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Global Coffee Pods and Capsules Market - Growth, Trends and Forecasts (2020 - 2025)

Global Coffee Pods and Capsules Market - Growth, Trends and Forecasts (2020 - 2025)

  • September 2020
  • 130 pages
  • ID: 5865799
  • Format: PDF
  • Mordor Intelligence LLP
Up to $1125 off Until Nov 30th 2020

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Global Coffee Pods and Capsules market is projected to grow at a CAGR of 7.72% during the forecast period.

- The quality, efficiency, and diverse choices offered in a single serving of coffee are responsible for the growth witnessed by the coffee pods and capsules market. Moreover, consumers are willing to purchase coffee machines to recreate the cafe-style experience at home. This, in turn, has increased the demand for coffee pods and capsules.
- The demand for coffee pods is increasing due to the convenience factor associated with coffee pods majorly in the developed region, such as North America. However, the capsules segment is expected to grow at a slow pace over the forecast period, due to market maturity and the supremacy of the Keurig system in the region. Although the parent company, Keurig Green Mountain (KGM), has benefitted a great deal from its near-total control of the American and Canadian pod markets, it has also worked unfavorably to the category in keeping the prices high and limiting consumer choice.

Key Market Trends
Capsules Hold a Significant Market Share

Coffee capsules have gained high acceptance among consumers in recent years, due to the growth in the demand for instant non-alcoholic drinks. Coffee capsules are chosen by coffee producers, owing to their suitability, comfort of use, and a wide diversity of coffee products and machinery. Furthermore, the proliferation of premium coffee shops, such as Starbucks, has stimulated consumers’ appetite for high-end, fresh-brewed coffee. This has increased the demand for coffee capsules. Nespresso and Nescafe Dolce Gusto brands play a significant role in the capsule market. Other single-serve brands associated with technology that contribute to increasing the value/volume share ratio include Keurig, the JacobsDouweEgberts, Tassimo, and Senseo, all owned by JAB. Evolving packaging technologies and the ability to compete with exotic or sophisticated brands resulted in the growth of coffee capsules

Germany Leads in the Global Market

As of 2016, around 13% of the German population drank coffee made from a single-cup brewer every single day. This indicated the rise in the demand for specialty coffees and single-serve methods in Germany. The German Coffee Association hosted the European Congress on Coffee Capsules in Berlin, wherein all companies that are active in the coffee capsules market, from materials suppliers to rework specialists, offered latest insights. The German coffee pods and capsules market is highly dominated by Nestle’s Nespresso, with its wide product reach across the country. However, Keurig Green Mountain merged with JAB Holding, with an aim to expand its presence, which is expected to hinder the growth of Nestle in Germany. Alois Dallmayr KG is one of the most prominent players in the German coffee pods and capsules market, and it offers a wide range of coffee pods and capsules compatible with Nespresso machines.

Competitive Landscape
The global market for Coffee Pods and Capsules is largely dominated by Nestlé and JDE, with a strong global presence of their brands, Nespresso, Keurig, Tassimo, Senseo, and Dolce Gusto. Other key players, such as Kraft foods, Dunkin Brands, and Starbucks Corporation, also held a prominent share in the global market in 2019. However, high product innovations, the launch of limited edition coffee pods, large distribution networks, better supply chains have led the coffee pods and capsules market to become highly consolidated, where Nestle (Nespresso and Dolce Gusto) and JAB Holdings (Senseo, Tassimo, Keurig) held the maximum share in the global market.

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