India Coffee Pods Market Size, Share, Opportunities, COVID-19 Impact, And Trends, By Type (Hard Pods, Soft Pods), By Caffeine Content (Regular, Decaffeinated), By Flavors (Regular, Flavored), By Distribution Channel (Offline, Online) - Forecasts From 2023 To 2028

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 India is segmented into categories which include – the type of coffee pod, caffeine content, flavour and distribution channel.

Even though the market for coffee pods in India is still in its nascent stage and a large proportion of the population has yet to discover it but growing demand for coffee beverages in the country is anticipated to propel market growth. 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 nation's coffee sector. Therefore, the introduction of coffee pods has had the greatest impact on the Indian coffee industry and has spread in this nation like wildfire. High convenience associated with the use of coffee pods is one of the primary factors driving the growth of the market in this country.

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

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. As a result, more affordable coffee makers are promoting coffee pods market expansion. Customers are increasingly spending money on equipment ranging from single-serve and personal espresso machines that may cost up to Rs 4 lakhs to moka pots, Chemex, Aeropress, and syphons which are priced between Rs 500 and Rs 6500.

Other factors such as the growing prevalence of internet-only coffee businesses, the introduction of new coffee categories, increasing disposable income, and growing consumer knowledge and experimentation with coffee are also contributing to the expansion of the coffee pod market in India.

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

As the coffee culture grows in India, people are willing to take the “extra mile” by investing in speciality coffee, purchasing home brewing kits, machines & supplies, and dedicating a little more time each day to making speciality coffee at home.  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 among Indian millennials. Therefore key market players are introducing flavoured, speciality and gourmet coffee pods catering to those needs.  For instance, In June 2022 Blue Tokai Coffee Roasters launched biodegradable speciality coffee pods. These coffee pods, which come in 10- and 40-count packs, are created using Blue Tokai's four most popular flavours: Attikan Estate, Viennese Roast, Dhak Blend, and Silver Oak Blend.

Market Key Developments

• In December 2022, Everstone signed a franchise deal to provide Lavazza cafés to India. According to reports, the private equity firm is attempting to introduce Lavazza-branded cafés to India. The agreement is also anticipated to increase the Italian coffee roaster's vending machine, speciality coffee capsules and pods presence in the nation.
• In June 2022, Indian speciality coffee startup Blue Tokai Coffee Roasters launched biodegradable speciality coffee pods. These coffee pods, which come in 10- and 40-count packs, are created using Blue Tokai's four most popular flavours: Attikan Estate, Viennese Roast, Dhak Blend, and Silver Oak Blend.
• In June 2022, the gourmet brand "Coffeeza," a market leader in the field of coffee pods and single-serve coffee machines, introduced its new line of recyclable aluminium pods. When used with a suitable coffee maker, these pods can be used to prepare espresso and other café-style drinks like cappuccino and latte. These pods are available at numerous upscale retailers in India, including Coffeeza.com, Amazon, Flipkart, Croma, Nature's Basket, Foodhall, and many others.

India Coffee Pods Market Scope:

Segmentation:

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