Coffee Capsules Market Size, Analysis, Share & Forecast 2030

Report Description

The global coffee capsules market size was valued at around USD 9 billion in 2021 and is anticipated to reach USD 16 billion by 2030, expanding at a CAGR of 7% during the forecast period, 2022 to 2030. The growth of the coffee capsules market is attributed to the growing demand for coffee in offices and other professional places.

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Coffee is one of the most consumed non-alcoholic beverages among others such as tea, fruit coolers, ginger ales, and others. For many people around the world, coffee is the first drink of the day. For some others, coffee is a go-to beverage for a pick-me-up. Coffee is produced from the berries harvested from species of coffee plants.

Two major species of coffee plants are Coffea Arabica and Coffea Canephora. Coffee plants are tropical evergreen shrubs. Coffee trees usually take around three to four years to bear fruits. These coffee fruits or coffee cherries turn red when they are ripe. The coffee cherries are either picked by hand or by a machine. The cherries then are checked to avoid any fruit spoilage.

These berries are processed by using either the dry method or the wet method. In the dry method, the coffee cherries are spread out in the sun to dry. In the wet method, the cherries go through a pulping machine to separate the pulp from the beans inside the coffee fruits. Coffee cherries go through a series of rotating drums and water channels in the wet method. After the wet process, the coffee cherries are dried either in the sun or with a machine. The coffee beans, which are separated from the cherries during processing, are processed further to remove any remaining skin or layer on them. Then, these beans are polished, graded, and sorted according to their size and weight.

The milled beans are called green coffee and they are lighter in the shade. These green coffee beans are roasted to get the aromatic brown coffee beans. Beans are kept moving through the roasting process in coffee beans roasters. The roasting of coffee beans at the right temperature gives flavor and aroma to the beans. These brown and aromatic coffee beans are ground to get a coffee powder to make the coffee drink.

Drinking coffee has not only become a culture today, but people are drinking coffee for the health benefits that it offers. Coffee is considered a healthy beverage in moderation. Coffee is considered a rich source of caffeine, vitamin B2, magnesium, antioxidants, potassium, and others. Some of the potential health benefits of drinking coffee include protection against Parkinson’s disease, type 2 diabetes, depression, neurodegenerative diseases, gallstones, liver diseases, and others. Coffee helps in weight reduction as well. These factors have increased coffee consumption across the globe in recent years.

The health benefits of drinking coffee have boosted the coffee culture across the globe. The coffee brewing process is looked at as an art. The correct amount of coffee powder, the right water temperature, and enough brewing time are the key things, which are needed in making a wonderful cup of coffee. The taste, aroma, and color of the coffee depend on the coffee beans, their freshness, and the grind as well.

Therefore, many people depend on expert coffee makers or baristas to brew a cup of coffee. Major coffee makers include Starbucks Corporation, Dunkin Brands, and others. These coffee producers are highly popular among coffee drinkers. Many coffee connoisseurs prefer to brew coffee at home as well. It gives them ease of brewing the beverage according to their taste, preference, and leisure. There are several types of coffee machines available in the market to brew a cup of coffee at home.

Coffee makers or coffee machines such as French press, Moka pot, espresso machines, drip filters, AeroPress, and others require users to use ingredients in the required quantities and follow the given process. A shift in the measurements can produce a difference in taste. Using coffee capsules provides a solution to this problem.

Coffee capsules are referred to as cylindrical vacuum-packed containers, filled with pre-measured coffee powder. These coffee capsules are used to brew a single cup of coffee at a time. The capsules are made from various materials, such as plastic, aluminum, biodegradable material, and others. A capsule is filled with coffee powder made from roasted coffee beans.

The capsule is sealed to lock the taste and aroma of the powder intact. Coffee capsules are usually designed to be used with a single coffee maker or machine. These capsule coffee machines work seamlessly with the coffee capsules designed for them. To brew coffee in these machines, a coffee capsule is fitted in its designated spot before turning the machine on. A hole is punctured in the capsule while closing the lid of the machine, for water to flow through the coffee powder filled in the capsule.

When the machine is turned on, water filled in the machine starts to heat up. The boiling water is then passed through the punctured capsule and flows through a filter into a cup. Coffee capsules simplify the coffee brewing process by minimizing the time it needs to brew a cup of coffee. There is no need to measure and add coffee powder, flavors, or any other additives. Coffee capsules make the coffee brewing process convenient, making this coffee brewing technique slowly gaining popularity in recent years.

COVID Impact

The COVID-19 pandemic situation led to the lockdown, social distancing, travel bans, and other restrictions across the globe. The demand for at-home coffee makers surged during the lockdown, as cafes and other coffee places became inaccessible to people. Consumers used various types of coffee machines at home to brew coffee according to their tastes. The increased use of coffee machines at home boosted the sales of coffee capsules across the globe during the pandemic.

Market Dynamics

The coffee capsules market report presents a complete overview of market dynamics by focusing on the current coffee capsules market trends, existing drivers, growth opportunities, competitive landscape, and emerging challenges that can shape the outcome or overall performance of the coffee capsules market during the forecast period, 2022 to 2030.

Major Trends:

Increasing demand for biodegradable coffee capsules boosts the coffee capsules market

Increasing awareness regarding the negative effects of plastic and aluminum waste on the environment among consumers is expected to drive the coffee capsules market during the forecast period. Plastic and aluminum waste take a long time to decompose, which can cause harm to the environment. Companies are producing bioplastics and other biodegradable materials to make environmentally-friendly coffee capsules to cater to the increasing consumer demand for such coffee capsules. This major trend spurs the coffee capsules market.

