Coffee Capsule Market is to grow at 7.6% CAGR, with Europe leading the market through 2030

Coffee Capsule Market was USD 6.34 Bn in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 7.6 % from 2023 to 2030, reaching USD 10.60 Bn by 2030. For customers with hectic schedules, coffee capsules provide a hassle-free solution that combines quick brewing with little cleanup. Consumers seek out premium coffee experiences and customers are ready to spend more for superior mixes and tastes. The market has expanded as a result of the introduction of technologies like recyclable or biodegradable capsules. The rise of e-commerce platforms has made coffee capsules more accessible, with consumers able to easily purchase capsules in bulk or subscription models. The US acquires 55% of the Coffee Capsule Market share in 2024.

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Coffee Capsule Market Segmentation

By Material: Plastic Capsules are the most popular kind of coffee capsules which are made of plastic since they are affordable and maintain the coffee's freshness. Many well-known coffee makers, including Nespresso and Keurig, use these capsules. Aluminium Capsules have the superior ability to preserve coffee freshness and flavor. These capsules are again recycled and reused and are more sustainable than plastic due to recyclability. Biodegradable Capsules are made to decompose organically and are made up of plant-based materials or compostable plastics.

By Distribution Channel: Hypermarkets and Supermarkets are traditional and widespread retail channels for coffee capsules. This channel provides easy access to popular brands to the consumer. Specialty stores that specialize in premium or high-quality coffee capsules include gourmet shops, coffee roasters, and branded coffee shops. These businesses give expert advice to clients on purchasing premium coffee capsules.

Coffee Capsule Market Regional Analysis

United States, states including Illinois, Ohio, Michigan, and Indiana make substantial contributions to the coffee capsule industry. Large cities like Boston and New York City make substantial contributions. The Southern US, states like Texas, Florida, Georgia, and North Carolina are boosting the Coffee Capsule Market.

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Germany is one of the top markets for coffee capsules in Europe. In 2024, Germany was valued at approximately €2.5 billion. Germany has one of the highest per capita coffee consumption rates in the world, With an average of 162 liters of coffee per person per year. In Germany, Edeka, Rewe, Lidl, and Aldi are the main retail chains that distribute coffee capsules.

China, cities like Shanghai, Beijing, and Guangzhou premium coffee experiences are becoming more and more popular among the middle class and younger generation. Beijing is a key market in the north. In South China cities like Guangzhou and Shenzhen have a younger population, particularly tech-savvy.

Coffee Capsule Market Competitive Landscape

Nestle: In 2021, Nestle acquired The Bountiful Company particularly known for VMS, the acquisition was valued at approximately $5.75 billion. Also in 2020, Nestle acquired Aimmune Therapeutics, a U.S.-based biopharmaceutical company the deal was worth $2.6 billion.

Keurig Dr Pepper (Keurig): In 2020, Keurig Green Mountain and Dr Pepper Snapple Group merged to form Keurig Dr. Pepper. This was one of the largest deals which valued approximately $18.7 billion.

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Essenza: In 2020, Nestle acquired Essena which focused on the expansion of Nestle in health and wellness products. In 2021, Nestlé Waters Division and Sale to Blue Triton merged to divest their water bottle business in North America.

Conclusion

Coffee capsules satisfy this need by providing a rapid and reliable brewing experience, which makes them well-liked by homes and working professionals.

Coffee capsules that are recyclable and environmentally friendly are growing in popularity as manufacturers put greater emphasis on sustainability.

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