Coffee Pods Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Coffee Pods Market, Including K-Cups, Nespresso Capsules, T-Discs, Dolce Gusto Pods, ESE Pods, Senseo Pods, Lavazza Capsules, and Illy IperEspresso Capsules, is Growing Due To Their Quality, Efficiency, and Variety. The Convenience of These Single-Serve Coffee Products, Along With the Desire for A Cafe-Style Experience At Home, is Driving Demand. Market Segmentation Includes Type and Distribution Channels, With A Notable Trend Being the Increasing Acceptance of Coffee Capsules. The European Market is Seeing A Surge in Demand for Specialty Coffee and Single-Serve Methods.

Coffee Pods and Capsules Market Size

Coffee Pods And Capsules Market Summary
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Study Period 2019-2029
Market Size (2024) USD 28.65 Billion
Market Size (2029) USD 40.02 Billion
CAGR (2024 - 2029) 6.91 %
Fastest Growing Market Asia-Pacific
Largest Market Europe

Major Players

Coffee Pods And Capsules Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Coffee Pods and Capsules Market Analysis

The Coffee Pods And Capsules Market size is estimated at USD 28.65 billion in 2024, and is expected to reach USD 40.02 billion by 2029, growing at a CAGR of 6.91% during the forecast period (2024-2029).

  • The quality, efficiency, and diverse choices offered in a single serving of coffee are significant for the demand for coffee pods and capsules. Consumers are willing to purchase coffee machines to recreate the cafe-style experience at home, boosting the demand for coffee pods and capsules. Using a modern coffee machine and preferred capsule or coffee pod in the home allows consumers to produce a comprehensive range of coffee quickly.
  • Additionally, one of the major factors responsible for the rising popularity of coffee pods among consumers is their one-time use and disposable features that offer convenience to the users. However, as they are single-use products, buyers are conscious about the type of packaging and are looking for sustainable and eco-friendly packaging. In line with this, the market players are making efforts to make environment-friendly and biodegradable coffee capsules. For instance, in November 2022, a Nestle brand, Nespresso, launched compostable coffee capsules made from paper. The capsules are compatible with Nespresso coffee machines.
  • Moreover, the coffee pods and capsule market is growing due to the demand for ready-to-drink coffee beverages. Due to the hectic schedules of individuals, they need quick refreshments and easy-to-make coffee, and coffee pods and capsules align with their demands by saving time. Such factors and the increasing coffee-consuming population worldwide are expected to support the market growth during the forecast period.

Coffee Pods and Capsules Market Trends

Increasing Demand For Specialty And Organic Coffee Pods And Capsules

  • Globally, the demand for organic food and beverages, mainly tea and coffee, is growing faster due to changes in lifestyle patterns, increased expenditure on food and drink, awareness about healthy foods, and the desire to taste new products. The above factors boost the demand for specialty and organic coffee pods and capsules. Sustainability remains essential for buyers and retailers, and the certification of organic nature is no longer an option but a requirement. In addition, consumers and the industry demand traceability in the value chain with the increasing preference for organic food products. 
  • For instance, according to Statistics Denmark, in 2022, the annual turnover of organic coffee in retail shops in Denmark amounted to 335 million Danish kroner. Similarly, according to TransFair, in 2021, around 74% of all fair trade coffee sold in Germany came from organic production. This increased compared to the previous year, in which only 68% of all fair trade coffee sold in Germany came from organic production.
  • Moreover, with this growing demand for organic coffee pods, players are focused on offering organic coffee in pods and capsule formats. This is expected to boost the market growth during the forecast period. For instance, in December 2022, Chamberlain Coffee, the coffee lifestyle brand and brainchild of Emma Chamberlain that offers sustainably sourced organic coffee, launched their first-ever coffee pods, claiming that their casing is commercially compostable. Such launches mark a new wave of convenience for the brands and showcase their continued commitment to innovation and ability to meet customer needs, which eventually aids the market to grow.
Coffee Pods and Capsules Market: Turnover of organic coffee in retail shops, in million DKK, Denmark, 2019-2022

Europe Leads the Coffee Pods and Capsules Market

  • The European market witnessed a rising demand for specialty coffee and single-serve methods in the past few years due to the growing demand for instant non-alcoholic drinks. Among all, Germany and France are the regional leaders in the market. Coffee producers in the region are keen on choosing coffee capsules due to their suitability, comfort, and wide diversity of coffee products and machinery. 
  • Additionally, the proliferation of premium coffee shops, such as Starbucks, has stimulated consumers’ appetite for high-end, fresh-brewed coffee, thus boosting the demand for coffee capsules and pods in Europe. For instance, Starbucks had 1,156 stores in the United Kingdom in 2022, of which 838 were franchised and 318 were company-operated locations, which increased from almost 1,097 shops compared to the previous year.
  • Moreover, with the rising market value for coffee pods and capsules made of sustainable materials, several international and private-label players are entering the market in the region with their innovative package offerings. In July 2023, Darlington-based manufacturer Beanies made a significant stride by introducing its compostable coffee pods in Aldi stores across the United Kingdom. Simultaneously, the company unveiled its products in three delectable flavors: vanilla, caramel, and hazelnut.
  • Similarly, in September 2022, Cafe Royal revolutionized the coffee pod industry with a spherical-shaped pod enveloped in a vegetable-based, 100% compostable shell—a groundbreaking zero-waste solution for capsules. This innovative product not only showcases advancing packaging technologies but also positions the brand to compete with high-end, exotic counterparts, projected to drive substantial market growth in the region.
Coffee Pods and Capsules Market: Market Size (%), By Geography, Global, 2022

