Global Coffee Pods Market Report and Forecast 2024-2032

Global Coffee Pods Market Size

The global coffee pods market reached a value of approximately USD 18.20 billion in 2023. The market is projected to grow at a CAGR of 8.0% between 2024 and 2032, reaching a value of around USD 36.38 billion by 2032.

Coffee Pods Market Outlook

• According to the USDA, Tanzania's coffee production is projected to increase to 1.5 million bags in MY 2024/25.

• Vietnam produced 27.5 million 60kg bags of coffee in 2023/2024 as reported by the USDA.

• According to the International Coffee Organization, world coffee consumption increased by 4.2% to 175.6 million bags in the coffee year 2021/22.

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Coffee Pods Market Growth

Coffee pods typically consists of coffee powder packed into small bags designed to brew a single cup of coffee. The roasted coffee is compressed into a two-sided circular paper pod. These pods require a low-pressure system and can be used in various coffee machines equipped with a portafilter.

According to the data from the Coffee Board of India, the increase in India's coffee production to 374,200 MT in 2023-2024 from 352,000 MT in 2022-2023 boosts the coffee pods demand by ensuring a more abundant and consistent supply of coffee beans. This abundance supports the growth of coffee pod manufacturing, meeting rising consumer demand for convenient, high-quality coffee options, thereby driving market expansion.

Key Trends and Developments

Rising popularity of coffee pods, increasing use in catering and outdoor events, and growing shift towards ready-to-drink beverages are the major trends impacting global coffee pods market development 

April 22, 2024

Nespresso launched fully compostable coffee capsules made from paper pulp and other biodegradable components, addressing environmental concerns and offering an eco-friendly alternative to traditional coffee pods.

April 04, 2024

NatureWorks and IMA Coffee have introduced fully compostable coffee capsules made with NatureWork’s Ingeo biopolymer. These pods are compatible with Keurig machines in the North American market.

March 13, 2024

Keurig Dr Pepper unveiled a multi-year innovation agenda for its Keurig® single-serve brewing system, featuring a redesigned coffee system and new products to cater to evolving consumer preferences.

April 7, 2023

Peace Coffee has launched its first single-cup compostable coffee pods, branded as 'Compostable EcoPods', made from plant-based materials and fully biodegradable in industrial compost facilities, reinforcing their sustainability commitment.

Increasing need for convenience and ease of use

Coffee pods provide a quick, easy, and mess-free brewing process, appealing to busy consumers who desire a convenient and hassle-free coffee experience.

Growing shift towards ready-to-drink beverages

The growing preference for ready-to-drink beverages and the convenience of coffee pods are driving their increased use, aligning with changing lifestyles and consumer demands, thus supporting the coffee pods market revenue.

Rising popularity of coffee pods

The rising popularity of coffee pods stems from their efficiency in delivering remarkable flavour and consistent taste, providing a convenient and high-quality coffee experience.

Increasing use for catering and outdoor events

Coffee pods are increasingly used in catering and outdoor events due to their ease of handling, lightweight, and compact size, simplifying management and logistics.

Coffee Pods Market Trends

The rise in global coffee consumption, driven by changing lifestyle habits and a growing coffee culture, increases demand for convenient brewing methods like coffee pods. Manufacturers continuously introduce innovative flavours, blends, and speciality coffees in pod form, catering to diverse consumer preferences and enhancing market appeal. 

As per coffee pods industry analysis, environmental concerns and sustainability also shape the market, with a push towards eco-friendly and biodegradable pods attracting environmentally conscious consumers and driving innovation. The expanding use of coffee pods in commercial settings, such as offices, hotels, catering, and outdoor events, is due to their ease of handling, lightweight, and compact size, simplifying management and logistics.

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Coffee Pods Industry Segmentation

“Global Coffee Pods Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Capsule and Plastic Cup-Based Coffee Pods

• Foil and Paper-Wrapped Coffee Pods

Market Breakup by Product Type

• Hard Coffee

• Soft Coffee

Market Breakup by Flavour

• Regular

• Flavoured

• Others

Market Breakup by Distribution Channels

• HoReCa

• Hypermarkets and Supermarkets

• Convenience Stores

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Coffee Pods Market Share

Capsule and plastic cup-based coffee pods are prevalent due to their convenience, compatibility, and effective preservation of coffee flavour 

These pods typically feature a sealed plastic or aluminium capsule containing pre-measured coffee grounds, often sealed with a foil or plastic lid to maintain freshness. Consumers appreciate capsule and plastic cup-based pods for their ease of use as well as their ability to deliver consistent taste and quality with minimal cleanup, aiding the coffee pods demand growth. 

The sealed design of these pods helps preserve the aroma and flavour of the coffee grounds until the moment of brewing, ensuring a fresh and satisfying cup of coffee each time. This format also allows for a wide range of coffee varieties and flavours to be conveniently available to consumers, catering to diverse tastes and preferences in the coffee market.

Hypermarkets and supermarkets are key channels for coffee pods due to their ability to cater to a wide range of consumer preferences and the growing demand for convenient coffee solutions. 

These retail giants offer a diverse selection of coffee pod brands, flavours, and types, ranging from traditional espresso to flavoured and speciality blends, attracting consumer attention and facilitating easy shopping. Brands often compete through packaging design, promotional offers, and placement strategies to maximize visibility and consumer appeal, positively affecting the coffee pods demand forecast.

Consumers need the convenience of purchasing coffee pods alongside their regular grocery shopping, making it a one-stop solution for their coffee needs. This factor is crucial for busy individuals and families seeking quick and easy coffee solutions without sacrificing quality or flavour.

Leading Manufacturers in the Coffee Pods Market

Leading companies are launching limited edition coffee pods through extensive distribution networks to stay ahead in the market.

Nestlé Nespresso SA: Founded in 1986, with its headquarters in Switzerland, Nestlé S.A. roasts, grinds, and encapsulates all Nespresso coffee, selling machines and capsules globally.

Luigi Lavazza SpA: Founded in 1895, with its headquarters in Italy, as a manufacturer of coffee products, its goal is to create sustainable value for shareholders, collaborators, consumers, and communities.

Melitta Group: Founded in 1908, with its headquarters in Germany, sells coffee, paper coffee filters, and coffee makers to meet diverse consumer preferences and brewing needs.

The J.M. Smucker Company: Founded in 1897, with its headquarters in the United States, the company operates three major business units: consumer foods, pet foods, and coffee, catering to diverse market segments.

Other global coffee pods market key players are Jacobs Douwe Egberts Pro among others.

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Coffee Pods Market Regional Analysis

The coffee pods market is most prevalent in North America and Europe, driven by strong consumer demand and well-established coffee cultures. In North America, particularly the United States, the market thrives due to a robust coffee culture and a high demand for convenient coffee solutions. Consumers appreciate the ease and speed of coffee pods, with a wide variety of products catering to diverse tastes. Major coffee brands and manufacturers have a significant presence, driving adoption through extensive marketing and distribution.

In Europe, especially in countries like Italy and France, consumers value the combination of convenience and high-quality coffee offered by pods. Continuous innovation in coffee pod technology and flavours keeps consumer interest high, with a range of products from standard to premium options supporting market growth. These factors make North America and Europe the leading regions for the coffee pods market globally.

Key Highlights of the Report

Coffee Pods Market Report Snapshots

Coffee Pods Market Size

Coffee Pods Market Growth

Coffee Pods Market Trends

Coffee Pods Market Share

Coffee Pods Manufacturers

Coffee Pods Market Regional Analysis