Peaking at $5.7 billion in sales in 2016, demand for single-serve capsules has leveled off after capturing a significant portion of the US coffee market, according to Euromonitor market research reported by STiR Magazine.
Experts say that the industry will need to undergo some major changes in order to recapture some of the old excitement and increase growth rates in the category.
What lessons can be learned from the mature pod markets of Western Europe that could be applied to the category in North America?
The Future of Coffee Pods in North America | Market Research Blog
Find out at the 2019 National Coffee Association Convention in Atlanta, on March 7-9.
Euromonitor‘s Matthew Barry will lead an in-depth educational session discussing the coffee pods market in North America, including the effect of private labels and off-brand pods as well as environmental sustainability.
From functional ingredients to sustainable practices, new consumer values are transforming market trends.
The following post originally appeared in Tea & Coffee Trade Journal
The coffee industry is again going through a transformation, driven by shifting consumer values in an increasingly connected global landscape.
Today, people are using their purchasing decisions to support companies that reflect their values and introduce new innovations.
“The theme of this year’s NCA Convention [March 7-9, 2019 in Atlanta] is ‘coffee at a crossroads.’ In this time of unprecedented change, the decisions we make today as an industry will determine our direction in the years to come,” says Bill Murray, NCA President & CEO.
Here’s what to watch (and watch out for) in the year ahead:
Single serve capsules are a dynamic market segment with a complex value chain.
By Martyna Fong, Unit Manager – Packaging, AMI
A pod, or a single serve capsule as I would technically call it, is a phenomenal little thing.
Is it just packaging or is a product? Is it premium or is it value? Is it wasteful or is it resourceful?
Read previous NCA member spotlights, or check out our complete list of members
LOCATION: Bristol, UK
NCA MEMBER SINCE: Nov. 2018
What does AMI do?
AMI is Europe’s largest consultancy dedicated to providing business information for the global plastics industry.
With more relevance to the coffee industry, AMI’s lead packaging consultant, Martyna Fong, has championed the development of the single serve capsules expertise. She has a thorough understanding of the supply chain, global trends, and technical innovation in the segment.
AMI is keen to assist the NCA community with its market intelligence as well as specialist single serve capsules conferences – in North America and in Europe.
Coffee pods, once the most dynamic segment of coffee, registered single-digit growth in 2016 and 2017, slowing from the double-digit growth seen in previous years. However, this slowdown provides opportunities for the US coffee market in the coming years.
Join Euromonitor International on January 31, 2018 at 1 PM ET to learn about these growth opportunities in a new NCA webinar, “U.S. Coffee Outlook 2018: Latest Trends and Future Growth.”
Webinar Now Available On-Demand (NCA member login required)
And how millennials are involved.
By Jonah Koenigseker, Research Analyst, Euromonitor International
Despite the pervasion of pod machines and pod capsules in retail and marketing campaigns with celebrities, there are several factors negatively impacting sales of the machines and capsules in the US.
The global coffee market continues to brew up a storm, and Asia is playing a key role in its growth.
New research from Mintel reveals that three out of the five fastest growing retail coffee markets are in Asia. Indonesia is currently the fastest growing packaged retail coffee market with a CAGR of 19.6% over the past five years, while India has had a CAGR of 15.1%, and Vietnam 14.9%.
By Andrés Padilla, Senior Analyst, Rabobank
This post originally appeared on RaboResearch
Retail Slows as Foodservice Remains Hot
Over the past five years, coffee retail sales in the US have grown at a healthy rate. Continue reading
By Club Coffee
Club Coffee is sponsoring the upcoming NCA webinar, Single-Cup Brewing 2016: Plateau or Potential? on August 18, 2016 1:00 – 2:00pm EDT. (Free for NCA members)
The explosive growth of the single serve coffee category underlined consumers’ interest in convenience and quality.
The single-serve phenomenon has changed the way Americans drink – and think about – their coffee.
And while recent headlines suggest that the single-serve format is beginning to fall out of favor with consumers, the numbers show a different story. The implications will impact the entire coffee industry – from new practices at origin to R&D to retail.
The NCA’s Single Serve market research report has tracked this trend since 2011. Here are six facts we found especially interesting from the latest data: