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Global Capsule Coffee Market Size Estimated to Reach $14.06 Billion by 2027

The Global Capsule Coffee Market size is estimated to reach $14.06 billion by 2027. Furthermore, it is poised to grow at a CAGR of 6.1% over the forecast period of 2022-2027. Coffee capsules are pre-packaged, measured, and shelf-stable doses of coffee. The titratable acidity surrounding the coffee is expressed in pH values-which is governing the overall bitterness the said coffee would contain. These types of coffees have the same shelf-life as other instant coffee. Additionally, such coffee is roasted or burnt-thereby has the presence of polycyclic aromatic hydrocarbon. A mix of opinions surrounds the presence of this compound owing to a lower level of public confidence owing to chances of malignancies. However, the said burnt or roasted taste is well accepted by the consumers. Further, phenolic compounds added in beverages such as coffee and tea add a strong aroma-which is a quintessential characteristic that a coffee lover looks for. Owing to coffee’s popularity coupled with the rising trend of experiencing coffee style supplemented by growing working culture & hectic lifestyles have been a key driver for Global Capsule Coffee Industry for the projected period of 2022-2027.

Global Capsule Coffee Market Segmentation Analysis- By Material Type

The global capsule coffee market based on material type can be further segmented into Conventional Plastic, Bio Plastics, Aluminum, and Others. Conventional Plastic held a dominant market share in the year 2021. Plastics has established itself as an extremely important material for packaging and storing, thereby the resilience over the said can not be left unattended. In a recent study, it was found that nearly 39000 coffee pods are produced each minute of which 29000 are made from plastic and ending up in landfills unattended. Owing to such reasons, the biomaterials segment is estimated to be the fastest-growing, with a CAGR of 6.5% over the forecast period of 2022-2027. Product innovations are a strong suit to helping the said segment. For example, a biomaterial coffee pod manufacturer, Coda Group announced that it would use biomaterials for coffee capsules that have the recyclability time of a banana peel, thereby, leaving no carbon footprint. A low-carbon solution that can help coffee brands and consumers to reach net-zero goals.

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Global Capsule Coffee Market Segmentation Analysis- By Distribution Channel

The global capsule coffee market based on distribution channels can be further segmented into online retail and offline retail. Offline sales channel held a dominant market share in the year 2021. It is owing to a severe lockdown in place for the major consumption countries like Europe. Owing to which offline channels sales picked up. As per a survey, around 23% of the Americans bought a new coffee machine in 2020-21 thereby showing a strong trend for making blends and varieties. Additionally, 25% of those purchased coffee capsules and cups of new flavors for trying out and finding the perfect match. However, the online sales channel is estimated to be the fastest-growing, with a CAGR of 7.1% over the forecast period of 2022-2027. Early signs of recovery and tending back to normal have been seen and reported by various brands. As per a report, app ordering and drive-through sales are picking up at a robust pace. Further, half of the surveyed population revealed that they have started to reach back to the coffee parlors and cafes. Owing to such reasons, the market segment is positioned favorably.

Global Capsule Coffee Market Segmentation Analysis- By Geography

The global capsule coffee market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and Rest of the World. Europe held a dominant market share of 34% in 2021. It is owing to a widespread demand within various European countries. A predominant portion of imports is often re-exported under various brand names or others, showing greater confidence and strength. Further, EU countries such as Germany, Austria, France, and others have exceptional industrial bases and machines which allows them to maintain economies of scale. Out of a total re-export, nearly 83% is facilitated by European Union. Further, around 242 million kilograms of coffee were consumed by Europeans. However, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period of 2022-2027. A rampant increment in coffee consumption has been seen in the regions such as India and China along with other developing nations. India produces nearly 99,000 metric tons of Arabica coffee while producing 300% more of Robusta coffee. Moreover, per capita consumption and varied flavor tasting have been key help-which would enable diverse business opportunities.

Global Capsule Coffee Market Drivers

Millennial preference to adopt new flavors and coffee options have been of key help to the market

Millennials have often been regarded as the “tryer” batch of the market population. Thereby, signifying their inclination to try new beverages and offerings. As per a survey conducted, it was conferred that nearly four out of every fiver millennial or even a Gen-Z person would try a new flavor when beverages are selected. In a more specific survey, it was revealed that nearly 41% of Americans have bought varieties of coffee that they have never tried during the pandemic or before the pandemic, indicating a massive congenital shift. Coffee capsules are now being developed in various forms and taste such, thereby adjusting to the tastebuds of the highly diverse population. Furthermore, the novice population has purchased coffee machines-which allows them to experience an in-home experience of their favorite cafes. As per a report, coffee consumption at home has been prevalent in 85% of coffee drinkers, which roughly translates to 2 cups per capita. New dark flavors with the strong aftertaste and bud awakening mouth feel have allowed the market to hold a strong grip.

