Coffee Capsules and Pods Market

Industry Size, Growth, Emerging Trends, Regional Analysis, Opportunities, and Forecast By 2033

Coffee capsules and pods market has significant growth scope and is estimated to reach USD 23.0 Billion by 2025. The reports forecast the coffee capsules and pods market by product, application, material, and region. It highlights COVID-19 impact on the coffee capsules and pods industry.

Region: Global | Format: Word, PPT, Excel | Report Status: Published

Description

According to the Market Statsville Group (MSG), the Global Coffee Capsules and Pods Market size was valued at USD 23749.62 million in 2024 and is expected to grow from USD 25530.84 million by 2025 to USD 45533.69 million by 2033, at a CAGR of 7.5% during the forecast period (2025 – 2033)

The Coffee Capsules and Pods Market has seen a remarkable growth trend in the global market primarily because the busy lifestyles are complimenting the use of these coffee products among households and offices. It’s worth stating that these single-serve coffee solutions enable the consumer to enjoy their favorite coffee beverages just as quickly, as easily, and making less mess. The market is highly segmented in terms of flavors, coffee strengths, and variety in brewing options and it is led by prominent players such as Nespresso, Keurig, Lavazza, etc. Sales of expensive and socially responsible coffee are also growing as more people care about origins and environmentalizm. The trends in capsule design are toward sustainability, including recyclable and biodegradable materials in the manufacturing process. Also, technologies in coffee machines and the ability to use multiple capsules have been a factor in market growth. Increasing working population, urbanization and expanding middle class is further boosting the consumption of coffee capsules and pod around the world. 

Definition of the Coffee Capsules and Pods

Coffee capsules and pods are ready-to-use servings of coffee made in a specifically designed brewing device. They hold ground coffee packed in a single capsule or pod, which may be used quickly and easily with minimal mess for a cup of coffee. Being convenient and a time-saver, they gained popularity for in-home and in-office use as well as for flavor and strength differences. 

Global Coffee Capsules and Pods Market Dynamics

Drivers: Rising Coffee Consumption

The growing consumption of coffee is listed as one of many factors that is contributing to the development of the Coffee Capsules and Pods Market. Coffee beverage is part and parcel of the daily lives across the globe with increased consumption by people across the globe, especially the young adult population. Specifically, the younger consumers, the millennials and the gen Z are a key driver of the growth of specialty coffee as these consumers are young, educated, value conscious, and experience seekers who demand high quality, easy to access, and customized coffee solutions. The need for a high quality cup of coffee consumed at home, and coupled with busy and stressful schedules, has further boosted single-serve coffee systems such as capsules and pods. These solutions also are beneficial because they allow young consumers spend less time and do not vary much in each time of purchasing. Also, the coffee product is growing younger generations are discovering new tastes of different blends and thus increasing the demand for different flavors in the pod. With the upward trend in coffee consumption, single serve solutions will continue to dominate the circulation among coffee drinkers around the world. 

Challenges: Environmental Concerns

Issues concerning single Use Coffee Pods and Capsules and its environmental impacts are a major concern in the Coffee Capsules and Pods Market. The vast majority of these products are made of plastic or aluminum, materials that are detrimental to the environment and add to the problem of waste and landfill when the products themselves are non-recyclable. However, even such brands as Nespresso, who claim to use recyclable or biodegradable pods or boxes, face the problem of how the used capsules can reach the appropriate disposal by the consumers. Such capsules are also environmentally unfriendly because their making consumes a lot of energy and the recyclability of such packaging materials is very difficult. Also, many consumers do not know where they can recycle their product or do not have proper disposal systems making the problem worse. Thus, with sustainability gradually rising as a buyer’s concern, coffee pod companies are forced to seek new ways to create more environmentally friendly items while also preserving the versatility, a major appeal behind single-serving coffee solutions. 

 

Scope of the Global Coffee Capsules and Pods Market 

The study categorizes the Coffee Capsules and Pods market based on Type, Material, Machine Compatibility, Flavor at the regional and global levels.

By Type Outlook (Sales, USD Million, 2019-2033)

  • Coffee Capsules
  • Coffee Pods 

By Material Outlook (Sales, USD Million, 2019-2033)

  • Plastic
  • Aluminum
  • Biodegradable Materials
  • Others 

By Machine Compatibility Outlook (Sales, USD Million, 2019-2033)

  • Nespresso-Compatible Pods
  • Keurig-Compatible Pods
  • Generic/Universal Pods

By Flavor Outlook (Sales, USD Million, 2019-2033)

  • Espresso
  • Cappuccino
  • Latte
  • Americano
  • Flavored Coffee (Vanilla, Caramel, etc.)
  • Others

By Region Outlook (Sales, USD Million, 2019-2033)

