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

Coffee pods are single-served, 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 Germany is segmented into categories: the type of coffee pod, caffeine content, flavour, distribution channel and country.

Germany is one of the highest coffee-consuming countries in Europe and the demand is growing even further. According to the CBI data, Germany consumes about 5.4 kg of coffee per capita annually. The German Coffee Association reports an increase of 7,900 tonnes in domestic home consumption of roasted coffee in 2021. Germany, has the second-largest coffee roasting sector in Europe, according to PRODCOM statistics, with a sold output volume of 571,000 tonnes in 2020, valued at €1.7 billion. Roasted coffee volumes for sale grew modestly between 2016 and 2020, growing at an average of 1.3 per cent annually. This data demonstrates the growing strength of the country’s coffee sector. Therefore, the introduction of coffee pods has had the greatest impact on the German coffee industry and has spread in this country like wildfire.

The demand for coffee pods in Germany has been growing recently and is expected to do so in the future. Consumers are particularly attracted to coffee pods because of their convenience and affordability. Other factors such as rising disposable income, fast urbanisation, and changing food trends are also contributing to the expansion of the coffee pod market in Germany.

Growing demand for coffee machines and coffee brewing kits among German households will also support the coffee pod market growth in the country.

German 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 this country. Due to the extensive use of home and business equipment, sales of coffee in capsules or pods have increased significantly. According to data from the German Coffee Association, between 2019 and 2021, sales of fully automated coffee machines increased by 20 per cent, gaining a 33 per cent market share. A coffee pod machine and a coffee capsule machine were owned by around 24 per cent and 22 per cent, respectively, of German coffee consumers in 2019. Coffee capsules come in a variety of flavours, which retailers offer to meet customer tastes. For instance, rezemo offers coffee capsules manufactured from German wood that are biodegradable.

Increasing popularity of artisanal, gourmet, speciality, premium coffee pods

Germany's speciality coffee sector is expanding. The rise in out-of-home consumption in the nation reflects this growth. 20 per cent of all coffee consumed in Germany in 2021 was consumed outside the house, primarily at work. The growth of speciality coffee shops and small-scale speciality roasters like The Barn, Five Elephant, and Flying Roasters is another indicator of the speciality coffee industry in Germany. The European Coffee Tour identified 294 speciality cafés and 64 speciality roasters in Germany in 2021, an increase from the 155 speciality cafés and 53 speciality roasters that were listed at the beginning of 2019. Moroever, customers frequently choose roasted coffee pods that are flavour-enhanced with caramel, vanilla, etc. Therefore key market players are introducing flavoured, speciality and gourmet coffee pods catering to those needs. 

Market Key Developments

• In July 2022, a sustainable coffee capsule for the Qbo brand has been created by US-based plastic packaging maker Berry Global in collaboration with German coffee producer Tchibo and its feedstock supplier Neste. The capsule is constructed of polypropylene (PP), a bio-based sustainable raw material manufactured from fats like leftover cooking oils as well as waste and residual oils. Tchibo's efforts to improve the sustainability of its current Qbo coffee capsules include the launch of the capsule.
• In December 2022, to assist consumers in recycling their old coffee, tea, and hot chocolate pods, the German supermarket company Aldi joined the Podback coffee pod recycling programme. The store will be the first supermarket in the UK to do so when it introduces its own-label pods to the Podback programme.
• In August 2022, Nestle SA introduced its "Starbucks at Home" coffee capsules in Germany in collaboration with Starbucks. 80% recycled aluminium was used in the production of the goods. The business also wants to enter additional European markets with these aluminium capsule coffee pods.

 Segmentation:

• By Type
  • Hard Pods
  • Soft Pods
• By Caffeine Content
  • Regular
  • Decaffeinated
• By Flavour
  • Regular
  • Flavoured
• By Distribution Channel
  • Online
  • Offline