Cannabis-infused coffee pods sustaining coffee pod market growth

Over the past two years, coffee consumption has dramatically increased, however the coffee pods market has not seen a major change, says a report by Fact.MR.

Consumer preference for coffee pods has been tarnished due to the high environmental footprint of used coffee pods. To alleviate the factors leading to a loss in the market, manufacturers have embraced the usage of compostable coffee pods and help alter consumer perception regarding coffee pods.

Cannabis-infused coffee pods to help in sustained growth

With the legalisation of cannabis usage in some countries, the global food and beverage industry has seen multiple new innovations, one being the introduction of cannabis-infused coffee pods. These are reported to have the same effects when brewed at home, just like café-brewed cannabis coffee, and have become popular due to the stigma involved with the public consumption of cannabis coffee.

Gourmet coffee pods to attract the attention of coffee connoisseurs

With specialty coffee becoming an affordable luxury, particularly for avid coffee aficionados, leading players in the coffee pods market are introducing products with exclusive flavours and unique origins. International coffee chains are willing to deliver innovative flavours to attract coffee lovers, and enhance coffee sales, which is instigating a new trend in the coffee pods market. Efforts in the value chain for coffee pods production to enhance the potential of gourmet coffee is likely to work in favour of the market.

Global coffee alliance to change status quo of the market

The coffee pods market has been partially fragmented for the past few years. But the possibility of growing consolidation of the coffee pods market has increased in the past year. In August 2018, the Global Coffee Alliance was formed between Nestlé and Starbucks brands, where Nestlé gained the rights to market, sell, and distribute Starbucks packaged coffee and tea in all at home and away from home channels. The partnership of the companies has changed their standing in the overall coffee pods market. One the other hand, Kraft Heinz Company has reported a decline in its sales, as it is struggling to keep up with consumer trends, reducing its position in the coffee pods market.

Dunkin’ K-Cup coffee pods are collaboration with JM Smucker Company and Dunkin’ Donuts. As announced by JM Smucker Company in November 2018, K-Cup coffee pods were recognised as one of the 25 products to receive the Nielsen Breakthrough Award, which is awarded to products based on endurance, sales, and product distinction. Working on the lines of sustainability, illycaffè launched its new line of illy-brand aluminium capsules for coffee pods in February 2019. Similar work for sustainability was carried out by Nespresso, an operating unit of the Nestlé Group, which partnered with Swedish company, Velosophy, to produce a bike made from used aluminium capsules, in an effort to motivate customers to recycle coffee pods.

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