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Capsule Coffee Machine Market Segmentation By Type (Closed-Source System And Open-Source System); By Application (Household And Commercial) - Global Demand Analysis & Opportunity Outlook 2028

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Extensive insights into the Growth of Capsule Coffee Machine Market amidst COVID-19

Before we witness the stabilization of economic growth in Europe and North America, Asia Pacific is estimated to bounce back progressively with countries such as China, India, South Korea and Japan witnessing more opportunities to recover from the losses sustained during COVID-19.

Being the biggest market in Eastern Europe, Russia is estimated to take the lowest hit, offering a sigh of relief to the businesses operating in the country. Whereas, GCC is estimated to observe low investments due to the sliding prices of crude oil.

We evaluate the strategies and commitment of the Giant Players in the market towards creating products and services that customers value and rely on.

In an attempt to control and eliminate the surge of coronavirus cases and meet the demand for required medical devices along with providing efficient medical services, there is a drastic shift of investments from authoritative bodies towards the healthcare sector. Where the aftermath of this pandemic may take years to be measured, Research Nester estimates notable expansion of e-health, gaming, and media and entertainment industries till the whole situation is contained and the plan of action for the recovery process is determined. There is an estimated probability of the growth in businesses going back a year if the condition is controlled in the next 2-3 months.                                                         Request Insights

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IN THE NEWS
  • May 15, 2020: Nestlé Nespresso SA launched its first-ever coffee capsules, made with 80% recycled aluminum, in order to minimize waste and maximize the reuse of product materials.

  • April 28, 2020: Illycaffè, a global leader in the coffee industry, expanded its line of aluminum capsules, also available in Decaffeinato (decaffeinated) expresso, which is well-suited with Nespresso Original coffee machines.

  • August 12, 2019: To promote the sustainability and potential of recycling aluminum, Nestlé Nespresso SA, announced its partnership with Vélosophy, a Swedish lifestyle bike brand, to produce a stylish bicycle made from recycled aluminum coffee capsules.

Capsule Coffee Machine Market Overview

Coffee capsules are pre-portioned containers, made of aluminum or plastic, sealed with coffee inside, can be used for a single-serve, and have simplified the coffee-making method by making a café style coffee at home simple and easy. Capsule coffee machine comprises a compartment where the capsule is placed and punched with holes on both sides, one single hole on one side to permit the hot water to enter the capsule and numerous tiny holes on the other side to act as a filter. The rest of the mechanism is similar to a regular pump espresso coffee maker.

Market Size and Forecast

The capsule coffee machine market is expected to observe an attainable high CAGR during the forecast period, i.e., 2020-2028. The market is segmented by type, application, and region. Among product applications, the commercial segment is expected to hold the major market share globally. This is attributable to an upsurge in the number of cafes and restaurants around the globe and increasing prevalence of going out for a coffee, which has lead to installations of quick brewing machines in commercial sectors for their customers. Further, the budding trend of office breaks and quick grab particularly among millennials are driving this segment owing to its energy-boosting, stress-relieving, and mental alertness benefits.

The household segment is expected to witness fastest growth during the forecast period as a result of individuals seeking café style coffee at the comfort of their households. With increasing technology, easy coffee tutorials on social media, affordable coffee machines, rising consumption of coffee, and availability of a wide variety of flavors, had encouraged consumers to buy capsule coffee machines for themselves. Consumers in western countries favor home-brewed coffee preparations and henceforth it is anticipated to fuel the market growth. CLICK TO DOWNLOAD SAMPLE REPORT

Capsule Coffee Machine Market Graph

Growth Drivers

Growing demand for coffee consumption

According to the International Coffee Organization’s report, global coffee consumption for the year 2019-2020 is 164 487 (in thousand 60kg bags)

Worldwide, coffee intake has risen. With an upsurge in cafes, restaurants, and eateries around the world, consumers are easily accessing different types of coffee. Growing income support and technical literacy have enabled customers to shift their coffee experience to their homes, which, in turn, leads to a rise in quick coffee makers. Capsule coffee makers help the customers getting quick coffee of their preferred flavor, easily. Convenient usage and reliable brewing results are motivating the consumers to shift from instant coffee to capsule machines.

Additionally, an increase in per capita consumption in emerging economies, an increase in consumers preferring home-brewed coffee, need for a wider range of blends, and continuous advancement in technology and specifications has led to the increased prominence of the capsule coffee machines offered in the market.

Restraints

High cost associated

As compared to the roasted coffee powder and other coffee makers, coffee capsules and capsule coffee machines are quite expensive and this can act as a major market hindrance during the forecast period.

Additionally, single-serve aluminum coffee capsules have triggered a stir among environmentalists for the large scale dumping in landfills.

Market Segmentation

Our in-depth analysis of the capsule coffee machine market includes the following segments:

By Type

  • Closed-Source System
  • Open-Sourced System

By Application

  • Household
  • Commercial

By Region

Geographically, the capsule coffee machine market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.

North America capsule coffee machine market sales are primarily dominated by the U.S.A. North American and European regions have considerably higher per capita coffee intake which contributes significantly towards the overall market growth.

According to the National Coffee Association of the U.S.A., the admiration of single-cup brewing machines has climbed by almost 50% in the last five years, as of 2019. 

According to the new market research announced at the 2019 National Coffee Association Annual Convention held in Atlanta, 63% of American adults drink coffee daily.

Europe accounts for the largest market share in the global capsule coffee machine market on account of factors such as a high intake of coffee, changing preferences concerning flavors, growing population of European consumers keen to pay high prices for premium and specialty beverages, and growing usage of single-serve coffee in homes. The growth is majorly driven by Switzerland, followed by Germany, the United Kingdom, and Italy among other countries. With the upsurge in market value for coffee capsules and capsule coffee machines, the number of private-label players coming into the market is expected to intensify in the European region, over the forecast period.

The Asia-Pacific region is projected to exhibit the highest growth in the forecast period. This growth is attributed to increasing alertness among the consumers concerning advanced technology, growing cultural trends,  increasing the establishment of cafes, and growing inclination towards coffee.

The International Coffee Organization, an intergovernmental organization, bringing together coffee importing and exporting governments, sponsored their coffee development programs having coffee-producing countries of Africa, Asia, Latin America, and the Pacific region, as their main beneficiaries, to provide practical support to the world coffee economy.

The capsule coffee machine market is further classified based on region as follows:

•        North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis

•        Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis

•        Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis

•        Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis

•        the Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of the Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis

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