Global Coffee Pod & Capsule Market Research Report: Forecast (2022-2027)

Market Definition

Coffee is considered the most extensively consumed hot beverage globally owing to its aroma, taste, caffeine content, & extensive availability. The increasing consumer inclination toward coffee has cited rising demand for automatic coffee makers for domestic & commercial purposes. It, in turn, has escalated the sales of coffee in the form of capsules & pods, which are pre-packaged & measured and are available in different flavors, quantities, & shapes compatible with coffee machines.

Coffee capsules are cylindrical vacuum-sealed containers, usually made of plastic & sealed with aluminum foil, containing grounded coffee powder and are used in automatic coffee machines. Different coffee machines require varied sizes of these capsules, yet most of these follow a standard size. On the other hand, coffee pods are round-packed powdered coffee that works like a teabag, used for preparing hand-brewed coffee, and need a low-pressure drip of hot water to work. Since coffee pods involve high-pressure functioning, they are not used in coffee machines.

Market Insights

The Global Coffee Pods and Capsules Market is projected to grow at a CAGR of around 7.4% during the forecast period, i.e., 2022-27. The growth of the market is likely to be driven primarily by the growing demand for instant non-alcoholic beverages in restaurants & cafeterias, the surging popularity of different coffee varieties, and the convenience of using pods & capsules. 

Since coffee pods & capsules require minimal effort and time to prepare and are available easily at affordable prices, the consumer inclination toward these products is growing significantly worldwide, thereby driving the market. Besides, the rising demand for organic coffee has led to the development of low-sugar or sugar-free coffee capsules and oxidants in coffee to boost the immune system, i.e., another prominent aspect promulgating the popularity of coffee pods & capsules globally. 

Moreover, the advent of Covid-19 that induced lockdowns & stringent movement restrictions showcased an increased demand for coffee & coffee machines and, in turn, positively infused the sales of coffee pods & capsules worldwide. It was principally due to the urge & preferences of people toward making cafe-style served coffee with the same sophistication, quality, and taste. Additionally, the massive diversity in choices by coffee pods & capsules is another notable reason behind their growing demand since then. 

Furthermore, the growing population of coffee drinkers worldwide has led to the establishment & expansion of various coffee chains & retail sellers and portraying their active participation through developing innovative formulations in coffee pods & capsules. These players are also working on expanding their brand visibility & customer base, thereby augmenting the overall market growth.

Nonetheless, there has been significant growth in the number of coffee manufacturers introducing a variety of coffee capsules & pods of different prices, quality, quantity, machine compatibility, and organic & medicinal properties, among others, and witnessing a large customer influx, i.e., another crucial aspect projecting remunerative prospects for the Global Coffee Pods and Capsules Market in the years ahead.

Market Segmentation

Based on Type:

• Capsules
• Pods

Of both, coffee capsules are estimated to dominate the Global Coffee Pods and Capsules Market with the largest share during 2022-27. It attributes to the growing inclination of people toward coffee consumption & its quicker preparation using capsules, which are efficient & time-conserving and are considered better than conventional coffee powders. Hence, the demand for these compactly packaged capsules are rising swiftly across the world and stimulating the overall market growth. Coffee capsules are the perfect examples of ready-to-consume beverages being preferred increasingly over traditional brewing coffee.

Coffee capsules are manufactured in vacuum-sealed containers and offer benefits like longer shelf life and preservation of freshness. With such convenience, their demand is escalating rapidly & exemplifying increasing consumer preference for this coffee. It, in turn, is also encouraging the leading players in the industry to expand their product portfolio and production & distribution capacities in order to cater to the burgeoning consumer requirements worldwide.

Moreover, with the growing establishment of cafes & restaurants, entwined with high customer preference toward having a cup of coffee in leisure, the demand for coffee capsules is also burgeoning across the commercial sector, in high-end restaurants and coffee shops. Moreover, the high-quality manufacturing, affordability, and easy availability of coffee capsules are also fueling their demand & positively influencing the overall market growth.

In addition, millennials are among the prominent consumers of coffee & are increasingly purchasing coffee capsules due to their convenience in quick preparations, and the same trend is expected in the coming years. Furthermore, the rising adoption of sustainable materials for packaging coffee capsules to ensure minimum carbon footprint is another prominent aspect that shall boost the coffee capsule market expansion in the coming years.

Based on Application:

• Commercial
• Personal

Here, the commercial application is anticipated to significantly contribute to the growth of the global market through 2027. It attributes principally to the growing focus of governments of different countries on expanding the tourism sector, i.e., portraying rising establishments of various outlets like cafes, restaurants, hotels, etc., worldwide to cater to the increasing tourist requirements for coffee pods & capsules.

Besides, many leading players are coming up with exclusive outlets under their brand name & offering a wide range of these products at affordable prices, i.e., another crucial aspect attracting more & more coffee consumers and, in turn, driving the market. Moreover, the rapidly expanding product portfolio of several food chains and their extensive coffee menus are also augmenting the demand for coffee pods & capsules and, consequently, fueling the overall market growth globally.

Based on Distribution Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Retail Stores

Among all, supermarkets/hypermarkets are anticipated to acquire the largest share in the Global Coffee Pods and Capsules Market over the forecast years, principally due to the extensive availability of superior quality coffee pods & capsules at these stores, coupled with the convenience of choosing different products among multiple brands, sizes, budgets, flavors, etc.

Besides, with the surging popularity & consumption of coffee, consumers are showing active interest in local & international brands that offer coffee pods & capsules. It, in turn, is generating growth opportunities for the leading players to increase their production and distribution capabilities and provide consumers with easily available & affordable products at these outlets. Hence, these aspects indicate an opportunistic future of the Global Coffee Pods and Capsules Market across supermarkets & hypermarkets through 2027.

Regional Landscape

Geographically, the Global Coffee Pods and Capsules Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

Of all regions globally, Europe is expected to dominate the Coffee Pods and Capsules Market with the largest share during 2022-27, principally on the back of extensive production & consumption of coffee pods & capsules across countries like France & Germany and the strong presence & active participation of the leading coffee producers, coupled with numerous new entrants in the region offering an extensive range of coffee pods & capsules in order to meet the rising consumer demand.

Besides, a rise in coffee drinkers, an increasing working population, and the easy availability of coffee pods & capsules are other prominent aspects driving the regional market. Moreover, the massive influx of tourists & migrants, along with the fact that coffee is a staple attraction across different countries & offers an infusion of different flavors in food & beverages, further project remunerative prospects for the Europe Coffee Pods and Capsules Market in the years ahead.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Global Coffee Pods and Capsules Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Coffee Pods and Capsules Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Coffee Pods and Capsules Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Global Coffee Pods and Capsules Market study?