Coffee Pods Market Displays Higher Growth Inclinations during 2018-2026

Coffee pods continue to gain significant traction, with coffee machines becoming one of the most commonly used kitchen appliances worldwide. However, high environmental footprint of used coffee pods that end up in landfills has remained a major concern in the market among manufacturers and regulatory bodies alike. This, coupled with increasing load of plastic waste, which further tugs on concerns of environmental agencies, has led relevant governing bodies to impose strict regulations associated with plastic waste management. These regulations are likely to pose a significant impact on salient trends in the Coffee Pods Market. Additionally, government proposals for ban on non-degradable coffee pods, in regions such as North America and Europe, for curtailing the plastic waste and their abuse on landfills, are likely to create significant challenges for coffee pods manufacturers. Prominent players in the coffee pods market are therefore shifting their focus toward sustainability through development of compostable coffee pods, to gain a competitive edge amidst changing dynamics in the coffee pods market.

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Exponential Rise in Production & Consumption of Coffee to Favor Coffee Pods Sales

According to the United States Department of Agriculture (USDA), coffee production across the globe, which was estimated at over 170 Mn bags in the year 2017-18, is pegged to increase by 11.4 Mn bags in the year 2018-19. In addition, the International Coffee Organization states that the worldwide coffee consumption increased from 152 Mn bags in 2014 to over 160 Mn bags in 2017. Such rapid growth in production and consumption of coffee has meant that coffee pods sales have witnessed a significant rise, and the status quo is likely to prevail in the forthcoming years.

Coffee Pods Sales to Grow in Parallel to Rapid Expansion of Coffee Chains

Coffee bars are witnessing an increased footfall worldwide, which is leading coffee pod manufacturers to accrue profits through heightened sales of pod coffee machines and coffee pods. Leading coffee chains are now installing more facilities worldwide to leverage rising consumer interest toward spending their leisure time in coffee outlets and cafes. An exemplary case is of Starbucks Corporation, which grew from 19,767 stores in 2013 to 28,720 stores worldwide in a span on just five years. With more Millennials opting for traditional coffee shop experience, supply and demand trends of coffee pods will continue to trace an upward trajectory in the near future.

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Compostable or Recyclable Coffee Pods Delineate a Predominant Market Trend

Development of degradable and reusable coffee pods is likely to remain a surging trend, with increasing number of environment-conscious consumers and stringent regulations imposed by governing bodies. Significant R&D investments being made by leading coffee pods manufacturers to discover eco-friendly materials for the development of degradable & reusable coffee pods are likely to favor growth of the coffee pods market. Recent launch of 100% compostable coffee pods by The Eden Project, Bewley’s, and Co.ind s.c., in Europe is a key example of such developments by players in the coffee pods market.

Stakeholders Introduce Unique Coffee Flavors to Attract Coffee Connoisseurs

With specialty coffee becoming an affordable luxury, particularly for avid coffee aficionados, leading players in the coffee pods market are introducing products with exclusive flavors and unique origins. International coffee chains are willing to deliver innovative flavors to attract coffee lovers and enhance their coffee sales, which is instigating a new trend in the coffee pods market. Coffee bars are likely to remain a target end-user segment for stakeholders introducing versatile coffee pod flavors.

Competition Analysis

The report offers a scrutinized analysis on key companies, such as Nestle S.A. and The Kraft Heinz Company, which significantly underpin growth of the coffee pods market. An intensity map incorporated in the report tracks and profiles these market players, and a thorough analysis on their recent developments, company overview, and key financials is incorporated in this weighted chapter of the report.

Prominent players in the coffee pods market are shifting their focus toward production capacity expansion and introduction of newer flavors to gain a competitive edge. Nestle has recently announced production capacity expansion of its coffee capsule system – Dolce Gusto – in Brazil, meanwhile planning to introduce an Ethiopian coffee flavor to gain a competitive edge over other market players through product distinction. Other key players such as The Kraft Heinz Company are emphasizing on quality improvement in coffee pods through aiding farmers in gaining enhanced yield outcomes. Manufacturers who focus on strengthening their supply chain are likely to retain their competitiveness in the coffee pods market in the upcoming years.

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