The rising urbanization with hectic work schedules and pressures have allowed consumption to rise

Urbanization has been gripping the market inch by inch. The positive side of the coin is the world is progressing and all of those capabilities are getting employment. However, the uglier side of the coin is a rising case of dissatisfaction with the work hours or extremely fragile working environments. Coffee has proven to reduce depression, suicidal thoughts, and risks, while simultaneously reducing work stress owing to the immense qualities of caffeine. As per a report, nearly 55% of the world population is living in urban areas, which are substantiated to touch 68-70% by 2050. Further, studies have shown why do people rely on caffeine during the working stipulated time. For example, 61% of Americans perform repetitive or intense physical work thereby refilling their energy levels through the coffee intake. Another survey indicated that nearly 50% of the American jobs are hectic, that they must take office back home in order to meet former demands. High persistent time pressure, alleviating job pressure, followed by other reasons are driving the capsules market forward.

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Global Capsule Coffee Market Challenges

The exorbitant cost of capsule coffee in comparison with instant coffee along with rising raw material prices have impeded the overall market growth

Capsule Coffee has had a placing in the developing countries as something only rich with tons of disposable income can purchase. The said statement stands true in a general setting. For example, A brand COFFEEZA is offering 10 capsules at a cost of INR 550. Whereas a ready-to-drink/ instant mix Bru Coffee is available at INR 289 for 300 grams-which roughly translates into 20-25 cups of average use. Furthermore, coffee prices have been soaring on a monthly basis. As of 2021 December, the coffee prices have breached the mark of 200 US cents/lb to touch 203.06 US Cents/ lb. The following represents an increment of 4.0% from November 2021 levels. Further, the prices have soared by as high as 93% from October 2020 lows. The following have resulted in the overall lower export market, as for November 2021-only 9.25 million bags of coffee were exported when compared with November 2020 (10.56 million bags). Owing to such reasons, the market’s growth is hindered.

Global Capsule Coffee Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Global Capsule Coffee Market. Global Capsule Coffee top 10 companies include:

  1. Nestle SA
  2. JAB Holding Company
  3. The Kraft Heinz Company
  4. Inspire Brands
  5. Luigi Lavazza
  6. Starbucks Corporations
  7. Gloria Jean Coffees
  8. Strauss Group
  9. Urban Brew
  10. Fresh Brew

Recent Developments

In February 2022, Greiner Packaging and Lyodell Basell have offered a cumulate solution for coffee capsules. The polymers developed by the latter are based on post-consumer materials. The polymers would be put under the brand name Ciculen Revive. The plastic would be converted into feedstock- which would be used to produce new polymers-thereby assisting a mass-balance approach. With the support of Greiner Packaging, these polymers will be used to make coffee capsules for Nestlé’s Nescafé® Dolce Gusto®.

In September 2021, KIMYA allowed the start-up known as CAPS-ME to undertake and print sustainably viable coffee capsules. The capsule features a six-part 3D printed mechanism which automatically refills the pouch once used. Moreover, the partnership will now allow the venture to scale up its production capacity without hindering the product quality. Moreover, manual loading can take a lot of time, and by using 3D printing technology, a capsule can be used up to 1000 times.

In October 2021, Cometeer scored a funding round of around $35 million, which makes their total reach $100 million. Moreover, the company’s funding will now allow them to explore demographics outside the west, such as in Japan and Korea. The company focuses on the manufacture, sale, and cold-shipment of single-serve frozen specialty coffee capsules designed to match peak quality with user convenience.

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Key Takeaways

Geographically, Europe held a dominant market share in the year 2021 owing to the higher demand concentration of it in the region. Additionally, the region has greatly benefitted from expanding trade and re-exporting capabilities due to state-of-the-art technology and established demand. However, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period of 2022-2027. The emancipation of consumers living in the region to participate in monotonous routines thereby relying on heavy caffeine intake has been a key reason for market development.

Owing to coffee’s popularity coupled with the rising trend of experiencing coffee style supplemented by the growing working culture & hectic lifestyles have been a key driver for the market. However, the high cost associated with the raw material hampers the overall growth.

A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Global Coffee Capsules Market.

Relevant Titles

A. Commercial Coffee Brewer Market


B. Instant Coffee Market


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Tags: Global Capsule Coffee industry outlook, Global Capsule Coffee Market Size, Global Capsule Coffee Industry, Global Capsule Coffee Market, Global Capsule Coffee Market share, Global Capsule Coffee Market report, Global Capsule Coffee top 10 companies

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Reportedtimes, PR-Wirein, Extended Distribution, Wire, Research Newswire, English

Contact Information:

Venkat Reddy
Sales Director
Email: venkat@industryarc.com
Website: https://www.industryarc.com
Phone: (+1) 970-236-3677

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