Global Coffee Pods Market Size, Share, Opportunities, And Trends, By Type (Hard Pods, Soft Pods), By Caffeine Content (Regular, Decaffeinated), By Flavours (Regular, Flavoured), By Distribution Channel (Offline, Online), And By Geography - Forecasts From 2023 To 2028
- Published : Aug 2023
- Report Code : KSI061613943
- Pages : 148
The global coffee pods market is predicted to grow at a CAGR of 5.15% from US$19,653.911 million in 2021 to US$27,935.034 million by 2028.
The global coffee pod market is anticipated to rise at a steady pace during the projected period. Coffee is one of the most traded and imperative agricultural products globally. According to the data released by the International Coffee Organization, 10.88 million bags of coffee were exported globally in December 2022 as opposed to 11.89 million in December 2021. It is one of the most consumed beverages by millennials. The coffee sector has provided employment to more than a million people worldwide. The market is expected to grow owing to the easy availability and wide application of coffee pods in household, industrial, and brewed sectors. Additionally, the coffee pods' one-time use and disposable feature is the main attraction to the consumers, as these eliminate the additives and additional flavours and simplify the brewing process, thus reducing the time.
Growth drivers for the coffee pods
The demand for coffee pods is increasing due to the rapid change in lifestyle, the gradual change in the consumer’s preference for innovative and ready-to-use products, and the awareness of the health benefits derived from the consumption of organic coffee. Rapid urbanization is further fostering the demand for coffee pots. In addition to this, increased adoption of the fair-trade practice by the cultivators of the coffee beans and the desire to recreate the experience of the café at home is further directing consumers towards the coffee pods. These drivers will upsurge the coffee pods market.
Rapid urbanization and evolving lifestyle
Coffee is one of the most consumed beverages and its availability in the form of pods is further driving the market. Coffee pods are gaining popularity among consumers owing to features such as one-time-use, ready-to-drink, which provides easy, convenient, and quick preparation of the coffee and disposability. The rise in urbanization and busy schedules are some of the major factors augmenting the coffee pods demand. The rise in the working population has triggered the absolute need for convenience products. The infrastructural growth in the organized retail sector is increasing the availability and thus the demand of the demand for coffee pods. The convenience and simple use of coffee pod products are playing a significant role in the market expansion as it allows the food services business such as restaurants, café, and bars to offer premium quality coffee without much effort and cost on the training. Consumers are recreating the taste and experience of the café at home with the help of pod machines and coffee pods.
Innovations in producing state-of-the-art coffee pods.
The rising demand is encouraging manufacturers to innovate and produce state-of-the-art coffee pods that match the taste of the consumers with attractive packaging. For instance, in 2022 the Spanish coffee business Cafés Novell unveiled a line of organic coffee pods for home and retail usage. The No Waste brand of coffee pods in the UK marked the beginning of totally biodegradable and 100% natural products. It is anticipated that during the projected period, consumer interest in coffee pods and capsules will increase more swiftly due to the expansion in new product development in organic products, which is compatible with changing customer tastes and preferences. These innovations have also increased coffee production, for instance, as per the 2022 report by International Coffee Association, global coffee production increased from 168.5 million bags in 2021/22 to 171.3 million bags in 2022/23.
The hard pods segment is expected to rise significantly.
Hard pods are also eligible to be used in open-system pod coffee makers. Numerous world-renowned Italian brands such as Illy Coffee, Lavazza Coffee, and Covim Coffee offer hard coffee pods that deliver a consistent and enhanced taste. Since hard pods are tougher, these are often considered highly suitable to be used in machines, which is also one of the prominent factors supplementing the growing demand for hard coffee pods over the forecast period.
The additional factor bolstering the growth of this segment includes the type of material from which hard pods are made which are often ecological and certified compostable pods, thus causing no harm to the environment. Amid the growing environmental awareness, multiple market players are aligning their strategic developments to launch offerings that are recyclable and produce less harm to the environment. Nexe Innovations, for instance, launched a premium expresso pod in Canada and US in July 2021 after more than six years of extensive research and development to develop its own completely compostable coffee pod. Thereby, supporting a strong demand for hard coffee pods, particularly in the developed economies.
High consumption of speciality coffee
As per the National Coffee Association, the number of people consuming coffee in the US is 66% of the total population in the year 2021. With the growing number of people preferring coffee, there has been an increased demand for a variety of coffee as well. According to the NCA, the number of people leaning towards speciality coffee has increased from 36% in 2021 to 43% in 2022. The increasing demand for coffee in the developed and developing nation with a preference towards speciality coffee will help the market to expand in the coming years, as these pods are used in making expresso and various other speciality coffees.
North America is anticipated to dominate the coffee pods market.
Since hard coffee pods are used to make espresso coffee, in North America, the region is expected to hold a significant market share. Unlike soft pods, hard pods are tougher, which makes them better for use in coffee machines making the coffee smoother and with a more consistent flavour. Also, soft pods offer fewer ways to brew coffee, fewer colors, mixtures, or roast options all of which can be eliminated by using hard pods. Moreover, collaborations between companies like Starbucks, which produces espresso pods and Nespresso, which is known for its coffee machines is acting as a key growth driver for the hard pod segment in the North American region.
The USA is predicted to hold a significant market share.
Coffee consumption has been on the rise in the United States, with a significant portion of the population preferring speciality coffee. The popularity of coffee shops and cafes has influenced the demand for coffee at home, leading to the increased adoption of coffee pod systems.
