Report ID: SQMIG20E2108
Report ID: SQMIG20E2108
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Report ID:
SQMIG20E2108 |
Region:
Global |
Published Date: February, 2025
Pages:
195
|Tables:
113
|Figures:
69
Capsule Coffee Machine Market size was valued at USD 1.73 Billion in 2024 and is poised to grow from USD 1.78 Billion in 2025 to USD 2.31 Billion by 2033, growing at a CAGR of 3.3% during the forecast period (2026–2033).
The global capsule coffee machine market growth is driven by increasing demand for convenience and efficiency in coffee preparation. Capsule coffee machines offer a quick and easy way to brew a perfect cup of coffee with minimal effort, which makes them highly popular among consumers. The market has benefited from the rising trend of home brewing, as more people seek to replicate the café experience in their own homes. Coffee machines reduce the time and effort required to prepare coffee in coffeehouses and office cafeterias. The rising demand for such smart coffee machines by consumers due to their high convenience is expected to significantly aid in expanding the global coffee machine industry during the forecast period.Convenience stores are popular coffee-buying locations among coffee enthusiasts. Their viability is determined by their quick service and automated machines that serve high-quality coffee. While coffee shops cater to a specific demographic of coffee enthusiasts, other food services and retail channels cater to a broader range of customers with varying levels of expertise. Market participants are expected to benefit greatly from penetration in these avenues.
Increased consumption of coffee in Asian countries is one of the key factors driving the growth. In addition, the launch of new products, such as green and organic coffee, is anticipated to result in major consumption, thus contributing to market growth. Growing consumer awareness related to the health benefits of coffee, such as protection against liver cancer, type 2 diabetes, and heart failure, is likely to result in higher coffee consumption, and subsequently contribute to growth in demand for coffee machines. The rapid rise in the amount of coffee intake is the major factor driving the industry’s growth. This is due to an increased demand for specialty beverages, including coffee, in recent decades due to a rising number of affluent consumers and an expanding palate for gourmet variants. According to the National Coffee Association (NCA), in the U.S., over 62.0% of the total population consumes coffee every day. Consumers prefer coffee machines over hand-made coffee due to high demand and the desire for gourmet coffee variants. This global capsule coffee machine market trend has resulted in a significant increase in coffee machine sales. According to an NCA report, out of the total coffee consumed in the U.S., nearly 60.0% is gourmet.
In November 2024, Barista Coffee extended its product offering by announcing the launch of coffee capsules and machines, intended to be used for home-brewing. The strategy was aimed at meeting the rising consumer demand for at-home, high-quality coffee for convenience. The newly launched machines are designed to be user-friendly, allowing consumers to prepare premium coffee with minimal effort, while the coffee capsules ensure consistent taste and freshness. With more people opting for at-home coffee solutions due to busy lifestyles and the increasing trend of remote work. Barista Coffee’s expansion aligns with the market demand for quick, hassle-free, and high-quality coffee experiences. The launch is expected to strengthen the company’s position in the capsule coffee machine market, enhancing its competitiveness against established brands such as Nespresso, Keurig, and Lavazza.
In September 2023, LG Electronics unveiled its first-ever capsule coffee machine, DUOBO by LG Labs. LG Labs is LG’s new marketing platform established to deliver experimental and innovative product and service experiences to its customers. DUOBO revolutionizes the coffee brewing process with features and technologies that deliver outstanding convenience and delicious, personalized flavor.
In November 2022, Nescafé Dolce Gusto launched Neo, the brand's next-generation coffee machines and pods. Neo combines high quality, cutting-edge technology, and sustainability to create the ultimate coffee shop-at-home experience. In a Nestlé first, Neo's new range of coffee pods are paper-based, home-compostable, and use 70% less packaging than current capsules.
Market snapshot - 2026-2033
Global Market Size
USD 1.67 billion
Largest Segment
Closed Source System
Fastest Growth
Open Source System
Growth Rate
3.3% CAGR
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Global Capsule Coffee Machine Market is segmented by Product Type, Application, Distribution Channel and region. Based on Product Type, the market is segmented into Opened Source System and Closed Source System. Based on Application, the market is segmented into Household and Commercial. Based on Distribution Channel, the market is segmented into Online and Offline. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Type
As per global capsule coffee machine market outlook, the closed source system segment dominated the market which includes brands such as Nespresso, Keurig, and Lavazza. These companies have built a strong market presence by offering proprietary pod systems that ensure brand loyalty and recurring revenue through exclusive coffee pod sales. Consumers are drawn to these machines due to their consistent brewing quality, convenience, and premium coffee experience. The closed source model benefits manufacturers by creating a controlled ecosystem where only their branded capsules are compatible, leading to a steady demand for their products. Additionally, major players continuously invest in technology advancements, such as smart coffee machines with app connectivity and automated brewing features, further enhancing the appeal of closed systems.
As per global capsule coffee machine market analysis, open source system segment is the fastest growing in the market as consumer preferences shift toward affordability and sustainability. Open-source capsule coffee machines, which allow users to choose from a variety of third-party coffee capsules, provide greater flexibility and cost savings. This segment is witnessing growth, particularly among environmentally conscious consumers who prefer biodegradable, reusable, or refillable capsules over single-use proprietary pods. Many emerging brands and regional players are capitalizing on this trend by introducing compatible machines and eco-friendly pod alternatives, challenging the dominance of closed-system manufacturers. Moreover, with the increasing demand for customizable coffee experiences, open-source machines are gaining popularity in Europe, Asia-Pacific, and Latin America, where consumers seek cost-effective yet high-quality brewing options.
