As per MRFR Analysis, the Global Coffee Pods and Capsules Market was valued at USD 14.3 billion in 2022 and is projected to reach USD 21.8 billion by 2030, growing at a CAGR of 6.21% from 2024 to 2030. The market is driven by increasing consumption of coffee pods and capsules, the rise of coffee machines simulating café experiences at home, and a growing demand for healthy organic options. The European region is expected to dominate the market, with significant growth in Germany, the UK, and France. Innovations in product offerings, such as compostable capsules, are also shaping the market landscape.
Key trends influencing the coffee pods and capsules market include:
Key players include Keurig Dr Pepper, Nestlé S.A., Illycaffè S.p.A., The Kraft Heinz Company, and The J.M. Smucker Company.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
One of the primary aspects driving the industry is the increasing use of coffee machines to replicate a cafe-style experience at home. Furthermore, coffee use is increasing because it helps people feel less exhausted, boosts energy levels, burns fat by reactivating the body's metabolism, and improves productivity and brain functioning. This, combined with the quality, efficiency, and variety of options provided by coffee pods and capsules, is fueling the market's CAGR. Additionally, there is an increase in demand for instant non-alcoholic drinks among the public.
This, together with the expanding number of premium coffee shops around the world, is having a beneficial impact on the market. Furthermore, the widespread availability of coffee pods and capsules via online and offline distribution channels provides significant growth potential for industry investors. Aside from that, prominent industry players are developing novel coffee tastes in order to increase overall sales and profitability. They are also investing heavily in promotional activities via social media channels. Additionally, consumers who are fitness-focused must consume healthy beverages. As a result, the demand for healthy organic coffee capsules and pods is growing among consumers, which provides manufacturers with plenty of opportunities to innovate in the coffee pods and capsules market revenue.
For instance, the Spanish coffee company Cafés Novell introduced a line of organic coffee capsules for retail coffee shops and home use in 2022. The beginning of completely compostable and 100% natural is the No Waste line of coffee capsules in the UK. Because of the growth in product innovation in organic offerings, which is consistent with changing consumer tastes and preferences, it is expected that the demand for coffee pods and capsules will rise more quickly during the projected period.
December 2023 - ATI and TIPA have disclosed a 'first-of-its-kind' completely compostable lid for coffee capsules, line up with upcoming compostability legislation, and enhance barrier protection, protection against material migration, sealing properties, and more. Supposedly, the patent-protected lidding material matches all compostable coffee filling lines, variations, and capsules, including the Nespresso system. It focuses on catering as an environmentally friendly addition to Nespresso's present compostable capsules in France and Switzerland, with TIPA establishing that 29,000 plastic coffee capsules are sent to landfills every minute across the globe. The plant-based lid has got OK Biobased's biggest accreditation of four stars – showcasing the lowest possible carbon content of 80%, with the carbon obtained from renewable raw materials – and has been accredited by its official laboratories. It is designed to solve earlier challenges faced by producers with sustainability-minded capsule lids, such as poor sealing properties, inconsistent or non-existent flow, delamination, a lack of barrier protection, and materials moving into the beverage itself. TIPA also asserts that the lidding material can be enhanced beside the coffee grind for high extraction quality. In the end, the lid is intended to be disposable in food waste bins as per the EN 13432 protocol. This comes in the category with the UK Plastics Pact's target of guaranteeing all coffee capsules are made with compostable materials and the Packaging and Packaging Waste Regulation's mandate that coffee capsules should be compostable in nations where they can be gathered in food waste bins.
The coffee pods and capsules market segmentation, based on coffee type, includes traditional and decaf coffee. The traditional segment held the largest coffee pods and capsules market revenue in 2022, Traditional coffee beans have more caffeine and offer greater flavor and taste. While the decaf segment is predicted to grow at the fastest rate over the forecast period.
The coffee pods and capsules market segmentation, based on distribution channel, includes store-based and non-store-based distribution channels. The store-based sector held a greater market share of 2022, while the non-store-based segment is predicted to grow at the fastest rate over the forecast period.
Figure 1: Â Coffee Pods and Capsules Market, by distribution channel, 2022 & 2030 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe coffee pods and capsules market is anticipated to have the largest market for coffee pods and capsules, with Germany, the UK, France, and Russia being the nations with the most promising growth prospects. The region's market domination is mostly attributable to expanding consumer demand for new products with technological advancements, easy-to-use coffee capsules and pods, automatic bean-to-cup coffee makers, and rising demand for new products with technological advancements. Throughout the forecast period, the region's market is projected to be driven by an increase in the number of coffee shops, small roasters, small local brands, and baristas in the area as well as consumers' growing interest in specialty coffee and K-Cups.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2:Â Â COFFEE PODS AND CAPSULES MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The North American market, which includes the United States, Canada, and Mexico, is expected to account for a sizable revenue share of the worldwide coffee pods and capsules market during the study period. North America is a significant market for coffee pod and capsule makers. The primary elements responsible for the regional market's growth are rising coffee consumption, producers' expanding product portfolios, and the presence of a diverse consumer base. Further, the German coffee pods and capsules market held the largest market share, and the UK coffee pods and capsules market was the fastest growing market in the European region.
