Coffee Pods Market

Coffee Pods Market Overview

The Coffee Pods Market was valued at USD 12.27 billion in 2024. The Coffee Pods Market industry is projected to grow from USD 13.33 billion in 2025 to USD 30.81 billion by 2035, exhibiting a compound annual growth rate (CAGR) of 9.0% during the forecast period (2025-2035).

The rising coffee consumption and premiumization boost the sales and modern consumers looking for convenience and time efficiency are driving the growth of the Coffee Pods Market.

As per the Analyst at MRFR, Premiumization in the coffee pods market captures the major changes in consumer behavior where growing consumption of coffee has been more directly related to quality, gourmet experience, and upscale experience. It is no longer a case of merely convenience as it used to be but is a product offering great taste and rich flavor variations, besides conveying luxury. Underlying these key trends and developments are a set of significant statistics. 

Nestling at the forefront of this trend for premiumization is Nespresso, which has long marketed itself as a premium brand because of its wide selection of premium specialty blends as well as single-origin coffees. Leading the charge in this premiumization trend is Nespresso, which has long positioned itself as a premium brand by offering a diverse range of specialty blends and single-origin coffees.

 FIGURE 1: COFFEE PODS MARKET VALUE (2019-2035) USD BILLION

 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Coffee Pods Market Opportunity

EXPANSION INTO EMERGING MARKETS

Expansion in emerging markets, particularly in the Asia-Pacific region, presents a significant growth opportunity for the coffee pods market. Urban centers in countries like China, Japan, and South Korea are witnessing a rapid transformation as rising disposable incomes and increased urbanization foster a burgeoning coffee culture. In China, for instance, the shift toward Western-style coffee consumption has led to higher demand for single-serve coffee solutions that offer convenience and consistency, attributes that coffee pods deliver exceptionally well. 

Similarly, traditional tea-drinking nations such as Japan and South Korea are gradually embracing specialty coffee options, spurred by lifestyle changes and greater exposure to global coffee trends. Local and international brands are capitalizing on this trend by launching product lines tailored to regional tastes and preferences, with a focus on unique flavor profiles and premium roast options. Moreover, the expansion of e-commerce and modern distribution channels has made it easier for these products to reach consumers in both urban and semi-urban areas. Strategic marketing initiatives and collaborations with local partners are also enhancing brand visibility and consumer trust.

Coffee Pods Market Segment Insights

Coffee Pods System by Material Insights

Based on Material, this segment includes Aluminum, Paper, Plastic, Compostable Material, Wood, Stainless Steel. The Stainless-Steel segment dominated the global market in 2024, while the Compostable Material segment is projected to be the fastest–growing segment during the forecast period. Stainless steel reusable coffee pods have emerged as a sustainable alternative to single-use capsules, allowing consumers to fill them with their preferred coffee grounds. These durable pods are compatible with various single-serve coffee machines, including popular models like Nespresso and Keurig. 

By opting for reusable stainless-steel pods, users can significantly reduce waste associated with disposable plastic or aluminum capsules, aligning with the growing demand for eco-friendly solutions. Additionally, these pods offer cost savings over time, as consumers can purchase coffee grounds in bulk and avoid the recurring expense of single-use pods. Companies such as Capmesso have developed stainless steel pods compatible with Nespresso machines, providing consumers with durable and reusable options.

FIGURE 2: COFFEE PODS MARKET SHARE BY MATERIAL 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Coffee Pods System by Type Insights

Based on Type, this segment includes Soft Coffee Pods, Hard Coffee Pods, Compostable/Biodegradable Pods, Others. The Hard Coffee Pods segment dominated the global market in 2024, while the Compostable/Biodegradable Pods segment is projected to be the fastest–growing segment during the forecast period. Hard coffee pods, also known as rigid capsules, are typically crafted from plastic or aluminum and are designed for use in high-pressure espresso machines like Nespresso and Keurig. 

These pods offer a refined coffee experience by preserving flavor and aroma through airtight sealing, catering to consumers seeking convenience and quality. However, environmental concerns regarding the recyclability of these pods have prompted companies to innovate. For instance, Nestlé has developed recyclable aluminum capsules, and Keurig has introduced recyclable plastic K-Cups. Despite these efforts, challenges persist, as the small size of the pods often makes it difficult to process in standard recycling facilities.

Coffee Pods System by Coffee Type Insights

Based on Coffee Type, this segment includes Traditional Coffee, Specialty Coffee, Flavored Coffee, Decaffeinated Coffee. The Traditional Coffee segment dominated the global market in 2024, while the Specialty Coffee segment is projected to be the fastest–growing segment during the forecast period. Traditional coffee pods, featuring classic blends of Arabica, Robusta, or a mix of both, continue to dominate the coffee pod market due to their widespread consumer appeal and convenience. 

