NEWARK, Delaware, USA – The global single-serve coffee containers market is anticipated to accumulate a market value of US$ 24.2 billion in 2023 and is expected to garner a valuation of US$ 52 billion by exhibiting a CAGR of 7.95% in the forecast period 2023 to 2033. The market of single-serve coffee containers market reflected growth with a 5.8 % CAGR in the historical period 2018 to 2022, according to a new report from Future Market Insights.
The quality, efficiency, and varied choices offered in a single serving of coffee are responsible for the growth of single-serve coffee container market. Also, consumers are intended to purchase coffee machines to recreate the cafe-style experience at home. This trend is expected to boost the demand for coffee pods during the forecast period.
With coffee being the most consumed beverage, the high demand for coffee is the primary reason for the increased sales of coffee pods. Their one-time use and disposable features are also significant drivers for market growth.
The market players are making efforts to manufacture eco-friendly and biodegradable coffee containers. For example, in November 2022, a Nestle brand ‘Nespresso’ introduced compostable coffee capsules made from paper. These capsules are compatible with Nespresso coffee machines. Similar kind of innovations from the manufacturer’s end will further foster growth in the single-serve coffee pods market.
There is a rise in the consumption of coffee as it helps feel less tired, boosts energy levels, burns fat by reactivating the metabolism of body, and enhances productivity and brain functions. Growing demand for instant non-alcoholic drinks among the masses is also fuelling the product demand. This, coupled with the increasing number of premium coffee shops worldwide, is positively influencing the market.
Besides this, the easy availability of single-serve coffee pods through online and offline distribution channels is presenting lucrative growth prospects to industry investors. Apart from this, key market players are introducing innovative coffee flavors to increase their overall sales and profitability. They are also investing in promotional campaigns via social media platforms which are also aiding the market expansion.
In terms of regions, Europe is projected to be the maximum shareholder of the market with Germany, the United Kingdom, France, and Russia being the countries with lucrative growth opportunities. This region is anticipated to accumulate over 50% market share by end of the forecast period.
The growth is mainly attributed to the escalating demand for new products with technological improvements, and growing demand for easy-to-use coffee capsules and pods, along with the adoption of automatic bean-to-cup machines. An increasing number of small roasters, coffee bars, small local brands, and baristas in the region, along with the growing interest of consumers in specialty coffee and K-Cups is likely to fuel the region’s market during the projection period.
North America is expected to be in second place in terms of market share. This region is expected to garner a 36% market share with the fastest CAGR of 7.4% during the forecast period. The key factors responsible for the regional market’s growth are increasing coffee consumption, manufacturers expanding product portfolios, and a strong presence of a diverse consumer base.
The market in Asia Pacific is anticipated to grow with a CAGR of 7.1% during the forecast period. With shifting preferences brought about by millennials’ changing consumption habits, China is expected to present a significant opportunity for major coffee retailers. Rising product costs and concerns regarding the use of plastic in coffee capsules and pods are presenting opportunities for players to launch new products in the market. Moreover, the market in China is expected to hold a dominating share whereas the Indian market is expected to witness fastest growth in Asia Pacific during the forecast period.
Single-serve Coffee Containers- Regional Outlook
Single-serve coffee containers revolutionized coffee markets all over the world and became the ultimate choice for many cafes and coffee serving outlets. Single-serve coffee containers are extremely widespread in North America and Europe due to its taste, uniformity and high disposable income of retail shoppers. It is rather a matured market in these regions.
Currently, in the Asia Pacific regions, single-serve coffee container market is sluggish due to consumer habits. Europeans and Americans view drinking coffee in cafes as a necessity, while Asians view this as a social event or luxury. However, it is an emerging market and is catching up the American standards due to Millennial and Gen-Z caffeine habits.
The Middle East and African market also witness a steady growth for single-serve coffee containers market. However, Oceania is a fast-growing market for single-serve coffee containers. Nestlé Nespresso opened five of its outlet in New Zealand and is expressing huge demand from customers which is shaping the Oceania market. Nestlé Nespresso also provides recycling points which is an eco-friendly scheme to attract customers.
How Competitive is the Market?
Recent developments and breakthroughs in technology, mergers, acquisitions, tie-ups, and partnerships within the companies involved in manufacturing single-serve coffee containers are expected to create lucrative opportunities for market growth during the forecast period.
- In September 2022, the Swiss coffee brand CoffeeB introduced single-serve coffee, an innovative compressed coffee ball that uses a seaweed-based casing rather than an aluminum or plastic capsule.
- In August 2022, Tim Hortons showcased four new varieties of espresso capsules compatible with Nespresso. These four varieties comprise classic, bright, bold, and decaf.
- In October 2021, Starbucks by Nespresso introduced a new range of coffee capsules called ‘Nespresso Vertuo’, offering Canadian coffee fans more opportunities to enjoy the signature café taste.
Single-serve coffee containers brews coffee for a single or double serving basis. They come in variants like coffee pods, coffee capsules, coffee bags and instant coffee pouches or cups. Various coffee pods that exist in the market also forms like K-cups and T-discs.
The benefit of using pods and capsules is that the coffee machine automatically makes the coffee and the customer need to worry about the quantity, quality and portion size. Single-serve coffee makers produce unvarying coffee every single time.
Due to increasing health benefits of coffee, single-serve coffee containers are gaining more attention in the market. Manufacturers are constantly innovating the coffee formula and launching products like the sugar-free coffee mix, vegan instant coffee and clear coffee.
Single-serve coffee containers are effective because they leave no wastage and make an appropriate cup of coffee. It is an effective solution to emerging coffee demand all over the world.
These insights are based on a report Single-serve Coffee Containers Market by Future Market Insights.
