Asia-Pacific Coffee Pod and Capsule Market Overview:
Rise in the demand for ready-to-drink coffee products, which provide easy, convenient, and quick coffee preparation, is expected to drive the growth of the Asia-Pacific coffee pod and capsule market. The consumption of tea across major Asia-Pacific countries such as China, India, Japan, and others, is higher than coffee. However, in recent years, coffee products have experienced high demand due to rise in consumption of coffee products among millennials. This is due to change in lifestyles, increase in awareness about health benefits of coffee and surge in innovations in coffee products such as instant coffee, coffee pod, coffee capsules. Convenience and its availability in a wide variety of flavors and formats have attracted young consumer to buy these products. Growth of young demographics in developing countries of Asia-Pacific is expected to drive the coffee pod and coffee capsule market in this region.
In addition, increase in urban population and product innovations in the food & beverage industry is anticipated to fuel this growth. In addition, the health benefits associated with coffee, such as preventing different type of cancers and neurological diseases, lowering cholesterol, boosting immunity, and facilitating weight loss are projected to drive the growth of this market in Asia-Pacific. However, the high cost of coffee pods and capsules restraint the growth of this market.
Moreover, the environmental concerns pertaining to use of plastics in the coffee pods and capsule packaging is expected to hamper the growth of this market. Introduction of biodegradable and recyclable products is anticipated to create new opportunities in terms of revenue for the players in this market.
The Asia-Pacific coffee pod and capsule market is segmented based on product, distribution channel, and country. Based on product, the market is divided into soft coffee pods, hard coffee pods, and capsules. Based on distribution channel, the market is classified into supermarket & hypermarket, departmental store, online store, and others. Based on country, the Asia-Pacific coffee pod and capsule market is analyzed across China, India, Japan, Australia, Thailand, Vietnam, and rest of Asia-Pacific.
Some of the key players profiled in this report include 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. Nestle S.A. holds the major share in this market with their patented machines and capsules. However, most of the companies have entered the market with complete systems, which include coffee machines and dedicated portioned coffee. In addition, some of the companies have started introducing pods and capsules that are compatible with other machines as well.
Key Benefits for Asia-Pacific Coffee Pod and Capsule Market:
- The report provides extensive analysis of the current & emerging trends and opportunities in the Asia-Pacific coffee pod and capsule market.
- The report provides detailed qualitative and quantitative analyses of current trends and future estimations, which help understand the prevailing market opportunities.
- A comprehensive analysis of factors that drive and restrict the growth of the market is provided in the study.
- An extensive analysis of the market is conducted by following key product positioning and monitoring the top competitors within the market framework.
- The report provides extensive qualitative insights on the potential & niche segments as well as regions exhibiting favorable growth.
Asia-Pacific Coffee Pod and Capsule Key Market Segments:
By Product
- Soft Coffee Pod
- Hard Coffee Pod
- Capsule
By Distribution Channel
- Supermarket & Hypermarket
- Departmental Store
- Online Store
- Others
By Country
- China
- India
- Japan
- Australia
- Thailand
- Vietnam
- Rest of Asia-Pacific
Table of Contents
Executive Summary
According to this report 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.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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