MILAN — Increase in demand for premium coffee, boost in retail coffee outlets, rise in urban population, busy lifestyle of consumers, and convenience provided by coffee pod and capsule drive the growth of the Asia-Pacific coffee pods and capsules market, according to a report titled “Asia-Pacific Coffee Pod and Capsule Market by Product: Opportunity Analysis and Industry Forecast, 2018-2025”, published by Allied Market Research.
However, rise in product prices and governmental concerns regarding the usage of plastics in coffee pods and capsules hamper the market growth.
On the other hand, introduction of 100% compostable and recyclable capsules is expected to bring in new opportunities for the players in this market.
Increase in demand for premium coffee, boost in retail coffee outlets, rise in urban population, busy lifestyle of consumers, and convenience provided by coffee pod and capsule drive the growth of the Asia-Pacific coffee pods and capsules market.
However, rise in product prices and governmental concerns regarding the usage of plastics in coffee pods and capsules hamper the market growth. On the other hand, introduction of 100% compostable and recyclable capsules is expected to bring in new opportunities for the players in this market.
Capsule segment to be lucrative through 2025
Among product types, the capsule segment captured the highest share of 41% in 2017 and is projected to retain its dominance throughout the forecast period. Moreover, this segment is expected to grow at the fastest CAGR of 12.1% through 2025 due to high adoption of coffee capsules by coffee makers on account of their convenience and ease of use.
These capsules are more eco-friendly than other coffee pods, and hence, are preferred by consumers. The report also analyzes soft coffee pod and hard coffee pod segments.
Supermarket & hypermarket to retain lion ‘ s share , o nline s tore to witness fastest growth
Among distribution channels, the supermarket & hypermarket segment accounted for more than one-third share of the total market revenue in 2017 and would maintain its dominant position through the study period.
Coffee pod and capsule of all varieties and brands are commercialized in Asia-Pacific through supermarkets and hypermarkets, owing to change in consumer preferences and rise in disposable income, thereby supplementing the market growth.
Moreover, high visibility, attractive assortment, and low price of coffee pod and capsules encourage more consumers to buy them from these distribution channels. However, the online store segment is expected to grow at the fastest CAGR of 12.0% during the forecast period because websites are more interactive, contain detailed information about products, and offer discounts, fast delivery, and easy payment methods.
The departmental store segment is projected to witness steady growth rate during the forecast period.
China to retain top spot throughout the forecast period
Among regions, Japan captured the highest share of 22% in 2017 because Japanese people spend less time on preparing dinners and refreshments due to their aging demographics and busier ways of life. This fact has inclined them toward single-serve and convenient offerings for in-home coffee consumption.
However, China is expected to dominate the market in terms of revenue through 2025 and would register the fastest CAGR of 14.0% from 2018 to 2025, owing to rise in demand for ready-to-drink coffee products in the region. The other regions analyzed in the report include India, Australia, Thailand, Vietnam, and rest of Asia-Pacific.
