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
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR during the forecast period |
| Base Year | 2021 |
| Forecast Period | 2023 – 2028 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered | Type, Caffeine Content, Flavour, and Distribution Channel |
| Companies Covered | Dolce Gusto, Três Corações, Delta Q, Pilão, Jacobs Douwe Egberts B.V., Illy, Lavazza, Melitta |
| Customization Scope | Free report customization with purchase |
Segmentation: