United States Coffee Pods and Capsules Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

United States Coffee Pods and Capsules Market is segmented by Type (Pods and Capsules), By Distribution Channel (Supermarket/ Hypermarkets, Specialty Stores, Convenience Stores, Online Retail, and On-Trade). The report offers market size and forecasts in value (USD million) for the above segments.

Market Snapshot

United States Coffee Pods and Capsules Market
Study Period: 2016 -2027
Base Year: 2021
CAGR: 3.1 %

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Market Overview

United States Coffee Pods and Capsules Market is projected to register a CAGR of 3.10% during the forecast period, 2022-2027.

During the COVID-19 pandemic, the coffee sector, including coffee pods and capsules, has turned to on-the-go consumption mode to keep up with the social-distancing protocols. In 2020, to combat the declining sales, Starbucks suspended café seating and moved to a “to go” format in the United States. Soon after this initiative, Starbucks pivoted to drive-thru and delivery only to adhere to social distancing. Approximately 60% of the 15,000 Starbucks stores in the United States offer drive-thru service.

In the long term, the demand for coffee pods in the country is increasing due to the convenience factor associated with coffee pods. However, as this market for pods and capsules has matured in the United States, it is expected to witness stagnation in growth rate during the forecast period.

With the growing discount-oriented retail environment and the rising preference for pod-based, single-serve coffee at affordable prices, private label brands are trying to capture ample space in the United States market.

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. The United States coffee pods and capsules market has been segmented by type, which includes pods and capsules. Based on distribution channels, the market is segmented into supermarket/hypermarkets, specialty stores, convenience stores, online retail, and on-trade. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Type
By Distribution Channel
Specialty Stores
Convenience Stores
Online Retail

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Key Market Trends

Increasing Usage of Single-serve Coffee in Households

In the case of coffee, convenient forms, like coffee pods and capsules, are becoming popular among the masses (especially in North America and Western Europe) to prepare good coffee in the comfort of home in less time. Additionally, more consumers are willing to purchase coffee machines to recreate the coffee shop experience at home. Players are introducing coffee pods compatible with popular machines, such as Keurig and Nespresso, to exploit this trend. According to Intelligent Blends, a player in the single-serve beverage market, there are more than 25 million Keurig® and K-Cup® brewers installed in homes and offices, across the United States, with millions more being sold each year. The penetration rates of single-serve brewers in households in the largest cities in the United States and Western Europe range from approximately 23% to 75%.


Increasing Popularity of Specialty and Organic Coffee Pods and Capsules

The installation of coffee machines and an increasing number of coffee bars across the United States are increasing the demand for coffee capsules and pods. Due to the rapidly growing coffee shop culture, fresh-ground coffee pods are set to register substantial growth in both volume and value terms during the forecast period. Nevertheless, sustainability remains essential for buyers and retailers, and certification of organic nature is no longer an option but a requirement. Also, consumers, as well as the industry, are demanding traceability in the value chain. Signature blends are a growing trend in coffee capsules, carefully selected coffee from various origins. They cater to specific consumer tastes and communicate balance and quality.


Competitive Landscape

The United States coffee pods and capsules market is competitive among a few players. The major players focus on product innovations, the launch of limited-edition coffee pods, high distribution networks, and a better supply chain to gain a competitive advantage in the market. To sustain in the competitive market, the companies are enhancing their product portfolio constantly and strategically tapping into segments. The prominent players in the market are Keurig Dr. Pepper Inc., Starbucks Corporation, The Kraft Heinz Company, and Nestle SA.

Recent Development

In 2020, KDP announced it had entered a long-term, strategic agreement with Nestlé USA (Nestlé) to manufacture and distribute Starbucks branded packaged coffee in K-Cup® pods in the U.S. and Canada.

In 2020, Nestlé launched Roastelier, a compact coffee-roasting solution that will allow baristas to unlock and simplify the art of roasting in the shop. The Roastelier solution includes a range of top-grade arabica coffees from select coffee-growing regions worldwide.

In 2020, Starbucks announced a new partnership with OTG hospitality group to operate its airport locations, just one week after HMS Host ended its exclusivity agreement. This partnership aims to make grabbing a Venti Pike Place easier through experiential concepts and innovative technology.

Table of Contents


    1. 1.1 Study Assumptions & Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 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


    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 Supermarkets/Hypermarkets

      2. 5.2.2 Specialty Stores

      3. 5.2.3 Convenience Stores

      4. 5.2.4 Online Retail

      5. 5.2.5 On-Trade


    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Keurig Dr Pepper Inc.

      2. 6.4.2 Nestle SA

      3. 6.4.3 The Kraft Heinz Company

      4. 6.4.4 Starbucks Corporation

      5. 6.4.5 Luigi Lavazza SpA

      6. 6.4.6 JAB Holding Company

      7. 6.4.7 Baronet Coffee

      8. 6.4.8 The J.M. Smucker Company

      9. 6.4.9 DD IP Holder LLC (Dunkin’ Brands Group Inc.)

    5. *List Not Exhaustive


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Frequently Asked Questions

The United States Coffee Pods and Capsules Market market is studied from 2016 - 2027.

The United States Coffee Pods and Capsules Market is growing at a CAGR of 3.1% over the next 5 years.

Keurig Dr Pepper Inc., Nestle SA, The Kraft Heinz Company, Starbucks Corporation, The J.M. Smucker Company are the major companies operating in United States Coffee Pods and Capsules Market.

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