Coffee Capsules Market

Global Coffee Capsules Market Size, Share & Industry Trends Analysis Report By Distribution Channel (B2B, Hypermarkets & Supermarkets, E-Commerce, and Others), By Material, By End User, By Regional Outlook and Forecast, 2023 - 2029

Report Id: KBV-14896 Publication Date: April-2023 Number of Pages: 231
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Market Report Description

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.

Coffee Capsules Market Size - Global Opportunities and Trends Analysis Report 2019-2029

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.

COVID-19 Impact Analysis

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.

Market Growth Factors

Rising demand for free coffee

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.

Rising acceptance of non-alcoholic beverages

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.

Market Restraining Factors

Effects on health due to high coffee consumption

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.

Material Outlook

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.

Coffee Capsules Market Share and Industry Analysis Report 2022

End User Outlook

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.

Distribution Channel Outlook

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.

Coffee Capsules Market Report Coverage
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
  • Rising acceptance of non-alcoholic beverages
  • Rising demand for free coffee
  • Effects on health due to high coffee consumption

Regional Outlook

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

Recent Strategies Deployed in Coffee Capsules Market

  • Nov-2022: Nespresso, part of Nestle Group released a range of home compostable coffee capsules. The coffee capsules are paper-based and are certified by TÜV Austria for composting.
  • Nov-2022: Nescafé Dolce Gusto introduced Neo. Neo is Nescafé Dolce Gusto's coffee pods and machines. The Neo coffee pods are made of paper and are home compostable.
  • Oct-2021: JDE Peet collaborated with Pret A Manger, a UK-based operator of a sandwich shop chain. The partnership involves introducing Pret Express in forecourts, universities, and workplaces, among others. Pret Express is a self-service solution featuring 100% organic tea and coffee.
  • Jun-2021: JDE Peet’s signed an agreement to acquire Campos Coffee, an Australia-based producer of coffee products. The acquisition of Campos Coffee perfectly complements the acquiring company's business.
  • Apr-2021: Coffeeza released coffee machine and coffee capsules. The new machine and capsules by Coffeeza enable coffee enthusiasts to brew cafe-style coffees quickly within their homes, and offices. The coffee capsules are available in the following variants, Forte, Cremoso, and Single-Origin Coffee Ethiopia.
  • Dec-2020: Inspire Brands acquired Dunkin' Brands Group, Inc., a restaurant holding company. The acquisition of Dunkin' Brands advanced Inspire's mission to unite a family of differentiated and complementary brands.
  • Aug-2019: Dualit introduced a new line of recyclable coffee capsules. The coffee capsules are made from aluminium and are compatible with Dualit coffee machines, and Nespresso. Additionally, the recyclable coffee capsules are available in four different variants, intense, lungo, decaf.he, and ristretto.
  • Feb-2019: illycaffè introduced a new range of coffee capsules. The coffee capsules are compatible with Nespresso coffee machines and are available in three variants, Intenso espresso, Forte espresso, and Classico.

Scope of the Study

Market Segments Covered in the Report:

By Distribution Channel

  • B2B
  • Hypermarkets & Supermarkets
  • E-Commerce
  • Others

By Material

  • Aluminium
  • PBT Plastic
  • Compostable

By End User

  • Commercial
    • Cafe & Restaurants
    • QSR
    • Others
  • Residential

By Geography

  • North America
    • US
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Singapore
    • Malaysia
    • Rest of Asia Pacific
    • Brazil
    • Argentina
    • UAE
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

  • 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)
  • Dualit Ltd
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Frequently Asked Questions About This Report

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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