The coffee pods and capsules market has grown significantly in the recent past owing to growing coffee consumption and convenience of use offered by pods and capsules. Coffee pods and capsules contain pre-measured coffee that is sealed in single or double serving plastic or aluminum pods and capsules. Coffee pods and capsules offer convenience of brewing coffee at one-click without the mess of coffee grounds. The individual packaging of coffee optimizes freshness and flavor.

The global coffee pods and capsules market is estimated to be valued at US$ 36.67 Mn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the coffee pods and capsules are Nestl; SA, JAB Holding Company, The Kraft Heinz Company, Inspire Brands Inc. (DUNKIN' BRANDS), Luigi Lavazza SpA, Starbucks Corporation, Gloria Jean's Coffees, and Strauss Group. Growing consumption of coffee and changing consumer preference towards convenient packaging of coffee present key opportunities in the market. Furthermore, the introduction of eco-friendly and compostable pods and capsules is expected to boost market growth. Manufacturers are expanding their market globally by establishing production facilities and entering regional markets.

Market Drivers

One of the major drivers for the Coffee Pods and Capsules Market Growth is the increasing awareness about environment protection and sustainable products. Coffee pod and capsule manufacturers are focusing on developing recyclable, compostable and bio-degradable pods and capsules made from plant-based materials. They are introducing eco-friendly solutions like recyclable aluminum capsules and plant-based pods to attract environmentally conscious consumers and drive the market growth over the forecast period.

PEST Analysis

Political: Governments are increasingly banning some single-use plastics like coffee pods to reduce plastic waste. Regulations regarding sustainable packaging solutions are being introduced in many countries.

Economic: Rising incomes have increased affordability and demand for on-the-go coffee options like pods and capsules. However, high commodity prices and trade barriers pose challenges.

Social: Young urban consumers seeking convenience fuels the market growth. However, environmental concerns among some consumers pose threat as pods are termed less eco-friendly than canned coffee.

Technological: Innovations in recyclable and compostable materials encouraged by sustainability goals have boosted options like biodegradable pods and recyclable aluminum capsules.

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