Fresh Ground Coffee Pods: Niche or Mainstay?

Value growth surges since 2007

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.

Concentrated in developed markets

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.

Consolidated among top brands

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.

2012: The year the patents expired

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.

Emerging markets are difficult to penetrate

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.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings

Why buy this report

• Identify factors driving change now and in the future
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• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
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