Asia-Pacific Coffee Pod and Capsule Market Expected to Reach $5,918 Million by 2025

According to a new report published by Allied Market Research, titled,"Asia-Pacific Coffee Pod and Capsule Market by Product and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2018 - 2025,"the Asia-Pacific coffee pod and capsule market was valued at $2,646 million in 2017 and is expected to reach $5,918 million at a CAGR of 10.6% from 2018 to 2025. The global coffee market witnessed a change in trend with Nespressos introduction of the concept of premium portioned coffee. Coffee pods also known as pads require slow-pressure, almost drip system to brew. Coffee capsules are designed to withstand the high pressure of a capsule coffee machine to effectively brew the product contained inside. These capsules are available in plastic containers with an aluminum foil seal, with ground coffee inside them.

Increase in demand and rise in consumption of premium coffee are anticipated to drive the growth of the Asia-Pacific coffee pod and capsule market. In addition to this, boost in retail coffee outlets is expected to fuel the Asia-Pacific coffee pod and capsule market growth. Factors such as increase in urban population, busy lifestyle of consumers coupled with convenience provided by these products, are projected fuel the demand for coffee pods and capsules. However, rise in product prices is expected to hamper the growth of Asia-Pacific coffee pod and capsule market during the forecast period. In addition, governmental concerns regarding the usage of plastics in coffee pods and capsules is anticipated to restrain the Asia-Pacific coffee pod and capsule market growth in future. The introduction of 100% compostable and recyclable capsules is expected to bring in new opportunities for the players in this market.

Based on product, the market is segmented into soft coffee pods, hard coffee pods and capsules. The capsules segment is estimated to account for the major share in the Asia-Pacific coffee pod and capsule market.

This segment is also expected to witness high growth of 12.1% during the forecast period.

Based on distribution channel, the market is segmented into supermarkets and hypermarkets, departmental stores, online stores, and others. The supermarkets & hypermarkets segment accounted for a significant market share of 34.1% in 2017 and is expected to retain its dominance throughout the forecast period. The online stores segment is expected to exhibit the highest CAGR of 12.0% during the forecast period. China and Japan collectively held two-fifths of the Asia-Pacific coffee pod and capsule market share. China is expected to witness the highest growth during the forecast period.

Key Findings of the Asia-Pacific Coffee Pod and Capsule Market:

• Based on product, revenue of the soft coffee pod market is projected to grow at a CAGR of 9.8% during the forecast period.
• Based on distribution channel, the online stores segment is anticipated to experience the highest growth, registering a CAGR of 12.0%.
• China is expected to lead the market during the forecast period, with a CAGR of 14.0% followed by Vietnam.
• Japan accounted for the highest share of 22% in the Asia-Pacific coffee pod and capsule market, in 2017.
• Hard coffee pods accounted for 25.7% of Asia-Pacific coffee pod and capsule market share in 2017.
• India is estimated to witness a high CAGR of 10.3% from 2018 to 2025.
• In 2017, Vietnam accounted for 14.1% share in the Asia-Pacific coffee pod and capsule market.

The key players operating in Asia-Pacific coffee pod and capsule market are Nestle S.A., The Kraft Heinz Company, Luigi Lavazza S.P.A, Dr. Pepper Snapple Group, Inc., UCC Ueshima Coffee Co. Ltd, Fresh Brew Co., Urban Brew, Illycafe S.P.A., Pod Pack International and GI.MA. SRL.