Private label products are manufactured by a third-party supplier and sold under another business’ brand or label. For hospitality businesses, coffee capsules are a great and popular example.
There’s a good reason for this, too: the US market for coffee capsules is growing significantly every year and shows no signs of slowing down. That means there’s never been a better time for hospitality businesses to capitalize on the trend.
But manufacturing coffee capsules isn’t easy. That’s where working with a private label partner comes in. A third-party supplier means you don’t need to invest in expensive infrastructure, operations and equipment.
Read on to learn more about how private label coffee capsules work – and why there’s never been a better time to start sourcing them.
Much like any other private label or white label product, businesses outsource the production or manufacture of private label coffee capsules to an external partner.
For coffee capsules specifically, the process is simple. Once businesses have a partner in mind, they work with them to choose the perfect coffee for capsule brewing.
At Metropolis, we work with our private label partners to develop a signature blend. This is refined for your needs and your customer base. This could mean a coffee blended to complement milk, something with a lighter, brighter flavor meant to be enjoyed on its own, or something else entirely. We work with you to develop a bespoke brew that fits your needs quite precisely.
Once you’re happy with the blend, we get to work making your product. We roast the beans to your exact spec, then grind them to the precise particle size for capsule extraction. Then, we fill, nitro-flush and seal the capsules to keep them fresh. Finally, we package the capsules in a branded retail carton or bulk box, depending on your needs.
So, that explains how we make private label coffee capsules. But why is it such a valuable opportunity right now?
First and foremost, as mentioned before, the market is growing – more Americans are drinking espresso capsules than ever before. By 2028, it’s estimated that the market could be worth more than US $10 billion. Private label coffee capsules are an easy way to capitalize on this growth.
Beyond that, they’re equally an opportunity to win market share among customers and to grow your brand’s recognition. By offering a more diverse range of products, you satisfy the needs of a wider base of customers – and make it more likely that they will come back for more.
Customers are more concerned than ever with ethical sourcing. Private label coffee capsules give you the ability to address their concerns in several ways – whether that’s by using certified Fairtrade America or USDA certified organic coffee.
Metropolis private label coffee capsules are also certified commercially compostable, meaning they’re certified safe to dispose of at any commercial composting facility in the US.
Research shows that there will be increased demand for sustainably sourced private label food and beverages in 2024 – including coffee. That comes as no surprise, considering that sales of private label food and beverage products increased by 8% in the first half of 2023 alone.
Working with a private label partner also allows retailers to compete with household names. Historically private label products have been viewed as a more cost-effective alternative to established brands.
However, according to a 2023 report by Nielsen, this is changing.
“In the past few years, private label items have slowly been moving away from their traditional role as the budget-friendly, knock-off alternative to branded items,” the report says. “Instead, when consumers purchase private label items nowadays, they receive reasonably priced items that get the job done.”
Ultimately, both private label and coffee capsule sales are growing independently, and research also shows that their reputation among consumers is better than ever. That means 2024 is the perfect time to start offering private label coffee capsules. Once you’ve decided to do so, however, you need to choose the right partner.
At Metropolis, we work with hospitality businesses to manufacture branded private label coffee capsules. We have more than 20 years of specialty coffee experience, giving us the background to design the perfect product for your business. Furthermore, with fast lead times and low minimum order quantities (MOQs), we can help you respond to the market quickly and nimbly.
After an initial discussion to figure out what you need, we will work with you to develop your product or products, complete with custom, branded packaging.
Or, if you already have a coffee that you prefer to use, we also offer a co-packing service for espresso capsules. You supply the beans and we handle the rest.
Interested in learning more? Check out our wholesale, co-packing, and private label espresso capsule solutions today.
Metropolis Coffee is not affiliated with, endorsed, or sponsored by Nespresso. Nespresso is a registered trademark of Société des Produits Nestlé.
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