Coffee Capsule Market- Industry Share and Forecast to 2027

Coffee Capsule Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Product (Open Source System and Closed Source System), Application (Household and Commercial) and Distribution Channel (Supermarkets and Hypermarkets, Specialty Stores, Online Stores, and Others), and Geography

  • Report Code : TIPRE00012690
  • Category : Food and Beverages
  • Status : Published
  • No. of Pages : 151
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[Research Report] The coffee capsule market was valued at US$ 8,327.19 million in 2019 and is projected to reach US$ 14,062.20 million by 2027; it is expected to grow at a CAGR of 7.0% during the forecast period 2020-2027.

Coffee capsule refers to coffee that is packed in a plastic or aluminum package instead of a paper filter. It is usually designed to be used for a single brand or system and is not interchangeable with other systems. Coffee capsule a single serve vacuum packed capsule that requires a machine which is compatible with it. Consumption of coffee products is rising among health-conscious consumers; thus, manufacturers plan to develop new and innovative formulations, such as coffee capsules, sugar-free coffee premix, and other products, in the market. Alzheimer's disease is the leading cause of dementia in the elderly, followed closely by Parkinson's disease. Studies have shown that drinking three to five cups of coffee per day can reduce the risk of contracting Alzheimer's, Parkinson's, and other forms of dementia by up to 65%. Antioxidants fight against the health-damaging free radicals ("oxidants") in the body and boost the immune system. Many fruits and vegetables also fight against the oxidants, but coffee is the most popular beverage among consumers as it is a rich source of antioxidants. Coffee helps reduce the chances of developing several types of cancer, including oral cancer, skin cancer, and liver cancer. Type II Diabetes is a potentially deadly disease that is reaching epidemic proportions in Australia. Numerous studies have shown that coffee can dramatically reduce the risk of developing diabetes. Caffeine works in two ways to improve athletic performance. It raises metabolism, increases the oxidation of fatty acids, and mobilizes fatty acids from the fat tissues. The consumption of coffee has increased among health-conscious consumers as it has anti-cancer properties. These benefits of consumption of coffee boost the demand for coffee capsules across the world.

Europe is expected to hold the largest share of the global coffee capsule market during the forecast period. This mainly attributed to the shift in the food eating habits and socio-economic conditions of consumers. Increasing disposable income of consumers and rising number of coffee consumers drive the market for coffee capsule. The growing expenditure on nutritional and healthy products, and rising awareness about the health benefits associated with coffee capsules also support the market in the region. The combination of convenience, brand experience, premium positioning, and the capacity of the manufacturers to innovate and provide new products are yet another factors favoring the market for coffee capsules in Europe. Also, the shift in the consumer preference from instant coffee to more premium options, such as fresh ground coffee, is expected to drive the market for coffee capsule in the region. In addition, the growing popularity of specialty cafes in countries across Europe is further boosting the consumption of coffee which further supports the market for coffee capsule.

COVID-19 outbreak started in Wuhan (China) in December 2019 and has rapidly spread around the world. The US, India, Brazil, Russia, Spain, Mexico, and Argentina are among the most-affected countries in terms of COVID-19 cases and pronounced deaths, as of September 2020. According to the report by WHO, as of September there were ~33,580,503 COVID-19 confirmed cases and ~1,006,975 death cases worldwide. The COVID-19 pandemic has affected economies and undertakings due to imposed lockdowns, travel bans, and business shutdowns. The global food & beverages industry is one of the major businesses witnessing supply chain breaks and manufacturing disruptions due to lockdown and office shutdowns. All these factors have greatly affected the global coffee capsule market growth.

Global Coffee Capsule Market


Global Coffee Capsule Market
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Market Insights

Convenience oriented customer style

Consumer inclination toward innovative machines for convenience has increased the adoption of capsule coffee machines across the world, which in turn, drives the growth of the market. Due to their rising population and increasing adoption of Western trends, China and India are potential markets for coffee pods and capsules. Nowadays, due to urbanization, consumers have a work-oriented lifestyle. They need everything quickly and conveniently. They look for products which can save and provide good quality; thus, coffee capsule comes into demand. The increase in demand for ready-to-drink coffee beverages majorly drives the market across Asia Pacific. There has been an increase in applying these products in the coffee shops due to rising demand for time-pressed consumers. Continuous advancements in the capsule machine technology upgraded with new features, innovative concepts, and applications evolve to provide enhanced quality and improved capacity, along with low energy consumption and minimum maintenance cost. Rapid urbanization in many developing economies, infrastructural development, and the increasing working population have increased the demand for convenient-to-use, packaged food and beverages. As a result, the adoption of coffee capsule is rising in most cafés and restaurants.

Product Insights

Based on product, the coffee capsule market is further bifurcated into open source system and close source system. In 2019, the close source system segment dominated the market. In the capsule coffee system, the coffee is shrink-wrapped in a capsule instead of filter paper. There are variety of capsules and pods, with 7–10 grams of coffee content. Coffee capsule is used for an array of products, not just ground coffee. A closed-source system is a combination of a particular machine with a specific capsule. Closed-source systems were the first to be introduced in the market, and hence, the segment accounts for the larger share of the global capsule coffee machine market. Coffee capsule machines have many advantages. It simplifies coffee making process, cutting out the grinding, pressing, and storing the coffee. Coffee in the capsule is ground to perfection and sealed at optimum pressure. Therefore, all these factors drive demand for the coffee capsule. Moreover, the growing young population and rising number of coffee outlets are further expected to boost the demand for coffee capsules in the market.

