Europe Coffee Pods and Capsules Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The European coffee pods and capsules market is expected to witness a CAGR of 6.8% over the forecast period, 2020-2025.
Key HighlightsOver the past years, Germans have shown a growing inclination towards coffee consumption, amidst the volatility in prices. Germany is Europe’s largest importer of green coffee beans. Its coffee roasting industry is enormous, which facilitates the country to serve both its domestic market, which is the largest in Europe, and export markets. As of 2016, around 13% of the German population is drinking coffee made from a single-cup brewer every single day. This is due to the rise in demand for specialty coffees and single-serve methods in Germany. On the other hand, Germany’s per capita coffee consumption is not among Europe’s highest but is at 5.5 kg per year, which is higher than the European average of 5kg.
Supermarkets & Hypermarkets leads the sales channel segmentIn terms of the sales channel, the demand for coffee pods and capsules in Europe is anticipated to be driven by supermarkets and hypermarkets, followed by on-trade channels, mostly because of out of home consumption.
Owing to a vast retail space and catering to a wide variety of preferences, the supermarkets/hypermarkets are the dominant channels for the sales of coffee products. Supermarkets/hypermarkets have an abundance of choices across brands and functionality. These markets sell both pods and capsules in a pre-determined price range, providing high-quality coffee. Supermarkets have also been offering an increasing range of coffees with unique characteristics, such as single origins.
Competitive LandscapeMajor players operating in the European coffee pods and capsules market are Nestle SA, Luigi Lavazza SPA, Starbucks, and JAB Holdings, among others. Nestle Nespresso holds a significant share in the market, as compared to the other players. The company entered partnerships as well as expanded its facilities across the region, in order to strengthen its consumer base and maintain its leading position in the market. Partnership and joint ventures are being the most adopted strategies that enable significant players to increase control over competitive pricing and gain competitive advantage.
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