Coffee Pods and Capsules Industry Overview

The coffee pods and capsules market is primarily dominated by Tim Hortons, Nestlé, and JAB Holding Company, with a strong global presence of brands like Nespresso, Keurig, Tassimo, Senseo, and Dolce Gusto. Other key players, such as Keurig Dr Pepper Inc. and Starbucks Corporation, also hold a prominent share of the overall market. However, high product innovations, the launch of limited edition coffee pods, extensive distribution networks, and better supply chains have resulted in high consolidation of the coffee pods and capsules market, with Nestle (Nespresso and Dolce Gusto) and JAB Holdings (Senseo, Tassimo, and Keurig) holding the maximum share in the overall market. Major players are focused on packaging innovations and launching products with attractive flavor options to meet consumer demand.

Coffee Pods and Capsules Market Leaders

  1. Keurig Dr Pepper Inc.

  2. Starbucks Corporation

  3. Nestlé SA

  4. Tim Hortons

  5. JAB Holding Companies

*Disclaimer: Major Players sorted in no particular order

Coffee Pods And Capsules Market Concentration
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Coffee Pods and Capsules Market News

  • September 2022: Swiss coffee brand "CoffeeB" introduced a groundbreaking single-serve coffee innovation—a compressed coffee ball encased in seaweed-based material, diverging from traditional aluminum or plastic capsules.
  • August 2022: Tim Hortons expanded its offerings with four new espresso capsule varieties compatible with Nespresso machines, featuring classic, bright, bold, and decaf options.
  • October 2021: Starbucks by Nespresso expanded its product line with Nespresso Vertuo coffee capsules, enriching the Canadian coffee experience with more ways to savor the signature café taste.

Coffee Pods And Capsules Market Report - 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

      1. 4.1.1 Demand for specialty and organic coffee pods and capsules

      2. 4.1.2 Innovations in packaging formats

    2. 4.2 Market Restraints

      1. 4.2.1 Availability of counterfeit products

    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 Type

      1. 5.1.1 Pods

      2. 5.1.2 Capsules

    2. 5.2 Distribution Channel

      1. 5.2.1 Supermarkets/Hypermarkets

      2. 5.2.2 Specialty Stores

      3. 5.2.3 Online Retailing

      4. 5.2.4 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 India

        4. 5.3.3.4 Australia

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 United Arab Emirates

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Share Analysis

    2. 6.2 Most Active Companies

    3. 6.3 Company Profiles

      1. 6.3.1 Nestle SA

      2. 6.3.2 JAB Holding Company

      3. 6.3.3 The Kraft Heinz Company

      4. 6.3.4 Inspire Brands Inc. (Dunkin' Brands)

      5. 6.3.5 Luigi Lavazza SpA

      6. 6.3.6 Starbucks Corporation

      7. 6.3.7 Gloria Jean's Coffees

      8. 6.3.8 Strauss Group

      9. 6.3.9 Coffeeza

      10. 6.3.10 Trilliant Food & Nutrition LLC

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

**Subject to Availability
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Coffee Pods and Capsules Industry Segmentation

A single-serve coffee container is a method for coffee brewing that prepares only enough coffee for a single portion. 

The coffee pods and capsules market is segmented by type, distribution channel, and geography. The market is segmented by type into pods and capsules. By distribution channel, the market is segmented into supermarkets/hypermarkets, specialty stores, online retailing, and other distribution channels, and by geography into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. 

For each segment, the market sizing and forecast have been done on the basis of value (in USD).

Type
Pods
Capsules
Distribution Channel
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
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
United Arab Emirates
South Africa
Rest of Middle-East and Africa
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Coffee Pods And Capsules Market Research Faqs

The Coffee Pods And Capsules Market size is expected to reach USD 28.65 billion in 2024 and grow at a CAGR of 6.91% to reach USD 40.02 billion by 2029.

In 2024, the Coffee Pods And Capsules Market size is expected to reach USD 28.65 billion.

Keurig Dr Pepper Inc., Starbucks Corporation, Nestlé SA, Tim Hortons and JAB Holding Companies are the major companies operating in the Coffee Pods And Capsules Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Europe accounts for the largest market share in Coffee Pods And Capsules Market.

In 2023, the Coffee Pods And Capsules Market size was estimated at USD 26.67 billion. The report covers the Coffee Pods And Capsules Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Coffee Pods And Capsules Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Coffee Pods And Capsules Industry Report

Statistics for the 2024 Coffee Pods and Capsules market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Coffee Pods and Capsules analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Coffee Pods Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)