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How has the coffee capsule market evolved, and where is it heading next?
The coffee capsule market size has grown rapidly in recent years. It will grow from $15.21 billion in 2024 to $16.83 billion in 2025 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period can be attributed to retail and online distribution, market entry of nespresso, Keurig’s impact, patent expirations, variety of flavors and blends.
The coffee capsule market size is expected to see strong growth in the next few years. It will grow to $23.55 billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to rising innovation in capsule design, expanding flavor profiles, sustainability initiatives, health and wellness trends, premiumization and luxury offerings. Major trends in the forecast period include innovation in capsule technology, convenience and portability, ethical sourcing and transparency, limited edition capsules, eco-friendly packaging.
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What are the key forces behind the coffee capsule market’s growth in recent years?
The growing popularity of instant non-alcoholic beverages such as coffee in restaurants and office cafeterias propel the growth of the coffee capsules 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 demand for non-alcoholic beverages 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 been attributed to the rise in the popularity of instant non-alcoholic beverages such as coffee. For instance, in April 2024, according to the International Coffee Organization (ICO), a UK-based intergovernmental organization, global coffee consumption rose by 4.2% to reach 175.6 million bags in the 2021/22 coffee year, building on a 0.6% increase in the prior year. Therefore, the increasing use of coffee machines in restaurants, office cafeterias to fulfil the increased demand for instant non-alcoholic beverages such as coffee, increases the demand for coffee capsules, thus increasing the growth of the coffee capsules market.
What are the major segments of the coffee capsule market?
The coffee capsule market covered in this report is segmented –
1) By Product: Closed Source System, Open Source System
2) By Material: Conventional Plastic, Bio plastics, Fabric, Other Materials
3) By Application: Household, Commercial
Subsegments:
1) By Closed Source System: Proprietary Coffee Capsules, Single-Brand Coffee Machines
2) By Open Source System: Compatible Coffee Capsules, Multi-Brand Coffee Machines
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Which companies dominate the coffee capsule market?
Major companies operating in the coffee capsule market include Nestle Nespresso SA, Starbucks Corporation, Keurig Dr. Pepper Inc., JDE Peet’s N.V., The J.M. Smucker Company, Kiss me Organics LLC, Tim Hortons Inc., Luigi Lavazza SpA, Dunkin’ Brands Group Inc., illycaffe S.p.A., Coffeeza Trading Private Limited, Caffitaly System S.p.A., Gloria Jean’s Gourmet Coffees Corp., Vittoria Food & Beverage Pty Ltd., Fresh Brew Co., Dualit Limited, Belmoca NV, Bestpresso Inc., Gourmesso USA Inc., Coffee Nirvana Co., Halo Coffee Ltd., JAB Holding Company, Jacobs Douwe Egberts B.V., Maxingvest AG
What major trends will shape the coffee capsule market during the forecast period?
Major companies operating in the coffee capsule market are focused on introducing innovative coffee capsules that improve the brewing experience, meet different consumer tastes, and use eco-friendly materials. This approach helps attract more customers who care about sustainability and enjoy a variety of flavors. For instance, in August 2024, McCafé, a US-based coffee-house-style food and beverage chain, launched a new line of Espresso Coffee Capsules. A new line of Espresso Coffee Capsules for Nespresso Original Machines has been introduced, made from Rainforest Alliance Certified Arabica beans and designed for commercial composting in partnership with TerraCycle, a US-based waste management company, Available in three roast intensities, these capsules aim to deliver a smooth, flavorful coffee experience while promoting sustainability through recycling initiatives.
What are the key regional dynamics of the coffee capsule market, and which region leads in market share?
The countries covered in the coffee capsule market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
What Does The Coffee Capsule Market Report 2025 Offer?
The coffee capsule market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
A coffee capsule is a small, cylindrical container that contains coffee and is sealed with aluminum foil. Coffee capsules contain finely ground coffee in a measured amount. Coffee capsules come in different flavors and can be used with or without a coffee machine.
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