Coffee Pods Market size is set to grow by USD 11.56 billion from 2024-2028, Convenience in using coffee pods boost the market, Technavio

NEW YORK, June 10, 2024 /PRNewswire/ -- The global coffee pods market size is estimated to grow by USD 11.56 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 5.69% during the forecast period. Convenience in using coffee pods is driving market growth, with a trend towards growing demand for organic and fairtrade products. However, high price of coffee pods and availability of cheaper substitutes poses a challenge. Key market players include Alois Dallmayr KG, Baronet Coffee Inc., Beantown Roasters Inc., Dualit Ltd., Illycaffe Spa, Inspire Brands Inc., Iris Group Pte. Ltd., JAB Holding Co., LUIGI LAVAZZA S.p.A., maxingvest AG, Nestle SA, Rogers Family Co., Starbucks Corp., Strauss Group Ltd., The J.M Smucker Co., The Kraft Heinz Co., Trilliant Food and Nutrition LLC, White Bear Coffee Co., WP Coffee, and Puro Gusto Ltd..

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Market Driver

The organic coffee pods market has seen significant growth due to consumer preference for healthier options. Vendors have been supplying organic coffee pods for the past five years, and this trend is expected to continue. Fairtrade practices have gained importance in the industry due to challenges faced by coffee farmers, such as lack of education, adverse climatic changes, and inadequate infrastructure.

Fairtrade certification helps producers secure reliable incomes, better working conditions, and social benefits. As a result, both small farmers and companies are striving for Fairtrade certification, leading to the introduction of certified Fairtrade coffee pods. These factors will drive the growth of the global coffee pods market. 

The Coffee Pods Market has seen significant growth in recent years with the increasing popularity of single-serve coffee machines. Cafeinated consumers are drawn to the convenience and consistency of coffee pods. The Decaf and Flavored coffee pods categories are trending, catering to diverse tastes.

The Market is competitive with brands like Maxicoffee and Nespresso leading the charge. Sustainability is a key concern, with some companies focusing on compostable pods. The capsule technology is advancing, with some machines offering temperature and strength customization. The capsule market is expected to continue growing, with Restless consumers seeking their daily caffeine fix with ease and speed. The Coffee industry is evolving, and coffee pods are a major player in this transformation. 

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Market Challenges

• The global coffee pods market faces significant challenges due to the high price point compared to traditional coffee products. In developing economies, consumers prefer whole-bean coffee due to its affordability. For instance, Nescafe Dolce Gusto Organic Espresso Honduras 12 Capsules cost USD5.64, while Nescafe Coffee- Classic (100-gram jar) is priced at approximately USD3.50.
• Population-dense countries like India, China, Indonesia, the Philippines, Japan, and Nigeria continue to favor conventional coffee products due to their cost-efficiency and ability to prepare more cups of coffee. Consequently, market players must reduce coffee pod prices to attract consumers in developing nations, mitigating market growth during the forecast period.
• The coffee pods market faces several challenges. Consumption of single-serve coffee has grown significantly, driving demand for coffee pods. However, the high cost of these pods and the issue of waste disposal are major concerns. Additionally, the competition is intense with numerous brands vying for market share.
• The need for eco-friendly and cost-effective solutions is pressing. Furthermore, the market is constantly evolving with new technologies and innovations. Companies must adapt to stay competitive. Sustainability and convenience remain key factors influencing consumer behavior. The market requires continuous research and development to meet these challenges.

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Segment Overview 

1. Product Type
• 1.1 Soft pods
• 1.2 Hard pods
2. Type 
• 2.1 Regular
• 2.2 Decaffeinated
3. Geography 
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Soft pods- The soft pods segment dominates the global coffee pods market in 2022, with major vendors like Melitta Group, WP Coffee, Baronet Coffee Inc., Dunkin, and JAB Holding supplying these products. Soft coffee pods, which are loose and flexible, offer better extraction and are compatible with various brewers such as Black and Decker CM618, Hamilton Beach 2-Way Brewer, and Better Chef IM-1028. These eco-friendly pods, made primarily of paper, are cost-effective due to the absence of plastic and metal, and can be found in physical stores. However, the market share of soft pods is expected to decrease due to the rising popularity of hard pods.

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Research Analysis

The Coffee Pods Market encompasses various types of single-serve coffee containers, including coffee pods and flat bags. These offerings come in pre-measured doses, such as pressed coffee and coffee capsules, often made from aluminum-based materials. Sustainability and environmental footprint are growing concerns in this industry, leading to the development of biodegradable packaging and compostable paper alternatives.

With multiple machines on the market, consumers can enjoy premium quality coffee in a range of flavors, from Caramel and Chocolate to Hazelnut, all while managing their caffeine consumption as a natural stimulant. Customization is also a key trend, with various caffeine concentrations available for both caffeinated and decaffeinated coffee lovers. MaxiCoffee and Single-serve coffee containers continue to drive innovation in this dynamic market.

Market Research Overview

The Coffee Pods Market refers to the global trade of pre-measured coffee grounds or beans encapsulated in filters for use in various brewing systems. These pods offer convenience and consistency in coffee preparation. The market is driven by factors such as increasing demand for specialty coffee, growing preference for single-serve coffee, and advancements in technology enabling the production of compostable and recyclable pods.

The market is segmented based on coffee type, brewing technology, and distribution channel. The market is expected to grow significantly due to the rising trend of coffee consumption and the convenience offered by coffee pods. Additionally, the market is witnessing the entry of several new players, leading to increased competition and innovation. The market is also influenced by factors such as environmental concerns and government regulations regarding the disposal of used coffee pods.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product Type
• Soft Pods
• Hard Pods
• Type
• Regular
• Decaffeinated
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

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Website: www.technavio.com/

SOURCE Technavio