How Has The Coffee Capsule Market Size Evolved In Recent Years?
The coffee capsule market has seen considerable growth due to a variety of factors.
• The size of the coffee capsule market has experienced swift expansion in the previous years. It is projected to escalate from $15.21 billion in 2024 to $16.83 billion in 2025, increasing at a compound annual growth rate (CAGR) of 10.6%.
Factors contributing to this growth during the historical period include the rise of retail and online distribution, the introduction of Nespresso to the market, the influence of Keurig, patent expiries, and a diverse range of flavors and blends.
What are the Forecasted Growth and Key Factors of the Coffee Capsule Market?
The coffee capsule market is expected to maintain its strong growth trajectory in upcoming years.
• The market for coffee capsules is projected to experience substantial growth in the forthcoming years, reaching a valuation of $23.55 billion by 2029, with a compound annual growth rate (CAGR) of 8.8%.
The anticipated growth during the forecast spell can be associated with increased innovation in capsule design, the widening range of flavors, sustainability efforts, health and wellness movements, and premium and luxury offerings. The major trends expected during this forecast span include advancements in capsule technology, convenience and portability, ethical sourcing and transparency, special edition capsules, and environment-friendly packaging.
Which Drivers Are Accelerating Growth In The Coffee Capsule Market?
The escalating trend of instant non-alcoholic refreshments like coffee in eateries and workplace cafeterias is contributing significantly to the growth of the coffee capsules market. Coffee capsules simplify the process of making coffee in machines, saving time and effort, which is particularly beneficial in coffeehouses and office cafeterias. The surge in demand for non-alcoholic drinks from millennials, knowledge of low-sugar, non-alcoholic beverages, busy work routines and shifting consumer preferences are all cited as reasons for the increased demand for instant non-alcoholic drinks such as coffee. The International Coffee Organization (ICO), a UK-based intergovernmental body, recorded a 4.2% increase in worldwide coffee consumption in April 2024, reaching 175.6 million bags in the 2021/22 coffee year, on top of a 0.6% elevation the previous year. Therefore, the rise in the use of coffee machines in restaurants and office cafeterias to cater to the growing preference for instant non-alcoholic refreshments such as coffee boosts the demand for coffee capsules, contributing to the expansion of the coffee capsules market.
How Is the Coffee Capsule Market segmented?
The coffee capsule market covered in this report is segmented –
1) By Product: Closed Source System, Open Source System
2) By Material: Conventional Plastic, Bio plastics, Fabric, Other Materials
3) By Application: Household, Commercial
Subsegments:
1) By Closed Source System: Proprietary Coffee Capsules, Single-Brand Coffee Machines
2) By Open Source System: Compatible Coffee Capsules, Multi-Brand Coffee Machines
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What New Trends Are Influencing the Coffee Capsule Market?
Leading entities in the coffee capsule industry are concentrating their efforts on the launch of innovative coffee capsules that not only enhance the brewing experience but also cater to diverse consumer preferences and utilize environmentally friendly materials. This strategy has been effective in drawing in more customers who value sustainable practices and enjoy a wide range of flavors. For example, in August 2024, McCafé, an American coffee-house-style food and beverage chain, unveiled a new Espresso Coffee Capsules line. In collaboration with TerraCycle, a US-based waste management firm, a fresh line of Espresso Coffee Capsules, designated for commercial composting and made from Rainforest Alliance Certified Arabica beans, was introduced for Nespresso Original Machines. Available in three roasting degrees, these capsules strive to offer a rich coffee taste while fostering sustainability through recycling initiatives.
Who Are the Key Players in the Coffee Capsule Market?
Major companies operating in the coffee capsule market include:
• Nestle Nespresso SA
• Starbucks Corporation
• Keurig Dr. Pepper Inc.
• JDE Peet's N.V.
• The J.M. Smucker Company
• Kiss me Organics LLC
• Tim Hortons Inc.
• Luigi Lavazza SpA
• Dunkin' Brands Group Inc.
• illycaffe S.p.A.
• Coffeeza Trading Private Limited
• Caffitaly System S.p.A.
• Gloria Jean's Gourmet Coffees Corp.
• Vittoria Food & Beverage Pty Ltd.
• Fresh Brew Co.
• Dualit Limited
• Belmoca NV
• Bestpresso Inc.
• Gourmesso USA Inc.
• Coffee Nirvana Co.
• Halo Coffee Ltd.
• JAB Holding Company
• Jacobs Douwe Egberts B.V.
• Maxingvest AG
What Is The Most Dominant Region In The Coffee Capsule Market?
Asia-Pacific was the largest region in the coffee capsules market in 2024. Western Europe was the second-largest region of the global coffee capsules market share. The regions covered in the coffee capsule market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
