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Capsule Coffee Machine Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global capsule coffee machine market was valued at USD 18.7 billion in 2022 and is expected to grow at a CAGR of 9.7% from 2023 to 2030. The rising demand for convenient and easy-to-use coffee machines is driving the growth of the market. Capsule coffee machines offer convenience and ease of use, as they require little to no effort to get the perfect cup. This is a major factor that drives the popularity of these machines and encourages people to switch from traditional coffee making methods to capsule coffee machines. The availability of a wide range of capsules, which provide various flavors and styles of coffees, further boosts the demand for these machines.
Moreover, the rising trend of premiumization and health consciousness among consumers is driving the demand for specialty coffee. Consumers are increasingly shifting toward premium and specialty coffee in order to experience new flavors and get a better quality cup of coffee. This has led to the launch of various capsule coffee machines, which are equipped with advanced features that offer superior performance and better taste. For instance, in June 2021, Keurig launched Keurig Special Edition Coffee Maker with a built-in milk frother.
Furthermore, the growing trend of smart home appliances is creating opportunities for manufacturers to launch innovative products. For instance, in October 2021, Nespresso launched a new coffee machine with voice control and connected features. The machine is equipped with an intuitive touch screen, which can be operated using voice commands to make different types of coffee. Additionally, manufacturers are also introducing capsule coffee machines with improved design and features to attract customers. For instance, in January 2021, Lavazza launched the Lavazza A Modo Mio Luna coffee machine with a sleek and modern design.
The rising consumer preference for coffee shop-style coffee at home is another significant factor driving the growth of the market. Furthermore, the rising disposable income, coupled with the convenience of home deliveries, is increasing the demand for capsule coffee machines. The increasing availability of capsule coffee machines in various price ranges and the availability of capsules in bulk packs are further expected to increase sales. Additionally, the growing popularity of capsule coffee machines in the hospitality industry is another major factor driving the growth of the market.
Product Insights
The single-serve coffee machine segment accounted for the largest market share, owing to the convenience and efficiency offered by these machines. Single-serve coffee machines are designed to prepare one cup of coffee at a time, thereby reducing the time and effort required for the preparation of coffee. According to an article published by Food Business News, in November 2019, 38% of coffee drinkers said they are more likely to buy a single-serve coffee machine if it were available. Furthermore, advanced features such as fast brew time, automated functions, and multiple brew sizes are further propelling the growth of the segment.
The multi-serve coffee machine segment is anticipated to register the highest CAGR over the forecast period, owing to the rising demand for multi-serve machines due to their ability to make more than one cup of coffee at a time. Moreover, the growing trend of entertaining guests and the increasing consumption of coffee among households are further projected to have a positive impact on the segment’s growth.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the major share of the capsule coffee machine market in 2022. The growth of the segment is mainly attributed to the convenience offered by supermarkets and hypermarkets for customers to buy the latest products. Moreover, supermarkets & hypermarkets provide a variety of capsule coffee machines with different features, colors, and designs, allowing customers to make better purchasing decisions. In addition, they provide discounts on bulk purchase and offer various payment options, such as cash, debit/credit cards, and online payments, to their customers.
The online segment is anticipated to register the highest CAGR of 14.9% from 2022 to 2028. The availability of numerous online retail stores and increasing penetration of internet usage have propelled the growth of the segment. Online stores provide detailed information about the products and provide easy access to a wide range of capsule coffee machines. In addition, the cost of the product is usually lower than the offline stores, and online retailers offer discounts and cashback offers, which also drives online sales.
Type Insights
The capsule coffee machine segment accounted for the largest share in the global market in 2022. This segment is experiencing a rise in demand as it is cost-effective, convenient, and requires minimal effort to use. Moreover, the rising demand for single-serve coffee makers is expected to boost the growth of this segment. Furthermore, the rising demand for beverages with different flavors and the introduction of new products by leading companies, such as Nespresso, are driving the growth of this segment.
