UK Coffee Pods Market Size, Share, Opportunities, And Trends, By Type (Hard Pods, Soft Pods), By Caffeine Content (Regular, Decaffeinated), By Flavors (Regular, flavored), By Distribution Channel (Offline, Online), By End-User (Residential, Commercial), And By Region - Forecasts From 2025 To 2030

Description

UK Coffee Pods Market Size:

The UK coffee pods market is expected to attain USD 1,153.554 million by 2030, growing at a CAGR of 5.12% from USD 898.749 million in 2025.

UK Coffee Pods Market Trends:

A growing coffee culture, with the proliferation of cafes and an increasing appreciation of specialty coffees, is a major market driver. The premiumization trend, with customers increasingly seeking superior quality and unique coffee experiences, also enhances the demand for premium pods.

These developments have pushed the proportion of coffee imports in the UK. For example, as per the European Coffee Report, the total import of green coffee in the nation was recorded at 176,618.1 tonnes in 2022.

Similarly, the growing demand for convenience is also boosting this market’s expansion. Coffee pods feature easy-to-use applications for users and brew coffee without the need for constant human interference. With the increasing trend of home brewing coffee, the need for convenience is growing significantly. The coffee pods also offer the consumers a premium experience.

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. Coffee-filled single-serve cups are referred to as beverage capsules when they are inserted into a coffee or tea vending machine. These pods deliver a delicious beverage without making a mess and cut down on brew time by up to 80%. Compared to their ground equivalent, which begins to lose the genuine flavor of the coffee once the bag is opened, they maintain the freshness and authenticity of the components longer.

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 past 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.

UK Coffee Pods Market Drivers:

• Sustainable packaging to drive the coffee pods market.

New players are developing creative and sustainable packaging solutions in response to the rising environmental issues around the packaging of coffee pods and capsules. Coffee drinkers like pods and capsules made of recyclable and ecologically acceptable materials. Companies are continuously challenged to reevaluate how they purchase, utilize, and recycle materials due to the growing need to reduce the negative environmental effects brought on by the waste of coffee pods and capsule packaging. Due to the increased demand for sustainable solutions in the coffee pods and capsules market, key firms in the sector are focusing more on creating biodegradable pods.

• Ready-to-drink coffee beverages are in demand due to the demand for coffee pods in the UK.

The busy lifestyle has increased the need for ready-to-drink beverages, and ready-to-drink coffee, a great source of rapid energy, is growing in popularity among young people and middle-aged working people. Coffee that is already prepared is a healthier alternative to carbonated beverages, which are linked to health risks, including obesity and hypertension. As a crucial strategy to grow their company and enhance sales and distribution of ready-to-drink coffee, manufacturers concentrate on developing new products with various flavors. Gaining the attention of consumers is made easier by product innovation involving various flavors and tastes. Functional, ready-to-drink coffee's extra advantages further draw customers. Functional ready-to-drink coffee offers important players the chance to set themselves apart from rivals and acquire a competitive advantage. This factor has been playing a key role in market expansion for coffee pods in the UK.

• Increasing tourism in the nation

The increasing tourism in the nation is among the major factors propelling the coffee pods market growth during the expected timeline. With tourists and visitors looking for convenient, readily available coffee sources throughout their stays, there is demand for coffee pods in hotels, vacation rentals, and other sites.

Visit East of England Association, a part of the Tourism Department of England, in its report, stated that the inbound tourism in the UK was 39.5 million in 2024, surging about 5% from 2023. The agency stated that in 2021, the total inbound tourists in the UK were recorded at 7.1 million, which surged to 31.2 million in 2022. In 2023, the total inbound tourist arrival in the nation was recorded at 37.8 million. As the influx of tourists in the nation increases, the demand for coffee pods in cafes and restaurants is also growing.

UK Coffee Pods Market Segment Analysis:

• Flavored coffee pods are experiencing high demand

Manufacturers are developing flavored coffee pods owing to the changing consumer preferences. Hence, the market for flavored coffee pods in the UK will grow considerably throughout the forecasted time frame.

A wide range of flavors and mixes, and the assurance of consistently high-quality coffee, have also won over customers seeking a customized coffee experience. Their appeal is enhanced because they are less wasteful and time-consuming than traditional brewing methods. They allow consumers to taste specialty and premium coffees without the need for expensive equipment.

