Capsule Coffee Machine Market Size

Q: What is the key market trend for Capsule Coffee Machine Market?

Growing Coffee Culture and Consumer Preferences: The expanding coffee culture and evolving consumer preferences are significantly driving the capsule coffee machine market. According to the National Coffee Association's report from March 2022, approximately 66% of Americans consume coffee daily, surpassing all other beverages, including tap water, representing a substantial 14% increase since January 2021. This growing coffee consumption trend is accompanied by a shift towards premium coffee experiences, with over 60% of all coffee consumed in the United States being gourmet varieties, indicating a sophisticated consumer base seeking quality brewing solutions at home.

Capsule Coffee Machine Market Insights

Capsule Coffee Machine Market size was valued at USD 1.67 billion in 2023 and is poised to grow from USD 1.73 billion in 2024 to USD 2.24 billion by 2032, growing at a CAGR of 3.3% during the forecast period (2025-2032).

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.

FAQs

Global Capsule Coffee Machine Market size was valued at USD 1.62 Billion in 2023 and is poised to grow from USD 1.67 Billion in 2024 to USD 2.17 Billion by 2032, growing at a CAGR of 3.3% in the forecast period (2025-2032).

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. 'Nestlé Nespresso SA', 'Jacobs Douwe Egberts Pro', 'Keurig Green Mountain, Inc.', 'Dualit Limited', 'Dunkin Brands', 'Koninklijke Philips N.V.', 'Starbucks Corporation', 'illycaffè S.p.A', 'LUIGI LAVAZZA SPA', 'LG Electronics', 'Starbucks Corporation', 'Dunkin' Donuts LLC'

The integration of advanced technologies in coffee machines has emerged as a major market driver, transforming traditional coffee makers into smart, connected appliances. Recent innovations include the introduction of WiFi and Bluetooth connectivity, smartphone app controls, and voice assistant compatibility with platforms like Amazon Alexa and Google Home. For instance, in July 2023, LG Electronics unveiled its first-ever capsule coffee machine, DUOBO by LG Labs, featuring a dual-capsule extraction system and mobile app connectivity that enables users to precisely adjust temperature and pressure according to their preferences.

Growing Coffee Culture and Consumer Preferences: The expanding coffee culture and evolving consumer preferences are significantly driving the capsule coffee machine market. According to the National Coffee Association's report from March 2022, approximately 66% of Americans consume coffee daily, surpassing all other beverages, including tap water, representing a substantial 14% increase since January 2021. This growing coffee consumption trend is accompanied by a shift towards premium coffee experiences, with over 60% of all coffee consumed in the United States being gourmet varieties, indicating a sophisticated consumer base seeking quality brewing solutions at home.

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.