Summary

Since 2020, the global coffee pods and capsules market has exhibited a robust growth trajectory. In 2024, the market achieved a valuation of $28.65 billion, with projections indicating a compound annual growth rate (CAGR) of 6.91% from 2024 to 2029, potentially reaching $40 billion. Notably, coffee production experienced a significant increase between 2022 and 2023, showing the highest growth rate of 5.8% within the five-year period starting in 2018. Similarly, global coffee consumption also rose between 2018 and 2023, with a 2.3% increase from 2022 to 2023. The European region dominates coffee consumption with a 30.3% share, followed by the Asia Pacific region at 25.8%, and North America at 17.5%. Within Italy, the coffee market (including tea and coffee processing company revenues) expanded by 16.9% from 2017 to 2021, reaching 5.11 billion euros, with a notable recovery and growth of 13.7% in 2022 following a dip in 2020. The Italian market for coffee pods and capsules alone witnessed an impressive growth of 44.5% from 2017 to 2022, with consumer trends remaining resilient even during the pandemic year of 2020..**Trends in the Coffee Pod and Capsule Market in Italy** The coffee pod and capsule market in Italy has experienced significant transformations, mirroring global consumption trends with a steady increase in demand. Between the years 2017 and 2022, the Italian market for coffee pods and capsules saw remarkable growth, estimated to be around 45 percent. This ascent is continuous and consistent, indicating a strong and growing preference for the convenience and variety offered by these products. Despite a slight decline in spending on coffee during 2020, likely due to the pandemic's impact on the Ho.Re.Ca. segment (hotels, restaurants, and cafés), the market bounced back resiliently. The driving forces behind this surge include not only the ease of use and the wide array of options available but also the taste preferences of Italian consumers, which are discerning when it comes to their choice of coffee. Taste, brand, and price emerge as the predominant factors influencing purchasing decisions. The consumption of coffee pods and capsules is primarily a domestic affair, with these products largely consumed at home – a trend bolstered by the pandemic and resultant lifestyle changes. Moreover, portioned coffee (both capsules and pods) has carved out a significant niche in terms of value, despite accounting for less than a quarter of the sales volume. In a testament to the profitability of this segment, capsule products such as Nespresso dominate the sales value despite their relatively smaller volume share. Geographically, coffee consumption shows an almost homogenous distribution across Italy, with slight variations in monthly household expenditure from north to south. The most significant monthly expenditure on coffee is found in Southern Italy, followed by the Center and Northern Italy. This geographical spread highlights the ubiquity of coffee consumption throughout the country. The market structure reveals a considerable increase in the number of enterprises operating in the coffee sector, with a dramatic expansion in total active enterprises and employment figures between the years 2017 and 2021, most notably between 2018 and 2019. Looking at the competitive landscape, a wide array of manufacturers dominate the coffee pod and capsule scene in Italy. Leading players have a long-standing heritage and are internationally recognized, encompassing giants like Lavazza, Illycaffè, and newer entrants such as Caffè Borbone and Gruppo Gimoka. These companies stand out not only for their quality coffee products but also for their innovative approaches to packaging and distribution, sustainable practices, and brand recognition. In summary, Italy's coffee pod and capsule market continues to flourish, fueled by the.### Prominent Figures in the Italian Coffee Capsule and Pod Industry In the realm of coffee capsules and pods, Italy is home to a diverse range of manufacturers, each fostering its unique blend of tradition, innovation, and commitment to quality. Here we highlight some of the major players, carving out their distinct niches in the Italian market. **Nespresso** - Pioneer of the Capsule Revolution As a trailblazer in the encapsulated coffee segment, Nespresso introduced the world to the convenience of quality espresso at the touch of a button. Its premium range and sleek machine designs have become an integral part of modern coffee culture, underpinned by a strong sustainability ethos through recycling initiatives. **Luigi Lavazza S.p.A** - The Italian Coffee Institution Lavazza's journey from a small grocery store in Turin to a global coffee empire signifies its long-standing legacy. It is venerated for its rich, blended coffees that capture the essence of Italian coffee craftsmanship. Lavazza’s influence stretches far beyond Italy, as a beacon of Italian taste. **IllyCaffe S.p.A** - Synonymous with Arabica Excellence IllyCaffe has been an exemplar of high-quality coffee, recognized for its signature blend of fine Arabica beans. Illy's emphasis on sustainability and ethical sourcing aligns with contemporary consumer values, securing its status as a premium coffee connoisseur choice. **Caffè Borbone S.R.L** - The Neapolitan Coffee Connoisseur From the passionate heart of Naples, Caffè Borbone has quickly established itself with coffees that are rich in flavor and intensity. Embodying the quintessential Neapolitan espresso experience, it has seamlessly adapted to modern demands while staying true to its roots. **Gruppo Gimoka S.p.A** - Tradition Meets Innovation Gimoka has made its mark by balancing traditional roasting practices with technological advancement. Serving a range of coffee preferences, the company has demonstrated flexibility in offering beans, ground coffee, and capsules to both businesses and consumers. **Caffè Trombetta S.p.A** - Century-Old Roman Roastery Stemming from a humble Roman workshop, Caffè Trombetta has become a venerated name in the coffee industry. With a commitment to quality and a comprehensive product range, it has managed to uphold its reputation while expanding its global reach. **Kimbo S.p.A** - The Essence of Neapolitan Roasting Kimbo, whose roots
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  • Number of pages : 30 pages
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  • Last update : 05/02/2024
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Summary and extracts

