Market Trends of Europe Coffee Pods and Capsules Industry
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.
