Capsule Coffee Machine Market Size & Share, by Type (Closed-Source System, Open-Source System, Drip Filter); Application (Household, Commercial) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 2703
  • Published Date: Oct 09, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024- 2036

Capsule Coffee Machine Market size is poised to reach USD 15 Billion by the end of 2036, growing at a CAGR of 8% during the forecast period, i.e., 2024 – 2036. In the year 2023, the industry size of capsule coffee machine was around USD 6 Billion. The market's expansion can be ascribed to the rise in cafes and eateries around the world as well as the popularity of getting coffee out, both of which have prompted the installation of quick brewing equipment in the commercial sector for their customers. The coffee industry in the US generated close to 82 billion dollars in revenue in 2021, and there were 38.4 thousand coffee shops there.

In addition, the growing popularity of fast grabs and workplace breaks, especially among millennials, is propelling this market due to the benefits of increased energy, less stress, and improved mental alertness.


Capsule Coffee Machine Market
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Capsule Coffee Machine Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Consumption of Coffee –The market for capsule coffee makers is expected to expand as a result of a number of factors, including the rising consumption of coffee in developing nations. More people are turning to practical and user-friendly devices like capsule coffee makers as their interest in coffee increases in nations like China, India, and Brazil. Every day, more than 2.25 billion cups of coffee are drunk worldwide. More than 90% of coffee is produced in developing nations, primarily in South America.
  • Growing Demand for Different Varieties among Consumers - Particularly in the commercial sector, such as cafes and restaurants, growing consumer knowledge of variety and specialized beverages is considerably influencing consumption decisions. Consequently, it is anticipated that the use of capsule machines will increase as a result of the demand for a broader variety of blends. In recent years, orders for these capsule machines increased by 50% to 53% on average, and they now make up more than half of all online orders. The two most popular brands of coffee capsules sold online in the United States are Nespresso and K-Cup.
  • Advancements in Coffee Capsule Machine - Due to the rise in demand from consumers who are short on time, coffee shops are using these goods more frequently. The capsule machine technology is continuously expanding with new features, creative concepts, and applications to offer higher quality and capacity, as well as low energy usage and minimal maintenance costs. This technological advancement is anticipated to increase the product's penetration in the commercial and residential markets.

Challenges

  • Environmental Issues – Coffee capsules contain plastic and aluminum, making them unrecyclable. Despite recycling efforts, aluminum, and plastic capsule packaging end up in the trash. Additionally, the UK uses about 300,000,000 aluminum and plastic capsules annually. As a result, landfills currently make up the majority of the region. This could prevent the market from growing.
  • High-Cost Associated with the Capsule
  • Mass Production Issues

Capsule Coffee Machine Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 8%

Base Year Market Size (2023)

 ~ USD 6 Billion

Forecast Year Market Size (2036)

 ~ USD 15 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Capsule Coffee Machine Segmentation

Type (Closed-Source System, Open-Source System, Drip Filter)

The drip filter segment in the capsule coffee machine market is anticipated to hold a share of 48% during the forecast period. Drip filter machines are well-liked by both coffee connoisseurs and casual customers because they provide a straightforward and practical brewing process. Their broad use has been facilitated by their simplicity of use and reliable outcomes. The affordability of drip filter devices is another factor promoting market expansion. Drip filter machines have become a popular option for individuals looking for a high-quality cup of coffee without the need for complicated brewing methods as a result of the growing interest in specialty coffee and home brewing.

Application (Household, Commercial)

Capsule coffee machine market from the commercial segment is expected to hold a share of 53% during the forecast period. Quick brewing machines are being used more frequently to meet the demands of busy customers as the number of cafes and restaurants has expanded in France, Italy, the United States, India, and other countries. Cafes cannot function without capsule coffee makers. Due to this beverage's benefits for strengthening the intellect and relieving stress, workplace breaks and short grabs are becoming an increasingly popular trend. According to estimates, 18.2 million individuals in France drank coffee capsules, pods, cassettes, or caplets in 2020. The easy use of these capsules, which provide a drink with superior flavor and a wide range of tastes, has increased their use in the commercial sector.

Our in-depth analysis of the global market includes the following segments:

     Type

  • Closed-Source System
  •  Open-Source System
  •  Drip Filter

     Application

  • Commercial
  • Residential

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Capsule Coffee Machine Industry - Regional Synopsis

European Market Forecast

Europe capsule coffee machine market is anticipated to hold a share of 36% during the forecast period. The market for capsule coffee machines in this region is being driven by rising coffee consumption and changing flavour preferences. Germany, the United Kingdom, Switzerland, and Finland are among the nations that are assisting in the expansion of this sector. The European market is being driven by an increasing number of consumers who are willing to pay high costs for premium and specialty beverages as well as K-Cups, as seen in cafes, small roasters, and baristas. As per a report, 3,252 thousand tonnes of coffee, or 32% of the world's total consumption, were consumed in Europe in 2021. As a result, Europe has the biggest market for coffee globally.

APAC Market Statistics

Asia Pacific region is expected to account for 28% share of the global capsule coffee machine market during the forecast period. These capsule machines have begun to be sold on a large scale in the area thanks to growing customer awareness of technologically advanced products. Due to evolving cultural trends and rising propensity for coffee consumption, developing nations like China and India are anticipated to contribute to the expansion of the regional market. Also, the region generated the revenue of 23.2 billion in 2023 in the coffee industry. Thus, these factors are escalating the market growth in the region.

Research Nester
Capsule Coffee Machine Market Size
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Companies Dominating the Capsule Coffee Machine Landscape

top-features-companies
    • Nestle Nespresso S.A.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • LG Electronics
    • Illycaffè S.p.A.
    • Starbucks Corporation
    • Dunkin' Donuts LLC

In-the-news

In The News

  • LG Electronics is set to unveil its first-ever capsule coffee machine, DUOBO by LG Labs. LG Labs is LG’s new marketing platform established to deliver experimental and innovative product and service experiences to its customers. DUOBO revolutionizes the coffee brewing process with features and technologies that deliver outstanding convenience and delicious, personalized flavor.
  • Nescafé Dolce Gusto launches Neo, the brand's next-generation coffee machines and pods. Neo combines high quality, cutting-edge technology, and sustainability to create the ultimate coffee shop-at-home experience. In a Nestlé first, Neo's new range of coffee pods are paper-based, home-compostable, and use 70% less packaging than current capsules.

Author Credits:  Anil Kumar, Ipsheeta Dash


  • Report ID: 2703
  • Published Date: Oct 09, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Growing consumption of coffee, growing demand for different varieties among consumers, and advancements in coffee capsule machine are some of the factors driving the market growth.

The market size of capsule coffee machine is anticipated to attain a CAGR of 8% over the forecast period, i.e., 2024-2036.

The major players in the market are Nestle Nespresso S.A., LG Electronics, Illycaffè S.p.A., Starbucks Corporation, Dunkin' Donuts LLC, Kurasu LLC, Tiger Corporation, Bluematic Japan, Mitsui-Soko Logistics Co., Ltd., Ueshima Coffee Corporation and others.

The commercial segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Europe region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Capsule Coffee Machine Market Report Scope
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