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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. you can make a cup of coffee with a good crema using home pod coffee machines, just as you can 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 market for coffee pods and capsules has been valued at $15.12 billion in 2020, and is expected to grow at a CAGR of 5.11% from 2021 to 2026.

Every day, the average Italian consumes 1.5 cups of espresso coffee. Italy is the home of espresso coffee, with 80% of Italians consuming it every day. Italy is third in the world - after Belgium and Germany - for the export of coffee in all its forms. Original capsules and compatible capsules show a significant difference in market trends: while the former still have a majority market share, accounting for about 58.3 percent of the total coffee pods and capsules sold in Italy in 2019, the less expensive compatible capsules are becoming increasingly popular, with sales in Italy increasing by 23.4 percent in 2019 compared to 2018. Year after year, this is a substantial figure that will continue to grow.

The downside of plastic and aluminum capsules is the amount of waste they generate and consequently the potential pollution. Several companies, especially Italian ones like Illy, are investing capital in a system to create a circular economy for capsules, avoiding the waste of materials and lowering their impact on pollution.

1.2 The Global Market

The global coffee pod market is booming; between **** and ****, the market is expected to grow at an average annual growth rate of *.** percent to reach $**.** billion in ****. There are several reasons for this growth, including more diverse offerings, increasingly better quality, and the propensity of consumers to purchase coffee machines and ...

1.3 The Italian market

In Italy, just over *,*** companies in the "Coffee processing" sector, i.e., roasters, are reported to have a turnover of nearly *** million euros in ****. Also included in the data collected are companies active in the production and packaging of coffee pods.

In order to analyze the Italian domestic coffee market, we ...

1.4 International Trade

When taken into consideration the entire coffee market, according to UN COMTRADE data, Italy is a country with a positive trade balance in the sector. In ****, exports amounted to €*.* billion against total imports of €*.* billion. Between **** and ****, exports increased by **.* percent while imports dropped by -**.* percent.

If we focus our ...

DEMAND ANALYSIS

2.1 The Italian Coffee Consumer

The following data are extracted from a study conducted in October **** by AstraRicerche on behalf of the Coffee Promotion Consortium, through online interviews with a representative sample of *,*** Italians aged ** to **, and following the same study conducted since ****.

We compare these results to analyze the type and behavior of Italian consumers ...

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: ****

In terms of frequency of consumption, coffee is among ...

2.3 Demand trends

A 'Nespresso/Squadrati survey analyzed new trends in 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 sustainability ...

MARKET STRUCTURE

3.1 Market Stortture and Dynamics

The "Wholesale Coffee Trade" sector, which covers companies in major producing countries that are involved in supplying goods to retailers, is very dynamic and has been experiencing the most growth for the past ten years.

The number of businesses in the sector increased by +***% from **** to **** (***). Overall annual sales also exploded ...

3.2 Production is everywhere except in the Western world

The coffee production process consists of * basic steps:

Harvesting

Harvesting involves picking the ripe fruits of the coffee tree, commonly known as cherries because of their orange-red color. Harvesting periods can last several months. On average, a coffee tree is estimated to produce *.* kg of coffee cherries per year, or *** grams ...

3.3 Distribution channels

According to IRI data, **.* million kg of portioned coffee was sold in modern retail distribution in ****, including *.* million pods and **.* million capsules. In terms of value to the public, pods counted for ** million €, while capsules for *** million €. Capsules maintain the highest price positioning, providing good margins for industry and distribution. However, ...

SUPPLY ANALYSIS

4.1 Product overview

There are two main varieties of coffee beans Arabica which grows at high altitude (***) and is the most cultivated, and Robusta which grows at a lower altitude and is more concentrated in caffeine. Specifically, the caffeine content of Arabica beans is *.*%, while that of Robusta beans is *.*%. [***]

Globally, Arabica accounted for ...

4.2 Price Analysis

Before we analyze the prices related to coffee pods, we can note through the Consumer Price Index for Coffee in Italy, which is the tool that allows us to measure inflation and estimate, between two periods, the average change in the prices of coffee purchased by households. We see that it ...

4.3 The environmental impact of capsules

Carbon footprint

Coffee pods are practical in that they provide storage and the right dosage for consuming a cup of coffee. However, coffee pods are often made of plastic, or a hybrid of aluminum and plastic. This, combined with the fact that recycling rates are low, has led to widespread criticism ...

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. ...

POSITIONING OF ACTORS

6.1 Segmentation

  • Luigi Lavazza Spa
  • Illycaffè
  • Caffè Borbone
  • Kimbo
  • Nespresso
  • Caffitaly

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in 40 pages
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Reviews (5)

The chocolate and chocolate factory market - France

Publicado en 23/06/2022 by Helie Krotoff

The market for sports nutrition supplements - France

Publicado en 16/06/2022 by Patrice BEAL - BEHOLD SAS

I gave a 4 and nota 5? I think that the study of competition is a bit light. The study analyse only 6-7 companies and I think that a mapping could have been added Moreover, for the ages of the consumers I find that the age ranges are not precise enough (<40 years old) But the rest of the study is super interesting! And I thank you for it!"

The ready meal market - France

Publicado en 09/03/2022 by Bruno Graziana

"I gave it a 2.5 rating for the cost of your file, which is accessible, but I could have given it a 2 because for me it is too general in the sense that most of the information comes from a compilation of information that I had already obtained free of charge from Credoc, France Agrimer or LSA I thought I would find more specific information, especially on market shares by region, or a much more detailed focus on the evolution of the market by the new web and delivery players... At the end of your file, there are some information sheets on the major manufacturers and distributors that are of little interest to me. Sorry"


Businesscoot Response:

Publication OK Prepare a reply before publishing

The market for sports nutrition supplements - France

Publicado en 31/01/2022 by Thibaut Reinhard - Biocanna Technologies SRL

We got the numbers we needed. Excellent study


Businesscoot Response:

Thank you for your feedback. We are glad that the study lived up to your expectations. We hope you will give us a 5/5 next time ;)

The Farm Animal Feed Market - France

Publicado en 09/01/2022 by Hugo Schott - Businesscoot

Note the recent but steady take-off of organic feed for farm animals, which is leading to a renewal of research and development in the sector


Businesscoot Response:

Hello Hugo, Thank you for your feedback. We are glad that the study was up to your expectations. We hope you will give us a 5/5 next time ;)