Israel 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 its 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 Israel is segmented into categories: the type of coffee pod, caffeine content, flavour and distribution channel.

Israel's coffee culture has seen significant development throughout the years and is evolving. Israel is ranked among the top 10 coffee-consuming nations in the world. An average Israeli person consumes 4.4 kilos of coffee a year, or around 3.5 cups of coffee each day. Around NIS 3.5 billion worth of coffee is sold in Israel each year. 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 country. Israeli 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.  

Growing demand for coffee pods from Israeli households to expand the market even further.

The majority of household coffee consumption in Israel now comes from pods. The market for coffee pods is valued at hundreds of millions of shekels and has millions of units. According to the Israel coffee giant Strauss Coffee by the end of 2021, sales of non-Nespresso capsules will total 160 million shekels. This indicates that in 2021, more than 100 million capsules were sold. Nespresso-compatible capsules are expanding and quickly gaining market dominance. In comparison to the prior year, which also experienced strong growth in the capsule business, it is expected to rise by roughly 27 per cent in 2021.

Moreover, the growing demand for coffee pods has also led to an increase in demand for pod-based coffee machines. This trend is growing as Israeli people are attempting to imitate the flavour they experience in coffee shops. This has led to an increase in the number of capsule-based coffee machines in homes because such equipment only costs a few hundred shekels. 

Integration of advanced technology in the production and delivery process by major market players.

Key market players and startup companies are integrating advanced technologies to deliver coffee pods to customers due to their growing demand. For instance, In January 2023, Israeli startup company 1MRobotics used robots to deliver Nespresso coffee pods to its customers.

Moreover, in August 2021, Israeli coffee company Nespresso Israel was testing drone delivery of coffee pods to a select set of consumers in Tel Aviv-Jaffa. Together, the drone-piloting business FlyTechIL, drone take-off and landing site developer SkylinX, and AI software startup Airwayz will manage the project. The deliveries will be managed by the logistics business Flying Cargo, and the service will be connected to end users through the international transport company GettDelivery.

Market Key Developments

• In March 2020, the largest coffee company Starbucks partnered with multinational coffee company Nescafe to sell coffee pods and capsules in Israel.
• In August 2021, Israeli coffee company Nespresso Israel was testing drone delivery of coffee pods to a select set of consumers in Tel Aviv-Jaffa. Together, the drone-piloting business FlyTechIL, drone take-off and landing site developer SkylinX, and AI software startup Airwayz will manage the project. The deliveries will be managed by the logistics business Flying Cargo, and the service will be connected to end users through the international transport company GettDelivery.

Israel 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