Key Drivers:

Increasing consumption of coffee fuels the coffee capsules market growth

The consumption of coffee is increased in recent years across the globe. Many consumers prefer to consume coffee as a non-alcoholic beverage than others. Rapid urbanization, changing lifestyles, increasing disposable income, and growing awareness regarding the health benefits of a coffee boost coffee consumption across the globe. Growing coffee culture is expected to drive the coffee capsules market during the forecast period.

Growing demand for coffee machines drives the coffee capsules market growth

Coffee machines are increasingly used in commercial settings such as offices, hotels, restaurants, and others in recent years. Several consumers prefer to use coffee machines at home to make coffee as per their taste. The growing usage of coffee machines culminates in the rising demand for them. This factor is projected to boost the coffee capsules market during the forecast period.

The convenience of coffee capsules fuels the coffee capsules market growth

Coffee capsules come prefilled with the required amount of coffee powder, which is needed to make a certain amount of coffee. Coffee capsules make the process of making coffee convenient for consumers. This factor spurs the coffee capsules market.

Existing Challenges:

Non-recyclable coffee capsules hamper the coffee capsules market growth

Coffee capsules made with non-biodegradable and non-recyclable materials such as plastic and aluminum are prevalent in use, as they are inexpensive, cost-effective, and easily available. Although these materials have a negative impact on the environment, several coffee capsules manufacturers are producing coffee capsules with such materials. Consumers are shifting towards avoiding the usage of such non-recyclable materials to be environmentally friendly. This decrease in the usage of non-recyclable and non-biodegradable coffee capsules is anticipated to restrain the coffee capsules market during the forecast period.

Emerging Opportunities:

Growing coffee culture in Asia Pacific offers growth opportunities to coffee capsules market players

The coffee capsules market in Asia Pacific is relatively untapped by several major market players. The increasing popularity of coffee as one of the non-alcoholic drinks and the growing coffee culture in the region offer lucrative growth opportunities to the coffee capsules market players. Rising consumption of coffee and growing demand for innovative coffee products across Asia Pacific boosts the efforts of major coffee capsule market players.

Scope of the Report

The report on the global coffee capsules market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Plastic segment holds a major market share

Based on types, the coffee capsules market is divided into plastic, biodegradable, fabric, reusable, aluminum, and others. The plastic segment is expected to witness growth during the forecast period, as plastic is the conventional material used to make coffee capsules by several coffee capsules manufacturers. Conventional plastic coffee capsules are inexpensive and easy to handle in comparison to other materials. These are the key factors facilitating segment growth.

The biodegradable segment is projected to register a high CAGR in the coming years, due to rising awareness regarding the negative effects of plastic waste on the environment. Consumer preference is shifting rapidly from conventional plastic coffee capsules to biodegradable coffee capsules, as consumers are inclined towards using products made from environmentally-friendly materials. This factor is estimated to boost the biodegradable segment growth during the forecast period.

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Regular segment registers significant growth

In terms of coffee types, the coffee capsules market is segmented into regular, decaf, flavored, and others. The regular segment witnessed steady growth in recent years, and it is expected to continue to dominate the coffee capsule market during the forecast period. The majority of consumers prefer regular coffee as one of the non-alcoholic drinks, and it is easily available everywhere. These are the key factors boosting segment growth.

Supermarket/hypermarket segment expands rapidly

On the basis of distribution channels, the coffee capsules market is segregated into supermarkets/hypermarkets, specialty stores, online stores, and others. The supermarket/hypermarket is estimated to hold a key market share during the forecast period, owing to high consumer dependency on supermarkets and hypermarkets to buy coffee capsules. Supermarkets and hypermarkets are considered as primary distribution channels for coffee by several coffee manufacturers. Supermarkets and hypermarkets offer a variety of coffee brands in abundance, due to their large retail area. These factors aid in the supermarket/hypermarket segment growth.

The online stores segment is anticipated to expand significantly in the coming years, owing to the increasing penetration of the internet, rising usage of smart devices, and the growing number of online stores available in the coffee capsules market. The convenience of online shopping propels the segment growth.

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Commercial segment holds a key market share

According to applications, the coffee capsules market is bifurcated into residential and commercial. The commercial segment is projected to expand during the forecast period, due to increasing demand for coffee in professional settings such as offices, cafeterias, and others. In such commercial settings, consumers usually prefer to have coffee, which can be made easily. Coffee capsules and coffee machines facilitate consumers to make only one cup of coffee without measuring coffee powder for it. The convenience of coffee capsules aids in the commercial segment growth.

Europe to dominate the market

In terms of regions, the coffee capsules market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The coffee capsules market in Europe is expected to register a high CAGR during the forecast period, due to the growing demand for coffee in countries such as France, Germany, Italy, and others. Increasing demand for at-home and easy-to-make gourmet coffee in the region boosts the coffee capsules market growth in Europe.

The coffee capsules market in North America is estimated to expand during the forecast period, as demand for coffee machines and coffee capsules increases in the region. The convenience related to the process of making coffee using coffee capsules boosts the coffee capsules market growth in North America.

The coffee capsules market in Asia Pacific is anticipated to hold a large market share in the coming years, owing to the increasing popularity of coffee in the region. The coffee culture is gaining widespread acceptance in countries such as India, Japan, South Korea, and others. The rising demand and availability of coffee machines in the region aid in the expansion of the coffee capsules market in Asia Pacific.

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