The global coffee pods and capsules market is estimated to grow by $9.46 billion from 2022 to 2027, according to a report by Technavio.

The market is estimated to decline at a CAGR of 6.16% during the forecast period. However, the growth momentum will decelerate, while Europewill account for 45% of the market’s growth. 

The report also includes historic market data from 2017 to 2021. In 2017, the coffee pods and capsules market was valued at $18.4billion.

Coffee capsules with aluminium covers and plastic cup-based coffee pods played a significant role in the market as they are pre-measured and packaged coffee options. 

This is majorly due to the increase in demand for instant non-alcoholic beverages. Coffee producers choose capsules because of their versatility, ease of use, and compatibility with a wide range of types of equipment and coffee items. 

Evolving packaging technologies and the capacity to compete with high-end and exotic brands are reasons for the popularity of coffee capsules.

By geography, the global coffee pods and capsules market is segmented into Europe, North America, APAC, Middle East and Africa, and South America. 

Europe will account for 45% of the global coffee capsules and coffee pods market during the forecast period. 

In 2019, it was estimated that 13.2% of the total household expenditure was on foods and beverages. 

Supermarkets and hypermarkets, which are the primary distribution channels for coffee capsules and coffee pods are majorly preferred in urban areas of the region. 

These factors are expected to drive the growth of the coffee pods and capsules market in the region during the forecast period.