Single-Serve Capsules 2017
Maritim Hotel Cologne Germany
- Applied Market Information Ltd. 6 Pritchard Street Bristol BS2 8RH United Kingdom
- +44 117 314 8111
- +44 117 311 1534
From a niche market, single-serve beverage capsules have grown to be one of the most important sub-applications of the ambient thin wall packaging segment in the past 5 years. This dynamic market segment has a complex value chain. There are a number of coffee brewing systems available with proprietary capsule designs. With a number of brands pioneering the emergence of the segment and achieving the highest machine instalment rates globally.
Nevertheless, the expiry of their design patents in 2012 brought about disruptive changes in the supply chain. The changes created new opportunities for both end-users and converters to tap into this growing market segment. On the other hand, the supply chain of capsules is rapidly losing its oligopolistic nature and the former dominance of major suppliers is challenged as the market expands. A more fragmented supply chain affects the overall profit pool and the way consumers make their choices.
New opportunities include expanding product ranges into tea brewing systems as well as cold drinks systems. While the untapped potential for cold drinks is yet to be proven, it is telling how significant it might be with global giants bidding for their space in this market.
With the growing number of capsules in landfills, the industry is under pressure from environmentalists as well as more conscientious consumers. There is an urgent need to review the materials used for capsules conversion in search of more sustainable options, as well as to explore end-of-life solutions. Material changes are likely to disrupt the supply chain even further.