Major players in the coffee capsules market are Nespresso, Keurig, Gloria jean’s Coffees, Nescafe, Nestle, Lavazza A Modo Mio, Starbucks, Bestpresso, Kissmeorganics, and Gourmesso.

The global coffee capsules market is expected to grow from USD 4.2 billion in 2019 and to USD 4.3 billion in 2020 at a growth rate of 1.5%. The slow growth in 2020 is mainly due to the economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to grow and reach USD 5.2 billion in 2023 at a CAGR of 6.77%.

The coffee capsules market consists of sales of coffee capsules product and related services used to prepare instant and convenient coffee at restaurants, bars, homes, and offices. A coffee capsule is a small cylindrical shaped container that contains coffee sealed with an aluminum foil. Coffee capsules contain fine ground coffee in a measured amount. Coffee capsules come in different flavors and can be used with or without a coffee machine.

The global coffee capsules market has been geographically segmented into North America, Western Europe, Asia-Pacific, Eastern Europe, South America and Middle East & Africa. Europe was the largest region in the coffee capsules market in 2019.

One of the latest trends for the companies in the coffee capsules market is to use bioplastics and biodegradable materials for making coffee capsules. Companies in the coffee capsules market are investing in finding ways to use bioplastics and biodegradable materials for making capsules instead of using aluminum and plastic to hold the coffee extract. Capsules made from aluminum and plastics are non-biodegradable and cause harm to the environment. Thus, pushing the companies towards finding new innovative bio-degradable material such as polypropylene, which can be shredded and recycled to be used to make coffee capsules. Following the trend, in 2019 Woken launched its line of Nespresso-compatible capsules which are completely bio-degradable. The bio capsules offered by Woken are made from a bioplastic named Terrablend which contains 62% of raw materials and is trademarked by Woken. Woken is a Florida manufacturer of biodegradable capsules and pods for coffee. Similarly, Lavazza, an Italy based food and beverage company, launched its 100 percent compostable coffee pods, named Eco Caps, in 2019. These Eco Caps can be disposed of in the food waste bin and requires six months to degrade.

The coffee capsules market covered in the report is segmented by material into conventional plastic; bioplastics; fabric; others. It is also segmented by application into the household; commercial.

Coffee pods (Coffee pads) are prepackaged in environmentally friendly filter paper and provides an easy alternative for coffee capsules while offering compatibility with all kinds of coffee machines. Unlike coffee capsules, coffee pods are simpler to use and dispose of and do not contain plastic or aluminum packaging. Coffee pods are available at a lower price than coffee capsules due to the absence of plastic or metal used in capsules. Thus, the demand for the coffee capsule market is restricted by the popularity of its alternative products such as coffee pods. For instance, the three types of machines offered by Lavazza, an Italy based provider of coffee products, require different types of coffee capsules. Further, as reported by Halo, a U.K based manufacturer of the compostable coffee capsule, in 2018, out of a total of 59 billion coffee capsules produced almost 95% were in plastic and aluminum. Thus, the market for coffee capsules is restricted by the growing demand for its alternative products such as coffee pods.

In 2018, Nestle, a Switzerland based multinational food and drink processing company, acquired marketing rights of Starbucks Corporation’s consumer packaged goods and food service products other than ready-to-drink products for USD 7.15 billion. Through the acquisition, nestle aims to strengthen its coffee business by adding products from Starbucks. In 2019, Nestle in collaboration with Starbucks launched the first Starbucks coffee capsules developed using Nestle’s Nespresso and Nescafe Dolce Gusto coffee and system technologies. Starbucks is a U.S.A based coffee company that also includes a chain of coffeehouses across the globe.

The growing the popularity of instant non-alcoholic beverages such as coffee in restaurants, office cafeterias propel the growth of the coffee capsule market. The coffee capsules reduce the time and effort required in preparing a cup of coffee when used in coffee machines in coffeehouses, office cafeterias. Increasing need for non-alcoholic beverages drinks among millennials, consumer awareness towards low sugar and non-alcoholic drinks, busy work schedules, and changing consumer taste are a few of the reasons that have attributed to the rise in the popularity of instant non-alcoholic beverages such as coffee. Due to increasing demand for coffee, the coffee provider companies are investing inappropriately equipment and innovating ways such as coffee capsules to offer better tasting coffee as more profitable options. For instance, according to the study conducted in 2019 by MarketInspector, a U.K based provider of the digital marketplace for businesses and institutions, the annual coffee consumption per capita in Finland was 11.7 Kg while Portugal had 41.6 coffee shops per 10,000 people. The increasing use of coffee machines in restaurants, office cafeterias to fulfill the increased demand for instant non-alcoholic beverages such as coffee increases the demand for coffee capsules, thus increasing the growth of the coffee capsule market.

For More Information on the Research Report, refer to below links: –

Global Coffee Capsules Market Analysis

Related Report: –

Global Capsule Coffee Machines Market 2019 by Manufacturers, Regions, Type and Application, Forecast to 2024

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