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    Capsule Coffee Machine Market

    ID: MRFR/CR/6510-CR
    128 Pages
    Pradeep Nandi
    June 2019

    Capsule Coffee Machine Market Research Report Information By Type (Closed-Source System and Open-Source System), By Application (Household and Commercial), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030

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    Capsule Coffee Machine Market Infographic
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    Capsule Coffee Machine Market Summary

    As per MRFR analysis, the Capsule Coffee Machine Market Size was estimated at 6.364 USD Billion in 2024. The Capsule Coffee Machine industry is projected to grow from 6.864 USD Billion in 2025 to 14.63 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.86 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The Capsule Coffee Machine Market is experiencing a dynamic shift towards sustainability and technological integration.

    • North America remains the largest market for capsule coffee machines, driven by a strong coffee culture and consumer demand for convenience.
    • The Asia-Pacific region is emerging as the fastest-growing market, reflecting a rising interest in specialty coffee and innovative brewing methods.
    • Closed-source systems dominate the market, while open-source systems are rapidly gaining traction among tech-savvy consumers.
    • Key market drivers include the increasing emphasis on sustainability and eco-friendly practices, alongside the demand for diverse flavor options.

    Market Size & Forecast

    2024 Market Size 6.364 (USD Billion)
    2035 Market Size 14.63 (USD Billion)
    CAGR (2025 - 2035) 7.86%

    Major Players

    Nestle (CH), Keurig Dr Pepper (US), JDE Peet's (NL), Philips (NL), De'Longhi (IT), Breville (AU), Hamilton Beach (US), Caffitaly (IT)

    Capsule Coffee Machine Market Trends

    The Capsule Coffee Machine Market is currently experiencing a notable transformation, driven by evolving consumer preferences and advancements in technology. As individuals increasingly seek convenience and quality in their coffee experiences, the demand for capsule machines has surged. These devices offer a quick and efficient way to brew coffee, appealing to busy lifestyles. Furthermore, the market is witnessing a shift towards sustainability, with manufacturers exploring eco-friendly materials and recyclable capsules. This trend reflects a growing awareness among consumers regarding environmental impact, prompting brands to innovate in their product offerings. In addition to sustainability, the Capsule Coffee Machine Market is also influenced by the rise of specialty coffee. Consumers are becoming more discerning, seeking unique flavors and high-quality beans. This has led to an expansion of capsule options, catering to diverse tastes and preferences. Moreover, the integration of smart technology into coffee machines is gaining traction, allowing users to customize their brewing experience through mobile applications. As these trends continue to evolve, the Capsule Coffee Machine Market is poised for further growth, adapting to the changing landscape of consumer demands and technological advancements.

    Sustainability Initiatives

    The Capsule Coffee Machine Market is increasingly focusing on sustainability, with manufacturers prioritizing eco-friendly materials and recyclable capsules. This shift is driven by consumer demand for environmentally responsible products, prompting brands to innovate and reduce their ecological footprint.

    Rise of Specialty Coffee

    There is a growing trend towards specialty coffee within the Capsule Coffee Machine Market. Consumers are seeking unique flavors and high-quality beans, leading to an expansion of capsule options that cater to diverse tastes and preferences.

    Integration of Smart Technology

    The incorporation of smart technology into capsule coffee machines is becoming more prevalent. Users can customize their brewing experience through mobile applications, enhancing convenience and personalization in their coffee preparation.

    The growing consumer preference for convenience and quality in coffee preparation is reshaping the landscape of the capsule coffee machine market, indicating a shift towards more sophisticated and user-friendly brewing solutions.

    U.S. Department of Agriculture

    Capsule Coffee Machine Market Drivers

    Rising Coffee Culture

    The Capsule Coffee Machine Market is significantly impacted by the rising coffee culture across various demographics. As coffee consumption becomes a social norm, particularly among younger generations, the demand for convenient brewing solutions is on the rise. This cultural shift is reflected in market data, which shows that coffee consumption has increased by approximately 5% annually in recent years. The trend towards coffee as a lifestyle choice, coupled with the ease of use offered by capsule machines, is likely to sustain growth in this market. As more consumers embrace coffee culture, the capsule coffee machine segment is expected to thrive.

