USD 27.52 Billion
Coffee Pods and Capsules Market Size, Share, and Growth Analysis
Coffee Pods & Capsules Market Size, Share & Trends Analysis Report, By Type (Traditional, Decaf), By Product Type (Pods, Capsules), By Packaging Type (Conventional Plastic, Bioplastics, Fabric), By Distribution Channel, By Region, And Segment Forecast, 2025-2032
Report ID:
SQMIG30C2177 |
Region:
Global |
Published Date: April, 2025
Pages:
195
|Tables:
114
|Figures:
72
Format -
Coffee Pods and Capsules Market Insights
Global Coffee Pods and Capsules Market size was valued at USD 27.52 Billion in 2023 and is poised to grow from USD 29.4 Billion in 2024 to USD 48.29 Billion by 2032, growing at a CAGR of 6.4% during the forecast period (2025-2032).
High demand for convenient brewing, premiumization of coffee, growing urbanization, innovations in sustainable packaging and boom in e-commerce are slated to drive market development.
Modern consumers prioritize convenience and speed in daily routines. Coffee pods and capsules offer a quick, mess-free solution for home or office brewing without compromising flavor. Online retail channels have significantly expanded the accessibility of coffee pods and capsules. Companies are shifting toward biodegradable, compostable, and recyclable pots to comply with sustainability trends and attract eco-conscious consumers. Evolving lifestyles of people are also contributing to the global coffee pods and capsules market growth going forward.
On the contrary, environmental concerns regarding waste generation, high costs compared to traditional coffee, compatibility issues with machines, and supply chain disruptions are slated to impede the sales of coffee pods and capsules across the study period and beyond.
Can Startups Boost Coffee Pods and Capsules Demand?
Startups are playing a crucial role in boosting the demand for coffee and other cafe culture products around the world. Sustainability is a key trend that most startups are expected to focus on going forward.
- Smile Coffee Werks: The startup based in the United States offers plant-based, carbon-neutral coffee pods that are compatible with Keurig and Nespresso systems. Their patented pods are certified commercially compostable, breaking down in just a few weeks. The 2019-founded company also emphasizes ethical sourcing and includes Rainforest Alliance Certified coffee. Coffee pods are offered in colorful branding to appeal to younger, eco-minded consumers.
- Halo Coffee: The new company specializes in offering 100% compostable coffee capsules compatible with Nespresso machines. The United Kingdom-based startup focuses on premium, sustainably sourced beans and innovative bio-based materials to eliminate aluminum and plastic waste. The 2017-founded company is emerging as a leading name in sustainable coffee pod innovation.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Traditional
Fastest Growth
Decaf
Growth Rate
6.4% CAGR
Global Coffee Pods and Capsules Market ($ Bn)
Country Share for Europe Region (%)
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Coffee Pods and Capsules Market Segments Analysis
Which Type of Coffee Pods and Capsules Bring in the Most Revenue?
The traditional segment is forecasted to account for a major chunk of the global coffee pods and capsules market share in the future. High convenience and familiarity of traditional coffee taste is helping this segment hold sway over other types of coffee pods and capsules. High amount of caffeine in traditional coffee contributes to a richer flavor and taste for a wide variety of consumers. Availability of a wide variety of coffee beans and blends is also cementing the dominance of this segment on a global level.
On the other hand, the demand for decaf coffee pods and capsules is slated to rise at a robust pace over the coming years. Increasing preference of consumers to enjoy coffee flavor without the stimulating effects of coffee is helping this segment generate new opportunities going forward. Emphasis on lowering caffeine intake is also slated to help this segment boost sales.
Where are Most Coffee Pods and Capsules Sold From?
Store-based distribution channel accounts for a prominent share of the global coffee pods and capsules industry going forward. High demand for specialty coffee flavor and rise in popularity of cafe culture are expected to boost coffee pods and capsules demand via this segment. Prioritization of convenience and high demand for better in-store experiences are forecasted to create new opportunities for coffee pods and capsules companies focusing on this distribution channel.
Meanwhile, the sales of coffee pods and capsules via non-store-based channels are anticipated to increase at an impressive CAGR through 2032. Rise in popularity of e-commerce and preference for online shopping are expected to be key factors helping expand business scope via this segment.
Global Coffee Pods and Capsules Market By Type
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Coffee Pods and Capsules Market Regional Insights
Why Demand for Coffee pods and capsules is High in Europe?