Growing urbanization and a growing working population are the major factors fueling the flavored coffee pods market in the UK, owing to changing consumer preferences. For instance, the urban population in the UK increased from 68.682 million in 2023 to 69.138 million in 2024.

Moreover, Tea & Coffee, a family-run company in Devon, UK, unveiled a new Chocolate Coffee Pod Variety Pack in the summer of 2024. Ocado, Amazon, and Little's websites all sell the pack. Grind offers coffee pods with an oxygen barrier that keeps the coffee fresh for months without losing flavor. With fourteen locations throughout London, a flourishing online business serving hundreds of thousands of customers worldwide, and Grind coffee beans, coffee cans, and coffee pods available in most major UK grocers, Grind has emerged as the UK's breakout coffee challenger brand.

• The online distribution channel is rising significantly

The online shopping trend has witnessed a boom in the UK, increasing the demand for coffee pods as more people buy coffee pods through online channels. The internet penetration has led to more people buying coffee pods online. For instance, at the end of 2024, there were 81.7 million active mobile subscriptions in 2022, which increased to 84.3 million in 2023.

Further, this trend toward online shopping is contributed to by the increasing number of homes with coffee makers. Approximately 12.6 million households in the United Kingdom owned a coffee pod machine, making up 46% of all households. Demand for coffee pods through online platforms will continue rising as more customers seek the convenience of making quality coffee at home.

• The residential sector is witnessing substantial growth

The demand for coffee pods in residential areas of the UK is increasing rapidly because of convenience, a premium coffee experience at home, and a thriving coffee culture. Coffee pods attract customers looking for efficiency in their routines, as they offer a quick and easy brewing process.

Companies like Coffee Capsule UK offer a design service that helps to assemble the capsules, packaging, and brand to be fully compatible with the Nespresso® company. Moreover, coffee pods made from recyclable or compostable materials have grown in popularity amid growing environmental issues. Grind was one of the first companies to introduce certified home-compostable pods in the UK. It will degrade much faster than banana peels since they are plant-based products.

A range of coffee pods for Nespresso-compatible machines is available from Fresh Coffee. They partner with Saquella, the first Italian coffee company, and the Eden Project to offer their fully sustainable and compostable coffee pods.

Additionally, Wonky Coffee sells surplus coffee that has been rescued from British coffee roasters and sourced sustainably. They sell savor premium roasted beans for a much lower cost.

• The hard pod type is expected to rise notably

Hard pods, also known as capsule pods, are rigid, sealed containers typically made from aluminum or plastic, designed for use in high-pressure coffee machines like Nespresso and Dolce Gusto. They dominate the UK coffee pods market due to their compatibility with widely adopted single-serve coffee systems, consistent flavor delivery, and premium positioning. Hard pods accounted for a significant share of the market in 2024, driven by their convenience and association with high-quality coffee experiences.

The popularity of hard pods is fueled by the UK’s growing at-home coffee culture, where consumers seek café-quality beverages without leaving home. Their sealed design preserves freshness and aroma, making them the preferred choice for urban professionals and households with busy lifestyles. Additionally, hard pods offer a wide variety of flavors and intensities, catering to diverse consumer tastes.

In 2023, Nespresso UK launched its Vertuo Next line of compostable hard pods, addressing consumer demand for sustainable options. These aluminum capsules, compatible with Vertuo machines, are recyclable through Nespresso’s dedicated program and feature a biodegradable lining, reducing environmental impact. The launch reinforced Nespresso’s market leadership while aligning with the UK’s sustainability goals.

In early 2025, Costa Coffee expanded its hard pod offerings with a new line of recyclable capsules for Nespresso machines, featuring signature blends like Colombian Roast. The launch targeted cost-conscious consumers opting for at-home brewing amid economic pressures, further solidifying hard pods’ dominance in the retail channel.

• The regular caffeinated pods are witnessing a high market growth

Regular, or caffeinated, coffee pods dominate the UK market by caffeine content, reflecting the country’s strong preference for energizing coffee beverages. These pods cater to consumers seeking convenience without compromising on the stimulating effects of caffeine, making them the go-to choice for morning routines and workplace coffee breaks. In 2024, caffeinated pods held a substantial revenue share, driven by their alignment with the UK’s urban, fast-paced lifestyle.