    Diverse Flavor Options

    The Capsule Coffee Machine Market benefits from the growing consumer interest in diverse flavor options. As coffee enthusiasts seek unique and varied experiences, manufacturers are responding by offering a wide range of coffee capsules that cater to different tastes and preferences. This trend is supported by market data showing that flavored and specialty coffee capsules account for a significant portion of sales, with an estimated 30% of consumers opting for these varieties. The availability of seasonal and limited-edition flavors also enhances consumer engagement, encouraging repeat purchases and brand loyalty. This diversity in offerings is likely to continue fueling growth within the capsule coffee machine sector.

    Technological Advancements

    The Capsule Coffee Machine Market is witnessing a wave of technological advancements that enhance user experience and product functionality. Innovations such as smart connectivity, app integration, and customizable brewing settings are becoming increasingly prevalent. These features allow consumers to tailor their coffee experience to their preferences, which is particularly appealing to tech-savvy individuals. Market data indicates that machines with advanced technology are projected to capture a larger market share, with an expected growth rate of 15% in the next few years. As technology continues to evolve, it is likely to play a crucial role in shaping consumer choices and driving market growth.

    Convenience and Time Efficiency

    The Capsule Coffee Machine Market is experiencing a surge in demand due to the increasing preference for convenience and time efficiency among consumers. As lifestyles become busier, individuals seek quick and easy solutions for their coffee needs. Capsule coffee machines offer a streamlined brewing process, allowing users to prepare their favorite beverages in a matter of minutes. This trend is reflected in market data, which indicates that the capsule coffee segment has seen a growth rate of approximately 10% annually. The ability to enjoy high-quality coffee without the need for extensive preparation or cleanup is appealing to both home users and office environments, further driving the market's expansion.

    Sustainability and Eco-Friendly Practices

    The Capsule Coffee Machine Market is increasingly influenced by sustainability and eco-friendly practices. As consumers become more environmentally conscious, there is a growing demand for coffee capsules that are recyclable or made from sustainable materials. Companies are responding by innovating their product lines to include biodegradable capsules and implementing recycling programs. Market data suggests that approximately 25% of consumers are willing to pay a premium for eco-friendly products, indicating a shift in purchasing behavior. This trend not only aligns with consumer values but also positions brands favorably in a competitive market, potentially enhancing their market share and reputation.

    Market Segment Insights

    By Type: Closed-Source System (Largest) vs. Open-Source System (Fastest-Growing)

    In the Capsule Coffee Machine Market, the Closed-Source System dominates with a significant market share. This system is primarily associated with well-known brands that offer a proprietary range of capsules, ensuring consistency and quality in every brew. Consumers are attracted to the reliability and performance of these machines, making them a preferred choice in many households. However, the Open-Source System, while currently smaller in market share, has been gaining traction quickly. This burgeoning interest illustrates a shift towards flexibility and customization in coffee preparation, appealing particularly to younger, tech-savvy consumers who appreciate the variety and personalization that this system affords.

    Capsule Coffee Machines: Closed-Source System (Dominant) vs. Open-Source System (Emerging)

    The Closed-Source System is characterized by its exclusivity, relying on brand-specific capsules that often result in superior taste and brewing consistency. This segment is perceived as more user-friendly and offers a straightforward coffee experience, making it popular among consumers seeking convenience. In contrast, the Open-Source System is emerging rapidly, driven by an increasing demand for eco-friendly and cost-effective solutions. It allows consumers to use third-party capsules and even reusable pods, catering to their individual preferences. This shift not only reflects a desire for variety and personal choice but also aligns with the growing trend towards sustainability and reducing waste, hence appealing widely to environmentally conscious buyers.