Analysis by Application
As per global capsule coffee machine market forecast, the commercial segment dominated the market with a 54.2% share in 2024, owing to the surging demand for convenience and efficient preparation within commercial settings. Capsule coffee machines offer a quick and easy way to brew a perfect cup of coffee with minimal effort, making them ideal for businesses that aim to provide high-quality coffee to their customers while maintaining operational efficiency. Additionally, the rising trend of specialty coffee culture has propelled businesses to offer a wider range of coffee options. Capsule coffee machines allow these establishments to offer a variety of coffee flavors and types without the need for extensive training or complicated brewing equipment.
The household segment is anticipated to grow during the forecast period due to the increasing demand for convenience and efficiency in coffee preparation at home. Modern households have increasingly sought quick, convenient ways to enjoy quality coffee at home. Capsule coffee machines provide a hassle-free, single-serve option, appealing to consumers seeking efficiency in their daily routines. Moreover, with the increasing number of people leading busy lives, capsule coffee machines have gained traction as they provide quick and consistent coffee experiences without time commitment. This demand for time-saving solutions is particularly strong among working professionals and families.
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Asia-Pacific dominates the capsule coffee machine market due to the rise in the urbanization. Furthermore, the growing middle-income population base will further boost the growth of the capsule coffee machine market in the region during the forecast period. The Asia Pacific region in the capsule coffee machine market held 23.3% of the global revenue share in 2024. Traditionally tea-drinking countries such as Japan, China, and India have experienced a rise in coffee culture, particularly among the younger generations and urban professionals. Capsule coffee machines make it easy for consumers to enjoy premium coffee at home, aligning with this trend. Moreover, with the rising disposable incomes, consumers have become increasingly willing to invest in lifestyle-enhancing appliances, including capsule coffee machines.
China leads the Asia-Pacific capsule coffee machine market, expected to grow at a CAGR of 14.0%. The rise in urban lifestyles, premium coffee demand, and tech-savvy consumers fuels this growth.
The North America region in the capsule coffee machine market registered 24.6% of the market share in 2024. Consumers have increasingly prioritized convenience, and capsule coffee machines offer a quick, easy way to prepare coffee without the need for grinding, measuring, and cleaning. This has majorly appealed to time-pressed individuals and households who are willing to invest in these machines to enjoy a coffee shop experience at home.
The capsule coffee machine in the U.S. is expected to be driven by the demand for convenience and time-saving solutions. U.S. consumers have increasingly valued convenience, and capsule coffee machines offer a mess-free way to enjoy quality coffee at home. Single-serve capabilities make these machines particularly appealing to busy individuals and families looking to save time.
The market in Europe is expected to expand at a substantial CAGR during the forecast period. Increasing consumption of coffee coupled with changing preference of flavors is boosting the market in the region. Countries such as the UK, Finland, Germany, and Switzerland are majorly contributing to the market growth. Consumers are willing to pay high prices for specialty and premium beverages in small roasters, baristas, and cafes.
In the Middle East, closed source systems dominate, particularly in the United Arab Emirates (UAE) and Saudi Arabia, where premium brands like Nespresso and Lavazza are popular. The strong coffee culture and demand for high-quality espresso drive closed-system sales.
The United Arab Emirates (UAE) leads the capsule coffee machine market, surpassing other countries in the region. There's a noticeable shift towards coffee consumption, influenced by the UAE's fast-paced lifestyle.
Latin America presents a mixed market, with Brazil and Mexico showing growth in open-source systems due to affordability and compatibility with local coffee brands. However, in Argentina and Chile, closed-source systems remain dominant due to the preference for premium brands. The rising trend of eco-friendly coffee solutions is also pushing the adoption of open-source machines across the region.
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Capsule Coffee Machine Market Drivers
Technological Advancements and Smart Features
Rising Demand for Premium and Specialty Coffee Equipment
Capsule Coffee Machine Market Restraints
Environmental Issues
High cost Associated with the Capsule
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The global capsule coffee machine industry is highly competitive, with key players focusing on innovation, brand expansion, and strategic partnerships to maintain their market presence. Industry leaders such as Nestlé Nespresso, Keurig Dr Pepper, Illycaffè, Lavazza, and Bosch dominate the market with their extensive product portfolios and strong distribution networks. Companies are investing in advanced brewing technologies, smart coffee machines, and sustainable packaging to attract environmentally conscious consumers.
Top Player’s Company Profiles
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to SkyQuest analysis, the rise of specialty coffee and artisanal roasts has created a new generation of coffee enthusiasts who are increasingly interested in recreating café-quality beverages in their homes. This trend has been particularly notable among millennials and younger consumers, who are not only consuming more coffee but are also more likely to experiment with different brewing methods and coffee varieties. The consumer shift from traditional instant coffee to freshly brewed options has created a strong demand for various coffee machines that can deliver customized brewing experiences, from espresso and cappuccino to cold brew and pour-over methods. Coffee machine manufacturers now include innovative features like smartphone connectivity, touchscreen interface, and voice control. These developments improve the user experience and make coffee brewing more flexible and convenient. In addition, consumers looking for quick and hassle-free brewing methods prefer modern brewing technologies like pod-based brewers and capsule coffee machines. The capsule coffee machine market has grown significantly due to the e-commerce platform. Online shoppers can now easily find many coffee makers, accessories, and related products. Sales of coffee machines through online channels have increased due to the ease of online purchasing, competitive pricing, and the availability of user ratings and suggestions.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 1.73 Billion |
| Market size value in 2033 | USD 2.31 Billion |
| Growth Rate | 3.3% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Capsule Coffee Machine Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Capsule Coffee Machine Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Capsule Coffee Machine Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Capsule Coffee Machine Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
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