European Coffee Pods & Capsules Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 16.07 Billion |
| Market Size (2029) | USD 22.05 Billion |
| CAGR (2024 - 2029) | 6.52 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
European Coffee Pods & Capsules Market Analysis
The Europe Coffee Pods and Capsules Market size is estimated at USD 16.07 billion in 2024, and is expected to reach USD 22.05 billion by 2029, growing at a CAGR of 6.52% during the forecast period (2024-2029).
Over the past few years, the growth drivers of coffee pods and capsules in Europe have been a combination of convenience, premium positioning, brand experience, and the manufacturers' ability to innovate and provide new products. The consumers' changing lifestyles added to the coffee sales growth, and people are more interested in using espresso machines, even at home. For instance, the total working population in the UK is recorded at 32.75 million in the year 2021, constantly increasing over the past few years. It led to surging demand for coffee pods and capsules compatible with various espresso machines. Additionally, consumers tend to own their coffee machines in their households resulting in increasing usage of coffee pods and capsules in the region.
Moreover, the coffee pod machines' popularity in significant markets such as the United Kingdom is significantly increasing, owing to a rise in the average retail selling price of coffee, which is driving the coffee pod market growth in the country. Consumers from significant countries such as the United Kingdom, Germany, and other nations tend to possess their coffee machines at home, resulting in frequent purchases and usage of coffee pods at the household level. On the other hand, many consumers are switching from instant coffee to more premium options, such as fresh ground coffee pods, coffee beans, and flavored coffees. Consumers often prefer flavored coffee pods for other novel tastes and unique flavors. These factors tend to boost the sales of coffee pods during the study period.
European Coffee Pods & Capsules Market Trends
This section covers the major market trends shaping the Europe Coffee Pods & Capsules Market according to our research experts:
Increasing Demand for Single-serve Coffee
The rise in demand for single-serve coffee, owing to the convenience of use, is driving the need for coffee pods and capsules. Conventional forms of coffee, like coffee pods and capsules, are becoming popular among consumers in the region. These coffee pods and capsules are extensively used to prepare decent coffee at home in less time. The penetration rates of single-serve coffee brewers in European households, especially in Western Europe, have recently increased. Moreover, with the increasing purchasing power of consumers, they are quick to spend more on coffee and other related beverages.
Additionally, the demand for coffee machines is increasing, leading to an upsurge in demand for coffee pods and capsules used in various coffee machines. Nespresso is a widely used coffee machine in Europe. Companies are also introducing their products in ways that are compatible with Nespresso machines. For instance, in 2021, Luigi Lavazza SpA, an Italian producer and distributor of coffee, launched coffee capsules having zero carbon dioxide impact, which were Nespresso compatible.
Increasing interest towards flavored and specialty coffee.
Consumers often prefer roasted coffee pods with flavored elements such as caramel, vanilla, and other familiar flavors and capsules for their taste. This shift in demand is observed to experience flavored coffee, which they consume in out-of-home coffee retail establishments spread across the region. Moreover, these pods and capsules are extensively retailed in supermarkets and hypermarkets, propelling the capsules and pod sales in the area. Moreover, Supermarkets/hypermarkets have abundant choices across brands and functionality. These markets sell pods and capsules in a pre-determined price range, providing high-quality coffee. Supermarkets have also been offering an increasing range of coffee with unique characteristics, such as single origins. The comprehensive product visibility at these supermarkets and hypermarkets boosted the consumer base, further escalating the rising sales of coffee pods and capsules.
European Coffee Pods & Capsules Industry Overview
European coffee pods and capsules are a competitive market with many international and regional players. The market is fragmented, and the major players operating in the market are Nestle SA, Luigi Lavazza SpA, Starbucks Corporation, and JAB Holding Company, among others. Nestle SA holds a significant share of the market compared to other players. The major companies are entering partnerships and expanding their facilities across the region to strengthen their consumer base and maintain their positions in the market. Partnerships and joint ventures are the most adopted strategies that enable significant players to increase control over competitive pricing and gain a competitive advantage. Product innovation catering to consumer demands is another frequently opted for by companies.
European Coffee Pods & Capsules Market Leaders
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Nestle S.A.
