Coffee Capsule Market Report 2026

The coffee capsule market size has grown strongly in recent years. It will grow from $16.42 billion in 2025 to $17.77 billion in 2026 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period can be attributed to expansion of household coffee consumption, growth of premium coffee culture, rising availability of capsule machines, increased focus on convenience brewing, expansion of branded coffee offerings.

The coffee capsule market size is expected to see strong growth in the next few years. It will grow to $24.47 billion in 2030 at a compound annual growth rate (CAGR) of 8.3%. The growth in the forecast period can be attributed to increasing demand for sustainable capsule materials, rising investments in recyclable packaging innovation, expansion of e-commerce coffee sales, growing preference for premium single-serve coffee, increasing adoption of smart coffee machines. Major trends in the forecast period include increasing adoption of single-serve coffee formats, rising demand for compostable and bio-based capsules, growing popularity of home brewing systems, expansion of compatible capsule systems, enhanced focus on flavor customization.

The rising popularity of instant non-alcoholic beverages, such as coffee, in restaurants and office cafeterias is driving the growth of the coffee capsules market. Coffee capsules reduce the time and effort required to prepare a cup of coffee when used with coffee machines in coffeehouses and office cafeterias. Factors such as increasing demand for non-alcoholic beverages among millennials, growing consumer awareness of low-sugar drinks, busy work schedules, and changing taste preferences have contributed to the rise in popularity of instant non-alcoholic beverages like coffee. For example, in October 2025, Balance Coffee, a UK-based coffee roastery, reported that in 2023, the average person in the UK consumed approximately 528 cups of coffee annually, based on a daily consumption of 98 million cups, thereby supporting the growth of the coffee capsules market.

Major companies in the coffee capsule market are concentrating on launching innovative coffee capsules that enhance the brewing experience, cater to various consumer preferences, and utilize eco-friendly materials. This strategy is aimed at attracting more customers who prioritize sustainability and appreciate a range of flavors. For example, in August 2024, McCafé, a US-based coffee-house-style food and beverage chain, introduced a new line of Espresso Coffee Capsules. These capsules, designed for Nespresso Original Machines, are made from Rainforest Alliance Certified Arabica beans and are intended for commercial composting in collaboration with TerraCycle, a US-based waste management firm. Available in three roast intensities, these capsules are crafted to provide a smooth and flavorful coffee experience while promoting sustainability through recycling initiatives.

In October 2023, Nestlé Nespresso SA, a Switzerland-based company that focuses on coffee capsules, formed a partnership with Blue Bottle Coffee Company. This collaboration aims to capitalize on the strengths of both Nespresso and Blue Bottle Coffee to enhance the specialty coffee market. By merging Nespresso's expertise in portioned coffee with Blue Bottle's dedication to quality and craftsmanship, the partnership intends to create distinctive blends that enrich the consumer coffee experience. Blue Bottle Coffee Company is a US-based firm specializing in sourcing, roasting, and brewing high-quality specialty coffee, with a strong emphasis on freshness and sustainability in every cup.

Major companies operating in the coffee capsule market are Starbucks Corporation, Keurig Dr Pepper Inc, JDE Peets NV, Luigi Lavazza SpA, illycaffe SpA, Caffitaly System SpA, Dualit Limited, Vittoria Food and Beverage Pty Ltd, Jacobs Douwe Egberts BV, Belmoca NV, Gourmesso USA Inc, Halo Coffee Ltd, Coffeeza Trading Private Limited, Bestpresso Inc, Kimbo SpA, Tchibo GmbH, Paulig Group, Ueshima Coffee Company, Lofbergs Group, Garibaldi SpA.

Asia-Pacific was the largest region in the coffee capsules market in 2025. Western Europe was the second-largest region of the global coffee capsules market share. The regions covered in the coffee capsule market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the coffee capsule market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The coffee capsules market consists of sales of arabica coffee capsules and robusta coffee capsules. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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