Published: October 2018
From a niche market, single serve 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. Nespresso and Keurig are brands that pioneered the emergence of the segment and have 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 such as Coca-Cola and PepsiCo 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.
AMI Consulting prepared a new authoritative report on the global market for single serve capsules, with a particular focus on Europe and North America.
The study gathered production details on a site-by-site basis and these building blocks create an analysis of demand. The interview programme questioned producers and users on demand drivers within their specific market areas.
In this study AMI Consulting provides a detailed overview of the single serve capsules systems available on the market and maps out the supply chain in the major end-use geographies. The supply chain of capsule moulding was assessed based on production technologies available as well as materials used. The analysis includes growth drivers, inter-material competition, changing requirements, value-chain positioning and the key issues.
To best address the market requirements, AMI Consulting cooperated with Plastic Technologies, Inc. (PTI) on technical data for individual capsules profiled in the report. PTI used its specialist laboratory facilities to examine individual capsules dimensions, design elements, materials used for production, and barrier performance (note: barrier performance comparison is excluded from AMI's study and available upon request from PTI).