PUBLISHER: DataM Intelligence | PRODUCT CODE: 1418699
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1418699
Global Coffee Pods and Capsules Market reached US$ 13.89 billion in 2022 and is expected to reach US$ 22.78 billion by 2030, growing with a CAGR of 6.38% during the forecast period 2023-2030.
Globally increase in the coffee consumption helps to boost market growth of the coffee pods and capsules market. According to the data given by International Coffee Organization, in April 2023, world coffee consumption increased by 4.2% to 175.6 million bags in the year 2021-22. In 2022, globally 178,534 thousand 60-Kg Bags bags of coffee are consumed. As coffee consumption is increased globally demand for coffee pods and capsules also increased.
Growing consumer adoption for the coffee pods helps to boost market growth of the coffee pods and capsules. According to the data given by Chamberlain Coffee company in December 2022, over 15 billion plastic pods are produced each year with 90% of those single-serve pods ending up in landfills or burned which means compostable pods create more sustainable coffee pod options.
Some of the major key players in the market follow merger and acquisition strategies to expand their business and launch innovative products in the market. For instance, on October 05, 2023, Nespresso collaborated with Blue Bottle Coffee to innovate a specialty coffee experience by developing a limited-edition coffee capsule that blends the deliciousness of Blue Bottle and Nespresso coffees. Blend No. 1 is available for the Nespresso Vertuo machines and available for sale on the company website Nespresso.com and Nespresso boutiques.
The increasing preference for convenience foods, including single-serving coffee pods and capsules, is expanding the market's growth. Consumers who value quick and easy beverage preparation are driving the growth of the coffee pods and capsules market. Modern lifestyles are characterized by busy schedules and on-the-go routines. Coffee pods and capsules align perfectly with this lifestyle, offering a quick and hassle-free way to enjoy a cup of coffee and drive the market growth.
Coffee pods and capsules provide single-serving convenience, allowing consumers to enjoy fresh, hot coffee in minutes. This feature caters to the need for individual portion control and minimizes waste. Manufacturers are responding to the demand for convenience by diversifying their product offerings within the coffee pods and capsules market. For instance, on March 12, 2021, Coffeeza launched a new coffee capsule and coffee machine in the market. Coffee capsules are available in three different flavors as Espresso, Cappuccino, and Latte.
The rise of coffee culture globally is expanding the coffee pods and capsules market. As coffee culture gains popularity in various regions, more consumers are seeking convenient ways to enjoy high-quality coffee contributing to market growth. The emergence of coffee culture represents a cultural shift toward valuing and savoring coffee as an artisanal beverage. This shift is elevating the demand for premium and specialty coffee and tea capsules in the market.
Coffee culture encourages consumers to explore diverse coffee flavors and blends. Capsules offer an accessible way to enjoy specialty blends, contributing to a broader range of products available in the market. Coffee culture enthusiasts seek to replicate the cafe experience at home. Coffee capsules provide an easy way to achieve this by offering cafe-quality beverages without the need for professional barista equipment. Growing the working population globally also helps to increase the coffee culture globally.
Price fluctuations in coffee commodities lead to market volatility. When the cost of coffee pods and capsule beans rises significantly, it affects the pricing of capsules, potentially leading to decreased consumer demand. As capsule prices rise due to fluctuating coffee beans cost consumers are more cautious with their spending. This leads to decreased sales, particularly among price-sensitive consumers who are looking for more affordable alternatives.
Price fluctuations influence consumer preferences. Some consumers shift from premium and specialty capsules to more budget-friendly options when facing higher prices, affecting the market dynamics. For manufacturers and suppliers in the coffee pods and capsules market, price fluctuations impact profit margins. Sudden increases in raw material costs squeeze profit margins, affecting the overall financial health of key players in the industry.
the global coffee pods and capsules market is segmented based on type, nature, distribution channel, and region.
On the basis of type, the coffee pods and capsules market is segmented into pods and capsules. The coffee pods segment held 45.15 % of the market share in the global coffee pods and capsules market. Coffee pods are recyclable which helps to boost demand from consumers who are conscious about the environmental impact of the product. In a recent study, Keurig Green Mountain agreed to pay $10 million to settle the claim that Keurig misled consumers to believe its K-cup pods are recyclable.
The Coffee At Home UK Report published in 2023, shows that sales for the domestic pod, filter, and espresso machines rose by 3.5% over 2021, to reach £162.8m. Technological advancement in the coffee pods and capsules machinery also helps to boost market growth over the forecast year 2022-2030. For instance, on October 26, 2023, IMA Coffee provided filling and sealing technologies for every type of coffee pod. Growing consumer demand for convenience products further helps to boost market growth of coffee pods in the market.
Europe accounted largest market share accounting for 49.12% of the global coffee pods and capsules market. The European Union has one of the world's highest average annual per capita consumption around 5 kg of coffee per person per person. Germany is a leading coffee-consuming country in the region. Germany accounted for 34% of all European coffee imports in year 2021.
According to the World Coffee portal, instant coffee is the most popular coffee type in the UK with 64% of the consumers purchasing in jar or tin form, 48% purchasing ground coffee, and around 47% of consumers purchasing coffee pods which helps to increase the consumer's demand for the market growth of the coffee pods and capsules market. In Europe around 81% of consumers drink at least one cup of coffee a day.
The major global players in the market include: Bonhomiaworld, VERO Coffee, Fresh Brew Co., Nestle Nespresso SA, Lavazza, Starbucks Corporation, Keurig Green Mountain, Inc., Strauss Group, KING SRL P.IVA, and GreenPod Coffee.
With the closure of coffee shops and reduced foot traffic in cafes due to lockdowns and restrictions, consumers turned to at-home coffee consumption. This led to increased demand for coffee pods and capsules as people sought to recreate their favorite coffee shop experiences at home. With concerns about in-person shopping and safety, online shopping for coffee pods and capsules surged. Many consumers embraced e-commerce for the convenience of having coffee products delivered to their doorstep.
As remote work and the at-home office culture became prevalent during the pandemic, many individuals invested in coffee machines and relied on coffee pods to meet their caffeine needs, further boosting sales. The pandemic increased awareness of environmental issues, including single-use packaging. Some consumers, driven by sustainability concerns, reduced their consumption of single-use capsules, impacting the market.
Russia and Ukraine a significant suppliers of coffee beans to the global market, and the conflict disrupts the supply chain. Interruptions in the supply of raw materials lead to price fluctuations and affect the availability of capsules in the market. Increased prices for raw materials lead to higher production costs for coffee pods and capsules, potentially affecting market prices.
Geopolitical conflicts create uncertainty in global markets, including commodities like coffee pods and capsules. Investors and businesses react cautiously, potentially impacting investment decisions and market stability. Geopolitical tensions influence consumer sentiment and behavior. The conflict leads to economic uncertainty and consumer concerns, it affects consumer spending patterns, including purchases of coffee pods and capsules.
The global coffee pods and capsules market report would provide approximately 61 tables, 56 figures and 190 pages.
LIST NOT EXHAUSTIVE.