Global Coffee capsule Market, by Product Type – 2020 and 2027

Global Coffee capsule Market, by Product Type – 2020 and 2027
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Application Insights

Based on application, the coffee capsule market is further segmented into household and commercial. In 2019, the commercial segment dominated the market. Increasing coffee consumption is one of the significant factors that drive the demand for coffee capsules. The increasing popularity of socializing at coffee shops among millennials has contributed to specialty coffee shops' growing popularity. The preference for different fresh coffee types has further led to the emergence of coffee shops, specialty coffee shops, and quick-service restaurants. Besides, the consumption of coffee has been increasing significantly in both advanced and emerging economies. Coffee is the second-most preferred beverage after soft drinks in developed countries. This increasing demand for coffee creates lucrative opportunities for the vendors in the market, which in turn, drives the growth of the specialty coffee shops market during the forecast period. Due to the rapidly increasing coffee shop culture, fresh-ground coffee pods and coffee capsules are set to register substantial growth in both volume and value terms during the forecast period.

Distribution Channel Insights

Based on distribution channel, the coffee capsule market is further segmented into supermarkets and hypermarkets, specialty stores, online stores, and others. In 2019, the supermarkets & hypermarkets segment dominated the market. Supermarkets and hypermarkets offer wide variety of food, beverages and household products. Supermarkets and hypermarkets provide extensive merchandise mix along with different brands of coffee capsule, placed under the same roof. Coffee capsule have a dedicated section in the supermarkets and hypermarkets; thus, customers are provided with a wide variety of option to choose. Producers sell coffee capsule directly to the dealer or distributor, who further sells them to the distributor at supermarkets and hypermarkets. The distributor at supermarkets and hypermarkets keep the assortment of coffee capsule depending on the consumers demand. High footfall in hypermarkets and supermarket makes it easier for the coffee capsule producers to target their customer base.

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Coffee Capsule Market: Strategic Insights

coffee-capsule-market
Market Size Value inUS$ 8,327.19 Million in 2019
Market Size Value byUS$ 14,062.20 Million by 2027
Growth rateCAGR of 7.0% from 2020-2027
Forecast Period2020-2027
Base Year2020
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A few key players operating in the global coffee capsule market are VERO Coffee, Vittoria Food and Beverage, Belmoca Belgium (Belmio), Coind group, Nestle Nespresso S.A., Jacobs Douwe Egberts BV, Gloria Jean’s Gourmet Coffee, Luigi Lavazza S.p.A, Dualit Limited and illycaffè S.p.A. These companies implement new product developments, and mergers and acquisitions strategies to enlarge their customer base and gain significant market share across the world, which in turn, permits players to maintain their brand name in the global market.

Coffee Capsule Market, by Product Type

  • Open Source System
  • Close Source System

Coffee Capsule Market, by Application

  • Household
  • Commercial

Coffee Capsule Market, by Distribution Channel

  • Supermarkets and Hypermarkets
  • Speciality Stores
  • Online Stores
  • Others

Company Profiles

  • VERO Coffee
  • Vittoria Food and Beverage
  • Belmoca Belgium (Belmio)
  • Coind group
  • Nestle Nespresso S.A.
  • Jacobs Douwe Egberts BV
  • Gloria Jean’s Gourmet Coffee
  • Luigi Lavazza S.p.A
  • Dualit Limited
  • illycaffè S.p.A.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Product , Application and Distribution Channel , and Geography

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions


Based on product, why closed source system segment accounted for the largest share in the global coffee capsule market?

Closed source system held the largest share in the global coffee capsule market in 2019. The closed source system refers to a combination of a particular machine with a specific capsule. As the closed source system was, first to be introduced in the market, they are used in many coffee machines and hence accounts for a larger share in the coffee capsule market.

Can you list some of the major players operating in the global coffee capsule market?

The major players operating in the global coffee capsule market are Coffee Capsule market include VERO Coffee, Vittoria Food and Beverage, Belmoca Belgium (Belmio), Coind group, Nestle Nespresso S.A, Coind Group, Jacobs Douwe Egberts BV, Gloria Jean’s Gourmet Coffee, Luigi Lavazza S.p.A, Dualit Limited and illycaffè S.p.A. among many others.

Which region held the largest share of the global coffee capsule market?

In 2019, Europe held the largest share of the global coffee capsule market. The demand for coffee capsule is expected to increase in the region due to the transforming lifestyles and rise in disposable income available in the hands of the consumers. The rise in awareness about the high antioxidant activity and chemical composition associated with coffee capsule drives the market for coffee capsule all across European countries.

The List of Companies - Coffee Capsule Market

  1. Gloria Jean’s Gourmet Coffee
  2. Jacobs Douwe Egberts BV
  3. Nestlé Nespresso S.A.,
  4. Luigi Lavazza S.p.A
  5. illycaffè S.p.A.
  6. VERO Coffee
  7. Belmio
  8. Vittoria Food & Beverage
  9. Coind Group
  10. Dualit Limited

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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