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Global coffee pods market to grow at a CAGR of over 7 percent to 2021

LONDON, UK – Technavio’s latest report on the global coffee pods market provides an analysis of the most important trends expected to impact the market outlook from 2017-2021. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

Manjunath Reddy, a lead analyst from Technavio, specializing in research on food sector, says, “The global coffee pods market is expected to grow at a CAGR of over 7% during the forecast period, owing to the increasing trend of single serve coffee in regions like Europe and Americas.

However, despite the popularity of coffee pods mostly in the developed countries, the premium price tag of the product has enabled the category to have a substantial impact on the value of the global coffee market.”

The availability of coffee pods is helping consumers to switch from instant coffee to fresh ones.

Thus, the overall demand for single serve coffee pods has increased for both at-home and out-of-home purposes. Workplaces have coffee pod machines to reduce labor costs. Improvements in capsule technology such as increased shelf life will further enhance the sales of coffee pods.

The top three emerging trends driving the global coffee pods market according to Technavio research analysts are:

Trends in compostable coffee pods

Constant change in demand for coffee pods and technological innovations are enabling players to come up with new coffee pod launches. For instance, Lavazza announced the launch of patented compostable coffee pods (i.e. fully biodegradable coffee pods) in 2017. In 2016, Loblaw Companies launched Biodegradable Products Institute (BPI) certified 100% compostable President’s Choice single-serve coffee pods.

“Ethical Bean Coffee launched 100% certified compostable single serve pod to entice the consumers who are looking for environment-friendly products. It is expected that more players are likely to come up with new product launches of compostable coffee pods, which will help the global coffee pods market to grow during the forecast period,” says Manjunath.

Increasing demand for organic and fairtrade coffee pods

Organic food and beverages are perceived as healthy and are gaining traction in the market as consumers are increasingly becoming concerned about the origin and quality of the ingredients that are used in the preparation of food products. In line with these changes in end-consumers’ preferences, players like República, WHITE RHINO COFFEE, Aloha Island Coffee, PODhead.com, Infusi, Podista, and others are popular for their organic coffee pod offerings.

The demand for fairtrade practices and ethically sourced products in the overall industry is growing. This has resulted in the need for obtaining certifications for a broad range of agricultural commodities. Fairtrade helps producers achieve reliable labor incomes, appropriate working conditions, and social benefits. Coffee products with fairtrade labels or certifications are preferred over uncertified ones, as these labels and certifications help in building trust among customers.

Burgeoning marketing initiatives

Coffee pod players are following integrated marketing communication, using newspapers, magazines, and social media such as YouTube and Facebook to increase the popularity of their coffee pods offering. For instance, Jacobs Douwe Egberts GB brand Tassimo introduced the new Costa Vanilla Latte variant and supported its launch by a short video on social media.