Europe has a strong tradition of coffee consumption and is experiencing steady growth in pods and capsules due to premiumization, sustainability, and lifestyle shifts. Countries like France, Germany, and the UK are major contributors, with consumers seeking artisanal blends and ethical sourcing. Europe’s café culture, combined with increasing at-home brewing due to hybrid work models, supports this segment. Strong retail and direct-to-consumer channels, plus regulation on single-use plastics, push brands to innovate.
Coffee Pods and Capsules Market in United Kingdom
Transition from tea to specialty coffee in the country is expected to primarily influence the sales of coffee pods and capsules going forward. Consumer loyalty to premium coffee experiences is expected to support the steady demand for coffee pods and capsules in urban as well as suburban households. Growing awareness around sustainability is also forecasted to open new avenues of business for market players in the long run.
Coffee Pods and Capsules Market in Germany
Germans value both quality and environmental responsibility, leading to high demand for organic, fair trade, and recyclable coffee pods. Traditional drip coffee remains popular, but younger generations increasingly prefer the convenience and variety offered by capsules. Germany’s high household income and preference for ethically sourced, high-quality coffee make it a key market in the European single-serve coffee landscape.
How are Sales of Coffee pods and capsules Faring in Asia Pacific?
Rising disposable incomes, urban lifestyles, and a growing middle-class population are expected to make this region the fastest expanding one going forward. Western lifestyle influences, rapid café culture expansion, and growing e-commerce penetration are also driving up the sales of coffee pods and capsules. The shift of consumers from traditional tea culture to modern, café-style coffee experiences is also influencing market development.
Coffee Pods and Capsules Market in China
Rapid expansion of coffee culture in urban centers like Shanghai and Beijing are primarily driving the demand for coffee pods and capsules in China. Western influence and an increase in disposable income are also forecasted to support the demand for premium, single-serve coffee. High emphasis on convenience, aesthetics, and brand experience among Chinese consumers is also estimated to create new opportunities for market players.
Coffee Pods and Capsules Market in India
The coffee pods and capsules market in India is still in its nascent stages but has high potential for growth across the study period. Urban youth in cities like Bangalore, Mumbai, and Delhi are adopting coffee as a lifestyle choice. Increasing exposure of Indians to brands such as Nespresso, Starbucks, and local brands like Sleepy Owl and Rage Coffee is also expected to boost the demand for coffee pods and capsules.
At What Pace is Demand for Coffee Pods and Capsules Rising in North America?
High coffee consumption, fast-paced lifestyles, and widespread ownership of pod machines like Keurig and Nespresso make North America a key region for coffee pods and capsules suppliers. Growing consumer demand for single-serve systems for quick, mess-free brewing is also expected to favor revenue generation for companies. Increasing interest in functional beverages such as collagen or vitamin-infused pods is also estimated to drive coffee pods and capsules demand.
Coffee Pods and Capsules Market in United States
The United States is slated to emerge as the top country for coffee pods and capsules suppliers in this region. High consumer demand for gourmet blends, recyclable pods, and functional ingredients like vitamins or adaptogens in coffee are key factors cementing the dominance of this country. Mature coffee culture and innovation in flavors are expected to help this country hold sway over other countries going forward.
Coffee Pods and Capsules Market in Canada
strong affinity for premium and sustainable coffee pods from consumers in Canada helps position it as a rewarding country. High per capita coffee consumption and demand for compostable or recyclable pods are expected to govern revenue generation in the future. Canada's stable economy and eco-minded consumers make it a steadily growing market.
Global Coffee Pods and Capsules Market By Geography
- Largest
- Fastest
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Coffee Pods and Capsules Market Dynamics
Coffee Pods and Capsules Market Drivers
Premiumization and Specialty Coffee Trends
- Consumers increasingly seek premium coffee experiences, pushing brands to offer artisanal blends, organic options, and single-origin pods. Capsules that highlight roast profiles, flavor notes, and ethical sourcing resonate with quality-conscious buyers. Brands like Nespresso, Blue Bottle, and Starbucks capitalize on this by offering gourmet and seasonal selections. Premiumization also justifies higher product prices thereby driving the global coffee pods and capsules market outlook as well.
Rapid Urbanization and Changing Lifestyles
- The rise in urban populations globally has led to fast-paced lifestyles, boosting demand for convenient food and beverage options. Coffee pods and capsules fit seamlessly into busy routines, especially in metro areas with growing working-class populations. These products align well with the increasing number of single-person households and small families. With coffee becoming a lifestyle product rather than just a beverage, urbanization directly influences coffee pods and capsules consumption patterns.
