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Coffee Pods and Capsules Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Coffee Pods and Capsules Market is segmented by Type (Pods and Capsules), Distribution Channel (On Trade and Off Trade), and Geography.

Market Snapshot

Coffee Pods and Capsules Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia
Largest Market: Europe
CAGR: 7.07 %
Coffee Pods and Capsules Market Major Players

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Market Overview

The coffee pods and capsules market was valued at USD 25.07 billion in 2020, and it is projected to register a CAGR of 7.07% during the period 2021-2026.

As the COVID-19 outbreak leads to the situation of complete lockdown for a few months across the world, the surge in consumer demand for at-home coffee for the long term is uncertain, but the ongoing disruption to out-of-home coffee sales due to the pandemic has compelled major coffee chains to boost sales through retail packaged coffee. For instance, in June 2020, Europe’s biggest coffee chain, Costa Coffee, expanded its packaged coffee offering across the region. Similarly, the UK-based coffee and food-to-go chain, Pret a Manger, which has been hard hit by reduced commuter footfall during the pandemic, has also sought to extend its reach in the at-home coffee market, launching a packaged coffee offering on e-commerce giant, Amazon.

The quality, efficiency, and diverse choices offered in a single serving of coffee are responsible for the growth witnessed by the coffee pods and capsules market. Moreover, consumers are willing to purchase coffee machines to recreate the cafe-style experience at home. This, in turn, has increased 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 pods and capsules market’s growth. One of the major factors responsible for the rising popularity of coffee pods among consumers is its one-time-use and disposable features.

Scope of the Report

Coffee capsules are the same concept as pods in that they are pre-packaged, measured doses of coffee. They are contained within a 'capsule' that, once used, must be disposed of. This capsule may be made from aluminum or plastic and has a foil top. The coffee pods and capsules market includes revenue generated through pods and capsules. The market analyzes distribution channels considered in the study (on trade and off trade). The off-trade segment is further sub-segmented into supermarkets/hypermarkets, specialty stores, online retailing, and other distribution channels. Additionally, the study covers the market revenue in major countries of the regions, like North America, Europe, Asia-Pacific, and the Rest of the World. For each segment, the market sizing and forecasting have been done in value terms of USD million.

By Type
Pods
Capsules
By Distribution Channel
On Trade
Off Trade
Supermarkets/Hypermarkets
Specialty Stores
Online Retailing
Other Distribution Channels
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
Italy
France
Russia
Spain
Rest of Europe
Asia-Pacific
China
Japan
Australia
Rest of Asia-Pacific
Rest of the World
South America
Middle-East and Africa

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Key Market Trends

Capsules Hold the Largest Market Share

Coffee capsules have gained high acceptance among consumers in recent years due to the growth in the demand for instant non-alcoholic drinks. Coffee producers choose coffee capsules due to their suitability, comfort of use, and a wide diversity of coffee products and machinery. Furthermore, the proliferation of premium coffee shops, such as Starbucks, has stimulated consumers’ appetite for high-end, fresh-brewed coffee. This has increased the demand for coffee capsules. Nespresso and Nescafe Dolce Gusto brands play a significant role in the capsule market. Other single-serve brands associated with technology that contribute to increasing the value/volume share ratio include Keurig, the JacobsDouweEgberts, Tassimo, and Senseo, all owned by JAB. Evolving packaging technologies and the ability to compete with exotic or sophisticated brands resulted in the growth of coffee capsules.

Coffee Pods and Capsules Market key Trends

Europe Leads the Coffee Pods and Capsules Market

The European market has witnessed a rise in the demand for specialty coffees and single-serve methods during the past few years. With the rise in market value for coffee pods and capsules, the number of private-label players entering the market is expected to increase in the European region over the forecast period. However, the environmental concern related to the packaging of coffee pods and capsules is hindering the growth rate in the region.​ Thus, several new entrants are coming up with innovative and sustainable packing solutions. For instance, Cru Kafe, a London-based Coffeepreneurs who has constantly worked to minimize the footprint left on the planet, with biodegradable packaging and no chemicals in the organic coffee, had come up with compostable pods in 2017. Thus, with high product and packaging innovations, the European region remains dominant in the global coffee pods and capsules market.​

Coffee Pods and Capsules Market Growth Rate

Competitive Landscape

The coffee pods and capsules market is largely dominated by 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 held a prominent share in the global market in 2020. However, high product innovations, the launch of limited edition coffee pods, large distribution networks, and better supply chains have led the coffee pods and capsules market to become highly consolidated, where Nestle (Nespresso and Dolce Gusto) and JAB Holdings (Senseo, Tassimo, Keurig) held the maximum share in the global market.

Recent Developments

In 2020 - Keurig Green Mountain completed its merger with Dr. Pepper Snapple Group, creating Keurig Dr. Pepper. This merger is aimed at creating a premium coffee experience, inspiring other cross-category partnerships.

In 2020 - Nestlé and Jacobs Douwe Egberts UK partnered to create first of its kind recycling program for coffee pods.

In 2019 - Starbucks and Nestlé launched Starbucks by Nespresso, the first product jointly developed. Each capsule combines the high-quality, 100% Arabica Starbucks coffee that customers know and love with the premium at-home coffee experience of Nespresso.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Pods

      2. 5.1.2 Capsules

    2. 5.2 By Distribution Channel

      1. 5.2.1 On Trade

      2. 5.2.2 Off Trade

        1. 5.2.2.1 Supermarkets/Hypermarkets

        2. 5.2.2.2 Specialty Stores

        3. 5.2.2.3 Online Retailing

        4. 5.2.2.4 Other Distribution Channels

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

        4. 5.3.1.4 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 Italy

        4. 5.3.2.4 France

        5. 5.3.2.5 Russia

        6. 5.3.2.6 Spain

        7. 5.3.2.7 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 Australia

        4. 5.3.3.4 Rest of Asia-Pacific

      4. 5.3.4 Rest of the World

        1. 5.3.4.1 South America

        2. 5.3.4.2 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Key Strategies Adopted

    2. 6.2 Market Share Analysis

    3. 6.3 Most Active Companies

    4. 6.4 Company Profiles

      1. 6.4.1 Nestle SA

      2. 6.4.2 JAB Holding Company

      3. 6.4.3 The Kraft Heinz Company

      4. 6.4.4 Inspire Brands Inc. (DUNKIN' BRANDS)

      5. 6.4.5 Luigi Lavazza SpA

      6. 6.4.6 Starbucks Corporation

      7. 6.4.7 Gloria Jean's Coffees

      8. 6.4.8 Strauss Group

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE INDUSTRY

**Subject to Availability

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Frequently Asked Questions

The Coffee Pods and Capsules Market market is studied from 2016 - 2026.

The Coffee Pods and Capsules Market is growing at a CAGR of 7.07% over the next 5 years.

Asia is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2020.

Keurig Dr Pepper Inc., Starbucks Corporation, Nestlé SA, JAB Holding Company, The Kraft Heinz Company are the major companies operating in Coffee Pods and Capsules Market.

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