Coffee Pods and Capsules Market Size
| Study Period | 2018 - 2028 |
| Market Size (2023) | USD 26.80 Billion |
| Market Size (2028) | USD 37.43 Billion |
| CAGR (2023 - 2028) | 6.91 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Europe |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Coffee Pods and Capsules Market Analysis
The Coffee Pods and Capsules Market size is expected to grow from USD 26.80 billion in 2023 to USD 37.43 billion by 2028, at a CAGR of 6.91% during the forecast period (2023-2028).
The quality, efficiency, and diverse choices offered in a single serving of coffee are responsible for the growth of the coffee pods and capsules market. Consumers are also willing to purchase coffee machines to recreate the cafe-style experience at home. This trend has boosted the demand for coffee pods and capsules. As coffee is the most consumed beverage, the high demand for coffee is the primary reason for the growth of the pods and capsules market. One of the major factors responsible for the rising popularity of coffee pods among consumers is their one-time use and disposable features. These days, the market players are making efforts to make environment-friendly and biodegradable coffee capsules. For instance, in November 2022, a Nestle brand Nespresso launched compostable coffee capsules made from paper. The capsules are compatible with Nespresso coffee machines.
The coffee pods and capsules market is growing owing to the rise in demand for ready-to-drink coffee beverages. People have very busy lives these days because of urbanization and industrialization. Therefore, they need quick refreshments and easy-to-make coffee. Coffee pods and capsules save time and give good quality coffee within few minutes. The market players like Nestle are inventing new technologies for homemade coffees. For instance, in November 2022, Nestle brand Nescafe Dolce Gusto launched Neo, the brand's next-generation coffee machines and pods. The coffee pods are paper-based and home compostable.
Coffee Pods and Capsules Market Trends
This section covers the major market trends shaping the Coffee Pods & Capsules Market according to our research experts:
Capsules Hold the Largest Market Share
Coffee capsules have gained high acceptance among consumers in recent years due to the growing demand for instant non-alcoholic drinks. Coffee producers choose coffee capsules due to their suitability, comfort of use, and wide diversity of coffee products and machinery. The proliferation of premium coffee shops, such as Starbucks, has stimulated consumers’ appetite for high-end, fresh-brewed coffee, thus boosting the demand for coffee capsules. Brands like Nespresso and Nescafe Dolce Gusto play a significant role in the capsule market. Other single-serve brands associated with technology that contribute to the growing value/volume share ratio include Keurig, the JacobsDouweEgberts, Tassimo, and Senseo, all of which are owned by JAB. Evolving packaging technologies and the ability to compete with exotic or sophisticated brands resulted in the growth of coffee capsules.
Europe Leads the Coffee Pods and Capsules Market
The European market witnessed a rising demand for specialty coffee and single-serve methods in the past few years. Among all, Germany and France are the regional leaders in the market. With the rising market value for coffee pods and capsules, several private-label players are entering other markets in the region, which may drive the European market over the forecast period. However, the environmental concerns related to the packaging of coffee pods and capsules are hindering the market's growth in the region. Thus, to tackle this issue, several new entrants are innovating sustainable packing solutions. For instance, in September 2022, Cafe Royal invented a coffee pod in the shape of a ball. This ball is coated in a thin shell made of a vegetable layer, which is 100% compostable. The product is a true zero waste for capsules.
Coffee Pods and Capsules Industry Overview
The coffee pods and capsules market is largely dominated by Tim Hortons, Nestlé (Nespresso), and JAB Holding Company, with a strong global presence of their brands like Nespresso, Keurig, Tassimo, Senseo, and Dolce Gusto. Other key players, such as Dunkin' Brands and Starbucks Corporation, also hold a prominent share of the overall market currently. However, high product innovations, the launch of limited edition coffee pods, large distribution networks, and better supply chains have resulted in high consolidation of the coffee pods and capsules market, with Nestle (Nespresso and Dolce Gusto) and JAB Holdings (Senseo, Tassimo, and Keurig) holding the maximum share in the overall market.
Coffee Pods and Capsules Market Leaders
Keurig Dr Pepper Inc.
Starbucks Corporation
Nestlé SA
Tim Hortons
JAB Holding Companies
*Disclaimer: Major Players sorted in no particular order
Coffee Pods and Capsules Market News
- In September 2022: The Swiss coffee brand "CoffeeB" launched single-serve coffee, an innovative compressed coffee ball that uses a seaweed-based casing rather than an aluminum or plastic capsule.
- In August 2022: Tim Hortons unveiled four new varieties of espresso capsules compatible with Nespresso. These four varieties include classic, bright, bold, and decaf.
- In October 2021: Starbucks by Nespresso launched a new range of coffee capsules called Nespresso Vertuo, giving Canadian coffee fans more opportunities to enjoy the signature café taste.
Coffee Pods and Capsules Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Pods
5.1.2 Capsules
5.2 Distribution Channel
5.2.1 Supermarkets/Hypermarkets
5.2.2 Specialty Stores
5.2.3 Online Retailing
5.2.4 Other Distribution Channels
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 Italy
5.3.2.4 France
5.3.2.5 Russia
5.3.2.6 Spain
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 United Arab Emirates
5.3.5.2 South Africa
5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Market Share Analysis
6.2 Most Active Companies
6.3 Company Profiles
6.3.1 Nestle SA
6.3.2 JAB Holding Company
6.3.3 The Kraft Heinz Company
6.3.4 Inspire Brands Inc. (Dunkin' Brands)
6.3.5 Luigi Lavazza SpA
6.3.6 Starbucks Corporation
6.3.7 Gloria Jean's Coffees
6.3.8 Strauss Group
6.3.9 Coffeeza
6.3.10 Trilliant Food & Nutrition LLC
6.3.11 Tim Hortons
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Coffee Pods and Capsules Industry Segmentation
Coffee pods are placed in a coffee machine to brew coffee, working as tea bags. The pods are made of paper and are used for a single-serving. Coffee capsules are also similar to pods, as they are pre-packaged, measured doses of coffee. They are contained within a 'capsule' that must be disposed of after a single use. This capsule is made from aluminum or plastic and has a foil top. The coffee pods and capsules market is segmented by type, distribution channel, and geography. The market is segmented by type into, pods and capsules, by distribution channel into supermarkets/hypermarkets, specialty stores, online retailing, and other distribution channels, and by geography into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market sizing and forecast have been done on the basis of value (in USD million).
| Type | |
| Pods | |
| Capsules |
| Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Specialty Stores | |
| Online Retailing | |
| Other Distribution Channels |
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Coffee Pods and Capsules Market Research FAQs
How big is the Coffee Pods and Capsules Market?
The Coffee Pods and Capsules Market size is expected to reach USD 26.80 billion in 2023 and grow at a CAGR of 6.91% to reach USD 37.43 billion by 2028.
What is the current Coffee Pods and Capsules Market size?
In 2023, the Coffee Pods and Capsules Market size is expected to reach USD 26.80 billion.
Who are the key players in Coffee Pods and Capsules Market?
Keurig Dr Pepper Inc., Starbucks Corporation, Nestlé SA, Tim Hortons and JAB Holding Companies are the major companies operating in the Coffee Pods and Capsules Market.
Which is the fastest growing region in Coffee Pods and Capsules Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Coffee Pods and Capsules Market?
In 2023, the Europe accounts for the largest market share in the Coffee Pods and Capsules Market.
Coffee Pods and Capsules Industry Report
Statistics for the 2023 Coffee Pods and Capsules market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Coffee Pods and Capsules analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