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Starbucks Corporation
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Coind Group
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Luigi Lavazza SpA
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JAB Holding Company
*Disclaimer: Major Players sorted in no particular order
European Coffee Pods & Capsules Market News
- November 2022: Nestle SA's Nespresso partnered with sustainable packaging company Huhtamaki to launch a home compostable paper-based coffee capsule. The company claims that the capsules are made from wood fiber from European forests. The capsules have been certified by the German technical certification company TUV as home compostable and compostable in food waste collection schemes.
- October 2022: Japanese company Ueshima is the first coffee bar in London's Japan Centre. The company's coffee kiosk will serve a range of Ueshima artisan coffees and other products. The company retails its House blend beans, capsules, and coffee bags in the kiosk. The products are also retailed in the supermarket chain Waitrose.
- August 2022: In partnership with Starbucks, Nestle SA launched its "Starbucks at Home" coffee capsules in Germany. The products are manufactured using 80% recycled aluminum. The company also aims to expand these aluminum capsule coffee pods to other European markets.
European Coffee Pods & Capsules Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Product Type
- 5.1.1 Pods
- 5.1.2 Capsules
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5.2 Distribution Channel
- 5.2.1 On-trade
- 5.2.2 Off-trade
- 5.2.2.1 Supermarkets/Hypermarkets
- 5.2.2.2 Specialty Stores
- 5.2.2.3 Online Retail
- 5.2.2.4 Other Distribution Channels
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5.3 Geography
- 5.3.1 Germany
- 5.3.2 United Kingdom
- 5.3.3 France
- 5.3.4 Russia
- 5.3.5 Spain
- 5.3.6 Italy
- 5.3.7 Rest of Europe
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Nestle SA
- 6.3.2 Starbucks Corporation
- 6.3.3 Luigi Lavazza SpA
- 6.3.4 Coind Group
- 6.3.5 JAB Holding Company
- 6.3.6 Blue Goose Coffee
- 6.3.7 Illycaffe SpA
- 6.3.8 The Kraft Heinz Company
- 6.3.9 Halo Coffee
- 6.3.10 Capsul'in
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityEuropean Coffee Pods & Capsules Industry Segmentation
Coffee pods and capsules are ready-to-make coffee used in espresso machines. The coffee capsules are vacuum packed, which ensures hygiene and avoids humidity, while the coffee pods are single-dose packs of coffee. The European coffee pods and capsules market is segmented by product type, distribution channel, and geography. Based on product type, the market is segmented into pods and capsules. Further, the market is segmented based on distribution channels into on-trade and off-trade channels. The off-trade channel is further divided into supermarkets/hypermarkets, specialty stores, online retail, and other distribution channels. The report analyzes significant regional economies, namely, Germany, the United Kingdom, France, Russia, Spain, Italy, and the Rest of Europe. For each segment, the market sizing and forecasts have been done based on value (in USD million).
| Product Type | Pods | |
| Capsules | ||
| Distribution Channel | On-trade | |
| Off-trade | Supermarkets/Hypermarkets | |
| Specialty Stores | ||
| Online Retail | ||
| Other Distribution Channels | ||
| Geography | Germany | |
| United Kingdom | ||
| France | ||
| Russia | ||
| Spain | ||
| Italy | ||
| Rest of Europe |
European Coffee Pods & Capsules Market Research FAQs
How big is the Europe Coffee Pods and Capsules Market?
The Europe Coffee Pods and Capsules Market size is expected to reach USD 16.07 billion in 2024 and grow at a CAGR of 6.52% to reach USD 22.05 billion by 2029.
What is the current Europe Coffee Pods and Capsules Market size?
In 2024, the Europe Coffee Pods and Capsules Market size is expected to reach USD 16.07 billion.
Who are the key players in Europe Coffee Pods and Capsules Market?
Nestle S.A., Starbucks Corporation, Coind Group, Luigi Lavazza SpA and JAB Holding Company are the major companies operating in the Europe Coffee Pods and Capsules Market.
What years does this Europe Coffee Pods and Capsules Market cover, and what was the market size in 2023?
In 2023, the Europe Coffee Pods and Capsules Market size was estimated at USD 15.09 billion. The report covers the Europe Coffee Pods and Capsules Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Coffee Pods and Capsules Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
European Coffee Pods Industry Report
Statistics for the 2024 European Coffee Pods market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. European Coffee Pods analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
