Introduction of new flavors and increasing consumption of coffee products to drive India coffee capsule market
According to TechSci Research report, “India Coffee Capsule Market By Type (Open System, Closed System), By Material (Conventional Plastic, Bioplastics, Others (Fabric, etc.)), By Distribution Channel (Supermarket/Hypermarket, Specialty Store, Online Retail Store, Others), By Region, Forecast & Opportunities, FY2026”, the India coffee capsule market is anticipated to witness healthy growth during the forecast period owing to increasing consumption of coffee as a beverage in the country. The market is witnessing an increasing trend of single-serve coffee capsules which are hugely popular among coffee lovers. Moreover, innovation of technologies and increasing investment in R&D activities are acting as key factors for India coffee capsule market growth. Also, there is a growing demand for coffee products among health-conscious consumers who are preferring coffee over tea. The ease-of-use of coffee capsule products are leading to their increasing demand and are expected to provide lucrative growth opportunity for manufactures in the country.
Additionally, manufacturers are coming up with new flavors and new & innovative formulations of coffee capsules which are gaining traction in Indian market. Further, market leaders are launching coffee capsules in recyclable and biodegradable packaging which is also augmenting the market growth. Moreover, rising disposable income and increasing middle class of the country are leading to growing demand for instant non-alcoholic beverages, which is supporting the growth of coffee capsule market. Also, the increasing working population of the country has led to high consumption of coffee as the population is willing to spend on quality coffee. The increasing use of coffee capsules in offices, catering industries, and other establishments for commercial purposes are some other growth drivers. With increasing trend of coffee shops and cafes, the market is expected to undergo a formidable growth through FY2026.
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India coffee capsule market is segmented based on type, material, distribution channel and region. Based on material, the market is segmented into conventional plastic, bioplastics and others including fabric material. Among the, the bioplastic material is expected to dominate the market during the forecast period as they act as an environment friendly alternative over other materials. They are made of renewable resources and hence, are increasingly being preferred by manufacturers.
Based on distribution channel, India coffee capsule market is segmented into supermarket/hypermarket, specialty store, online retail store and others. Among them, the online retail stores segment is expected to undergo the fastest growth during the forecast period owing to significant growth in e-commerce sector in the recent years. These websites provide detailed information about products. They not only offer a pleasant shopping experience to the consumer but also impart knowledge about products. Moreover, sales discount and easy payment methods offered by online retailers are attracting consumers in India.
Major players operating in the India coffee capsule market include Nestlé India, Lavazza India, Starbuck, illycaffè and Bonhomia. Key market players are focusing on new product launches and investing on strong distribution channel to increase their market share.
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“The increasing working class in India is the major consumer of instant coffee products like coffee capsules and coffee pods. Good variety of coffee and strong marketing are benefiting the coffee capsule manufacturers in the country. Also, growing installation of coffee machines in hotels and offices is expected to provide a profitable market opportunity to manufactures. With high coffee consumption among millennials, the market holds promising future for coffee capsule manufacturers,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
“India Coffee Capsule Market By Type (Open System, Closed System), By Material (Conventional Plastic, Bioplastics, Others (Fabric, etc.)), By Distribution Channel (Supermarket/Hypermarket, Specialty Store, Online Retail Store, Others), By Region, Forecast & Opportunities, FY2026” has evaluated the future growth potential of India coffee capsule market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities in India coffee capsule market.
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