In today’s coffee world, coffee pods and coffee capsules are everywhere. In Australia, 3 million people consume coffee pods every day, and in 2018, 59 billion coffee capsules were produced globally. Nespresso® alone makes about 14 million coffee pods a year. But where did the coffee pods for Nespresso come from? How did they become a household name?
Read on to find out.
Where Coffee Pods Started
Nespresso® was the first to enter the coffee market in 1986 via Swiss multinational Nestlé.
Eric Favre, a Nestlé engineer, worked for years to come up with an easier machine to brew coffee that mimicked an espresso machine. After developing the machine, Nestlé trademarked and patented it: Nespresso®. In 1988, Jean-Paul Gaillard helped Favre market the coffee-maker to home consumers rather than businesses, and sales skyrocketed.
As the machines became more popular in Europe, supply struggled in the United States. Competitors - such as Keurig - began to appear in the 1990s, but Nespresso® continued to dominate the international market.
By 2010, competitors entered the coffee market by selling coffee pods alone:
- In 2004, Nespresso® partnered with De’ Longhi, who produced coffee pods for the De’ Longhi machine and became a point of reference in the espresso coffee machine industry.
- Sara Lee also introduced their own coffee pods in France and sold millions at a cheaper price than Nespresso® coffee pods.
To compete with Nespresso®, Keurig (which was founded by Peter Dragone and John Sylvan) created K-cups and developed a Keurig brewer. Their machines were reliable, effective, and produced a perfect cup of coffee. In 2006, Green Mountain Coffee Roasters bought Keurig for $160million.
While it’s safe to say that Nestlé still has a huge influence on the coffee market, they certainly don’t own it all.
Today’s Coffee Pod Market
The growth of coffee pods in Australia and the rest of the world doesn’t seem to be slowing down. The prices of coffee pods are significantly lower than buying an espresso at a coffee shop, making it very appealing to consumers. The coffee pod market also offers a variety of flavours to suit different consumer wants, which has allowed it to maintain such a large portion of the coffee market.
The Future of Coffee Pods
A large portion of the Australian population chooses to drink coffee every day, and coffee pods in Australia are on the rise. Coffee pods for Nespresso® are expected to become even more popular as city dwellers strive to duplicate the coffee shop experience in their homes.
More and more consumers want higher quality coffee and improved sustainability. Capsule companies are more frequently working towards reducing their environmental impact to gain sales.
Where to Buy High-Quality Coffee Pods for Nespresso
Ranges also include popular caramel flavoured coffee and hot chocolate pods, there is something for everyone.Shop our collection of Nespresso Compatible coffee pods today!