The coffee pods market is set to grow by $8.53 billion, progressing at a CAGR of over 5% between 2020 and 2025, according to a new report by Techavio.

The market is fragmented, and the degree of fragmentation will accelerate during the forecast period. 

Dunkin’ Brands Group Inc., illycaffe Spa, JAB Holding Co. Sarl, Luigi Lavazza Spa, maxingvest AG, Melitta Group Co., Nestle SA, Starbucks Corp., The J.M. Smucker Co., and The Kraft Heinz Co. are some of the major market participants. 

The convenience of using coffee pods will offer immense growth opportunities. To leverage the current opportunities, market vendors must strengthen their foothold in the fast-growing segments, while maintaining their positions in the slow-growing segments. 

Some of the main vendors are following coffee capsules. These coffee capsules usually comprise of roasted coffee wrapped in aluminium and plastic cups which require processing to recycle making them critical from environmental aspects. 

Some of the prominent vendors in the coffee pods market compete on basis of price, quality, innovation, distribution and promotion. In addition, the rise in the number of product launches is a key factor fuelling the global coffee pods market for a long time. 

Moreover, the rise in demand for organic coffee in various countries is encouraging vendors to launch innovative products consistently for the expansion of their customer base. However, with an increasing number of product launches the consumers can have a wide range of options to choose from.

Moreover, there has been significant growth in the number of organised retailers worldwide, such as supermarkets, hypermarkets, and specialty stores. Also, these supermarkets and hypermarkets have emerged as a major distribution channel for coffee pods in various countries in the world.