  • North America 
    • US
    • Canada
    • Mexico
  • Europe 
    • Germany
    • Italy
    • France
    • UK
    • Spain
    • Poland
    • Russia
    • The Netherlands
    • Norway
    • Czech Republic
    • Rest of Europe
  • Asia Pacific 
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Malaysia
    • Thailand
    • Singapore
    • Australia & New Zealand
    • Rest of Asia Pacific
  • South America
    • Brazil
    • Argentina
    • Colombia
    • Rest of South America
  • The Middle East & Africa
    • Saudi Arabia
    • UAE
    • South Africa
    • Northern Africa
    • Rest of MEA

Espresso segment accounts for the largest market share by Flavor

Based on the Flavor, the market is divided Espresso, Cappuccino, Latte, Americano, Flavored Coffee, Others. Espresso are the dominant segment of the Coffee Capsules and Pods Market. Espresso is believed to be the original and the most favoured brewing style of coffee most especially in the coffee drinking regions of the world such as Europe and North America. It is used as a base for many other coffee recipes including the popular cappuccino and latte, and therefore is highly sought after product. Espresso has also become the market leader in the dark roast segment due to the probability of people shifting towards strong, rich coffee flavors, coupled by the rise in coffee consumption from premium segment. Moreover, versatility of espresso in various brewing machinery like nespresso and keurig are also the reasons that make it found popular amongst the consumers. In particular, it serves as the foundation for most of the coffee-based products meaning that it is what most consumers want when it comes to taste, convenience, quality and reliability. Specifically, the bitter taste of espresso and the increasing popularity of premium coffee also contribute to Espresso’s dominance of the market.

Europe accounted for the largest market share by Region

Based on the regions, the global market of Coffee Capsules and Pods has been segmented across North America, Europe, the Middle East & Africa, South America, and Asia-Pacific. The Europe dominates the Coffee Capsules and Pods market. The leadership strategy in the region is informed by the region’s strong passion for coffee basically, premium and specialty coffee is a major lifestyle factor. Specifically, consumers across European countries are interested in quality, convenience and the availability of the range of products; therefore single-serve coffee solutions are of great interest. Espresso-loving nations such as Italy, France, Germany, and Switzerland are especially suitable for capsules and pods because the quality of such a drink can be prepared in a home environment. In addition, Europe possesses essential market participants like Nespresso and Lavazza, who contribute to the development and who reflect the European market taste. Sustainability is an important issue, the implementation of such elements as biodegradable pods corresponds to the ecological expectations of consumers of this region. Overall European market remains dominant in Number and growth rate of coffee capsules and pod usage while companies always remain innovative.

 

Competitive Landscape: Global Coffee Capsules and Pods Market 

The global Coffee Capsules and Pods Market is very competitive, with leading companies including Nestlé (Nespresso), Keurig Dr Pepper, Lavazza, and Starbucks. These leaders hold sway over the market through brand recognition, an extensive product portfolio, and innovative offerings such as sustainable, premium, and recyclable options. Small brands target niche markets, increasing competition since the demand for variety and quality increases with consumer desire.

Major players in the global Coffee Capsules and Pods market are: 

  • Illycaffè S.p.A
  • The Kraft Heinz Company 
  • The J.M. Smucker Company  
  • Starbucks
  • Luigi Lavazza S.p.A.
  • Dualit Limited 
  • Caffe’ d’Italia SRL 
  • Keurig Dr. Pepper, Inc. 
  • Nestlé S.A. 
  • Mellita 
  • Jacobs Douwe Egberts B.V. 
  • Other Major Players

Recent Development 

  • In November 2022, Nescafé Dolce Gusto has launched Neo, its next-generation 'Coffee Shop at Home' experience. The brand launches Neo, its next-generation coffee machines and pods. Neo offers top-notch quality, advanced technology, and a strong commitment to sustainability, delivering the ultimate coffee shop experience right at home.
  • In September 2022, A pioneering Swiss coffee brand, CoffeeB, has rolled out a revolutionary new coffee it says is "the next generation of single-serve coffee." The innovative compressed coffee balls make use of biodegradable wrappers made from seaweed rather than traditional aluminum or plastic, holding the capsule's shape.
     

Frequently Asked Questions

  • Key Issues Addressed
  • What is the market size and growth rate for different segmentations at a global, regional, & country level?
  • What is the customer buying behavior, key takeaways, and Porter's 5 forces of the market?
  • What are the key opportunities and trends for manufacturers involved in the supply chain?
  • What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
  • What and how regulations, schemes, patents, and policies are impacting the growth of the market?
  • How will existing companies adapt to the new change in technology?
  • The market player positioning, top winning strategies by years, company product developments, and launches will be?
  • How has COVID-19 impacted the demand and sales of in the market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
  • Who are the leading companies operating in the market? Also, who are the prominent startups that disrupt the market in coming years?
  • PUBLISHED ON: MARCH, 2024
  • BASE YEAR: 2023
  • FORECAST PERIOD: 2024-2033
  • STUDY PERIOD: 2019 - 2033
  • COMPANIES COVERED: 15
  • COUNTRIES COVERED: 24
  • NO OF PAGES: 220

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