Coffee Pod Market to Reach $2.8 Billion, Globally, by 2032 at 8.5% CAGR: Allied Market Research

Coffee pods are single-serve coffee containers that are made using recyclable paper bags. Among various forms of coffee pods, decaffeinated coffee pod, which is one of the fast-growing categories, has become highly popular due to widespread information about health concerns associated with unmonitored consumption of caffeine present in coffee drinks. Decaffeinated coffee pods are encapsulated with coffee which has majority of its caffeine removed and is becoming one of the highly preferred choice among people that struggle with insomnia, high blood pressure, and restlessness.

PORTLAND, Ore., Dec. 12, 2023 /PRNewswire/ -- Allied Market Research published a report, titled, "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)". According to the report, the global coffee pod market was valued at $1.2 billion in 2022, and is projected to reach $2.8 billion by 2032, growing at a CAGR of 8.5% from 2023 to 2032.

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Prime determinants of growth

Adoption of sustainable consumption habits, lifestyle changes, and rise in disposable income compounded by introduction of innovative flavors and decaffeinated coffee pods drive the growth of global coffee pod market. However, increase in cost of production owing to rise in inflation, high raw material prices attributed to climate change, labor shortage, and supply chain hindrances caused by geopolitical unrest restrict the market growth.

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The chocolate segment to maintain its leadership status throughout the forecast period

Depending on flavor, the chocolate segment held the highest market share in 2022, and accounting for more than one-thirds of the global coffee pod market revenue and is estimated to maintain its leadership status throughout the forecast period. With employment of advanced technologies & methods, companies are enhancing naturally present chocolate flavor in coffee beans. Manufacturers are further sourcing coffee from different origins to increase flavor. However, the others segment is projected to manifest the highest CAGR of 9.4% % from 2023 to 2032.

The commercial segment to maintain its leadership status throughout the forecast period

By end use, the commercial segment held the highest market share in 2022, accounting for nearly three-fithts of the global coffee pod market revenue and is estimated to maintain its leadership status throughout the forecast period. Coffee pods provide a convenient & economical approach in coffee drink preparation. With rise in coffee consumption in away-from home channels, many cafes & restaurants are adopting pods to address increase in the number of consumers. However, the residential segment is projected to manifest the highest CAGR of 8.9% from 2023 to 2032. Moreover, increase in trend toward making coffee drinks at home that resemble quality of café, surge the demand for residential coffee pods.

The hypermarkets/supermarkets segment to maintain its leadership status throughout the forecast period

As per distribution channel, the hypermarkets/supermarkets segment held the highest market share in 2022, accounting for more than one-thirds of the global coffee pod market revenue and is estimated to maintain its leadership status throughout the forecast period. The hypermarkets/supermarkets are adapting to change in consumer preferences, and are incorporating technologies like artificial intelligence and machine learning to offer personalized shopping experiences, self-checkout, and contactless payment. However, the online segment is projected to manifest the highest CAGR of 9.6% from 2023 to 2032. Online stores are integrating technologies to provide enhanced shopping experience through e-commerce by offering an extensive product range.

Europe to maintain its dominance by 2032

Region wise, Europe held the highest market share in terms of revenue in 2022, accounting for more than one-third of the global coffee pod market revenue. In this region, coffee consumption is higher and demand for pods is aggregated by number of manufacturers & high disposable income. However, the LAMEA region is expected to witness the fastest CAGR of 12.4% from 2023 to 2032. In LAMEA, the coffee pod market has witnessed growth for commercial coffee pods. With rise in the number of coffee shops in the region, companies are emphasizing increasing their share in commercial segments.

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Leading Market Players: -

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

The report provides a detailed analysis of these key players in the global coffee pod market. These players have adopted different strategies such as collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant position in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

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