The report forecasted that by 2030, the global market for coffee pods and capsules is expected to reach $21.6 billion, growing at a compound annual growth rate (CAGR) of 6.21%. The research firm said that the projected growth is fueled by a consumer demand for convenience.
Growth from 2020 onwards in the category was also fueled by the COVID-19 pandemic, as many coffee chains increased their retail presences with packaged coffee products including pods and capsules. The projected growth in the category suggests that retailers should look to expand private label coffee offerings even as the pandemic winds down.
“Nowadays, due to urbanization and industrialization, people lead very busy lifestyles,” said Market Research Future. “As a result, they require short refills and simple coffee. Coffee capsules and pods save time while producing high-quality coffee quickly. Due to their versatility, ease of use, and compatibility with a wide range of coffee items and equipment, coffee makers favor capsules.”
The report also noted that sustainability is an increasingly important factor when it comes to consumers choosing which coffee pods to purchase.
“The one-time use and biodegradable nature of coffee pods are one of the main reasons for their growing market appeal,” added the firm. “Market manufacturers are currently working to create environmentally friendly and biodegradable coffee capsules. The millennial generation's insatiable need for coffee contributes to an increase in global coffee demand. Among millennials, the consumption of coffee and prepared foods is rising.”
The full Coffee Pods and Capsules Market report can be found here.