USA Coffee Pods and Capsules Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.76 % |
| Market Concentration | High |
Major Players.webp){kind=logo}
*Disclaimer: Major Players sorted in no particular order |
USA Coffee Pods and Capsules Market Analysis
The United States coffee pods and capsules market is expected to grow from USD 8.40 billion in 2023 to USD 10.1 billion by 2028 at a CAGR of 3.76% during the forecast period (2023-2028).
Coffee pods and capsules maintain the freshness and quality of the coffee since they are prepackaged in sealed containers that are shielded from wind, light, and moisture. Coffee pods and capsules are a popular option for people seeking a flavorful coffee without having to utilize conventional brewing methods because they offer a more personalized coffee experience in addition to versatility and customization choices. This strong flavor and freshness of the coffee act as a major market driver.
Continuous product improvements, such as the launch of environmentally friendly, biodegradable, and compostable coffee pods, are increasing product demand. For instance, in July 2021, NEXE, a packaging solutions supplier based in Canada, announced the launch of a line of sustainable coffee pods in the United States and Canada. The fully compostable Espresso pods were launched at nexecoffee.com.
Also, the industry is expanding as a result of ongoing technological developments, such as the creation of sophisticated, user-friendly coffee pod and capsule machines with one-touch operation, programmed settings, auto-shutoff, and built-in milk frothers. The market is further supported by the simple accessibility of coffee capsules and pods through online and offline structured retail channels. According to Allegra World Coffee Portal and Reuters, there were about 38.4 thousand coffee shops in the United States in 2022.
Moreover, in the long term, the demand for coffee pods in the country is increasing due to the convenience factor associated with coffee pods. However, as this market for pods and capsules has matured in the United States, it is expected to witness stagnation in growth rate during the forecast period. With the growing discount-oriented retail environment and the rising preference for pod-based, single-serve coffee at affordable prices, private-label brands are trying to capture ample space in the United States market.
The increased demand for instant coffee with exotic and specialized taste combinations is the main factor driving the industry. Due to the busy lifestyles of the customers, coffee consumption has significantly increased among the general public. Thus, the above-mentioned factors drive the coffee pods and capsules in the United States.
USA Coffee Pods and Capsules Market Trends
Increasing Usage of Single-serve Coffee in Households
In the case of coffee, convenient forms, like coffee pods and capsules, are becoming popular among the masses (especially in North America and Western Europe) to prepare good coffee in the comfort of a home in a short duration of time. Additionally, a growing number of consumers are willing to purchase coffee machines to recreate the coffee shop experience at home. Players are introducing coffee pods compatible with popular machines, such as Keurig and Nespresso, to exploit this trend.
In response to propelling single-serve coffee demand, the active market players are launching different types of coffee and pods, such as lattes and cappuccinos, to penetrate this highly potential segment of the market. Across the supermarkets, drugstores, and select dollar chains nationwide, popular brands include Keurig Green Mountain, Starbucks, Folger Coffee Co., and Kraft Heinz Co.
According to Intelligent Blends, a single-serve beverage market player, as of April 2022, more than 25 million Keurig and K-Cup brewers were installed in homes and offices across the United States, with millions more being sold yearly. Across the United States, there is a huge demand for single-serve coffee pods and capsules. Consumers across the region tend to prefer coffee pods and capsules from well-established brands due to various factors like brand familiarity, credibility, etc.
For instance, according to Beverage Industry Magazine, with overall sales of more than USD 1.2 billion in 2022, Keurig Green Mountain topped the single-cup coffee market in the United States. While private labels witnessed the second-highest sales figures that same year, totaling approximately USD 1.1 billion. Therefore, the increased usage of single-serve coffee in households is driving the market in this region.
Expanding Popularity of Specialty and Organic Coffee Pods and Capsules
Installing coffee machines and increasing coffee bars across the United States are increasing the demand for coffee capsules and pods. Due to the rapidly growing coffee shop culture, fresh-ground coffee pods are set to register substantial growth in volume and value terms during the forecast period. Nevertheless, sustainability remains essential for buyers and retailers, and certification of organic nature is no longer an option but a requirement.
Also, consumers, who are well aware of the industry, are demanding traceability in the value chain. Signature blends are a growing trend in coffee capsules, carefully selected coffee from various origins. They cater to specific consumer tastes and communicate balance and quality.
Furthermore, health awareness among educated consumers with comparatively strong consumption preferences is boosting the purchase of K-cup pods and capsules from specialty stores. Coffee chains like Starbucks have been developing their coffee culture by increasing the number of regional specialty stores. Additionally, the expansions aid the market players in catering to the demand for specialty coffee among consumers as well as increasing their market shares.
For instance, the number of Starbucks outlets across the United States has been increasing over the past few years. As per Starbucks, the number of the company's stores increased from 15,444 in 2021 to 15,873 in the year 2023. Additionally, organic food and beverage demand has grown substantially over the past few years.
