Europe Coffee Pods Market Size, Share, Opportunities, And Trends By Type (Hard Pods, Soft Pods), By Caffeine Content (Regular, Decaffeinated), By Flavour (Regular, Flavored), By Distribution Channel (Offline, Online), And By Geography - Forecasts From 2023 To 2028

Single-portion coffee containers include pods and capsules. Usually, these have 7 grams and 5 grams, respectively, of coffee powder. Pods are constructed from the same kind of material as tea bags. In contrast, capsules feature a protective case composed of plastic or aluminum, which can come in a variety of sizes. This makes it necessary to confirm compatibility with the coffee maker before buying capsules. Pods are more readily disposable and ecologically beneficial, even if they hold more coffee and, hence, scent. Pods and capsules shorten the time needed to brew coffee and streamline the brewing process. 

One of the main factors influencing the industry is the increasing use of coffee makers to simulate a café experience at home. Also, there is an increase in coffee intake since it boosts energy levels, helps burn fat by reactivating the body's metabolism, and enhances productivity and cognitive abilities. This, together with the high caliber, effectiveness, and variety of options provided by coffee capsules and pods, is causing the industry to expand.

Convenience, premium positioning, brand experience, and the producers' capacity to innovate and release new products have all contributed to the expansion of coffee pods and capsules over the past several years in Europe. People's changing lifestyles and increased interest in utilizing espresso machines, even at home, contributed to the boom in coffee sales. For instance, the overall number of people working in the UK is expected to reach 32.75 million in 2021 after steadily rising over the previous few years. The demand for coffee capsules and pods that work with different espresso machines skyrocketed as a result. Also, users frequently own coffee makers at home, which has led to a rise in the use of coffee capsules and pods in the area.

Demand for single-serve coffee is rising in Europe surging growth for coffee pods.

The need for coffee pods and capsules is being driven by the increase in demand for single-serve coffee due to its ease of use. Coffee pods and capsules, which are traditional coffee preparation methods, are rising in popularity among customers in the area. These coffee capsules and pods are frequently used to make good coffee quickly at home. Recently, single-serve coffee makers have become more prevalent in European households, particularly in Western Europe. Also, customers are fast to spend more on coffee and other related beverages when their spending power grows. Also, there is an increase in demand for coffee machines, which is driving up demand for the coffee pods and capsules used in such machines. A very popular coffee maker is Nespresso.

The growing popularity of specialty and flavored coffee.

Customers frequently like roasted coffee pods with flavorings like caramel, vanilla, and other well-known tastes and capsules. Flavored coffee, which people enjoy at out-of-home coffee retail businesses dispersed around the region, is shown to suffer from this shift in demand. Also, the fact that these pods and capsules are widely sold in supermarkets and hypermarkets has a positive impact on the region's pod sales. Moreover, supermarkets and hypermarkets provide a wide variety of brands and products. These stores provide premium coffee in the form of pods and capsules at set prices. Moreover, supermarkets have begun stocking a wider variety of coffee with distinctive qualities, such as single origins. As a result of the extensive product visibility in these supermarkets and hypermarkets, the consumer base increased, which accelerated the rising coffee pod sales.

The UK is projected to be the prominent market shareholder in the coffee pods market in Europe and is anticipated to continue throughout the forecast period.

The British Coffee Association said that every day in the UK, some 95 million cups of coffee are drunk. This translates to an astounding 2.8 billion cups annually. The study also discovered that, with an average yearly growth rate of 3%, coffee consumption has been rising consistently in the UK over the previous ten years. Coffee is frequently consumed by more than 80% of individuals, who drink three cups each day on average. While we don't have figures on how many offices have coffee makers, we do know from our own business experience that the number is growing daily. Currently, about 70% of homes have a coffee maker. Coffee pods are used in coffee makers, hence the market will grow for them during the forecast period in the UK. The popularity of specialty coffee in general and specialized coffee establishments, in particular, is one factor contributing to the growth of coffee pods. High-quality beans and brewing techniques are now heavily emphasized, resulting in a more sophisticated and artisanal coffee experience.

Market Key Developments

• In November 2022, the sustainable packaging firm Huhtamaki and Nestlé SA's Nespresso collaborated to introduce a paper-based coffee capsule for home composting. The manufacturer asserts that the wood fiber used to make the capsules came from European wood. The capsules may be composted at home and in food waste collection programs, according to approval from the German technical certification firm TUV.
• In August 2022, to improve its environmental credentials, the coffee manufacturer Lavazza introduced a line of biodegradable and "carbon neutral" pods.
• In December 2021, The Italian coffee maker and distributor Luigi Lavazza SpA introduced Nespresso-compatible, carbon dioxide-free coffee pods.

Segmentation:

• By Type
  • Hard Pods
  • Soft Pods
• By Caffeine Content
  • Regular
  • Decaffeinated
• By Flavour
  • Regular
  • Flavored
• By Distribution Channel
  • Offline
  • Online
• By Geography
  • Germany
  • France
  • Spain
  • Italy
  • UK
  • Others