Additionally, the market has witnessed intensified competition among major players, driving continuous product innovation and improvement. Leading manufacturers such as Keurig Dr Pepper (KDP), Nestle (owner of Nespresso and Dolce Gusto), and JAB Holding Company (owner of Keurig and other brands) have invested heavily in research and development. These companies strive to enhance the quality, taste, and sustainability of their coffee pod offerings, which in turn attracts new consumers and ensures the loyalty of existing ones. Through their market dominance and dedication to innovation, Keurig Dr Pepper, Nestle, and JAB Holding Company play significant roles in shaping the growth and direction of the coffee pod market.
Market Key Developments
- The Pioneer Women Ree Drummond partnered up with Zavida Coffee Roasters in 2021 for a premium and brand-new coffee line. The coffee line has eight flavoured blends and three non-flavoured blends which are breakfast roast, dark roast, and medium roast. Nestle and Jacobs Douwe Egberts UK have come into a partnership to create first of its kind recycling program for coffee pods.
- In March 2023, the K-Cup pods from Keurig were launched, which contain single servings of ground coffee and are well-known. Additionally, in April 2023, to have a less negative impact on the environment, the flavoured coffee firm Beanies produced biodegradable pods. The company, which has its headquarters in Darlington, makes low-calorie, sugar-free coffees in more than 40 flavours, including chocolate orange, cinder toffee, double chocolate, and jam doughnut. The company has introduced a variety of Nespresso-compatible pods in vanilla, caramel, and hazelnut flavors following a fruitful year in which worldwide sales advanced.
- Tim Hortons, in August 2022 introduced four new types of Nespresso-compatible espresso capsules. The four flavours are traditional, bright, robust, and decaf. Additionally, in August 2021, with the release of its new flavoured coffee K-Cup® pods, Peet's Coffee announced its first range of flavoured coffee for home brewing. The new range offers three expertly designed options: Caramel Brûlée, Vanilla Cinnamon, and Hazelnut Mocha. Each expertly combines great Peet's coffee with natural flavours for a wonderful cup at the touch of a button.
Global Coffee Pods Market Scope:
|Market Size Value in 2021||US$19,653.911 million|
|Market Size Value in 2028||US$27,935.034 million|
|Growth Rate||CAGR of 5.15% from 2021 to 2028|
|Forecast Unit (Value)||USD Million|
|Segments Covered||Type, Caffeine Content, Flavor, Distribution Channel, and Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Starbucks Corporation, Luigi Lavazza SpA, Dunkin Brands (DD IP Holder LLC), The Kraft Heinz Company, Keurig Green Mountain, Inc., Nestle SA|
|Customization Scope||Free report customization with purchase|
- By Type
- Hard Pods
- Soft Pods
- By Caffeine Content
- By Flavor
- By Distribution Channel
- By Geography
- North America
- United States
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.7. Base, and Forecast Years Timeline
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.4. Competitive Rivalry in the Industry
4.5. Industry Value Chain Analysis
5. GLOBAL COFFEE PODS MARKET, BY TYPE
5.2. Hard Pods
5.3. Soft Pods
6. GLOBAL COFFEE PODS MARKET, BY CAFFEINE CONTENT
7. GLOBAL COFFEE PODS MARKET, BY FLAVOR
8. GLOBAL COFFEE PODS MARKET, BY DISTRIBUTION CHANNEL
9. GLOBAL COFFEE PODS MARKET BY GEOGRAPHY
9.2. North America
9.2.1. North America Coffee Pods Market Analysis, By Type
9.2.2. North America Coffee Pods Market Analysis, By Caffeine Content
9.2.3. North America Coffee Pods Market Analysis, By Flavor
9.2.4. North America Coffee Pods Market Analysis, By Distribution Channel
9.2.5. By Country
220.127.116.11. United States
9.3. South America
9.3.1. South America Coffee Pods Market Analysis, By Type
9.3.2. South America Coffee Pods Market Analysis, By Caffeine Content
9.3.3. South America Coffee Pods Market Analysis, By Flavor
9.3.4. South America Coffee Pods Market Analysis, By Distribution Channel
9.3.5. By Country
9.4.1. Europe Coffee Pods Market Analysis, By Type
9.4.2. Europe Coffee Pods Market Analysis, By Caffeine Content
9.4.3. Europe Coffee Pods Market Analysis, By Flavor
9.4.4. Europe Coffee Pods Market Analysis, By Distribution Channel
9.4.5. By Country
18.104.22.168. United Kingdom
9.5. Middle East and Africa
9.5.1. MEA Coffee Pods Market Analysis, By Type
9.5.2. MEA Coffee Pods Market Analysis, By Caffeine Content
9.5.3. MEA Coffee Pods Market Analysis, By Flavor
9.5.4. MEA Coffee Pods Market Analysis, By Distribution Channel
9.5.5. By Country
22.214.171.124. Saudi Arabia
9.6. Asia Pacific
9.6.1. Asia Pacific Coffee Pods Market Analysis, By Type
9.6.2. Asia Pacific Coffee Pods Market Analysis, By Caffeine Channel
9.6.3. Asia Pacific Coffee Pods Market Analysis, By Flavor
9.6.4. Asia Pacific Coffee Pods Market Analysis, By Distribution Channel
9.6.5. By Country
126.96.36.199. South Korea
10. COMPETITIVE ENVIRONMENT AND ANALYSIS
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. COMPANY PROFILES
11.1. Starbucks Corporation
11.2. Luigi Lavazza SpA
11.3. Dunkin Brands (DD IP Holder LLC)
11.4. The Kraft Heinz Company
11.5. Keurig Green Mountain, Inc. (Acquired by JAB Holding Company)
11.6. Nestle SA
Dunkin Brands (DD IP Holder LLC)
The Kraft Heinz Company
Keurig Green Mountain, Inc. (Acquired by JAB Holding Company)
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