Coffee Pods and Capsules Market Expected to Grow Through 2026,
July 8 - 2021
Coffee Geography Magazine
The coffee pods and capsules market was valued at USD 25 billion in 2020, and it is projected to register a 7% during the period 2021-2026.The quality, efficiency, and diverse choices offered in a single serving of coffee are responsible for the growth witnessed by the coffee pods and capsules market. Moreover, consumers are willing to purchase coffee machines to recreate the cafe-style experience at home. This, in turn, has increased the demand for coffee pods and capsules.
Coffee capsules have gained high acceptance among consumers in recent years due to the growth in the demand for home brewing. Coffee producers choose coffee capsules due to their suitability, comfort of use, and a wide diversity of coffee products and machinery. Furthermore, the proliferation of premium coffee shops, such as Starbucks, has stimulated consumers’ appetite for high-end, fresh-brewed coffee. This has increased the demand for coffee capsules. Nespresso and Nescafe Dolce Gusto brands play a significant role in the capsule market. Other single-serve brands associated with technology that contribute to increasing the value/volume share ratio include Keurig, the JacobsDouweEgberts, Tassimo, and Senseo, all owned by JAB. Evolving packaging technologies and the ability to compete with exotic or sophisticated brands resulted in the growth of coffee capsules. The European market has witnessed a rise in the demand for specialty coffees and single-serve methods during the past few years. With the rise in market value for coffee pods and capsules, the number of private-label players entering the market is expected to increase in the European region over the forecast period. However, the environmental concern related to the packaging of coffee pods and capsules is hindering the growth rate in the region.Thus, several new entrants are coming up with innovative and sustainable packing solutions. For instance, Cru Kafe, a London-based Coffeepreneurs who has constantly worked to minimize the footprint left on the planet, with biodegradable packaging and no chemicals in the organic coffee, had come up with compostable pods in 2017. Thus, with high product and packaging innovations, the European region remains dominant in the global coffee pods and capsules market. Dunkin Brands, and Starbucks Corporation, also held a prominent share in the global market in 2020. However, high product innovations, the launch of limited edition coffee pods, large distribution networks, and better supply chains have led the coffee pods and capsules market to become highly consolidated, where Nestle (Nespresso and Dolce Gusto) and JAB Holdings (Senseo, Tassimo, Keurig) held the maximum share in the global market.