Market Size of United States Coffee Pods And Capsules Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.76 % |
| Market Concentration | High |
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*Disclaimer: Major Players sorted in no particular order |
USA Coffee Pods and Capsules Market Analysis
The United States coffee pods and capsules market is expected to grow from USD 8.40 billion in 2023 to USD 10.1 billion by 2028 at a CAGR of 3.76% during the forecast period (2023-2028).
Coffee pods and capsules maintain the freshness and quality of the coffee since they are prepackaged in sealed containers that are shielded from wind, light, and moisture. Coffee pods and capsules are a popular option for people seeking a flavorful coffee without having to utilize conventional brewing methods because they offer a more personalized coffee experience in addition to versatility and customization choices. This strong flavor and freshness of the coffee act as a major market driver.
Continuous product improvements, such as the launch of environmentally friendly, biodegradable, and compostable coffee pods, are increasing product demand. For instance, in July 2021, NEXE, a packaging solutions supplier based in Canada, announced the launch of a line of sustainable coffee pods in the United States and Canada. The fully compostable Espresso pods were launched at nexecoffee.com.
Also, the industry is expanding as a result of ongoing technological developments, such as the creation of sophisticated, user-friendly coffee pod and capsule machines with one-touch operation, programmed settings, auto-shutoff, and built-in milk frothers. The market is further supported by the simple accessibility of coffee capsules and pods through online and offline structured retail channels. According to Allegra World Coffee Portal and Reuters, there were about 38.4 thousand coffee shops in the United States in 2022.
Moreover, in the long term, the demand for coffee pods in the country is increasing due to the convenience factor associated with coffee pods. However, as this market for pods and capsules has matured in the United States, it is expected to witness stagnation in growth rate during the forecast period. With the growing discount-oriented retail environment and the rising preference for pod-based, single-serve coffee at affordable prices, private-label brands are trying to capture ample space in the United States market.
The increased demand for instant coffee with exotic and specialized taste combinations is the main factor driving the industry. Due to the busy lifestyles of the customers, coffee consumption has significantly increased among the general public. Thus, the above-mentioned factors drive the coffee pods and capsules in the United States.
USA Coffee Pods and Capsules Industry Segmentation
Pods and capsules are single-portion dosages of coffee. A coffee pod or pad is a pre-packaged dose of ground coffee in a paper filter like a round teabag. Coffee capsules are the same concept as pods in that they are pre-packaged, measured doses of coffee. They are contained within a 'capsule' that, once used, must be disposed of.
The United States coffee pods and capsules market is segmented by type and distribution channel. By type, the market is bifurcated into pods and capsules. Based on distribution channels, the market is segmented into off-trade and on-trade. The off-trade distribution channel is further segmented into supermarkets/hypermarkets, specialty stores, convenience/grocery stores, and online retail stores.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Type | |
| Pods | |
| Capsules |
| Distribution Channel | ||||||
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| On-Trade |
United States Coffee Pods And Capsules Market Size Summary
The coffee pods and capsules market in the United States is experiencing a steady expansion, driven by the growing consumer preference for convenient and flavorful coffee solutions. These products, which maintain coffee freshness through sealed packaging, offer a personalized brewing experience with versatile customization options. The market is further bolstered by continuous product innovations, such as the introduction of environmentally friendly and compostable coffee pods. Technological advancements in coffee machines, featuring user-friendly designs and smart functionalities, also contribute to market growth. The widespread availability of coffee pods and capsules through both online and offline retail channels supports their increasing adoption. Despite the market's maturity, the demand for single-serve coffee remains strong, with private-label brands gaining traction by offering affordable options in a discount-oriented retail environment.
The competitive landscape of the coffee pods and capsules market in the United States is characterized by the presence of major players like Keurig Dr Pepper Inc., Nestle SA, The Kraft Heinz Company, Starbucks Corporation, and Dunkin' Brands Group Inc. These companies focus on product innovation, strategic partnerships, and expanding their distribution networks to maintain a competitive edge. The market is also witnessing a rise in demand for specialty and organic coffee, driven by health-conscious consumers and the growing coffee shop culture. Innovations such as bio-compostable materials for coffee capsules address environmental concerns, while signature blends cater to specific consumer tastes. The market's growth is supported by the increasing installation of coffee machines and the expansion of coffee bars, with prominent brands leading the way in capturing consumer interest and market share.
United States Coffee Pods And Capsules Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Increasing Usage of Single-Serve Coffee in Households
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1.1.2 Expanding Popularity of Specialty and Organic Coffee Pods and Capsules
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1.2 Market Restraints
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1.2.1 Negative Impact of Pods & Capsules on the Environment
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Pods
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2.1.2 Capsules
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2.2 Distribution Channel
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2.2.1 Off-Trade
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2.2.1.1 Supermarkets/Hypermarkets
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2.2.1.2 Specialty Stores
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2.2.1.3 Convenience/Grocery Stores
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2.2.1.4 Online Retail Stores
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2.2.2 On-Trade
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United States Coffee Pods And Capsules Market Size FAQs
What is the current United States Coffee Pods And Capsules Market size?
The United States Coffee Pods And Capsules Market is projected to register a CAGR of 3.76% during the forecast period (2024-2029)
Who are the key players in United States Coffee Pods And Capsules Market?
Keurig Dr Pepper Inc., Nestle SA, The Kraft Heinz Company, Starbucks Corporation and DD IP Holder LLC (Dunkin’ Brands Group Inc.) are the major companies operating in the United States Coffee Pods And Capsules Market.
