Coffee Pod Market By Flavor (Caramel, Chocolate, Hazelnut, Others), By Distribution Channel (Hypermarkets/Supermarkets, Specialty Stores, Online Channel, Others), By Caffeine Concentration (Caffeinated, Decaffeinated), By End Use (Commercial, Residential)

Coffee Pod Market By Flavor (Caramel, Chocolate, Hazelnut, Others), By Distribution Channel (Hypermarkets/Supermarkets, Specialty Stores, Online Channel, Others), By Caffeine Concentration (Caffeinated, Decaffeinated), By End Use (Commercial, Residential): Global Opportunity Analysis and Industry Forecast, 2023-2032

The global coffee pod market was valued at $1,212.3 million in 2022, and is projected to reach $2,809.1 million by 2032, registering a CAGR of 8.5 % from 2023 to 2032. 

A coffee pod is a single-serve coffee container that is used to prepare various types of coffee drinks. These pods are made with recyclable paper-based, flat bags, inside which a pre-measured dose of pressed coffee is packed. Unlike coffee capsules, pods contain a higher volume of coffee and can be used with multiple machines that are equipped with portafilter.  

Sustainability and consciousness surrounding environmental footprint are major drivers for the coffee pod market. Due to eco-friendly packaging and recyclable aspects, coffee pods provide the best alternative to other single-serve coffee container options available on the market like aluminum packaging-based coffee capsules. In response, many companies are introducing single-serve containers that are made using biodegradable material. With ever-increasing coffee consumption, people subsequently want to reduce their carbon footprint which is associated with product packaging. In addition, consumers also demand supply chain transparency and raw material sourcing information to contain unethical business practices. Transparency allows brands to build trust in different modes of supply chain. 

Social and cultural influences play an important role in driving consumer consumption trends.  Global awareness about healthy consumption habits is largely spread through the internet, social media, and celebrities. Due to these factors consumers exist, and new customers become aware of the variety of products available and them. Many people consume coffee as it offers various benefits in improving and regulating body functions like metabolism, cognition, and alertness. Furthermore, to reduce the accumulated stress, anxiety, and fear about the future that is strongly linked with decreased social interaction and isolation, consumers perceive coffee as a highly refreshing beverage during various settings like meetings, reading, and other social events.

Caffeine, a natural stimulant, provides various advantages such as improvement in metabolism, alertness, and cognitive function. With changes in lifestyles that are making lives busier and compounded with factors like decreased social interactions, isolation, and other mentally challenging aspects coffee is sought after as a break. In numerous settings like meetings, reading, work, and casual meetups, coffee plays an important role in enhancing their experience. Consumers also struggle with fear and anxiety coffee breaks are often taken to reduce stress. Due to the convenience offered by coffee pods, they are becoming largely popular.  

Consumers in developed economies in regions like Europe, and North and South America, demand more innovative products and are likely to be the first to try. These consumers have high disposable incomes and are potentially leading in terms of coffee pod adoption. Countries in these regions have more developed technology, literacy rate, and other developmental indicators due to which people become more aware of new solutions and are in a better position to accommodate new changes in their lifestyles. In addition, coffee machines are a prerequisite in using a coffee pod, and people in richer countries are more likely to afford it, thus posing a greater potential for demand, unlike developing economies.  

However, the market is significantly impacted by the surrounding challenges in the supply chain, ecological, and environmental aspects. Caffè Borbone, a leading coffee pod manufacturing company, reported a fall in profits of 27% due to increased production costs. Increased costs result in more expensive products, thus impacting profitability and sales. Many companies in the coffee market have reported an impact due to the war between Russia and Ukraine. In addition, soaring inflation in many regions also contributes to elevating prices. According to the report published by the International Coffee Organization (ICO), coffee production in the year 2021/22 decreased by 1.4% to 168.5 million bags. These decreased production volumes were attributed to worsening weather, environmental conditions, and increased cost of fertilizers. 

With the increased demand for coffee pods companies are expanding their geographical presence in their international markets. As the potential for coffee pods becomes apparent companies are seeking partnerships, collaborations, and other strategies. Caffé Borbone and Illycaffe are investing to expand their businesses in the U.S. market. However, international markets pose higher competition challenges.  

Coffee pods are popular among consumers in developed economies such as Italy, France, Germany, Brazil, and the U.S. However, companies face competition with business expansion in international markets. Illycaffè, an Italian coffee company, that has established itself as a strong coffee pods and other products supplier in the Europe region stated expanding in the international market is challenging and requires an enormous amount of effort to sustain, compared to domestic markets. However, global expansion presents newer opportunities to companies. 

The coffee pods market is analyzed on the basis of flavor, caffeine concentration, end use, distribution channel, and region. By flavor, the market is classified into caramel, chocolate, hazelnut, and others. By caffeine concentration, the market is classified as caffeinated and decaffeinated. By end use the market is classified into commercial and residential. By distribution channel the market is classified into hypermarket/supermarket, specialty stores, online channels, and others. By region, the market is analyzed for North America (U.S., Canada, and Mexico), Europe (the UK, Germany, Spain, France, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, New Zealand, South Korea, Singapore, and Rest of Asia-Pacific) and LAMEA (Saudi Arabia, Brazil, UAE, Argentina, South Africa, and Rest of LAMEA).

Players operating in the coffee pod market have adopted various developmental strategies to expand their coffee pod market share, increase profitability, and remain competitive in the market. Key players profiled in this report include illycaffe S.p.A., Lavazza Group, Gruppo Izzo S.r.l., Procaffé S.p.A., Labcaffè S.r.l., Kimbo S.p.A., Gruppo Gimoka S.p.A., Blasercafé AG, Caffe Borbone S.r.l., and Segafredo Zanetti S.p.A. 

Key Benefits For Stakeholders

This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the coffee pod market analysis from 2022 to 2032 to identify the prevailing coffee pod market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the coffee pod market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global coffee pod market trends, key players, market segments, application areas, and market growth strategies.

Key Market Segments

By Caffeine Concentration

Caffeinated
Decaffeinated

By Flavor

Caramel
Chocolate
Hazelnut
Others

By Distribution Channel

Hypermarkets/Supermarkets
Specialty Stores
Online Channel
Others

By End Use

Commercial
Residential

By Region

North America
U.S.
Canada
Mexico
Europe
Germany
UK
Spain
Italy
France
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Singapore
New Zealand
Rest of Asia-Pacific
LAMEA
Brazil
Argentina
South Africa
Saudi Arabia
UAE
Rest of LAMEA

Key Market Players

Kimbo S.p.A.
illycaffe S.p.A.
Gruppo Gimoka S.p.A.
Blasercafé AG
Gruppo Izzo S.r.l.
Segafredo Zanetti S.p.A.
Lavazza Group
Procaffé S.p.A.
Labcaffè S.r.l.
Caffe Borbone S.r.l.

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