China Coffee Pod and Capsule Market to Grow at 14.0% CAGR by 2025 in Asia-Pacific, Says Allied Market Research

PORTLAND, Oregon, November 26, 2018 /PRNewswire/ --

Increasing consumption of premium coffee, growing number of retail coffee outlets, spiraling rise in urban population, busy lifestyle of consumers, and convenience provided by coffee pod and capsule would drive the growth of the Asia-Pacific coffee pod and capsule market

Allied Market Research published a report, titled, Asia-Pacific Coffee Pod and Capsule Market by Product (Soft Coffee Pod, Hard Coffee Pod, and Capsule) and Distribution Channel (Supermarket & Hypermarket, Departmental Store, Online Store, and Others): Opportunity Analysis and Industry Forecast, 2018-2025. The report offers extensive analyses of the top impacting factors, drivers & opportunities, market size & estimations, key market segments, and competitive landscape. According to the report, the Asia-Pacific coffee pod and capsule market accounted for $2.64 billion in 2017 and is estimated to reach $5.92 billion by 2025, growing at a CAGR of 10.6% from 2018 to 2025.

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Increase in demand for premium coffee, boost in retail coffee outlets, rise in urban population, busy lifestyle of consumers, and convenience provided by coffee pod and capsule drive the growth of the Asia-Pacific coffee pods and capsules market. However, rise in product prices and governmental concerns regarding the usage of plastics in coffee pods and capsules hamper the market growth. On the other hand, introduction of 100% compostable and recyclable capsules is expected to bring in new opportunities for the players in this market.

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Capsule segment to be lucrative through 2025 

Among product types, the capsule segment captured the highest share of 41% in 2017 and is projected to retain its dominance throughout the forecast period. Moreover, this segment is expected to grow at the fastest CAGR of 12.1% through 2025 due to high adoption of coffee capsules by coffee makers on account of their convenience and ease of use. These capsules are more eco-friendly than other coffee pods, and hence, are preferred by consumers. The report also analyzes soft coffee pod and hard coffee pod segments.

Supermarket & hypermarket to retain lion's share, online store to witness fastest growth

Among distribution channels, the supermarket & hypermarket segment accounted for more than one-third share of the total market revenue in 2017 and would maintain its dominant position through the study period. Coffee pod and capsule of all varieties and brands are commercialized in Asia-Pacific through supermarkets and hypermarkets, owing to change in consumer preferences and rise in disposable income, thereby supplementing the market growth. Moreover, high visibility, attractive assortment, and low price of coffee pod and capsules encourage more consumers to buy them from these distribution channels. However, the online store segment is expected to grow at the fastest CAGR of 12.0% during the forecast period because websites are more interactive, contain detailed information about products, and offer discounts, fast delivery, and easy payment methods. The departmental store segment is projected to witness steady growth rate during the forecast period.

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China to retain top spot throughout the forecast period 

Among regions, Japan captured the highest share of 22% in 2017 because Japanese people spend less time on preparing dinners and refreshments due to their aging demographics and busier ways of life. This fact has inclined them toward single-serve and convenient offerings for in-home coffee consumption. However, China is expected to dominate the market in terms of revenue through 2025 and would register the fastest CAGR of 14.0% from 2018 to 2025, owing to rise in demand for ready-to-drink coffee products in the region. The other regions analyzed in the report include India, Australia, Thailand, Vietnam, and rest of Asia-Pacific.

Leading industry players 

The market players analyzed in the 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 S.R.L. The report also provides insights on strategies, such as new product launches, expansions, partnerships, mergers & acquisitions, collaborations, joint ventures, and others, which have been adopted by these players to gain a strong foothold in the industry.

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