As per the Organic Trade Association, the retail sales of organic beverages, including coffee, will be valued at USD 2 billion in 2021. Hence, the demand for organic coffee/specialty coffee is expected to drive the market studied over the forecast period. Another innovation making a wave is the introduction of a bio-compostable material (PLA) for manufacturing compostable coffee capsules, which is a viable solution to the increasing environmental issues. These innovative, organic, and specialty coffee are expected to help premium coffee and pods sales during the forecast period.
USA Coffee Pods and Capsules Industry Overview
The United States coffee pods and capsules market is competitive among a few players. The major players focus on product innovations, the launch of limited-edition coffee pods, high distribution networks, and a better supply chain to gain a competitive advantage. To sustain in the competitive market, the companies are enhancing their product portfolio constantly and strategically tapping into segments.
The prominent players in the market are Keurig Dr Pepper Inc., Nestle SA, The Kraft Heinz Company, Starbucks Corporation, and DD IP Holder LLC (Dunkin' Brands Group Inc.). With the rise in demand for fresh ground coffee pods that provide customers with a premium coffee experience in the AHF channels, the market is expected to witness a high scope for the entrance of private label companies.
USA Coffee Pods and Capsules Market Leaders
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Keurig Dr Pepper Inc.
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Nestle SA
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The Kraft Heinz Company
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Starbucks Corporation
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DD IP Holder LLC (Dunkin’ Brands Group Inc.)
*Disclaimer: Major Players sorted in no particular order
USA Coffee Pods and Capsules Market News
- April 2023: Nestle's coffee brand Nespresso and Starbucks partnered to launch the 'Nespresso Starbucks Reserve Remix Blend,' a new limited-edition double espresso coffee capsule. The product initially retailed online, as well as at a few Nespresso boutiques and Starbucks Reserve Roasteries, and in select Reserve locations around the United States and the United Kingdom.
- October 2022: Nestlé announced their plans to acquire Seattle's Best Coffee brand from Starbucks. Seattle's Best Coffee's portfolio includes a range of whole bean, roast, and ground packaged coffee and K-Cup pods.
- July 2022: In response to the growing demand for specialty coffee in the United States, Keurig, in partnership with Dr. Pepper, has announced the introduction of Intelligentsia coffee in K-Cup pods for its Keurig brewing system. This strategic move aims to capitalize on the increasing popularity of specialty coffee among consumers, offering them a convenient and high-quality brewing experience through the Keurig platform.
USA Coffee Pods and Capsules Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Increasing Usage of Single-Serve Coffee in Households
4.1.2 Expanding Popularity of Specialty and Organic Coffee Pods and Capsules
4.2 Market Restraints
4.2.1 Negative Impact of Pods & Capsules on the Environment
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Pods
5.1.2 Capsules
5.2 Distribution Channel
5.2.1 Off-Trade
5.2.1.1 Supermarkets/Hypermarkets
5.2.1.2 Specialty Stores
5.2.1.3 Convenience/Grocery Stores
5.2.1.4 Online Retail Stores
5.2.2 On-Trade
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Keurig Dr Pepper Inc.
6.3.2 Nestle SA
6.3.3 The Kraft Heinz Company
6.3.4 Starbucks Corporation
6.3.5 Luigi Lavazza SpA
6.3.6 JAB Holding Company
6.3.7 Baronet Coffee
6.3.8 The J.M. Smucker Company
6.3.9 DD IP Holder LLC (Dunkin' Brands Group Inc.)
6.3.10 Tim Hortons
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
USA Coffee Pods and Capsules Industry Segmentation
Pods and capsules are single-portion dosages of coffee. A coffee pod or pad is a pre-packaged dose of ground coffee in a paper filter like a round teabag. Coffee capsules are the same concept as pods in that they are pre-packaged, measured doses of coffee. They are contained within a 'capsule' that, once used, must be disposed of.
The United States coffee pods and capsules market is segmented by type and distribution channel. By type, the market is bifurcated into pods and capsules. Based on distribution channels, the market is segmented into off-trade and on-trade. The off-trade distribution channel is further segmented into supermarkets/hypermarkets, specialty stores, convenience/grocery stores, and online retail stores.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Type | |
| Pods | |
| Capsules |
| Distribution Channel | ||||||
| ||||||
| On-Trade |
USA Coffee Pods and Capsules Market Research FAQs
What is the current United States Coffee Pods And Capsules Market size?
The United States Coffee Pods And Capsules Market is projected to register a CAGR of 3.76% during the forecast period (2024-2029)
Who are the key players in United States Coffee Pods And Capsules Market?
Keurig Dr Pepper Inc., Nestle SA, The Kraft Heinz Company, Starbucks Corporation and DD IP Holder LLC (Dunkin’ Brands Group Inc.) are the major companies operating in the United States Coffee Pods And Capsules Market.
What years does this United States Coffee Pods And Capsules Market cover?
The report covers the United States Coffee Pods And Capsules Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Coffee Pods And Capsules Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Coffee Pods and Capsules in USA Industry Report
Statistics for the 2024 Coffee Pods and Capsules in USA market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Coffee Pods and Capsules in USA analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
