Capsule Coffee Machine Market Trends

Growth Drivers

• Growing varieties of good-quality coffee will boost the capsule coffee machine market size: According to the British Coffee Association, in November 2020, Bazarta which is a well-known coffee grinder manufacturing company, observed sales growth by 70% since the start of the COVID-19 pandemic. In April 2024, Nestlé experts developed a very high-quality arabica, using advanced data science methods, that has greater resilience to disease or drought, as well as flavor or aroma characteristics. In the commercial sector, such as cafes and restaurants, growing consumer knowledge of variety and specialized beverages is considerably influencing consumption decision-making.
• Advancements in coffee capsule machines: Due to the rising demand from consumers with shorter wait times, coffee shops are using capsule coffee machines 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. For instance, Nespresso in November 2022, announced the launch of paper-based home compostable capsules which are sustainable and retro-compatible with Nespresso Original machines. 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. The aluminum industry generates over 1.1 billion tonnes of CO2 emissions annually. As a result, landfills currently make up a significant portion of this world, adding to the capsule coffee machine market drawbacks.
• High-cost associated with the capsule: Capsule coffee machines often come with high costs due to the proprietary nature of their capsules, locking users into purchasing expensive branded pods. Over time, this dependency significantly increases the cost of coffee compared to traditional brewing methods. This also limits user flexibility in choosing coffee options, adding to the overall cost.