PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1627790
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1627790
The global coffee pods market is projected to rise at a compound annual growth rate (CAGR) of 5.68% to reach a market valuation of US$32,391.728 million by 2030, from US$24,568.748 million in 2025.
The global coffee pods market is projected to rise at a moderate growth rate. The industry is expected to be affected by changing environmental and governmental regulations, which are anticipated to challenge market growth as well. In addition, the increasing market developments, including product launches, collaborations, agreements, acquisitions, and other related factors, are anticipated to push the market demand and growth. The change in the composition of flavor and caffeine content verticals is also expected to affect the market trajectory. However, with projections of the healthy growth rate of distribution channels of coffee pods worldwide, the market is expected to rise steadily.
The coffee pods will have a significant role in the market expansion owing to their easy availability and wide application in household, industrial, and brewed sectors. The coffee pod is also called a single-use coffee container as only one coffee can be prepared from it, and it is similar to tea bags. The one-time use and disposable feature of the coffee pods is the main attraction to the consumers, as these eliminate the additives and additional flavors and simplify the brewing process, thus reducing the time.
The demand for coffee pods is increasing due to the rapid change in lifestyle, the gradual change in the consumer's preference for innovative and ready-to-use products, and the awareness of the health benefits derived from the consumption of organic coffee. The rapid urbanization is further fostering the demand for coffee pods. In addition to this, the increased adoption of the fair-trade practice by the cultivators of the coffee beans and the desire to recreate the experience of the cafe at home is further directing consumers towards the purchase of coffee pods.
According to the United States Department of Agriculture (USDA), the top coffee exporter in the United States in 2022 was Brazil. Colombia, Vietnam, and Guatemala exported around 31%, 19%, 10%, and 6%, respectively. Therefore, with the increase in coffee consumption, the export of coffee is anticipated to increase in upcoming years. for instance- in 2022, 26.5 million bags of coffee were imported in the United States. Hence, with increasing coffee consumption the market for coffee pods is expected to grow.
Coffee pods market growth drivers
Rapid urbanization significantly influences the coffee pods market by driving demand for convenient and time-efficient solutions, particularly among urban consumers with fast-paced lifestyles. As cities expand, more individuals shift to smaller living spaces and workplaces, where traditional coffee brewing methods may be less practical, creating a preference for single-serve, easy-to-use coffee pods. For instance, according to the United Nations Conference on Trade and Development (UNCTAD), all over the world, a growing proportion of the population lives in cities. In 2012, 52.5 per cent lived in urban areas. The share of urban population was projected to have increased to 56.9 per cent in 2022. It is generally higher in the developed (79.7 per cent in 2022) than in the developing world (52.3 per cent). In LDCs, the people living in urban areas are in the minority (35.8 per cent). Additionally, according to the World Bank, 68% of the total population, that is 7 out of 10 people will live in urban areas by 2050. Hence, the growing urban population is anticipated to positively influence the market for coffee pods in the coming years.
Furthermore, the trend of urban coffee culture along with increased disposable incomes and a growing tendency towards high-end, customized beverages also propels the adoption of coffee pod systems. Increasing population density within cities also leads to greater office and co-working facility development, thereby further expanding demand for coffee pods adapted for individual as well as shared consumption.
Coffee Pods Market Geographical Outlook
The North American region is anticipated to hold significant market share in the projected period.
North America is expected to experience growth at a significant rate during the forecast period, mainly due to growing demand for single-serve coffee and specialty coffee from consumers. This is on account of fast-paced lifestyles in cities where people are looking for more convenient and time-efficient solutions, as well as premium and customized coffee experiences at home and in offices. Additionally, innovation in coffee pod technology, such as eco-friendly and compostable pods, is attracting the environmentally aware consumer, thus driving the market in the region.
In addition, the Asia Pacific and European regions are expected to gain significant market shares, with different regional trends. The increasing penetration of international and domestic coffee chains in Asia Pacific, coupled with the growth in disposable incomes of middle-class consumers, is driving adoption of coffee pods. Western coffee culture is increasingly gaining influence, especially in urban centers, thus fueling the demand. In Europe, the rich coffee culture is blending with the newer trend of convenience and innovation in this beverage, thus giving rise to a steady increase in coffee pod consumption. Expansion of cafe culture and introducing diverse pod flavors according to local tastes will further strengthen the market outlook in these regions.
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