Coffee pods are single-served, a pre-packed coffee canister that is enough for brewing one cup of coffee and comes with their own filter. Coffee made using coffee pods saves both time and energy by simplifying the brewing process. Coffee pods are available in various quantities, flavours and additives according to the need of the consumer. The coffee pod market in the Asia Pacific is segmented into categories: the type of coffee pod, caffeine content, flavour, distribution channel and country.
For the past decade, the coffee business in Asia has been growing rapidly. More and more people are now buying a cup of coffee or espresso as Asia's economies continue to expand. Coffee has also become an important part of several Asia countries such as South Korea, Japan and Taiwan. Japan consumed over 450 million pounds of coffee in 2019, placing it as the third-largest coffee consumer in the world by total weight. In addition, the total market for coffee in Japan was valued at US$38 billion in 2021, with a consumption rate of 2.07 kg per person. According to the data from the Coffee Board of India, Indians consumed 72.6 million kilograms of coffee in 2022. In 2020, India's whole coffee market was expected to be worth close to USD 1.6 billion. According to industry projections, the market will grow to a value of USD 4.05 billion by 2027. This data demonstrates the growing strength of the region’s coffee sector. Therefore, the introduction of coffee pods has had the greatest impact on the Asia Pacific coffee industry and has spread in this region like wildfire.
High convenience and low cost associated with the use of coffee pods are one of the primary factors driving the growth of the market in this region. Thai consumers are also ready to spend money on single-serve coffee machines so they may have a cafe-like experience at home which has also boosted the demand for coffee pods in the Asia Pacific. Other factors such as the developing middle-class population, fast urbanisation, improving living standards, and changing food trends as a result of the regions expanding economy are also contributing to the expansion of the coffee pod market in Thailand. The market is also growing due to increasing customer demand for quick, premium, ready-to-drink beverages along with their disposable income. Moreover, the growing prevalence of cafe culture, the introduction of new coffee categories, the rising number of coffee startups and internet companies and growing consumer knowledge and experimentation with coffee are also contributing to the expansion of the coffee pod market in the Asia Pacific.
Increasing popularity of artisanal, gourmet, speciality, premium coffee pods
A growing number of Asia Pacific customers value premium, speciality coffee. According to studies from the Specialty Coffee Association, premiumisation is a substantial contributor to this increase, notably in several East Asian nations including China, Japan, and Taiwan. For instance, Thailand's coffee industry was predicted to be worth more than $1 billion in 2019, with the premium coffee segment accounting for $33 million of that total. Speciality coffee shops are springing up all around Seoul as customers are willing to pay a bit more for the coffee that they like. One of the prime factors driving the growth of premium coffee in the Asia Pacific is the burgeoning demand from the younger and millennial population. Various speciality and premium coffee companies in this region are also getting high investments to expand their market even further. For instance, In August 2022, the boutique tea chain HeyTea invested RMB 100 million in the Chinese speciality coffee roaster and retailer Seesaw Coffee, enabling the brand to grow even further. Moreover, in January 2023, Indian speciality coffee brand Blue Tokai Roasteries received an investment of USD 30 million to expand their business.
Therefore key market players are launching premium, gourmet, and speciality coffee pods to capitalise on this trend. For instance, In June 2022 Blue Tokai Coffee Roasters launched biodegradable speciality coffee pods. These coffee pods come in 10- and 40-count packs and are created using Blue Tokai's four most popular flavours: Attikan Estate, Viennese Roast, Dhak Blend, and Silver Oak Blend. In January 2023, Australian coffee brand Merlot Coffee launched its first-ever speciality aluminium coffee pods.
India is anticipated to hold a significant amount of the market share of Asia Pacific coffee pods during the forecast period
India is anticipated to hold a significant amount of market share in Asia Pacific. Key determinants contributing to coffee pods in India include rising coffee consumption, rapid urbanisation, rising disposable income, the prevalence of internet-only coffee businesses, the introduction of new coffee categories and growing consumer knowledge and experimentation with coffee. Indian consumers are also ready to spend money on single-serve coffee machines due to rising disposable income and rapid urbanisation so that they can have a cafe-like experience at home and workplace. The sales of coffee machines have also increased in India. Ravi Saxena, the founder and managing director of Wonderchef Home Appliances, claimed in an interview that his recently released coffee machines, which range in price from 3,000 to 15,000, had been selling like hotcakes. Moreover, the rising prevalence of speciality coffee startups like Blue Tokai, Third Wave Coffee and Rage Coffee are also contributing to the boom in the demand for speciality coffee pods among Indian millennials.
Market Key Developments
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR during the forecast period |
| Base Year | 2021 |
| Forecast Period | 2023 – 2028 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered | Type, Caffeine Content, Flavour, Distribution Channel, and Country |
| Regions Covered | China, India, Japan, South Korea, Indonesia, Thailand, Taiwan, Others |
| Companies Covered | Davidoff Coffee India (Jacobs Douwe Egberts), Blue Tokai Coffee Roasters, NO HARM DONE, Tripod Coffee, Boncafe (Thailand) Ltd., Nespresso, JDE Indonesia, Kapal Api Group, HeyCafé, Dualit |
| Customization Scope | Free report customization with purchase |
Segmentation: