Brazil Coffee Pods Market Size, Share, Opportunities, COVID-19 Impact, And Trends, By Type (Hard Pods, Soft Pods), By Caffeine Content (Regular, Decaffeinated), By Flavours (Regular, flavoured), By Distribution Channel (Offline, Online) - Forecasts From 2023 To 2028

Coffee pods are single-served, a pre-packed coffee canister that is enough for brewing one cup of coffee and comes with a filter. Coffee made using coffee pods saves both time and energy by simplifying the brewing process. Coffee pods are available in various quantities, flavours and additives according to the need of the consumer. The coffee pod market in Brazil is segmented into categories: the type of coffee pod, caffeine content, flavour and distribution channel.

The demand for coffee pods in Brazil has been growing recently and is expected to do so in the future. Significant Brazilian key market players have already begun to take tactical steps to seize the opportunity. Approximately 21.3 million bags of coffee were consumed in Brazil in 2022, making it the world's second-largest consumer of coffee. According to ABIC’s recent report, the per capita consumption of raw coffee was 5.96 kg annually and roasted coffee was 4.77 kg per year in 2022. According to estimates, the Brazilian coffee business would generate BRL 23.5 billion in sales in 2022, up 54.6 per cent from 2021.

Therefore, the introduction of coffee pods has had the greatest impact on the Brazilian coffee industry and has spread in this nation like wildfire. Consumers are particularly attracted to coffee pods because of their convenience and affordability. They can also provide high-quality coffee, which mainstream customers are slowly coming to recognise and value. According to the most recent IBGE poll, 57 per cent of coffee pod users are under the age of 40, as are 49 per cent of Brazilians overall. In other words, millennials are the prime demographic group responsible for the growth of coffee pods in the country.

New product launches, M&A activities and easing investment activities by key market players

Significant companies in the industry have already started to make strategic efforts to take advantage of the lucrative coffee pod market, through continuous product launches, M&A activities and investments. In November 2022, Nestle launched Nescafé Dolce Gusto Neo, a new at-home coffee maker that employs paper-based and biodegradable coffee pods, in Brazil. The paper-based pods for Nescafé Dolce Gusto Neo cost about EUR0.50 apiece and have an SRP of EUR179. The Neo system's pods are constructed from paper and a biodegradable biopolymer liner. They break down in three months in commercial composting facilities and six months in home composting.

In February 2020, Brazilian coffee giant Três Coraçes Group has acquired Japan-based Mitsui Alimentos' business to strengthen its position as the industry leader in Brazil. According to the contract, Três Coraçes Group must pay Mitsui Alimentos' domestic coffee business in Brazil BRL 210 million reais about $50 million. The Sao Miguel FIP, controlled by the Lima family, and Strauss Coffee both own a portion of the Três Coraçes Group joint venture.

Growing coffee pod consumption is not only attracting key market players by also major Brazilian roasters and coffee companies like Café Orfeu and Octávio Café are also making investments to capitalise on this trend.

Increasing popularity of artisanal, gourmet, speciality, premium coffee pods

The continual rise in premium coffee consumption is proving good for the demand for pods. The majority of the coffee used in pods is premium. Indeed, the capsules are the primary format offered in retail stores and account for around 10 per cent of the overall premium volume.

The growing demand for speciality and artisanal coffee is also propelling the growth of the coffee pods market in the country. Therefore market players are launching new coffee pods in premium flavours to capitalise on this trend.  For instance, in June 2022, Three new items have been introduced by Jacobs Douwe Egberts' premium coffee brand L'Or: L'Or Artiste, L'Or Instant Jar, and L'Or Flavours Collection Aluminium Capsules.

Market Key Developments

• In November 2022, Nestlé invested more in its facility in Montes Claros, Brazil, of more than EUR50 million or US$51.43 million, allowing it to expand its capacity and begin producing new Neo system pods.
• In February 2020, Brazilian coffee giant Três Coraçes Group acquired Japan-based Mitsui Alimentos' business to strengthen its position as the industry leader in Brazil. According to the contract, Três Coraçes Group must pay Mitsui Alimentos' domestic coffee business in Brazil BRL 210 million reais about $50 million. The Sao Miguel FIP, controlled by the Lima family, and Strauss Coffee both own a portion of the Três Coraçes Group joint venture.

Brazil Coffee Pods Market Scope:

Segmentation:

• By Type
  • Hard Pods
  • Soft Pods
• By Caffeine Content
  • Regular
  • Decaffeinated
• By Flavour
  • Regular
  • Flavoured
• By Distribution Channel
  • Online
  • Offline

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. BRAZIL COFFEE PODS MARKET ANALYSIS, BY TYPE

5.1. Introduction

5.2. Hard Pods

5.3. Soft Pods

6. BRAZIL COFFEE PODS MARKET ANALYSIS, BY CAFFEINE CONTENT

6.1. Introduction

6.2. Regular

6.3. Decaffeinated

7. BRAZIL COFFEE PODS MARKET ANALYSIS, BY FLAVOUR

7.1. Introduction

7.2. Regular

7.3. Flavored

8. BRAZIL COFFEE PODS MARKET ANALYSIS, BY DISTRIBUTION CHANNEL

8.1. Introduction

8.2. Offline

8.3. Online

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Emerging Players and Market Lucrativeness

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Vendor Competitiveness Matrix

10. COMPANY PROFILES

10.1. Dolce Gusto

10.2. Três Corações

10.3. Delta Q

10.4. Pilão

10.5. Jacobs Douwe Egberts B.V.

10.6. Illy

10.7. Lavazza

10.8. Melitta

Dolce Gusto,

Três Corações,

Delta Q,

Pilão,

Jacobs Douwe Egberts B.V.

Illy,

Lavazza

Melitta