Coffee Pods and Capsules Market Restraints
High Cost Compared to Traditional Coffee
- Coffee pods and capsules often cost significantly more per cup compared to ground coffee or instant options. While consumers pay for convenience and consistency, the higher price point limits adoption in price-sensitive markets, particularly in developing regions. Budget-conscious households may prefer bulk coffee purchases. Moreover, the need for pod-compatible machines is also expected to hamper sales of coffee pods and capsules.
Compatibility Issues with Machines
- Not all pods are universally compatible across different coffee machines. Coffee machine brands have created ecosystems that limit consumer choice and flexibility. This fragmentation can lead to consumer frustration, especially when switching machines or brands. It also restricts third-party pod usage, making consumers dependent on specific manufacturers. Hence, limited cross-compatibility is slated to impede market development potential.
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Coffee Pods and Capsules Market Competitive Landscape
Coffee pods and capsule providers are expected to focus on opting for sustainable materials to appease eco-conscious consumers. Launching coffee pods and capsules that are compatible with multiple brewing machines can also help companies stand out from the competition. Targeting the home brewing industry is also a key opportunity for companies as per this global coffee pods and capsules market analysis.
Top Player’s Company Profiles
- Keurig Dr. Pepper Inc.
- Nestle S.A.
- Starbucks Corporation
- JAB Holding Company
- The Kraft Heinz Company
- Dunkin' Brands Group, Inc.
- Luigi Lavazza S.p.A
- Gloria Jean's Coffees
- Strauss Group Ltd.
- Dualit Limited
- The J.M. Smucker Company
- Jacobs DouweEgberts B.V.
- The J.M. Smucker Company
- Caffe'd'Italia SRL
- Mellita
Recent Developments in Coffee Pods and Capsules Market
- In November 2024, Barista Coffee, a leading coffee-chain in India announced the launch of coffee capsules and machines aimed at the home-brewing market. The move is part of the company’s efforts to expand its business scope. The new coffee capsules come in Classic and Dark Roast blends while being priced at 500 INR a pack.
- In September 2024, Cambio Roasters, a family-owned business announced the launch of aluminum coffee pods. The move is part of the company’s efforts to promote sustainability and coffee quality. The company aims to reduce its contribution in 40 million plastic coffee pod waste that is ending up in landfills around the world.
- In April 2024, NatureWorks and IMA Coffee, a coffee processor and packaging company collaboratively announced the launch of a fully compostable coffee capsule. The new offerings are made with NatureWork’s Ingeo biopolymer and are compatible with existing Keurig machines in the North American market.
Coffee Pods and Capsules Key Market Trends
- Demand for Sustainable and Compostable Pods: Coffee pods and capsule manufacturers are focusing on the development of eco-friendly options like compostable, biodegradable, or recyclable capsules. Government regulations in Europe and North America are also pushing manufacturers to reduce plastic waste. As sustainability becomes a purchase driver, companies investing in green packaging and closed-loop systems gain competitive advantage. All of these factors make this a key coffee pods and capsules market trend for companies in the long run.
- Growth of Subscription and D2C Models: Direct-to-consumer (D2C) and subscription-based sales models are rapidly transforming how consumers buy coffee pods. Brands now offer personalized coffee plans, automatic refills, and curated selections tailored to taste preferences. This model enhances customer loyalty, improves inventory forecasting, and supports small or artisanal roasters entering the market. With e-commerce rising post-COVID, this trend continues to gain momentum, giving brands better margins and control over the customer experience.
Coffee Pods and Capsules Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, rapid urbanization and premiumization of coffee trends are forecasted to boost the demand for coffee pods and capsules in the future. However, compatibility issues with machines and high costs compared to traditional coffee are predicted to slow down the sales of coffee pods and capsules in the future. Europe is forecasted to account for a prominent share of the global coffee pods and capsules demand outlook owing to the presence of a robust cafe culture and high spending on premium coffee blends. Adoption of subscription-based models and incorporation of sustainability are top opportunities for coffee pods and capsule providers through 2032 and beyond.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 27.52 Billion |
| Market size value in 2032 | USD 48.29 Billion |
| Growth Rate | 6.4% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| 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 |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Coffee Pods and Capsules Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Coffee Pods and Capsules Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Coffee Pods and Capsules 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 Coffee Pods and Capsules 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.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Coffee Pods and Capsules Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Coffee Pods and Capsules 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.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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