Coffee Capsule Market Size, Trends and Growth Analysis by 2027

The global coffee capsule market was valued at approximately US$ 8,327.19 million in 2019 and is anticipated to grow to US$ 14,062.20 million by 2027, reflecting a compound annual growth rate (CAGR) of 7.0% from 2020 to 2027.

A coffee capsule is a single-serve, vacuum-sealed container that requires a compatible coffee machine for use. One of the primary advantages of coffee capsules is their vacuum packaging, which maintains hygiene and prevents external elements such as oxygen, moisture, and heat from compromising the coffee inside. The operation of coffee capsules is straightforward: users simply insert the capsule into the machine and press a button. This method keeps the coffee fresher for an extended period and eliminates the need for coffee grinders. Manufacturers are increasingly focusing on creating recyclable and environmentally friendly packaging for coffee capsules. Innovations include compostable coffee capsules and plantable coffee containers that are entirely biodegradable, aimed at minimizing the environmental footprint of non-recyclable packaging. Other eco-conscious packaging solutions include boxed cold brew blends designed for larger gatherings and artisanal coffee bags that preserve freshness while being environmentally considerate. Nespresso was the pioneer in launching coffee capsules, utilizing 80% recycled aluminum in their production. Aluminum is favored by many manufacturers due to its high recyclability and its effectiveness in preserving the freshness and aroma of premium coffee by providing an excellent barrier against oxygen, light, and humidity.

The coffee capsule market is categorized by product type into open-source systems and closed-source systems. In 2019, the closed-source system segment led the market. In this system, coffee is sealed in a capsule rather than being placed in filter paper. Various capsules and pods typically contain between 7-10 grams of coffee. Coffee capsules can be utilized for a range of products beyond just ground coffee. Closed-source systems, which pair specific machines with designated capsules, were the first to enter the market, thus capturing a larger share of the global coffee capsule market. Conversely, open-source systems are recognized for their ease of use and convenience, which is driving their growing popularity. The open-source segment is expected to experience a higher CAGR during the forecast period. Capsule machines streamline the coffee-making process by eliminating the need for grinding, pressing, and storing coffee. Additionally, the rising coffee consumption in both developed and developing nations is further propelling the demand for open-source coffee machines, contributing to a notable increase in the demand for coffee capsules.

Geographically, the coffee capsule market is divided into regions including North America, Europe, Asia Pacific (APAC), South America (SAM), and the Middle East and Africa (MEA). Europe accounted for the largest share of the global coffee capsule market in 2019, followed by North America and the Asia Pacific region. The demand for coffee capsules in Europe is projected to rise due to changing lifestyles and increasing disposable incomes among consumers. The growing awareness of the health benefits associated with coffee capsules, particularly their high antioxidant content, is also driving market growth in Europe. In North America, consumers are increasingly adopting healthier lifestyles and seeking products that offer health advantages, which is boosting the coffee capsule market. Furthermore, coffee processing and capsule manufacturing companies in North America are continuously innovating their product offerings to meet consumer demands. The surge in coffee capsule consumption in North America is largely attributed to the proliferation of coffee shops and cafes. The urban population's growth, coupled with busy lifestyles and a preference for convenient beverage options, is further fueling the demand for coffee capsules. Additionally, the rich coffee culture and expertise in coffee cultivation in the Asia Pacific region support the growth of the coffee capsule market.

The COVID-19 pandemic, which originated in Wuhan, China, in December 2019, has had a profound impact globally. Countries such as the US, India, Brazil, Russia, Spain, Mexico, and Argentina have been significantly affected by the virus, leading to widespread lockdowns, travel restrictions, and business closures. The food and beverage industry, a major sector, has faced severe disruptions, which have adversely affected the global coffee capsule market.

Key players in the global coffee capsule market include VERO Coffee, Vittoria Food and Beverage, Belmoca Belgium (Belmio), Nestle Nespresso S.A, Coind Group, Jacobs Douwe Egberts BV, Gloria Jean's Gourmet Coffee, Luigi Lavazza S.p.A, Dualit Limited, and illycaff? S.p.A.

The overall size of the global coffee capsule market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the findings and gain deeper analytical insights. Participants in this research typically include industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the coffee capsule market.