Coffee Capsules Market

The global coffee capsules market is expected to grow at a CAGR of 7.07% during the forecast period (2017–2030).

Widescale Adoption of Non-Alcoholic Beverages to Surge the Demand for Coffee Capsules

In recent years, non-alcoholic beverages have grown in popularity. Non-alcoholic beverages are RTD coffee and tea, bottled water, carbonated soft drinks, and fruit juices. Non-alcoholic beverage consumption is predicted to rise due to growing urbanization, more disposable income, changing lifestyles, and increased health awareness.

Coffee is a popular non-alcoholic beverage praised for its scent and caffeine content. Furthermore, it is the world's second most exported commodity after oil. Coffee consumption is increasing due to its health advantages and the expansion of coffee shops, which is a significant factor in the rising demand for coffee capsules.

Harmful Effects of Packaging on Environment to Hinder Market Growth

There was once a coffee bean, then an instant coffee jar, and now the world has embraced a new fad of coffee capsule machines. Consumers are becoming more interested in these coffee capsules. However, the detrimental impacts of packaging are anticipated to deter demand for coffee capsules.

Coffee capsules are unrecyclable due to their composition of plastic and aluminum. Despite attempts to promote recycling, plastic and aluminum capsule packaging is discarded. The separation of two materials is required for recycling. However, it is not possible in a typical recycling facility. Around 300,000,000 aluminum and plastic capsules are used in the United Kingdom each year. As a result, the majority of the land is in landfills. Coffee capsules are difficult to recycle in ordinary municipal recycling operations due to their intricate packaging.

Increasing Coffee Machines at Hotels, Restaurants, and Offices to Promote Market Growth

The increased usage of coffee machines in hotels, restaurants, and businesses will likely drive up demand for coffee capsules. Coffee machines are small electric equipment used to brew coffee. Furthermore, the coffee machine reduces the time and effort necessary to produce coffee in cafés and businesses.

Furthermore, increased travel, changing lifestyles, hectic work schedules, and increased coffee consumption drive up demand for coffee machines in various locations. Finally, rising millennial demand for non-alcoholic beverages will likely boost demand for coffee machines in hotels, restaurants, and businesses.

Impact of COVID-19

The coronavirus pandemic is the first and most severe human catastrophe, affecting tens of thousands of individuals globally. Aside from the harsh consequences on people's health and healthcare services, coronavirus impacts companies and the economy. The virus has spread to nearly all coffee exporting and importing countries since the World Health Organization declared the COVID-19 outbreak a worldwide pandemic in mid-March 2020.

The pandemic is likely to influence all stages of the coffee value chain, including on-farm operating activities (coffee planting and harvesting), post-harvest refining, internal and international transportation, and intermediate and ultimate demand.

Segmental Analysis of Global Coffee Capsules Market

The global coffee capsule market is divided into open-source and close source systems based on product. The closed source system category captured the most market share in 2021 and is expected to increase by 6.82% CAGR by 2030.

Based on application, the global coffee capsule market is divided into commercial and domestic applications. As more people drink coffee from coffee shops, restaurants, and workplaces, the number of retail establishments such as cafes and bars grows. The growing availability of coffee capsules in cafés and bars raised global demand for high-quality Arabica coffee. These enabled producers to focus on high-quality beans, mitigating the consequences of a recent drop in coffee prices.

The global coffee capsule market is divided into supermarket/hypermarkets, specialty shops, e-commerce, and others based on the distribution channel. Supermarkets/hypermarkets are the primary channels for selling coffee items due to their sizeable retail area catering to various tastes. Supermarkets and hypermarkets provide a plethora of brand and functionality options. 

Significant Growth in North America and Europe

The two most important markets for coffee capsules are North America and Europe. Germany, the United Kingdom, France, Russia, and Spain are the biggest contributors to the overall market income of coffee capsules in the European area. Germany is the top importer of green coffee beans in Europe. The coffee roasting business is massive, allowing the country to service both home and foreign markets. Nestlé's Nespresso dominates the German coffee capsules industry, having a broad product reach across the nation.

North America's coffee capsule market is divided into two major countries: the United States and Canada. Due to the convenience element connected with coffee capsules, the demand for coffee capsules in the region has grown. However, since the capsules market has matured in countries such as the United States and Canada, the growth rate is likely to remain stagnant over the projection period.

Competitive Players in the Global Coffee Capsules Market

The key players in the global coffee capsules market are Nestle Nespresso S.A, Starbucks Corporation, Artizan Coffee Co, Gourmesso Coffee, Dualit Limited, The Kraft Heinze Company, Gloria Jean's Coffee, Dunkin Brands, Inc., Luigi Lavazza Spa, Coins Group, among others. 

Recent Developments by Key Players:

• On 12th February 2021, Nespresso launched two new coffees for milk recipes named Bianco Delicato and Bianco Intenso. These products were created using a new approach to coffee blending and were inspired by professional baristas' craftmanship.
• In February 2020, Kraft Heinz launched Maxwell House Compostable Coffee Pods in Canada. These pods are made entirely from plant-based materials, all pod components and its inner bag are 100% compostable, plus the outer carton is 100% recyclable, leaving zero waste for the consumer.
• In March 2018, The company acquired Cerebos Food & Instant Coffee business in Australia and New Zealand, and the Asian Home Gourmet Singapore business, in a transaction valued at AUD 290 million (approximately USD 227 million) from Suntory Beverage and Food Ltd.

Global Coffee Capsules Market: Segmentation

By Product

• Open Source System
• Closed Source System

By Application

• Household
• Commercial

By Distribution Channel

• Supermarkets/ Hypermarkets
• Specialty Store
• Ecommerce
• Other Distribution Channels

By Regions

• North America
• Europe
• Latin America
• Asia-Pacific
• The Middle East and Africa