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Thursday, April 18, 2024

Growing coffee pods market to take a harder stance

The coffee pod market is likely to see a compound annual growth rate of 2.2% between now and 2026, with the more sustainable hard pods being more and more in demand, a recent study by Fact.MR reveals.
The coffee pods market is likely to witness a moderate rise in sales to surpass 14,578,000 (000’ Units) by the end of the year and this moderate growth rate of the coffee pods market is likely to continue throughout the forecast period, with mushrooming coffee chains offsetting some of the sluggishness.
The ubiquitousness of coffee rituals across the world has resulted in a rise in the coffee production as well as consumption, triggering the adoption of pod coffee machines in households. Additionally, as pod coffee machines have become a cornerstone of a traditional coffee shop experience for consumers, the global demand for coffee pods is likely to increase in the upcoming years. To attract coffee connoisseurs and further improve sales, leading players in coffee pods market are introducing premium or specialty coffee pods, which marks an important trend in the coffee pods market.
A lead analyst at Fact.MR said: “Sustainability is likely to remain a dominating trend in the coffee pods market in the coming future. As an aftermath of the ongoing problem of increasing plastic waste generation and pollution, various governments are taking an initiative to ban the use of single-use plastic pods. This will directly result in a huge rise in demand for hard coffee pods, wherein soft coffee pods, being single-use pods, will witness a drop in sales. Prominent companies operating in the coffee pods market are likely to introduce compostable or reusable coffee pods to avoid the negative impacts of the potential ban on single-use, plastic coffee pods.”
Most countries in the European Union and North America are the leading importers of coffee, as the coffee consumption has been high in these regions. Recent study of the International Coffee Organization states that the global coffee consumption increased from 152 million bags to 161 million bags during 2014-2017. CBI, Ministry of Foreign Affair, Europe states that Europe accounts for over 30% of global coffee consumption. Furthermore, the National Coffee Association USA (NCA) the percentage of daily coffee consumption across the U.S. increased from 57% in 2016 to 62% in 2017. The thriving coffee culture and ever-expanding coffee shop industry in Europe is making it most lucrative region for the coffee pods market.
Sales conversion of medium roasted coffee beans is expected to record a relatively faster pace, owing to their attribute of balancing the coffee’s taste. Meanwhile, dark-roasted coffee pods remain a top pick for stalwart coffee-lovers. The dynamic taste for various types of coffee roasts is enabling players in coffee pods market to adopt definitive strategies to attract a particular group of coffee consumers. Furthermore, despite the growing incidences of negative health effects of coffee, the demand for regular coffee pods remains much higher than that for decaffeinated coffee pods. Nevertheless, decaffeinated coffee pods are gaining popularity among the elderly population, and consumers with caffeine allergies.
Nestle SA is expected to hold a significant revenue share in the coffee pods market as the company continues to collaborate with various other players, such as Starbucks Corporation, to enhance its international market footprint. Pervasiveness of Nespresso coffee machines is evident as many third-party manufacturers of coffee pods consider it a standard and are introducing coffee pods that are compatible with the Nespresso coffee machines. Other players in the coffee pods market, such as The J M Smucker Company, are aiming to target the at-home coffee category to expand their product portfolio and market share by catering to a large segment of the population.

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