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Japan Coffee and Tea Capsules Market to Reach US$ 2,198 Million by 2027, Propelled by Expanding Working Population

Published on Jun 10, 2022

The latest report by IMARC Group, titled “Japan Coffee and Tea Capsules Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” finds that the Japan coffee and tea capsules market size reached US$ 1,145 Million in 2021. Coffee capsules are single-serve containers with cooked ground coffee deposited in their filter. On the other hand, tea capsules refer to finely-ground, loose tea leaves encapsulated in small-sealed containers. These capsules are generally made using plastic sealed with aluminum foil and provide one or two servings of an instant beverage. They help preserve the freshness, aroma, and authentic flavor of the beverage, unlike traditional packets. They also reduce the brewing time by up to 80% and offer enhanced convenience, ease of use, and efficiency. As a result, coffee and tea capsules are widely used in vending machines in residential and commercial spaces in Japan. 

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.

Japan Coffee and Tea Capsules Market Trends:

In Japan, the expanding working population and the escalating demand for ready-to-drink (RTD) beverages represent the primary factors driving the market growth. In addition, since Japan is traditionally a tea-consuming nation, there has been a substantial rise in the demand for tea capsules due to the growing awareness regarding its benefits. Along with this, the surging popularity of coffee, especially among the young population, has catalyzed the product demand. Besides this, the increasing number of single-person households on account of changing lifestyles and rapid urbanization has accelerated the adoption of single value packs and convenient food products that are meant for one-time use and can be disposed of quickly. Furthermore, the leading manufacturers are introducing various innovative flavors and blends to cater to the shifting consumer tastes and preferences. In line with this, recent technological advancements, such as the development of microfiltration and patented lidded capsules for optimized flavor extraction, consistency and taste, have propelled the market growth. Other factors, including the escalating demand for barista-like coffee in institutional and domestic spaces, rising consumer purchasing power, on-the-go lifestyles, hectic schedules, easy product availability via e-commerce channels, and product premiumization, are also creating a favorable market outlook. Looking forward, the market value is expected to reach US$ 2,198 Million by 2027, exhibiting a CAGR of 11.35% during 2022-2027.

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