Business News

FMI’ Analyst view: “The Ultimate Caffeine Rush: How Might Rising Coffee Consumption among Millennials Impact Sales of Coffee Capsules?”

The coffee capsules market size is projected to be valued at US$ 243.3 million in 2023 and is expected to rise to US$ 396.3 million by 2033. The sales of coffee capsules are predicted to expand at a significant CAGR of 5.0% during the forecast period. Various factors propelling the demand for coffee capsules are:

Coffee capsules have gained popularity among consumers due to their convenience, ease of use, and ability to deliver a consistent and personalized coffee experience.

Consumers today lead busy lives and seek quick and convenient coffee solutions. Coffee capsules allow them to brew a single cup of coffee without the need for traditional coffee-making equipment.

Manufacturers are continuously introducing new and innovative flavours to cater to diverse consumer preferences. From classic blends to specialty and exotic flavours, consumers can choose from a wide range of options to suit their taste preferences.

Sustainability has also emerged as an important trend in the coffee capsules market. With growing environmental concerns, there is a demand for sustainable and eco-friendly alternatives.

Online retailing and subscription services have played a significant role in the growth of the coffee capsules market. Further, E-commerce platforms also offer a convenient channel for consumers to purchase coffee capsules. Subscription services ensure a regular supply of capsules, enhancing customer loyalty.

Manufacturers are focusing on expanding their presence in these markets to capitalize on the growing demand as coffee consumption continues to rise in different countries with developing economies.

The Market for Coffee Capsules: Historical Trends vs. Future Projections

The global coffee capsules market expanded at a CAGR of 3.0% from 2018 to 2022 and is estimated to grow two-fold by the end of 2033. Growth is primarily underpinned by surging consumption of coffee along with the expansion of food service outlets across the globe.

Coffee capsules are coffee that has been packaged in a plastic or an aluminium container rather than a paper filter. It’s usually made to work with a specific brand or system and is not interchangeable with others.

Coffee capsules are single-serve vacuum-packed capsules that require a suitable machine to use. Coffee consumption is increasing among health-conscious consumers. Hence, manufacturers are introducing new and novel formulations to the market, such as coffee capsules.

Caffeine improves athletic performance by boosting metabolism, and fatty acid oxidation, and mobilizes fatty acids from fat cells. Coffee has become popular among health-conscious customers due to its anti-cancer effects. On the back of these factors, the demand in the market is expected to surge over the forecast period.

How Increased Consumption of Coffee among Millennials might Affect Coffee Capsules Sales?

The millennial generation has an unquenchable thirst for coffee that is helping to push the demand for coffee across the globe. Consumption of ready-to-eat food and coffee is increasing among millennials.

Drinking coffee at cafes, offices, and other food outlets among millennials is becoming the symbol of fashion and an opportunity to socialize. Hence, the rising intake of coffee among millennials is projected to uplift the coffee capsules market growth.

Regional Analysis of the Coffee Capsules Market

How the Sales of Coffee Capsules are going to Increase in Germany?

Germany’s coffee capsules market is anticipated to expand at a CAGR of 4.4% during the forecast period and is estimated to reach US$ 25.2 million by the end of 2033. Growth is attributed to the increasing consumption of coffee. According to the Germany Trade & Invest (GTAI), coffee remains Germany’s most popular drink.

Why is India Considered to be the Most Significant Coffee Capsules Market?

India’s coffee capsules market is projected to create an incremental opportunity of US$ 33.9 million from 2023 to 2033 and is anticipated to expand 1.7x during the forecast period.

According to the India Brand Equity Foundation (IBEF), the fifth-large exporter of coffee and the sixth-large producer of coffee in the world is India. With the growing consumption of coffee, the demand in the coffee capsules market is projected to increase.

As per the Coffee Board, Government of India, Ministry of Commerce & Industry, the total production of coffee in India was recorded as 334,000 MT from 2020 to 2021 and is estimated to reach over 348,500 MT from 2021 to 2022. Based on the production of coffee between 2020 and 2021, India has exported 164,108 MT of coffee across various countries such as Italy, Germany, Belgium, Russia, and many others.

With a Large Consumer Base and a Strong Coffee Culture, the United States Market for Coffee Capsules is Thriving.

The United States market acquired 19.7% of the market share in 2022. The United States market is characterized by a wide variety of coffee capsule brands and flavours. Consumers have access to a diverse range of options, including traditional blends, specialty coffee, and flavoured capsules.

Subscription services have also gained popularity, providing a seamless coffee experience and ensuring regular deliveries of capsules. Premiumization is another key trend in the United States coffee capsules market.

Consumers are willing to pay a premium for high-quality coffee capsules that offer a superior taste and experience. This has led to the introduction of specialty and premium coffee capsule options in the market.

Leave a Comment

Real emotions of real people from Bali