Europe Coffee Pods and Capsules Market Size

European Coffee Pods & Capsules Market Analysis

The Europe Coffee Pods and Capsules Market size is estimated at USD 16.07 billion in 2024, and is expected to reach USD 22.05 billion by 2029, growing at a CAGR of 6.52% during the forecast period (2024-2029).

Over the past few years, the growth drivers of coffee pods and capsules in Europe have been a combination of convenience, premium positioning, brand experience, and the manufacturers' ability to innovate and provide new products. The consumers' changing lifestyles added to the coffee sales growth, and people are more interested in using espresso machines, even at home. For instance, the total working population in the UK is recorded at 32.75 million in the year 2021, constantly increasing over the past few years. It led to surging demand for coffee pods and capsules compatible with various espresso machines. Additionally, consumers tend to own their coffee machines in their households resulting in increasing usage of coffee pods and capsules in the region.

Moreover, the coffee pod machines' popularity in significant markets such as the United Kingdom is significantly increasing, owing to a rise in the average retail selling price of coffee, which is driving the coffee pod market growth in the country. Consumers from significant countries such as the United Kingdom, Germany, and other nations tend to possess their coffee machines at home, resulting in frequent purchases and usage of coffee pods at the household level. On the other hand, many consumers are switching from instant coffee to more premium options, such as fresh ground coffee pods, coffee beans, and flavored coffees. Consumers often prefer flavored coffee pods for other novel tastes and unique flavors. These factors tend to boost the sales of coffee pods during the study period.