Capsule Coffee Machine Market Size was valued at USD 5.5 billion in 2022 and is projected to grow from USD 5.9 Billion in 2024 to USD 9.3 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 7.86% during the forecast period (2024 - 2030).Growing coffee consumption across emerging markets and rising use of capsule coffee machines among end users are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The capsule coffee machine market is poised for growth due to several factors, including the growing consumption of coffee in emerging markets. As more people in countries like China, India, and Brazil become interested in coffee, they are turning to convenient and easy-to-use machines like capsule coffee makers. According to a report by the International Coffee Organization, coffee consumption in China has grown by 16% annually over the past decade. In India, coffee consumption has grown by 5% annually over the same period. Brazil, which is already a major coffee producer, is also experiencing a rise in coffee consumption as the middle class expands.
Capsule coffee machines offer a hassle-free solution for making high-quality coffee at home or in the office, without the need for specialized equipment or knowledge. The convenience factor is particularly appealing to busy urban consumers, who value time-saving solutions. In addition to convenience, capsule coffee machines also offer a wide range of flavors and varieties, making it easy for consumers to experiment with different blends and tastes. This aspect is particularly attractive to consumers in emerging markets, who may be new to coffee and want to explore different options.
Therefore, such factors has enhanced the Capsule Coffee Machine market CAGR across the globe in the recent years. Furthermore, there has been a successful expansion into emerging markets in Capsule Coffee Machine which is another factor driving the growth of the Capsule Coffee Machine market revenue. For instance, Nestlé's Nespresso has been successful in expanding into emerging markets, such as China, by partnering with local retailers and establishing boutique stores in major cities. In India, Tata Global Beverages has introduced the Eight O'Clock Coffee brand, which includes a range of single-serve coffee pods compatible with Nespresso machines.
The  Capsule Coffee Machine Market segmentation, based on Type, includes Closed-Source System and Open-Source System. The closed-source system segment currently holds the largest market share in the  Capsule Coffee Machine Market revenue, and this is expected to continue in the coming years. Closed-source systems use proprietary capsules that are designed to work exclusively with a particular brand of machine. These systems offer several advantages over open-source systems, including greater control over the quality of the coffee, more consistent results, and a wider range of flavors and blends.
FIGURE 1: Â CAPSULE COFFEE MACHINE MARKET, BY TYPE, 2022 & 2030 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The  Capsule Coffee Machine Market segmentation, based on application, includes Household and Commercial. The household segment currently holds the largest market share in the  Capsule Coffee Machine Market. This is because capsule coffee machines are primarily designed for home use, and they offer consumers a convenient way to make a single cup of coffee without having to brew an entire pot. Additionally, the increasing popularity of specialty coffee and the desire for high-quality coffee at home have contributed to the growth of the household segment. However, the commercial segment is also growing rapidly, as more businesses and cafes adopt capsule coffee machines to provide their customers with high-quality coffee. This segment is expected to grow significantly in the coming years, driven by factors such as the increasing demand for specialty coffee in cafes and restaurants, and the convenience and ease of use of capsule coffee machines, thereby increasing the market growth.
November 2021:Â Nestle Professional introduced a new line of Nespresso-compatible capsules designed specifically for use in offices and other commercial settings. The capsules come in a variety of flavors and blends, and are designed to be easy to use and convenient for office employees.
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: Â CAPSULE COFFEE MACHINE MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR 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. Â 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.
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.
Capsule Coffee Machine 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.
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