Wholesale coffee capsules are becoming increasingly popular with hospitality businesses around the world. They can brew espresso-style coffee in seconds, making them excellent for hotels, restaurants, and cafés.
However, capsules weren't always this popular. When Nespresso launched its coffee capsules in the 1970s, it initially focused on the European market. It took a while longer for them to start gathering speed in the US, but they are now entering a period of meteoric growth.
Research predicts that the US market for coffee pods and capsules could be worth more than US $10 billion by 2028. But how big is it today? And should you invest in wholesale coffee capsules for your business? Read on to find out.
Before we discuss the size of the coffee capsule market, let's examine how they differ from coffee pods.
Coffee capsules are exclusively compatible with Nespresso original line machines. In contrast, when we talk about "coffee pods", we generally mean those that are compatible with Keurig K-Café machines.
While capsules brew short, bold espresso-style coffee, pods are more similar to drip coffee, sometimes with creamer or flavorings mixed in.
And as the name suggests, wholesale coffee capsules are merely capsules sold to businesses in bulk rather than directly to consumers.
According to the latest research, the US coffee pod and capsule market was worth US $8.4 billion in 2023. While pods have historically been more popular here, demand for coffee capsules is growing rapidly.
Tony Dreyfuss, Co-Founder and President at Metropolis Coffee Company, says there’s never been a better time for hospitality businesses to take advantage of wholesale coffee capsules: "There is a ton of demand and not much in the way of supply, local or otherwise. You can get a lot of attention (and shelf space) right now without being lost in the crowd."
He adds that wholesale coffee capsules can also be more profitable: "The pricing is great because the market isn't flooded. The MSRP of a capsule is similar to that of a K-Cup, even though there's far less coffee and material."
Alongside profitability and growing demand from consumers, there are several other benefits for businesses.
First, wholesale coffee capsules are easy to brew. This means that hotels can offer them in-room for guests to brew at their leisure while also stocking them in bars and restaurants.
The espresso-style coffee that capsules brew is also versatile. It can be served alone or as the base of other drinks. You can use it to prepare a variety of hot and cold coffee beverages – from coffee cocktails to cappuccinos and lattes.
Beyond this, Nespresso original line brewers are inexpensive to purchase and easy to operate, maintain, and clean: you don't need to train staff or guests to use them. Rather than having to handle a bulky espresso machine or grinder, you have an all-in-one solution that requires much less space.
Finally, depending on how you source them, wholesale coffee capsules can also reduce the amount of waste your business generates.
At Metropolis, we manufacture commercially compostable coffee capsules. These are certified by the Biodegradable Products Institute (BPI) and the Composting Manufacturers Alliance (CMA), meaning they comply with the strictest standards for commercial composting in the US.
Instead of tossing used coffee grounds in the trash, you can dispose of your capsules at any industrial composting facility in the US.
So, now you know about the benefits, where can you source high-quality wholesale coffee capsules for your business?
At Metropolis, we've been offering coffee capsules since 2022. Our wholesale coffee capsule range is the same as our retail offering, with four blends to choose from:
With the global coffee capsule market growing rapidly, Tony says there's never been a better time to start sourcing them for your business.
"Sales of coffee capsules increase by double-digit percentages every year," he says. "You only need to look at the shelf space dedicated to capsules at the box stores.
"This is where I see the beginning of specialty coffee in capsules in the US," he says. "So far, it's only been big multinational companies and store brands like Kroger. I see specialty players and regional brands becoming available."
This is precisely why we offer two alternate solutions to our wholesale range: private label and co-packing.
Private label coffee capsules are perfect for businesses that want unique coffee capsules designed for their business. After working with you to create a capsule blend, we set up a regular supply of capsules complete with your branding.
Meanwhile, co-packing is ideal if you already have a coffee in mind – you send it to us, and we handle production. At the end of the process, you receive capsules filled with your coffee and printed with your branding.
No matter which option you choose, all Metropolis capsules are packed in a certified SQF certified facility. This means we hold the gold standard food safety certification required to sell into the largest retailers and hospitality brands in the US.
Interested in learning more? Learn about our wholesale, co-packing, and private label espresso capsules today.
Certified compostable facilities may not exist in your area. To find a composter near you, visit www.findacomposter.com or www.compostnow.org on all packaging and marketing materials.
Metropolis Coffee is not affiliated with, endorsed, or sponsored by Nespresso. Nespresso is a registered trademark of Société des Produits Nestlé.
Metropolis Coffee
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