These pods cater primarily to households and offices, offering reliable and consistent coffee experience with minimal preparation time. The market for traditional coffee pods is driven by factors such as ease of use, uniform flavor, and strong brand trust. Leading brands like Nespresso, Keurig, and Lavazza are continuously expanding their offerings to meet growing demand.

Coffee Pods System by End-User Insights

Based on End-User, this segment includes Coffee Companies, Retail Consumer (Reusable Pods). The Coffee Companies segment dominated the global market in 2024, while the Retail Consumer (Reusable Pods) segment is projected to be the fastest–growing segment during the forecast period. Coffee companies, including industry leaders like Nespresso, Keurig, and Lavazza, dominate the Coffee Pods Market by producing single-use coffee pods that offer consumers a convenient, consistent, and high-quality brewing experience. 

These companies focus on innovative pod designs, diverse flavor offerings, and premium coffee blends, catering to both casual drinkers and coffee connoisseurs. Applications for these pods are primarily in households, offices, hotels, and cafes, where ease of use and quick preparation are essential. The key driving factors behind the dominance of coffee companies in this market include consumer demand for premium, barista-style coffee at home, increasing adoption of single-serve coffee machines, and advancements in sustainable packaging.  

Coffee Pods System Regional Insights

Based on the Region, the global Coffee Pods are segmented into North America, Europe, Asia-Pacific, South America and Middle East & Africa. The Asia-Pacific dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. Major demand factors driving the Asia-Pacific market are the rising coffee consumption and premiumization boost the sales and modern consumers looking for convenience and time efficiency. The APAC coffee pods market is witnessing significant growth, driven by factors such as urbanization, changing consumer preferences, and rising disposable incomes. 

Traditionally a tea-dominant region, countries like China, Japan, and South Korea are experiencing a surge in coffee consumption, fueling demand for convenient, high-quality coffee solutions like pods and capsules. The region's fast-paced lifestyle has led to an increased preference for single-serve coffee options, allowing consumers to enjoy premium coffee without extensive preparation. Additionally, the emergence of a specialty coffee culture, particularly among younger demographics, has encouraged the introduction of high-quality, artisanal coffee pods to cater to refined tastes.

FIGURE 3: COFFEE PODS MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Mexico, Germany, UK, France, Russia, Italy, Spain, China, India, Japan, South Korea, Thailand, Indonesia, Brazil, Argentina, GCC Countries, South Africa and others.

Global Coffee Pods Key Market Players & Competitive Insights

Many global, regional, and local vendors characterize the Coffee Pods Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.

The major competitors in the market are Amcor plc, Berry Global Group, Inc., AFPAK, Silgan Specialty Packaging, Capsul'in, Gisbert CAPS, Foshan Aikou Eco-Friendly Material Co., Ltd., AluSense, TIPACK GROUP, Top Green World Biotechnology Co., Ltd. are among others. The Coffee Pods Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Coffee Pods Market include

• Amcor plc
• Berry Global Group, Inc.
• AFPAK
• Silgan Specialty Packaging
• Capsul'in
• Gisbert CAPS
• Foshan Aikou Eco-Friendly Material Co., Ltd.
• AluSense
• TIPACK GROUP
• Top Green World Biotechnology Co., Ltd.

Coffee Pods Market Industry Developments

June 2024: AluSense announced that it has introduced its new BioSense Nespresso-compatible home compostable capsules at World Coffee event in Copenhagen.

June 2023: Amcor expanded its AmFiber Performance Paper packaging range to include heat seal sachets for dry culinary and beverage applications, such as instant coffee in Europe.

August 2022: Berry Global announced that it has collaborated with German coffee producer Tchibo and Neste to launch a coffee capsule for Qbo coffee made from renewable sources.

November 2024: Amcor Plc announced an agreement to acquire Berry Global in an all-stock transaction valued at approximately $8.43 billion.

Coffee Pods Market Segmentation

Coffee Pods by Material Outlook

• Aluminum
• Paper
• Plastic
• Compostable Material
• Wood
• Stainless Steel

Coffee Pods by Type Outlook

• Soft Coffee Pods
• Hard Coffee Pods
• Compostable/Biodegradable Pods
• Others

Coffee Pods by Coffee Type Outlook

• Traditional Coffee
• Specialty Coffee
• Flavored Coffee
• Decaffeinated Coffee

Coffee Pods by End-User Outlook

• Coffee Companies
• Retail Consumer (Reusable Pods)

Coffee Pods Regional Outlook

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Thailand
  • Indonesia
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • GCC Countries
  • South Africa
  • Rest of MEA