Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Capsule Coffee Machine market.
Trusted Business Insights presents an updated and Latest Study on Capsule Coffee Machine Market. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Capsule Coffee Machine market during the forecast period.
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
Industry Insights, Market Size, CAGR, High-Level Analysis: Capsule Coffee Machine Market
The global capsule coffee machine market size was valued at USD 200.1 million in 2018. The market is majorly driven by the prevalent usage of single serve coffee, especially in the countries of North America and Europe. Convenient usage and consistent brewing results are driving the consumers to switch from instant coffee to capsule machines. Capsule coffee equipment is designed with simple operation features, lighter volume, and is also cheaper as compared to the conventional machines.
U.S. accounts for a significant consumption of coffee, especially by the millennials. From decaf coffee to cold coffee beverages, they are shaping the trends across the country and beyond. According to the recent trends from the U.S. National Coffee Association in 2018, about 80% of the population drink coffee in U.S. wherein more than 60% of the U.S. adults consume it daily. Moreover, as per the statistics, more than 70% of the U.S. consumers prefer home brewed preparations, which, in turn, is expected to drive the product sales.
Growing awareness of the consumers with respect to varieties and specialty beverages is significantly affecting the consumption choices, especially in the commercial sector such as cafes and restaurants. Therefore, the need for a wider range of blends is expected to further drive the application of capsule machines.Number of orders placed for these capsule machines grew approximately by 50% to 53% in the recent time and also accounted for about more than half of all the online orders. In U.S., Nespresso and K-Cup are the leading brands in the online sales of coffee capsules. Nestle accounted for about 5% of its sales through online retail channels, mainly through e-grocery retailers and e-commerce operators.
The global market is also expected to be driven by increasing application of these products in the coffee shops due to rising demand of the time pressed consumers. Continuous advancements in the capsule machine technology upgraded with new features, innovative concepts, and applications are evolving to provide enhanced quality and improved capacity, along with low energy consumption and minimum maintenance cost. This technology improvement is expected to result in the increasing traction of the product across the commercial and household sectors.
For instance, Dualit Limited, one of the major players of coffee machine, launched CafePro Capsule Machine, which is compatible with the companys NX coffee capsules. This capsule machine is also compatible with other beverage brands such as Nespresso coffee and Fine Tea capsules. This machine is equipped with digital display aiming at providing professional experience to the consumers.
Application Insights of Capsule Coffee Machine Market
The commercial application segment accounted for more than 50.0% share in 2018. Rise in the number of cafes and restaurants in U.S., Italy, India, Japan, and France has resulted increased application of quick brewing machines to cater to the needs of busy consumers. Capsule coffee machines make an essential element in cafes. Moreover, growing trend of office breaks and quick grab is driving consumers to consume this beverage due to its mind boosting and stress releasing benefits. The market for fresh ground coffee capsules witnessed a significant rise in sales since 2016. The convenient usage of these capsules that offer premium flavor to the drink and a large variety of tastes have contributed to an increase in its application across the commercial sector.
The household application segment is expected to expand at the highest CAGR 11.5% from 2021 to 2026. Shifting trend towards adoption of specialty coffee induced with various flavors and origin is gaining popularity. This trend is expected to drive the household application of capsule machines in countries with high consumption rate such as U.S., Germany, Switzerland, and Japan. Consumers in the western countries prefer home brewed preparations and hence it is anticipated to fuel the market growth. According to the National Coffee Association trends, 29% of the U.S. households purchased single serve brewers in 2017.
Regional Insights of Capsule Coffee Machine Market
Europe accounted for the largest share of 33.1% in 2018. High consumption of coffee, along with evolving preferences with respect to flavors, is driving the capsule coffee machine market in this region. Countries including Germany, U.K., Switzerland, and Finland are contributing to the growth of this market. Increasing number of European consumers willing to pay high prices for premium and specialty beverages and K-Cups is witnessed in cafes, small roasters, and baristas, which, in turn, is driving the Europe market.
The market for coffee capsule machine in Asia Pacific is expected to witness the highest growth during the forecast period. Rising consumer awareness regarding technologically advanced products has initiated the sales of these capsule machines on a large scale in the region. Developing countries such as India and China are expected to contribute to the regional market growth owing to growing cultural trends and increasing inclination towards consumption of coffee.
Moreover, this region is witnessing increasing establishment of cafes, which is likely to widen the scope of this market. In addition, China’s aging demographics and busy lifestyles are expected to popularize the trend of quick refreshment. This, in turn, has inclined them towards single-serve and quick offerings for household consumption, thereby fueling the market growth in the coming years.
Market Share Insights of Capsule Coffee Machine Market
The global market is highly competitive in nature. Some of the major players operating in the global market are Keurig Green Mountain, Inc.; Nestle Nespresso SA; Dualit Limited; Jacobs Douwe Egberts Pro; Starbucks Corporation; Dunkin Brands; LUIGI LAVAZZA SPA; Koninklijke Philips N.V.; and illycaffÃ¨ S.p.A. Market players are adopting strategies such as product launches and mergers and acquisitions to increase product offerings.
Moreover, companies are focusing on expanding their production capacity and are adopting innovative technologies in order to meet consumer demand for capsule machines. For instance, in 2018, Keurighad introduced two new ˜all-in-one coffee capsule machines for the U.S. market, which uses the companys K-Pod coffee pods for brewing different coffee drinks, such as lattes and cappuccinos.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Capsule Coffee Machine Market Research Report
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the global capsule coffee machine market report on the basis of application and region:
Application Outlook (Revenue, USD Million, 2019 – 2030)
Quick Read Table of Contents of this Report @ Capsule Coffee Machine Market Size & Share, Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)
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