The espresso coffee machine segment is projected to grow at the highest CAGR during the forecast period. This growth can be attributed to the increasing demand for espresso coffee machines due to their durability, convenience, and ability to deliver consistent results. Additionally, the introduction of technologically advanced coffee makers by various companies, such as Keurig and Nespresso, is expected to drive the growth of this segment. Furthermore, the increasing demand for coffee machines with advanced features, such as touchscreens and voice-activated functions, is anticipated to propel the growth of this segment during the forecast period.
Regional Insights
Europe is expected to remain the largest market for capsule coffee machines and accounted for the largest market share of 38.9% in 2022. The presence of major players, such as Nestlé, Lavazza, and Jacobs Douwe Egberts, is expected to bolster the market growth in the region. Moreover, the rising demand for convenient coffee products is also expected to drive the market growth in the region. For instance, in April 2021, Nestlé launched its Nespresso Vertuo Next coffee machine in Europe.
North America is expected to witness the fastest growth in the coming years. The growing popularity of advanced coffee machines, such as single-serve coffee machines, is expected to drive the market growth in the region. Moreover, the presence of major players, such as Keurig Green Mountain, is expected to further drive the market growth in the region. For instance, in October 2020, Keurig Green Mountain announced the launch of its K-Supreme Plus coffee maker in the U.S.
Financial Projections
In this part of the capsule coffee machine products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your capsule coffee machine products. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a capsule coffee machine products business comes from sales of products, subscriptions, and wholesale orders. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, the sale of merchandise, and leasing the place for parties and corporate events.
Projecting Expenses
In this section, all the regular expenses related to keeping the capsule coffee machine products business running will be described. The list of operating expenses includes manufacturing costs, wages, marketing and advertising expenses, utilities, insurance policies, and others.
Key companies & market share insights
Some of the key companies operating in the capsule coffee machine market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Nespresso launched the Vertuo Next, an all-new capsule coffee machine with a new design and improved features.
– In August 2022, Keurig Dr Pepper Inc. launched the K-Cafe Special Edition, a new capsule coffee machine with a stronger motor and improved brewing capabilities.
– In October 2022, Lavazza launched the A Modo Mio Favola Plus, a new capsule coffee machine with a wide range of features.
Some of the prominent players in the capsule coffee machine market include:
– Nespresso
– Keurig Dr Pepper Inc.
– Lavazza
– Illycaffè
– Bunn
– Cuisinart
– DeLonghi
– Hamilton Beach
– Krups
– Philips
Global Capsule Coffee Machine Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global capsule coffee machine products market based on product type, distribution channel, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Single Serve
– Multi Serve
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the Potential of Product Innovation?
[A]: Product innovation is an important factor driving the growth of the capsule coffee machine market. With rapid advances in technology, manufacturers are striving to introduce new products that are more user-friendly, efficient, and cost-effective. For instance, some capsule coffee machines offer features such as adjustable cup size, temperature control, and automatic shut-off, which are especially attractive to consumers.
[Q]: Who are the Key Players in the Capsule Coffee Machine Market?
[A]: Nestlé, Keurig Green Mountain, Inc., BSH Hausgeräte GmbH, Delonghi S.p.A, Breville Group Ltd, Hamilton Beach Brands Holding Company, Jarden Corp., and AEG are some of the key players in the capsule coffee machine market.
[Q]: Which Region Offers the Largest Opportunity for Sales of Capsule Coffee Machines?
[A]: North America is expected to be the largest market for capsule coffee machines, owing to the presence of a large number of coffee machine manufacturers in the region. Furthermore, the presence of leading manufacturers such as Nestlé, Keurig Green Mountain, and BSH Hausgeräte GmbH in the region is expected to drive market growth.
[Q]: What are the factors driving the capsule coffee machine market?
[A]: Factors such as the increasing demand for convenience, rising disposable incomes, and the proliferation of café culture are some of the major drivers of the capsule coffee machine market. Moreover, the availability of a wide variety of capsules and the convenience of using these machines are also aiding market growth.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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