1 Market Overview

1.1 Definition and presentation

Coffee pods or encapsulated coffee, is a way of individually packaging coffee (capsule or soft pod); coffee pods are a quick and easy way to make espresso, thanks to a specific small coffee machine. Boiling water, along with coffee, travels through the filter, distributing the coffee into the cup. it is possible to make a cup of coffee with good crema using home pod coffee machines, just as it is with professional espresso machines. There are different types of shapes and materials used to make coffee pods, and each brand tries to create its own design to differentiate itself from other brands. There are three main types of coffee pods, which compete with other main types of coffee, such as ground coffee and instant coffee: The "soft pods" that allow for a commercially available "filter" quality yield, the "hard pods" that allow for a yield similar to "espresso," and the "capsules" that also allow for a certified "espresso" yield. The most commonly used pods contain about 7 grams of coffee.

The trend in global coffee consumption closely tracks that for production. Between 2018 and 2023, annual world coffee consumption grew by 3.4 percent, from 171.2 million packs to 177.0 million packs. Again, the trend is skewed between 2018 and 2022, while between 2022 and 2023 there is an increase of 2.3 percent. L'Europe collects 30.3% of the world's coffee consumption. It is followed by the Asia Pacific region with 25.8% and North America with 17.5%. South America contributes 15.8% of world coffee consumption while Africa and Central America contribute 7.1% and 3.5% of world consumption, respectively.

In 2024 the world market for coffee pods and capsules reached a total value of 28.65 billion dollars. For the period 2024-2029 a compound annual growth rate (CAGR) of 6.91 percent, under which the world market could touch a value of uS$40 billion.

This study focuses on the specific market for coffee pods and capsules in Italy, analyzing consumption trends, competitive dynamics and growth prospects for the sector. For information on related markets, such as the coffee market in general, see the specific studies available in the Businesscoot catalog.

1.2 The Global Market

Market In ****, the global market for coffee pods and capsules reached a total value of $**.** billion. A compound annual growth rate (***) of *.**% is projected for the period ****-****, under which the world market could touch a value of $** billion by the end of the period. Coffee pods and capsules market World, ...

1.3 The Italian market

Regarding Italy and the size of the coffee market, between **** and ****, the total turnover of coffee and tea processing companies grew by **.* percent, from *.** billion euros to *.** billion euros. Growth appears to be steady throughout the entire period, with the exception of ****, when due to restrictions imposed to contain the pandemic, ...

1.4 Import - Export

For the analysis of trade flows in and out of Italy, HS Code **** "Roasted coffee, decaffeinated coffee, and coffee substitute products" during ****-**** is considered.

During the period analyzed, Italian coffee exports grew by **.* percent from $*.** billion to $*.** billion. Imports also registered growth during the same period. Between **** and ****, Italian coffee ...

1.5 The consequences of the Russian-Ukrainian conflict

The outbreak of the Russian-Ukrainian conflict in February **** led to, among other things, a general increase in consumer prices. The sector related to coffee consumption is not exempt. Between January ****and December ****, the consumer price index for coffee rose by *.* points, representing a price increase of *.* percent. Compared with ****, consumer prices ...

