Coffee Capsule Market Size was valued at USD 6.2 Billion in 2022. The coffee capsule market industry is projected to grow from USD 6.69 Billion in 2023 to USD 12.290 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.90% during the forecast period (2024 - 2032). The market for coffee capsules is influenced by several market drivers, such as the rising demand for coffee, the ease of use of capsules, and the proliferation of coffee capsule makers.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Increased demand for instant nonalcoholic beverages such as coffee is driving the market growth.
The market for coffee capsules is expanding as a result of the increasing use of instant nonalcoholic beverages like coffee in workplace cafeterias and restaurants. When used in coffee machines at coffee shops and business cafeterias, the coffee capsules cut down on the time and effort needed to make a cup of coffee. The rising demand for instant nonalcoholic beverages like coffee among millennials, consumer awareness of low-sugar and nonalcoholic drinks, hectic work schedules, and shifting consumer preferences are some of the factors that have been linked to this trend. For instance, in September 2022, the National Coffee Data Trends (NCDT) report released by the National Coffee Association, a US-based consumer information and lobbying group for the coffee industry, states that coffee consumption among 18–24-year-olds has reached a new high of 51%, surpassing the previous high of 50% set in September 2020. Consequently, as a result of the growing use of coffee makers in workplace cafeterias and restaurants to meet the growing demand for instant nonalcoholic beverages like coffee, the market for coffee capsules is expected to develop.
The world's café culture has expanded dramatically, particularly in cities, which has raised people's awareness of the value of fine coffee. People's tastes for better-quality coffee are expanding to their homes as more and more of them indulge in specialty coffee drinks at cafés. By providing a range of premium coffee mixes and tastes, coffee capsules have taken advantage of this potential to enable customers to replicate café-like experiences at home. The market has expanded its selection of capsule options to include gourmet blends, single-origin coffee, and even limited-edition tastes. Customers who want to upgrade their everyday coffee routines have found resonance in this premiumization of the coffee experience.
The market for coffee capsules is anticipated to develop in the future due to the growing number of lifestyle changes. Changes in a person's or a group's way of life, encompassing their daily routines, habits, decisions, and behaviors, are referred to as lifestyle modifications. Coffee capsules are a popular option for people who appreciate coffee as an essential component of their daily routines because they offer convenience, quality, and diversity in response to the changing lives of customers. For instance, in January 2021, 80% of people over 18 will have changed their lifestyle, according to the Government Digital Service, a government organization based in the United Kingdom. Thus, the market for coffee capsules is expanding as a result of growing lifestyle changes.
The use of bioplastics and biodegradable materials in the production of coffee capsules is one of the newest developments for coffee capsule manufacturers. Rather than utilizing aluminum or plastic to retain the coffee extract, companies in the coffee capsule business are investing in researching ways to make capsules out of bioplastics and biodegradable materials. Companies are being forced to develop new, inventive biodegradable materials, like polypropylene, which can be recycled and shredded to be used to produce coffee capsules because aluminum and plastic capsules are not biodegradable and are harmful to the environment. In December 2021, 100% compostable and biodegradable Okapi coffee capsules were launched by Australia-based specialty coffee firm Zarraffa's Coffee." Sugarcane and sugar beet are two examples of the plants that make up the whole capsule. Thus, driving the coffee capsule market revenue.
The coffee capsule market segmentation, based on material, includes Aluminium, Compostable, and PBT Plastic. The aluminium segment dominated the market. The demand for aluminum coffee capsules has increased dramatically in recent years due to their versatility and convenience. Aluminum coffee capsules have become popular among consumers who want to make excellent coffee quickly and easily without measuring out coffee grounds or grinding beans.
The coffee capsule market segmentation, based on distribution channel, includes Hypermarkets and Supermarkets, Specialty Stores, E-Commerce, and Others. The hypermarkets and supermarkets category generated the most income. Because of their expansive retail spaces and capacity to stock various goods, supermarkets and hypermarkets are important distribution channels for coffee consumables. It is anticipated that the abundance of brand and functionality alternatives that supermarkets and hypermarkets offer, along with premium coffee capsules within set pricing ranges, will accelerate the expansion of this market.
Figure 1: Coffee Capsule Market, by Distribution Channel, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The coffee capsule market segmentation, based on end user, includes Commercial (Café and Restaurants, QSR, Others) and Residential. The commercial category generated the most income. In the business world, there are several advantages to using coffee capsules. In a business situation where customers or employees want a high grade of coffee, coffee capsules are essential since they are convenient, easy to use, and consistently provide quality and flavor.
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American coffee capsule market area will dominate this market. In recent years, North America has seen a steady increase in the consumption of coffee capsules. Numerous factors, such as the growing popularity of single-serve coffee and the tendency towards home brewing, have contributed to the demand for coffee capsules in this region. Customers are looking for quick and simple solutions to enjoy great coffee at home without buying large, expensive coffee brewing equipment.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.
