The Global Coffee Capsules Market size is expected to reach $9.6 billion by 2029, rising at a market growth of 7.6% CAGR during the forecast period.
Coffee capsules are coffee encapsulated in a plastic or aluminum container as opposed to a paper filter. It's typically designed to function with a certain brand or system and isn't compatible with others. Coffee capsules are single-serve vacuum-packaged capsules that must be used with the appropriate machine. Consumers who are concerned about their health are drinking more coffee. Because of this, producers are offering cutting-edge formulations to the market, such as coffee capsules.
Caffeine also enhances athletic performance by increasing fatty acid oxidation, metabolism, and fat cell mobilization. The anti-cancer properties of coffee have increased its appeal among consumers who are concerned about their health. These reasons would likely cause the market's demand to increase over the forecast period.
The quality, effectiveness, and variety of options available in a single cup of coffee are what is driving the market for coffee capsules to expand. In order to replicate the cafe atmosphere at home, customers are also willing to buy coffee makers.
The trend has increased the demand for coffee capsules and pods. The market for coffee capsules is expanding mostly due to the rising demand for coffee, the most popular beverage in the world. Coffee capsules' increasing consumer popularity can be attributed in large part to their one-time usage and disposable nature. The market players nowadays are working to provide environmentally friendly and biodegradable coffee capsules.
The COVID-19 outbreak has had a substantial effect on the market for coffee capsules. Due to social isolation strategies, lockdowns, and laws governing working from home, more people stay inside and drink coffee at home rather than in cafes or offices. As a result of consumers seeking quick and easy ways to make coffee, the demand for coffee capsules has increased. Lockdowns & shipping restrictions, on the other hand, have hampered supply chains and resulted in a shortage of both finished items and raw materials.
The market for coffee capsules is predicted to grow along with customer demand for tasty, fragrant, and fresh coffee. This is mostly because freshly brewed coffee has so many advantages, such as the fact that it is packed with minerals and antioxidants that increase immunity and improve general health by preventing cancer and other harmful diseases. Additionally, the top companies are experimenting with new coffee technologies like flavor-added coffee and value-added RTD in an effort to raise brand awareness and draw more customers to specialty roasters. All of these elements help the market expansion for coffee capsule by causing a surge in new coffee demand.
The rise in popularity of instant non-alcoholic beverages like coffee has been attributed to several factors, including an increase in the demand for non-alcoholic beverages among millennials, consumer awareness of low sugar and non-alcoholic drinks, hectic work schedules, and shifts in consumer preferences. Furthermore, the millennial generation's insatiable need for coffee fuels increased demand for the beverage worldwide. Among millennials, drinking coffee in cafes, offices, and other food establishments is becoming a style statement and a chance to socialize. Thus, the market for coffee capsules is anticipated to grow due to millennials' increasing coffee consumption and the widespread use of non-alcoholic beverages.
Individuals with cardiac arrhythmia should either reduce their coffee intake or avoid it entirely. Although coffee may alleviate motion sickness, it could exacerbate diarrhea in individuals already experiencing it. It is recommended that customers with symptoms or dietary restrictions due to a medical condition refrain from consuming coffee. Regular coffee consumers must understand that even the highest quality coffees contain certain digestive irritants. Furthermore, it can potentially worsen symptoms of IBS (irritable bowel syndrome). The decline in coffee consumption due to these factors will restrict the market expansion.
Based on material, the coffee capsules market is characterized into aluminium, compostable, and PBT plastic. The aluminum segment covered a considerable revenue share in the coffee capsules market in 2022. Aluminum coffee capsule consumption has been steadily increasing in recent years due to its adaptability and simplicity of usage. Aluminum coffee capsules are now preferred by consumers who want high-quality coffee that is quickly and conveniently prepared without having to grind beans or measure out coffee grounds.
On the basis of end user, the coffee capsules market is classified into commercial and residential. In 2022, the commercial segment witnessed the largest revenue share in the coffee capsules market. The commercial use of coffee capsules has several advantages. For instance, coffee capsules are convenient, easy to use, and provide consistent quality and flavor, which is essential in a commercial setting where customers or staff members need a high grade of coffee. In addition, coffee capsules are an additional cost-effective and practical choice for businesses that want to offer coffee options without spending money on specialist equipment or hiring skilled baristas.
Based on distribution channel, the coffee capsules market is segmented into B2B, hypermarkets & supermarkets, e-commerce, and others. In 2022, the B2B segment registered the maximum revenue share in the coffee capsules market. Demand for coffee capsules from firms that purchase them to provide their employees or clients with coffee is known as business-to-business (B2B) demand. Businesses, including workplaces, restaurants, hotels, and cafes, may need B2B coffee capsules. In recent years, the B2B industry has seen a rise in the demand for coffee capsules as more companies look for simple, affordable solutions to offer premium coffee to their staff or clients.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 5.7 Billion |
| Market size forecast in 2029 | USD 9.6 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2029 |
| Revenue Growth Rate | CAGR of 7.6% from 2023 to 2029 |
| Number of Pages | 231 |
| Number of Table | 440 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Distribution Channel, Material, End User, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region wise, the coffee capsules market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe region led the coffee capsule market by generating the highest revenue share in 2022. Europe has recently seen a steady rise in the usage of coffee capsules. Customers can prepare a single cup of coffee at home or work using coffee capsules, commonly called coffee pods. Numerous factors, including the inclination toward home brewing and the rising acceptance of single-serve coffee, have contributed to the demand for coffee capsules in Europe.
Free Valuable Insights: Global Coffee Capsules Market size to reach USD 9.6 Billion by 2029
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Nestle S.A., JDE Peet's N.V., The Kraft Heinz Company, Starbucks Corporation, Keurig Dr Pepper, Inc., The J.M Smucker Company, Inspire Brands, Inc., Coffeeza India Private Limited, illycaffè S.p.A., (Gruppo illy Spa) and Dualit Ltd
By Distribution Channel
By Material
By End User
By Geography
The Market size is projected to reach USD 9.6 billion by 2029.
Rising acceptance of non-alcoholic beverages are driving the market in coming years, however, Effects on health due to high coffee consumption restraints the growth of the market.
Nestle S.A., JDE Peet's N.V., The Kraft Heinz Company, Starbucks Corporation, Keurig Dr Pepper, Inc., The J.M Smucker Company, Inspire Brands, Inc., Coffeeza India Private Limited, illycaffè S.p.A., (Gruppo illy Spa) and Dualit Ltd
The expected CAGR of this market is 7.6% from 2023 to 2029.
The Aluminium segment is generating highest revenue share in the Global Coffee Capsules Market by Material in 2022 thereby, achieving a market value of $5 billion by 2029.
The Europe market dominated the Market by Region in 2022, and would continue to be a dominant market till 2029; thereby, achieving a market value of $3.3 billion by 2029.
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