Outlook on the Coffee Capsule Global Market to 2027

February 19, 2021

According to the recent analysis, the global coffee capsule market is accounted for US$ 8,327.19 million in 2019 and it anticipated to reach US$ 14,062.20 million by 2027; it is expected to grow at a CAGR of 7.0% during 2020-2027. The report highlights key factors driving the market growth and the prominent players with their developments in the market.

Coffee capsule refers to coffee that is packed in a plastic or aluminum package instead of a paper filter. It is usually designed to be used for a single brand or system and is not interchangeable with other systems. Coffee capsule is a single serve vacuum packed capsule that requires a machine which is compatible with it. The benefit of consuming coffee capsule is that the vacuum packing ensures the hygiene and prevents external agents, such as oxygen, humidity, and heat, from entering inside. Coffee capsule is simple to use. Also, in coffee capsule, coffee stays fresher for longer period and does not require the use of coffee grinders.

Consumption of coffee products is rising among health-conscious consumers; thus, manufacturers plan to develop new and innovative formulations, such as coffee capsules, sugar-free coffee premix, and other products, in the market. Alzheimer's disease is the leading cause of dementia in the elderly, followed closely by Parkinson's disease. Studies have shown that drinking three to five cups of coffee per day can reduce the risk of contracting Alzheimer's, Parkinson's, and other forms of dementia by up to 65% . Antioxidants fight against the health-damaging free radicals ("oxidants") in the body and boost the immune system. Many fruits and vegetables also fight against the oxidants, but coffee is the most popular beverage among consumers as it is a rich source of antioxidants. Coffee helps reduce the chances of developing several types of cancer, including oral cancer, skin cancer, and liver cancer. Type II Diabetes is a potentially deadly disease that is reaching epidemic proportions in Australia. Numerous studies have shown that coffee can dramatically reduce the risk of developing diabetes. Caffeine works in two ways to improve athletic performance. It raises metabolism, increases the oxidation of fatty acids, and mobilizes fatty acids from the fat tissues. The consumption of coffee has increased among health-conscious consumers as it has anti-cancer properties. These benefits of consumption of coffee boost the demand for coffee capsules across the world.

Asia Pacific coffee capsule market is expected to grow at the highest CAGR during the forecast period. China is dominating the regional market, followed by India and Japan. Consumers in these countries are shifting their preferences toward healthy lifestyle and prefer products that provide health benefits. Therefore, increasing health concerns among consumers drive the growth of the coffee and coffee capsule market in Asia Pacific. Also, increasing use of coffee capsule by the HORECA sector is driving the demand for coffee capsules across Asia Pacific. Over the years, the manufacturing spending toward the developments in food and beverage industries has grown significantly, and it is further expected to grow at a high rate. Rising foreign direct investments also lead to economic growth in the region. India, Japan, and China are amongst the major markets for coffee capsules in Asia Pacific. Multiple leading players actively operating in the coffee capsule market of Asia Pacific are venturing into the manufacturing of these products owing to growing popularity of coffee capsule across the region.

Endorsements of new products, as well as the launch of multiple new chains by celebrities and sports personalities, are further driving the demand for coffee capsule products in this region.

The COVID-19 outbreak has affected economies and industries in various countries due to imposed lockdowns, travel bans, and business shutdowns. As a result of this outbreak, food processing and consumer goods is one of the major industries suffering serious disruptions such as supply chain breaks, technology events cancellations, and office shutdowns. China is the hub of manufacturing and the largest raw material supplier for various industries across the world, and disturbed operations in the country are affecting several businesses from all other countries, dependent on its manufacturing sector. The global market breakdown due to the COVID-19 crisis is also affecting the growth of the coffee capsule market.

VERO Coffee, Vittoria Food and Beverage, Belmoca Belgium (Belmio), Coind group, Nestle Nespresso S.A, Coind Group, Jacobs Douwe Egberts BV, Gloria Jean's Gourmet Coffee, Luigi Lavazza S.p.A, Dualit Limited, and illycaffe S.p.A. are a few key players operating in the global coffee capsule market.