Caffeinated pods are available in various roast profiles (light, medium, dark) and flavor options, appealing to a broad consumer base. Their dominance is supported by the cultural significance of coffee as a daily ritual, particularly among younger demographics and professionals.

In 2023, Lavazza UK introduced its Eco Caps range of compostable, caffeinated hard pods compatible with Nespresso machines. These pods, featuring blends like Qualità Oro, emphasized high caffeine content and sustainability, appealing to environmentally conscious consumers. The launch strengthened Lavazza’s position in the premium caffeinated segment.

In 2025, Tesco partnered with Douwe Egberts to launch a private-label line of caffeinated hard pods under the Tesco Finest brand. These recyclable pods, designed for Nespresso compatibility, offered high-caffeine blends at competitive prices, catering to budget-conscious consumers amid the cost-of-living crisis.

• Scotland is expected to lead the market expansion

The demand for coffee pods is driven by the increasing convenience and changing consumer preferences toward the new convenient way of using their coffee in Scotland, similar to larger trends experienced throughout the UK.

Moreover, due to their convenience and the superior experience they provide, coffee pods have seen a sharp increase in demand in Scotland. Customers value quickly brewing excellent coffee without requiring high-end equipment or special knowledge.

Further, it was estimated that 29.8 million kilograms of coffee were bought outside the home in 2024, including at coffee shops, cafes, workplaces, and on the go. By 2028, this will rise to 34.5 million kilograms.

Moreover, consumers in Scotland are becoming aware of the environmental damage caused by single-use coffee pods. With this, the manufacturers are finding ways of producing sustainable packaging due to increased demand for recyclable or biodegradable packaging. For instance, Caber Coffee is one of the most well-known wholesale coffee suppliers in Scotland. Their own-label coffee is all "direct sourced" and freshly roasted.

UK Coffee Pods Market Key Developments:

• In August 2022, to improve its environmental credentials, the coffee manufacturer Lavazza introduced a line of biodegradable and "carbon-neutral" capsules.
• In May 2022, Starbucks Morning Blend, which can be prepared as an Espresso (40ml) or Lungo at home using coffee pods compatible with Nespresso machines, was released by Nestlé UK (110ml).
• In April 2021, Nestle, the company that makes Nespresso and Dolce Gusto, and Jacobs Douwe Egberts (JDE), the company that makes Tassimo, launched a program that would improve pod recycling, which varies greatly from brand to brand.

UK Coffee Pods Market Segmentation:

• By Type
  • Hard Pods
  • Soft Pods
• By Caffeine Content
  • Regular
  • Decaffeinated
• By Flavour
  • Regular
  • Flavored
• By Distribution Channel
  • Offline
  • Online
• By End-User
  • Residential
  • Commercial
• By Region
  • Northern Ireland
  • Scotland
  • England
  • Wales

Table Of Contents

1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. UK COFFEE PODS MARKET BY TYPE

4.1. Introduction

4.2. Hard Pods

4.3. Soft Pods

5. UK COFFEE PODS MARKET BY CAFFEINE CONTENT

5.1. Introduction

5.2. Regular

5.3. Decaffeinated

6. UK COFFEE PODS MARKET BY FLAVOUR

6.1. Introduction

6.2. Regular

6.3. Flavored

7. UK COFFEE PODS MARKET BY DISTRIBUTION CHANNEL

7.1. Introduction

7.2. Online

7.3. Offline

8. UK COFFEE PODS MARKET BY END-USER

8.1. Introduction

8.2. Residential

8.3. Commercial

9. UK COFFEE PODS MARKET BY REGION

9.1. Introduction

9.2. Northern Ireland

9.3. Scotland

9.4. England

9.5. Wales

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. Competitive Dashboard 

11. COMPANY PROFILES

11.1. Nescafe Dolce Gusto (Nestlé S.A.)

11.2. Tassimo

11.3. Lavazza

11.4. illy

11.5. Starbucks

11.6. Coffee Capsule UK

11.7. Senseo (a joint venture between Philips and Douwe Egberts)

11.8. Waitrose

11.9. Dualit

11.10. The Coffee Pod Company

Companies Profiled

Nescafe Dolce Gusto (Nestlé S.A.)

Tassimo

Lavazza

illy

Starbucks

Coffee Capsule UK

Senseo (a joint venture between Philips and Douwe Egberts)

Waitrose

Dualit

The Coffee Pod Company

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