The Asia-Pacific Coffee Pods and Capsules Market is the third largest region. Given the shift in preferences brought about by millennial' changing consumption habits, China presents a significant opportunity for major coffee retailers. The increase in product costs and the issues surrounding the use of plastic in coffee capsules and pods present opportunities for players to innovate in the market. Moreover, China coffee pods and capsules market held the largest market share, and the India coffee pods and capsules market was the fastest growing market in the Asia-Pacific region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the coffee pods and capsules market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the coffee pods and capsules industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the coffee pods and capsules industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, coffee pods and capsules industry has provided medicine with some of the most significant benefits. The coffee pods and capsules market major player such as Illycaffè S.p.A.(Italy), Keurig Dr Pepper, Inc.(US), Melitta (Germany), The Kraft Heinz Company (US), and others are working to expand the market demand by investing in research and development activities.
The J.M. Smucker Corporation, popularly known as Smuckers, is an American food and beverage business. The company, headquartered in Orrville, Ohio, was formed in 1897 as a producer of apple butter. M. Smucker's current business units are consumer goods, pet foods, and coffee. Smucker's, the company's flagship brand, makes fruit preserves, peanut butter, syrups, frozen crustless sandwiches, and ice cream toppings. Jerome Monroe Smucker created the J.M. Smucker Company in 1897. Smucker spent a large portion of his life as a farmer in Orrville, Ohio, where he was born on December 5, 1858. Smucker constructed a cider mill in Orrville in 1897. In February 2022, The J.M. Smucker Corporation released the 1850 coffee product line. This has aided the corporation in broadening its product offering.
Nestlé produces the coffee brand Nescafé. It comes in a variety of forms. The name is a combination of the terms "Nestlé" and "café". Nestlé launched their main coffee brand in Switzerland on April 1, 1938. Nestlé began establishing a coffee brand in 1930, at the request of the Brazilian government, to assist in the preservation of the significant surplus of the yearly Brazilian coffee harvest. The development effort was led by Max Morgenthaler. Nestlé launched the new beverage under the brand name "Nescafé" on April 1, 1938. Nescafé is a soluble powdered coffee that acquired a household name in the United States during World War II. October 2022 - Nestlé's most recognisable coffee brand and one of the most well-known coffees in the world, Nescafé, today unveiled The Nescafé Plan 2030, the company's comprehensive plan to support more sustainable coffee cultivation. The organisation is accelerating its ten-year-old Nescafé-related initiatives. Work together with coffee growers to help them transition to regenerative agriculture.
Key Companies in the coffee pods and capsules market includes
Coffee Pods and Capsules Industry Developments
In April 2024, A leading supplier of polylactic acid (PLA) biopolymers derived from renewable sources, NatureWorks, has built a compostable coffee pod solution ideal for use with Keurig® brewers in the North American market. This accomplishment was made possible through a collaboration with IMA Coffee, a global leader in coffee handling, processing, and packaging technologies. The solution provides brilliant brewing performance, can be generated at commercial speeds comparable to existing options, and is made with eco-friendly, biodegradable materials.
In September 2022, the Swiss coffee brand "CoffeeB" introduced single-serve coffee, a novel compressed coffee ball made from seaweed rather than an aluminum or plastic capsule.
In August 2022. Tim Hortons will launch four new espresso capsules compatible with Nespresso Classic, bright, bold, and decaf are the four flavors available.
In October 2021, Starbucks by Nespresso will offer a new line of coffee capsules called Nespresso Vertuo, giving Canadian coffee aficionados more ways to experience the characteristic café flavor.
| Report Attribute/Metric | Details |
| Market Size2022 | USD 14.3 billion |
| Market Size 2023 | USD 15.1 billion |
| Market Size 2030 | USD 21.8 billion |
| Compound Annual Growth Rate (CAGR) | 6.21% (2024-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2024-2030 |
| Historical Data | 2019- 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Coffee Type, Distribution Channel and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Â IllycaffeS.p.A., Keurig Dr. Pepper Inc., Nestle S.A., Luigi LavazzaS.p.A., Dualit Limited, Jacobs, DouweEgberts B.V., The Kraft Heinz Company. |
| Key Market Opportunities | ·       Opportunities for financial gain are available throughout the Asia Pacific area. |
| Key Market Dynamics | ·       Increasing use of coffee pods and capsules in hotels and restaurants |
Coffee Pods and Capsules Market Highlights:
Frequently Asked Questions (FAQ) :
The coffee pods and capsules market size were valued at USD 14.3 Billion in 2022.
The market is projected to grow at a CAGR of 6.21% during the forecast period, 2022-2030.
Europe had the largest share in the market.
The key players in the market are IllycaffeS.p.A., Keurig Dr. Pepper Inc., Nestle S.A., Luigi LavazzaS.p.A., Dualit Limited, Jacobs, DouweEgberts B.V., The Kraft Heinz Company.
The key players in the market are IllycaffeS.p.A., Keurig Dr. Pepper Inc., Nestle S.A., Luigi LavazzaS.p.A., Dualit Limited, Jacobs, DouweEgberts B.V., The Kraft Heinz Company.
The traditional segment will lead the coffee pods and capsules market.
Single-serve coffee pod and capsule use is expanding in developing countries, which is fueling market expansion.
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Senior Research Analyst I have a bachelor's degree in mechanical engineering and an mba. i have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. a firm believer in lifelong learning and sharing of knowledge. having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest.Â
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