    By Application: Household (Largest) vs. Commercial (Fastest-Growing)

    In the Capsule Coffee Machine Market, the application segment is primarily divided into Household and Commercial categories. Household applications hold a significant portion of the market share, reflecting a strong preference among consumers for convenient, single-serve coffee options at home. This segment's widespread adoption is driven by the increasing demand for quick and quality coffee experiences, thus establishing it as the largest segment in terms of consumption.

    Application: Household (Dominant) vs. Commercial (Emerging)

    The Household use of capsule coffee machines is characterized by convenience, quality, and variety. Consumers in this segment prefer easy-to-use machines that allow for a diverse coffee experience without the need for extensive brewing knowledge. They favor brands that offer a wide selection of coffee pods and customized brewing options. In contrast, the Commercial segment is seeing rapid growth, driven by a shift in consumer preferences for convenience in offices, cafes, and restaurants. This segment embraces machines that provide efficiency for high-volume usage, catering to the needs of busy environments. While Household remains dominant, Commercial is gaining momentum due to changing lifestyles and the increasing popularity of coffee culture.

    Get more detailed insights about Capsule Coffee Machine Market

    Regional Insights

    By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Capsule Coffee Machine market accounted for USD 2.5 billion ni 2022 and is expected to exhibit a significant CAGR growth during the study period. In North America, the demand for capsule coffee machines is driven by the convenience and ease of use of these machines, which are designed to make a single cup of coffee quickly and easily.

    Additionally, many consumers in North America are willing to pay a premium for high-quality coffee, and capsule coffee machines offer a convenient way to make specialty coffee drinks at home.

    Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

    FIGURE 2:  CAPSULE COFFEE MACHINE MARKET SHARE BY REGION 2022 (%)CAPSULE COFFEE MACHINE MARKET SHARE BY REGION 2022

    Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

    Europe Capsule Coffee Machine market accounts for the second-largest market share due to the growing popularity of espresso and other specialty coffee drinks, as well as the high number of cafes and restaurants that use these machines. In addition, the growth of the hospitality industry and the increasing demand for on-the-go coffee options have contributed to the growth of the market in Europe.  Further, the Germany Capsule Coffee Machine market held the largest market share, and the UK Capsule Coffee Machine market was the fastest growing market in the European region.

    However, environmental concerns about the packaging of coffee pods and capsules are impeding the region's market growth. As a result, several new entrants are developing sustainable packaging solutions to address this issue. For example, in September 2022, Cafe Royal invented a coffee pod shaped like a ball. This ball is encased in a thin shell made of a vegetable layer that is completely compostable. The product is truly zero waste in terms of capsules.

    The Asia-Pacific Capsule Coffee Machine Market is expected to grow at the fastest CAGR from 2022 to 2030. In Asia-Pacific, the market for capsule coffee machines is growing rapidly, driven by factors such as increasing disposable incomes, changing consumer preferences, and the growth of the coffee culture in the region. Countries such as China, Japan, and South Korea have seen significant growth in the capsule coffee machine market in recent years, as consumers in these countries increasingly seek out high-quality coffee and convenience in their daily lives.

    Moreover, China Capsule Coffee Machine market held the largest market share, and the India Capsule Coffee Machine market was the fastest growing market in the Asia-Pacific region.

    Key Players and Competitive Insights

    Major market players are investing heavily in R&D to expand their product lines, which will help the Capsule Coffee Machine market grow even further. Market participants are also pursuing a variety of strategic initiatives to expand their global footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. To expand and survive in an increasingly competitive and rising market environment, Capsule Coffee Machine industry must offer cost-effective items.

    One of the primary business strategies adopted by manufacturers in the global Capsule Coffee Machine industry to benefit clients and expand the market sector is to expand their production capacity and are adopt innovative technologies in order to meet consumer demand for capsule machines. The Capsule Coffee Machine market major player such as Starbucks Corporation (US), Nestlé S.A. (Switzerland), Pacific Coffee Co. Ltd (Hong Kong), Jacobs Douwe Egberts B.V. (Netherlands), Ningbo Aaa Group Electric Appliance Co. Ltd. (China), Keurig Dr.

