Capsule Coffee Machine Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The coffee capsule machine market is expected to grow at a rapid rate. In 2024, it is expected to be worth $ 5.9 billion and by 2030, $ 9.3 billion. This means that the compound annual growth rate (CAGR) is expected to be 7.86%. This growth is mainly due to the fact that the consumers’ preference for convenience and quality in coffee preparation is increasing. The demand for capsule coffee machines is rising as a result of technological advances and the introduction of a wide range of coffee capsules. The leading players in the market, such as Nespresso, Keurig Dr Pepper and Lavazza, are constantly investing in product development and strategic alliances to strengthen their position. For example, Nespresso has launched new capsules and machines that are more sustainable, while Keurig has introduced a wider range of coffee flavors and brewing options. These strategic initiatives not only strengthen brand loyalty, but also meet evolving consumer preferences, which in turn fuels the growth of the coffee capsule machine market.

Regional Market Size

Regional Deep Dive

The Capsule Coffee Machines Market is growing significantly in various regions, owing to the changing preferences of consumers for convenience and quality in the preparation of coffee. The North American market is characterized by the presence of leading companies and the growing demand for single-serve coffee solutions. Europe, with its diverse coffee cultures, is characterized by a high demand for premium and specialty coffee capsules. The Asia-Pacific region is characterised by the growing penetration of capsule coffee machines, driven by the growing middle class and urbanization. The Middle East and Africa are gradually adopting capsule coffee machines, driven by the growing coffee culture and the increasing availability of disposable income. Latin America, which has long been characterized by its coffee production, is now experiencing a shift towards capsule consumption, driven by the changing habits of consumers and their preference for convenience.

Europe

• In Europe the market is characterized by a great concern for the environment. Lavazza and Illy are investing in biodegradable and compostable capsules to meet the standards set by the European Union.
• The growing number of coffee houses, the increasing popularity of home-made coffee, have led to the development of capsules, and to the introduction of special capsules by companies like Nespresso, which contain rare and expensive blends.

Asia Pacific

• The Asia-Pacific region is witnessing a rapid increase in capsule coffee machine adoption, particularly in countries like China and Japan, where urban lifestyles and a growing coffee culture are driving demand for convenient coffee solutions.
• Key players such as Philips and Breville are entering the market with advanced capsule machines that offer customizable brewing options, catering to the diverse taste preferences of consumers in this region.

Latin America

• Latin America, a coffee-growing region, is also moving towards capsules. Nespresso and Dolce Gusto are launching products that highlight the local varieties, thereby attracting both local and international consumers.
• The region's increasing urbanization and rising disposable incomes are driving demand for capsule coffee machines, as consumers seek convenient and high-quality coffee solutions in their daily lives.

North America

• The North American market is dominated by major players such as Keurig Dr. Pepper and Nestlé, which have constantly been introducing capsules that are more sustainable and more easily recycled to respond to growing public concern about the environment.
• The capsules are being dispensed by subscription. Blue Bottle Coffee and Nespresso offer subscription models, which cater to the increasing demand for convenience and a diversified choice of coffee.

Middle East And Africa

• In the Middle East, the growing coffee culture is being supported by local brands like Al Masah Coffee, which are introducing capsule machines that cater to regional tastes and preferences, thus expanding the market.
• Regulatory changes promoting the import of coffee machines and capsules are facilitating market growth, as governments recognize the potential economic benefits of a burgeoning coffee industry.

Did You Know?

“Did you know that the first capsule coffee machine was introduced in 1986 by Nespresso, revolutionizing the way coffee is brewed at home and leading to the widespread popularity of single-serve coffee solutions?” — Nespresso

Segmental Market Size

Capsule coffee machines play a central role in the coffee appliance market, which is growing steadily due to consumers’ increasing demand for high-quality coffee at home. The main driving forces behind the growth of this market are the growing trend towards home brewing, as consumers are increasingly looking for barista-style coffee at home without the complexity of more traditional methods, and the growing emphasis on the environment. Many brands are now offering capsules that are either fully compostable or can be recycled. In terms of market penetration, capsule coffee machines are already in a mature phase, with Nespresso and Keurig leading the way in terms of innovation and distribution. Home use, office use and use in speciality coffee shops, where speed and quality are paramount, are the main areas of application. Home brewing is gaining ground further due to the current trends towards health and the environment. These developments are also reflected in the technological trends towards smart brewing and app-connected appliances, which improve the end-user experience and efficiency.

Future Outlook

The capsule coffee machine market is expected to grow significantly from 2024 to 2030, when the value of the market is projected to increase from $ 5.9 billion to $ 9.3 billion, at a CAGR of 7.86%. The growth is driven by a growing preference for convenience and quality in the preparation of coffee, and the growing penetration of capsule coffee machines in the household and commercial sector. The penetration of capsule coffee machines in households in developed regions is expected to reach about 25% in 2030, with the growth of urbanization and rising incomes in emerging economies contributing to this expansion. The development of smart capsule coffee machines, which are able to connect to the Internet of Things, will also help to enhance the customer experience and increase penetration. Also, the trend towards sustainable development is expected to have a significant influence on the market, with manufacturers increasingly focusing on eco-friendly capsules and recyclable materials to meet consumer demand for more sustainable products. As coffee culture evolves, the capsule coffee machine market is expected to benefit from the development of new products and strategic alliances.