Figure 2: Coffee Capsule Market Share By Region 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe coffee capsule market accounts for the second-largest market share. The use of coffee capsules has been steadily increasing throughout Europe lately. Coffee capsules, often known as coffee pods, allow consumers to make a single cup of coffee at home or work. The need for single-serve coffee and the trend toward home brewing are only two factors driving the market for coffee capsules in Europe. Further, the German coffee capsule market held the largest market share, and the UK coffee capsule market was the fastest growing market in the European region.
The Asia-Pacific Coffee Capsule Market is expected to grow at the fastest CAGR from 2024 to 2032. The market growth is being significantly influenced by factors such as consumers switching from tea to coffee and changing lifestyles. Asia-Pacific consumers, particularly those in China, India, and Japan, like to buy products that benefit their health. In addition, the Asia Pacific market is growing due to the region's robust need for innovative products. Moreover, China’s coffee capsule market held the largest market share, and the Indian coffee capsule market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the coffee capsule market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the coffee capsule industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the coffee capsule industry to benefit clients and increase the market sector. In recent years, the coffee capsule industry has offered some of the most significant advantages to medicine. Major players in the coffee capsule market are attempting to increase market demand by investing in research and development operations, including illycaffe S.p.A., Inspire Brands, Inc., Lavazza Group, Nestle S.A., Georg MENSHEN GmbH & Co. KG, Aumeeka Ventures LLP, The Kraft Heinz Company, Halo Coffee, Coffee Nirvana, The J. M. Smucker Company, Starbucks Corporation, and JDE Peets N.V.
Products for food and drink are produced by the J.M. Smucker Co. (J.M. Smucker). Coffee, pet treats, peanut butter, fruit spreads, baking mixes, frozen portable goods, flour and baking supplies, juices and beverages, and other portion control products are among the goods that the company markets. The goods are marketed and sold by J.M. Smucker under the following brands: Nature's Recipe, Milk-Bone, 9Lives, Cafe Bustelo, Dunkin, Jif, Kibbles'n Bits, and Robin Hood. Through food distributors, warehouse clubs, and supermarkets, it offers these goods.
Food items and drinks are produced and marketed by the Kraft Heinz Co. (Kraft Heinz). In addition to other food and grocery goods, the company's product line includes cheese, meat, coffee, sauces and condiments, beans and pasta dinners, frozen food, soups, infant nutrition, and other items. The brands Kraft, Heinz, Oscar Mayer, Ore-Ida, Philadelphia, Velveeta, and Maxwell House are used by Kraft Heinz to market its goods.
November 2022: Nestle S.A.'s Nescafé Dolce Gusto division unveiled the Neo coffee maker and pod line. This includes the paper-based substance used to make coffee pods. Its product range in the coffee capsule industry has grown as a result of this launch.
October 2022: Starbucks Corporation sold Seattle's Best Coffee to Nestle S.A. Through this acquisition, its product line will grow even more, and its position in the North American market will increase.
June 2021: Campos Coffee, which specializes in selling different types of coffee and coffee capsules in Australia, was purchased by JDE Peets N.V. Through this acquisition, it will be able to increase the scope of its current business operations and leverage its network capabilities across several channels of distribution.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 6.2 Billion |
| Market Size 2023 | USD 6.69 Billion |
| Market Size 2032 | USD 12.290 Billion |
| Compound Annual Growth Rate (CAGR) | 7.90% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Material, Distribution Channel, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea |
| Key Companies Profiled | illycaffe S.p.A., Inspire Brands, Inc., Lavazza Group, Nestle S.A., Georg MENSHEN GmbH & Co. KG, Aumeeka Ventures LLP, The Kraft Heinz Company, Halo Coffee, Coffee Nirvana, The J. M. Smucker Company, Starbucks Corporation, and JDE Peets N.V. |
| Key Market Opportunities | Preference Of Millennials To Use Novel Coffee Flavors |
| Key Market Dynamics | Growing Adoption Of Instant Nonalcoholic Coffee In Cafeteria Settings Of Restaurants And Offices Shifting Customer Preferences and Lifestyles |
Frequently Asked Questions (FAQ) :
The coffee capsule market size was valued at USD 6.69 Billion in 2023.
The market is projected to grow at a CAGR of 7.90% during the forecast period, 2024-2032.
North America had the largest share in the market.
The key players in the market are illycaffe S.p.A., Inspire Brands, Inc., Lavazza Group, Nestle S.A., Georg MENSHEN GmbH & Co. KG, Aumeeka Ventures LLP, The Kraft Heinz Company, Halo Coffee, Coffee Nirvana, The J. M. Smucker Company, Starbucks Corporation, and JDE Peets N.V, among others.
The aluminium category dominated the market in 2023.
The commercial category had the largest share in the market.
Assistant Manager - Research High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. by implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in packaging, construction, and equipment domains. she handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