    Pepper Inc. (US), Bradshaw Home Inc. (US), Kraft Heinz Company (US), Dualit Limited (UK), Luigi Lavazza S.p.A. (Italy), Illycaffè S.p.A. (Italy), and Others.

    Starbucks Corporation is a multinational chain of coffeehouses and roastery reserves. Founded in Seattle, Washington, in 1971, Starbucks has become one of the largest coffeehouse companies in the world, with over 30,000 locations in 80 countries. The company serves a wide variety of hot and cold beverages, pastries, sandwiches, and other food items, as well as coffee beans, tea, and related equipment and accessories. In recent years, Starbucks has also ventured into the capsule coffee machine market, which is a growing segment of the coffee industry.

    Capsule coffee machines, also known as pod coffee machines, are automated coffee makers that use pre-measured, pre-packaged coffee pods or capsules to brew a single cup of coffee. These machines have become increasingly popular due to their convenience and ease of use.

    Pacific Coffee Co. Ltd is a coffee company based in Hong Kong that was founded in 1992. It operates coffee shops across Hong Kong, mainland China, and Singapore, offering a range of high-quality coffee beverages, pastries, and other food items. In addition to its brick-and-mortar coffee shops, Pacific Coffee Co. Ltd has also entered the capsule coffee machine market. The company offers its own brand of capsule coffee machines, which are designed to make it easy for consumers to enjoy high-quality coffee at home or in the office.

    Key Companies in the Capsule Coffee Machine Market market include

    Industry Developments

    September 2022: The Swiss coffee brand "CoffeeB" introduced single-serve coffee, a novel compressed coffee ball made of seaweed rather than an aluminium or plastic capsule.

    August 2022: Tim Hortons has introduced four new espresso capsules that are compatible with Nespresso machines. Classic, bright, bold, and decaf are the four varieties available.

    Future Outlook

    Capsule Coffee Machine Market Future Outlook

    The Capsule Coffee Machine Market is projected to grow at a 7.86% CAGR from 2024 to 2035, driven by convenience, innovation, and sustainability trends.

    New opportunities lie in:

    • Expansion into smart home integration solutions
    • Development of eco-friendly capsule alternatives
    • Partnerships with gourmet coffee brands for exclusive blends

    By 2035, the market is poised for robust growth, reflecting evolving consumer preferences and technological advancements.

    Market Segmentation

    Capsule Coffee Machine Market Type Outlook

    • Closed-Source System
    • Open-Source System

    Capsule Coffee Machine Market Application Outlook

    • Household
    • Commercial

    Report Scope

    MARKET SIZE 20246.364(USD Billion)
    MARKET SIZE 20256.864(USD Billion)
    MARKET SIZE 203514.63(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)7.86% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesIntegration of smart technology enhances user experience in the Capsule Coffee Machine Market.
    Key Market DynamicsRising consumer preference for convenience drives innovation and competition in the capsule coffee machine market.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    Market Highlights

    Author
    Pradeep Nandi
    Senior Research Analyst

    I have a bachelor's degree in mechanical engineering and an MBA. I have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. A firm believer in lifelong learning and sharing of knowledge. Having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. Introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest. 

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    FAQs

    How much is the Capsule Coffee Machine market?

    The Capsule Coffee Machine market size was valued at USD 5.5 Billion in 2022.

    What is the growth rate of the Capsule Coffee Machine market?

    The market is projected to grow at a CAGR of 7.86% during the forecast period, 2024-2030.

    Which region held the largest market share in the Capsule Coffee Machine market?

    North America had the largest share in the market.

    Who are the key players in the Capsule Coffee Machine market?

    The key players in the market are Starbucks Corporation (US), Nestlé S.A. (Switzerland), Pacific Coffee Co. Ltd (Hong Kong), Jacobs Douwe Egberts B.V. (Netherlands), and Ningbo Aaa Group Electric Appliance Co. Ltd. (China).

    Which Type led the Capsule Coffee Machine market?

    The closed-source system category dominated the market in 2022.

    Which Application had the largest market share in the Capsule Coffee Machine market?

    The household had the largest share in the market.

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