Fresh ground coffee pods experienced extensive growth between 2007 and 2012. The combination of convenience and quality afforded by pods makes them a value-added product with a premium positioning. As such, pod penetration is almost exclusively limited to the higher income regions of Western Europe and North America. In this new report, Euromonitor International examines opportunities in this dynamic category, which has the potential to attract fresh and instant coffee drinkers alike.
You have no recently viewed reports.
Why not browse through our Featured or Trending Reports to see what we have to offer?
Between 2007 and 2012, the value growth of fresh ground coffee pods dramatically exceeded every other type of coffee. Despite relatively limited geographical penetration, the premium price tag of pods has enabled the category to have a substantial impact on the value of the entire coffee industry.
Consumption of fresh ground coffee pods remains confined to higher income regions where fresh coffee is the dominant format. In 2012, Western Europe and North America accounted for over 90% of pod volume and value.
Still a relatively new industry, the pod market is heavily consolidated among the top four manufacturers. Nevertheless, as the market expands, leading players are beginning to lose share to newer companies.
The top brands, Nespresso and Keurig, saw several of their key patents expire in 2012. These expirations could lead to a boom in competing pod brands, particularly in Western Europe.
The high price tag of pods makes penetration difficult in lower income regions. However, the single-serving format of pods, which provides a bridge from instant coffee to fresh, is appealing to consumers in emerging markets. Pods will achieve great success among these budding coffee drinkers by focusing on a more economical positioning and a wider selection of flavours.