2 Demand analysis

2.1 Demand in Italy

Between **** and ****, value sales of coffee in the large-scale retail channel were found to be shrinking. In the perido analyzed, total sales volume decreased from ***.* million kg to ***.* million kg, marking a *.* percent decline. After declining in **** (***), also aided by the price increase described in the previous point.

Coffee sales Italy, ...

2.2 Purchase Drivers and Consumption Mode

Several factors are analyzed by Italians when choosing coffee. YouGov analyzed the main purchase drivers through a survey of *,*** Italians and found that taste, brand and price are the factors that most influence purchase choices.

Coffee purchase drivers Italy, ****, in percent Source: ****

Coffee consumption in Italy is a daily habit for ...

2.3 Geographical distribution of demand

Regarding the geographic distribution of coffee consumption, it can be seen that the values are almost similar across the peninsula. The highest expenditure value is concentrated in the Southern Italy(***) where consumption is around**.* € monthly; this is followed by theCenter, with a value of**,** €and, finally, thenorthern Italy, with an expenditure ...

2.4 New demand trends

A 'Nespresso/Squadrati survey analyzed new trends in coffee pod and coffee consumption patterns in Italy. The first is the North European/American trend of consuming long coffee (***) in mugs, a trend that ** percent of respondents already follow or plan to adopt in the future.

Also increasing is the focus on ...

3 Market structure

3.1 The market structure

To analyze the market structure in Italy, enterprises under Ateco Code **.** "Tea and coffee processing" are considered. In particular, the number of active enterprises, the number of employees in active enterprises and the legal form of different activities are analyzed.

Number of enterprises

There is a sustained increase in the number ...

3.2 The value chain

3.3 The main manufacturers

The following is a list of major manufacturers of pods and capsules in Italy:

Nespresso: founded in ****, is a global espresso brand, famous for its coffee machines and single-serve capsules. The brand is distinguished by the quality of its machines, elegant design, and ease of use, making it popular in home ...

3.4 The distribution

As for the main distribution channels for coffee in Italy, **.* percent of sales in **** were within the large-scale retail channel. This is followed by the retail and e-commerce channel with **.* percent of the total. The Ho.Re.Ca and Vending channels collect **.*% and *.*% of total sales, respectively. Coffee sales by volume, ...

4 Supply analysis

4.1 Product overview

Coffee capsules and pods have become popular for their convenience and ease of use, allowing a cup of coffee to be brewed quickly without the need for complicated equipment or messy cleanup. There are many different types of capsules and pods available on the market, each with unique characteristics. Some of ...

4.2 Price Analysis

Prices for some product types are shown below. Specifically, prices are for products are analyzed for large-scale retail and e-commerce channels:

Large-scale retail trade

E-commerce

4.3 New supply trends: sustainability at the core

The supply of coffee capsules made from sustainable and reusable materials is increasing as a result of growing environmental concerns related to single-use capsules. These sustainable capsules are generally made from materials such as stainless steel or compostable bioplastics. Evergreen Caps ules offers a range of reusable coffee capsules compatible with ...

5 Regulations

5.1 Regulation

International standards exist for coffee production, trade and consumption. The International Coffee Agreement, concluded among the ** members of the International Coffee Council in **** and entered into force in ****, aims to promote international cooperation in the coffee market in order to develop a sustainable coffee economy and promote coffee quality and consumption. ...

6 Positioning of actors

6.1 Segmentation

  • Luigi Lavazza s.p.a
  • IllyCaffe s.p.a
  • Caffè Borbone s.r.l
  • Gruppo Gimoka s.p.a
  • Caffè Trombetta s.p.a
  • Kimbo s.p.a
  • Nestlé Nespresso

List of charts

  • Annual coffee consumption
  • Coffee consumption by region
  • Coffee pods and capsules market
  • Main coffee producers
  • Turnover and number of enterprises in the "Coffee processing" sector
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Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Luigi Lavazza s.p.a
IllyCaffe s.p.a
Caffè Borbone s.r.l
Gruppo Gimoka s.p.a
Caffè Trombetta s.p.a
Kimbo s.p.a
Nestlé Nespresso

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