covers market segmentation by product type (soft pods and hard pods), type (regular and decaffeinated), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, Download Report Sample
The convenience of using coffee pods is notable driving the market growth, although factors such as the high price of coffee pods and availability of cheaper substitutes may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Coffee Pods Market Driver
The convenience of using coffee pods is one of the key factors driving the growth of the market during the forecast period. This is because many developing economies are undergoing rapid urbanization, thereby increasing the working population and infrastructural development such as growth in organized retail outlets.
Moreover, coffee pods, cafés, and restaurants save money as they do not need to train employees to become baristas or pay the salary that experienced and professional baristas seek. Thus, the demand for time efficiency and convenience will increase the sales of coffee pods during the forecast period.
Significant Coffee Pods Market Trend
The technological and packaging innovations are another factor supporting the coffee pods market share growth. Constant changes in demand for coffee pods and packaging innovations enable players to introduce new coffee pod launches. Coffee pods face stiff competition from the demand for other coffee variants, such as instant coffee and RTD coffee. Many new vendors have begun to launch technologically innovative products. For instance, in November 2022, Nestle launched paper-based Nespresso compostable coffee pods made primarily from paper. Hence, such products have a lower environmental impact than capsules made from aluminum or plastic.
Luigi Lavazza and Nestle Nespresso and Kraft Heinz Ethical Coffee Co. brands offer patented compostable coffee pods (i.e., fully biodegradable coffee pods). This is because coffee capsules face widespread criticism for the environmental hazards associated with their use. More players are expected to introduce new compostable coffee pods. Thus, such innovations in packaging will drive the growth of the market during the forecast period.
Major Coffee Pods Market Challenge
The high price of coffee pods and the availability of cheaper substitutes will be a major challenge for the coffee pods market during the forecast period. The high price of coffee bars compared to traditional coffee products is one of the biggest challenges in the market. Consumers in developing countries in Asia, Eastern Europe, and Latin America still prefer traditional whole-bean coffee because it is cheaper than coffee capsules.
Consumers in densely populated countries such as India, China, Indonesia, the Philippines, Japan, and Nigeria still prefer traditional coffee products. This is because they are more efficient and make more cups of coffee than a packet of coffee grounds. So there is a need for players to reduce the prices of coffee beans to attract consumers in developing countries. Such factors will hinder the market during the forecast period.
Key Coffee Pods Market Customer Landscape
The 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 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.
dallmayr.com - The company offers coffee pods such as Capsa Barista, Capsa Belluno, and Capsa Boost. Also, through this segment, the company offers coffee solutions, tea solutions, and vending solutions.
The 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.
Technavio categorizes the global coffee pods market as a part of the global packaged foods and meats market under the global food products segment of the global food, beverage, and tobacco market. The global packaged foods and meats market covers manufacturers or food processing vendors that are involved in food processing to eliminate microorganisms and extend shelf life. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The market share growth by the soft pods segment will be significant during the forecast period. Soft pods is the largest segment of the global coffee pods market in 2022 and will continue to remain the largest segment during the forecast period. Soft coffee pods are loose un-pressed coffee portions brewed in specially designed machines and mainly used for long cups. These pods are lightweight and flexible when used in brewers with tight clearance, further offering better extraction. Melitta Group, WP Coffee, Baronet Coffee Inc. (Baronet Coffee), Dunkin, and JAB Holding are some of the major vendors offering soft coffee pods.
Get a glance at the market contribution of various segments Request a PDF Sample
The soft pods were valued at USD 18,555.56 million in 2017 and continue to grow by 2021. Soft coffee pods are relatively lower in price compared with hard coffee pods and can easily find in physical stores such as supermarkets. In a variety of non-pressurized devices, drip coffee is made using soft coffee pods. Also, soft coffee pods are environmentally friendly because they are mostly made of paper. Because the pods are entirely biodegradable, they can be securely disposed of or recycled. Prices of soft coffee pods are low because of the absence of materials such as plastic and metal. The pods typically cost less than the capsules. However, due to the increasing popularity of hard pods such as capsules, the share of the soft pods segment in the global coffee pods market will decline during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
Europe is estimated to contribute 40% 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. Europe was the largest geographical segment of the global coffee pods market in 2022 and will continue to remain the largest segment during the forecast period. The coffee pods market in Europe was moderately fragmented in 2022 due to the presence of numerous regional and a few global vendors. The Netherlands, France, Switzerland, Italy, the UK, Germany, Belgium, Spain, Russia, South Africa, Sweden, Finland, and Denmark have a huge potential for coffee pods in terms of volume consumption and revenue generation.
The COVID-19 outbreak led the governments of several countries to impose a total lockdown in 2020. However, large-scale vaccination drives and the opening of end-user industries such as cafes, coffee shops, and restaurants further propelled the demand for coffee pods in Europe in 2021. Moreover, growing urbanization, customer taste for distinctive coffee beverages, and rising coffee consumption in homes and offices, after its reopening, increased the demand for coffee pods in the region. Online sales of coffee pods have seen tremendous growth, owing to an increase in the sales of tablets and smartphones. The trend of online shopping for at-home consumption has increased since 2021. Thus, with the adoption of new technologies, such as e-commerce, the market is expected to witness growth during the forecast period.
The 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. The market has been segmented by Product Type (Soft pods and Hard pods), Type (Regular and Decaffeinated), and Geography (Europe, North America, APAC, South America, and Middle East and Africa).
|
Coffee Pods Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
164 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 5.22% |
|
Market growth 2023-2027 |
USD 9,996.33 million |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023(%) |
5.13 |
|
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
|
Performing market contribution |
Europe at 40% |
|
Key countries |
US, China, Germany, Italy, and France |
|
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Alois Dallmayr KG, Baronet Coffee Inc., Beantown Roasters Inc., Dualit Ltd., Illycaffe SpA, Inspire Brands Inc., Iris Group Pte. Ltd., JAB Holding Co. Sarl, Luigi Lavazza SpA, maxingvest AG, Nestle SA, Rogers Family Co., Starbucks Corp., Strauss Group Ltd., The J.M Smucker Co., Trilliant Food and Nutrition LLC, White Bear Coffee Co., WP Coffee, Puro Gusto Ltd., and The Kraft Heinz Co. |
|
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 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Get the report (PDF) sent to your email within minutes.
