The coffee capsule market has seen rapid expansion, growing from $13.77 billion in 2023 to $15.24 billion in 2024, reflecting a compound annual growth rate (CAGR) of 10.7%. This historic growth is attributed to the proliferation of retail and online distribution channels, the entry of Nespresso, the impact of Keurig, patent expirations, and a diverse range of flavors and blends. Forecasts predict continued strong growth, with the market anticipated to reach $21.53 billion by 2028, reflecting a CAGR of 9.0%. This growth is driven by innovations in capsule design, expanding flavor profiles, sustainability initiatives, health and wellness trends, premiumization, and luxury offerings. Significant trends in the forecast period include advancements in capsule technology, convenience, portability, ethical sourcing, transparency, and the rise of limited edition capsules with eco-friendly packaging.
Major Driver In The Coffee Capsule Market
The growing popularity of instant non-alcoholic beverages such as coffee in restaurants and office cafeterias propel the growth of the coffee capsules market. The coffee capsules reduce the time and effort required in preparing a cup of coffee when used in coffee machines in coffeehouses, office cafeterias. Increasing demand for non-alcoholic beverages among millennials, consumer awareness towards low sugar and non-alcoholic drinks, busy work schedules, and changing consumer taste are a few of the reasons that have been attributed to the rise in the popularity of instant non-alcoholic beverages such as coffee. For instance, in September 2022, according to a recent National Coffee Data Trends (NCDT) report published by National Coffee Association, coffee has hit a new high among 18–24-year-olds, with 51% having consumed coffee in the previous day, breaking the previous high of 50% set in September 2020. Therefore, the increasing use of coffee machines in restaurants, office cafeterias to fulfil the increased demand for instant non-alcoholic beverages such as coffee, increases the demand for coffee capsules, thus increasing the growth of the coffee capsules market.
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Coffee Capsule Market Competitive Landscape
Nestle Nespresso SA, Starbucks Corporation, Inspire Brands Inc., The Kraft Heinz Company, BSH Hausgeräte GmbH, Keurig Dr Pepper Inc., JDE Peet's N.V., The J.M. Smucker Company, Mattel Inc., 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, Georg MENSHEN GmbH & Co. KG, Acron Holdings Ltd., Belmoca NV, Mera SA, Bestpresso Inc., Gourmesso USA Inc., Aumeeka Ventures LLP, Coffee Nirvana Co., Halo Coffee Ltd., JAB Holding Company, Jacobs Douwe Egberts B.V., Maxingvest AG
Key Coffee Capsule Market Trend
One of the latest trends in the coffee capsules market is using bioplastics and biodegradable materials for making coffee capsules. Companies in this market are investing in bioplastics and biodegradable materials instead of aluminum or plastic to hold the coffee extract. Capsules made from aluminum and plastic are non-biodegradable and harm the environment, pushing companies towards innovative biodegradable materials such as polypropylene, which can be shredded and recycled. For instance, in December 2021, Zarraffa’s Coffee, an Australia-based specialty coffee company, introduced 100% biodegradable and compostable Okapi coffee capsules, comprised entirely of plant components such as sugarcane and sugar beet.
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Coffee Capsule Market Segmentation
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
By Geography:The regions covered in the coffee capsule market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
Asia-Pacific was the largest region in the coffee capsules market in 2023.
The Coffee Capsule Global Market Report 2024 furnishes information about the global coffee capsule market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
