United States Coffee Pods And Capsules Market Size

USA Coffee Pods and Capsules Market Analysis

The United States coffee pods and capsules market is expected to grow from USD 8.40 billion in 2023 to USD 10.1 billion by 2028 at a CAGR of 3.76% during the forecast period (2023-2028).

Coffee pods and capsules maintain the freshness and quality of the coffee since they are prepackaged in sealed containers that are shielded from wind, light, and moisture. Coffee pods and capsules are a popular option for people seeking a flavorful coffee without having to utilize conventional brewing methods because they offer a more personalized coffee experience in addition to versatility and customization choices. This strong flavor and freshness of the coffee act as a major market driver.

Continuous product improvements, such as the launch of environmentally friendly, biodegradable, and compostable coffee pods, are increasing product demand. For instance, in July 2021, NEXE, a packaging solutions supplier based in Canada, announced the launch of a line of sustainable coffee pods in the United States and Canada. The fully compostable Espresso pods were launched at nexecoffee.com.

Also, the industry is expanding as a result of ongoing technological developments, such as the creation of sophisticated, user-friendly coffee pod and capsule machines with one-touch operation, programmed settings, auto-shutoff, and built-in milk frothers. The market is further supported by the simple accessibility of coffee capsules and pods through online and offline structured retail channels. According to Allegra World Coffee Portal and Reuters, there were about 38.4 thousand coffee shops in the United States in 2022.

Moreover, 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.

The increased demand for instant coffee with exotic and specialized taste combinations is the main factor driving the industry. Due to the busy lifestyles of the customers, coffee consumption has significantly increased among the general public. Thus, the above-mentioned factors drive the coffee pods and capsules in the United States.