Coffee Pods and Capsules Market is Expected to Register Considerable Growth by 2028

Stratview Research publishes a new report titled Coffee Pods and Capsules Market which is segmented by Product Type (Pods, Capsules), by Distribution Channel Type (On Trade, Off Trade (Supermarkets/Hypermarkets, Specialty Stores, Online Retailing, and Others)), by Coffee Type (Traditional, Decaf), by Packaging Type (Conventional Plastic, Bioplastics, and Fabric), and by Region (North America, Europe, Asia-Pacific, and Rest of the World).

Market Insights

The coffee pods and capsules market was estimated at USD 25.1 billion in 2022 and is likely to grow at a CAGR of 6.89% during 2023-2028 to reach USD 37.54 billion in 2028.

What are coffee pods and capsules?

Coffee pods and capsules are tiny cups, with or without filters. They are filled with pre-portioned ground coffee and are sealed with food-grade coverings. Being ready to brew in special machines makes them popular. A coffee pod is a type of coffee-making method that helps to prepare coffee. A wide range of coffee pods exist in the market such as paper coffee pods, K-cups, and T-discs to prepare coffee.

Market Dynamics

The coffee pods and capsules market has experienced significant growth due to several key factors. Below given are a few –

• Rise in demand for ready-to-drink coffee beverages – Consumers are looking for quick and easy-to-make refreshments nowadays. Several market players are investing in such coffee pods and capsules to serve this growing demand. For instance, in April 2023, Nespresso and Starbucks teamed up to launch a limited-edition double espresso coffee capsule - the Nespresso | Starbucks ReserveTM Remix Blend.
• Innovative coffee machines and brewing technologies – Innovations in coffee machines are juicing up the coffee pods and capsules market. For instance, LG Electronics announced its first-ever capsule coffee machine – Duobo by LG Labs- in July 2023, which possesses a special coffee brewing process that enhances its taste and it also offers personalized flavor, the group claims.
• Growing online retailing and coffee subscription services – Online retailing and coffee subscriptions are a great way to try different beans and blends. eCommerce is growing rapidly and coffee is one of the top sellers. Coffee is considered one of the most popular drinks in the world, with an estimated 2 billion cups being consumed every day. A report suggests, that rather than heading out for their espressos, people are using subscription coffee services to easily access and purchase coffee pods and capsules.

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

Global Coffee Pods and Capsules Market Report Segments:

Based on the product type, the market is segmented as pods and capsules. The capsules segment held the larger share of the market in 2022, whereas the pod segment is expected to register faster growth during the forecast period. Increased demand for instant non-alcoholic drinks is the key factor behind the dominance of the coffee capsules segment in the market. Coffee producers majorly choose coffee capsules, owing to their suitability, comfort of use, and a wide diversity of coffee products and machinery.

Based on the coffee type, the coffee pods and capsules market is segmented as traditional and decaf. The traditional segment held the larger share of the market in 2022, owing to a high consumer preference for traditional coffee over decaf. Traditional coffee beans are high in caffeine content and provide better taste and flavor.

In terms of regions, Europe is estimated to be the largest market for coffee pods and capsules during the forecast period, with Germany, the UK, France, and Russia being the countries with lucrative growth opportunities. The dominance of the region’s market is mainly due to the increasing demand for new products with technological upgrades, and rising demand for easy-to-use coffee capsules and pods, along with the adoption of automatic bean-to-cup machines. The rising number of coffee bars, small roasters, small local brands, and baristas in the region, along with the increasing interest of consumers in specialty coffee and K-Cups is likely to drive the region’s market during the forecast period.

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