The global coffee capsule market was valued at US$ 8,327.19 million in 2019 and is projected to reach US$ 14,062.20 million by 2027; it is expected to grow at a CAGR of 7.0% during 2020-2027.

Coffee capsule is a single serve vacuum packed capsule that requires a compatible machine. The benefit of consuming coffee capsule is that the vacuum packing ensures the hygiene and prevents external agents, such as oxygen, humidity, and heat, from entering inside. Coffee capsule is simple to use as it involves placing the capsule in the coffee machine and pushing the button. The coffee in capsule stays fresher for longer period and does not require the use of coffee grinders. The coffee capsules manufacturers are focusing on producing recyclable and eco-friendly coffee capsule packaging. The compostable coffee capsules and plantable coffee containers that are fully biodegradable also aim to reduce the environmental impact of non-recyclable packaging options. Other eco-friendly coffee packaging innovations are boxed cold brew blends that are ready to serve to a large group and artisanal coffee bags that ensure freshness while creating a minimal impact on the environment. Nespresso launched first coffee capsule on the market, which is made by using 80% recycled aluminium. Many manufacturers use aluminium for capsules because it is one of the most widely recycled materials in the world, and it optimally protects the freshness and aromas of high-quality coffee, providing a perfect barrier against oxygen, light, and humidity.

Based on product type, the coffee capsule market is further segmented into open source system and close source system. In 2019, the close source system segment dominated the market. In the capsule coffee system, the coffee is shrink-wrapped in a capsule instead of filter paper. There are a variety of capsules and pods, with 7-10 grams of coffee content. A coffee capsule is used for an array of products, not just ground coffee. A closed-source system is a combination of a particular machine with a specific capsule. Closed-source systems were the first to be introduced in the market, and hence, the segment accounts for the larger share of the global coffee capsule market. The open-source system is easy to use and convenient compared to closed-source system machines, which further, drives the demand of open-source systems in the market. The open-source system segment is projected to exhibit a higher CAGR during the forecast period. Capsule machines simplify the whole coffee making process, cutting out the grinding, pressing, and storing the coffee. Additionally, increasing consumption of coffee in both developed and developing countries, further driving the demand for open source coffee machines. All these factors have led to a significant rise in the demand for coffee capsules.

In terms of geography, the coffee capsule market is segmented into North America, Europe, Asia Pacific (APAC), South America (SAM), and the Middle East and Africa (MEA). Europe held the largest share of the global coffee capsule market in 2019, followed by North America and Asia Pacific. The demand for coffee capsule is expected to increase in the region due to the transforming lifestyles and rising disposable income of the consumers. Growing awareness of the high antioxidant activity and chemical composition associated with coffee capsule drives the market for coffee capsule across Europe. Consumers in the US and Canada are moving toward a healthy lifestyle and prefer products that provide health benefits. Therefore, increasing health concerns among consumers drive the growth of the coffee capsule market in North America. Also, coffee beans processing and coffee capsule making companies in North America are continuously enhancing their product portfolio to meet the customers' demand. The rapid growth in the consumption of coffee capsule in North America is primarily attributed to the rise in the number of coffee outlets and cafes. Growing urban population, busy lifestyles of consumers, and the need for convenient beverages drive the demand for coffee capsule. The coffee culture and the expertise of farmers in coffee plantation support the coffee capsule market in Asia Pacific.

COVID-19 outbreak started in Wuhan (China) in December 2019 and has rapidly spread around the globe. The US, India, Brazil, Russia, Spain, Mexico, and Argentina are among the most affected nations in terms of COVID-19 confirmed cases and pronounced deaths, as of September 2020. COVID-19 has affected economies and undertakings due to lockdowns, travel bans, and business shutdowns. The global food & beverages industry is one of the major businesses enduring genuine agitating impacts. These segments have unimaginably affected the worldwide coffee capsule market.

VERO Coffee, Vittoria Food and Beverage, Belmoca Belgium (Belmio), Nestle Nespresso S.A, Coind Group, Jacobs Douwe Egberts BV, Gloria Jean's Gourmet Coffee, Luigi Lavazza S.p.A, Dualit Limited, and illycaff? S.p.A. are a few major players operating in the global coffee capsule market.

Overall size of the global coffee capsule market size has been derived in accordance with both primary and secondary sources. To begin the research process begins exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data as well as to gain more analytical insights into the topic. The participants typically involved in the process include industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants, such as valuation experts, research analysts, and key opinion leaders specialized in the coffee capsule market.