Market Trends of Coffee Pods And Capsules Industry
Increasing Demand For Specialty And Organic Coffee Pods And Capsules
- Globally, the demand for organic food and beverages, mainly tea and coffee, is growing faster due to changes in lifestyle patterns, increased expenditure on food and drink, awareness about healthy foods, and the desire to taste new products. The above factors boost the demand for specialty and organic coffee pods and capsules. Sustainability remains essential for buyers and retailers, and the certification of organic nature is no longer an option but a requirement. In addition, consumers and the industry demand traceability in the value chain with the increasing preference for organic food products.
- For instance, according to Statistics Denmark, in 2022, the annual turnover of organic coffee in retail shops in Denmark amounted to 335 million Danish kroner. Similarly, according to TransFair, in 2021, around 74% of all fair trade coffee sold in Germany came from organic production. This increased compared to the previous year, in which only 68% of all fair trade coffee sold in Germany came from organic production.
- Moreover, with this growing demand for organic coffee pods, players are focused on offering organic coffee in pods and capsule formats. This is expected to boost the market growth during the forecast period. For instance, in December 2022, Chamberlain Coffee, the coffee lifestyle brand and brainchild of Emma Chamberlain that offers sustainably sourced organic coffee, launched their first-ever coffee pods, claiming that their casing is commercially compostable. Such launches mark a new wave of convenience for the brands and showcase their continued commitment to innovation and ability to meet customer needs, which eventually aids the market to grow.
Understand The Key Trends Shaping This Market
Download PDF
Europe Leads the Coffee Pods and Capsules Market
- The European market witnessed a rising demand for specialty coffee and single-serve methods in the past few years due to the growing demand for instant non-alcoholic drinks. Among all, Germany and France are the regional leaders in the market. Coffee producers in the region are keen on choosing coffee capsules due to their suitability, comfort, and wide diversity of coffee products and machinery.
- Additionally, the proliferation of premium coffee shops, such as Starbucks, has stimulated consumers’ appetite for high-end, fresh-brewed coffee, thus boosting the demand for coffee capsules and pods in Europe. For instance, Starbucks had 1,156 stores in the United Kingdom in 2022, of which 838 were franchised and 318 were company-operated locations, which increased from almost 1,097 shops compared to the previous year.
- Moreover, with the rising market value for coffee pods and capsules made of sustainable materials, several international and private-label players are entering the market in the region with their innovative package offerings. In July 2023, Darlington-based manufacturer Beanies made a significant stride by introducing its compostable coffee pods in Aldi stores across the United Kingdom. Simultaneously, the company unveiled its products in three delectable flavors: vanilla, caramel, and hazelnut.
- Similarly, in September 2022, Cafe Royal revolutionized the coffee pod industry with a spherical-shaped pod enveloped in a vegetable-based, 100% compostable shell—a groundbreaking zero-waste solution for capsules. This innovative product not only showcases advancing packaging technologies but also positions the brand to compete with high-end, exotic counterparts, projected to drive substantial market growth in the region.
Get Analysis on Important Geographic Markets
Download PDF
