According to the National Coffee Association, 40 percent of coffee drinkers owned a single-cup coffee brewing machine in 2020. Several prominent coffee shop chains such as Starbucks and Dunkin’ Donuts have started producing their own single-cup coffee capsules to compete with Keurig and private label products. Among the leading single-cup coffee brands, Starbucks registered approximately 26.3 percent household penetration rate in 2018, ranking second only to coffee brand Folgers. In a survey conducted in September 2020, one fifth of Americans chose single-serve coffee machines as the small kitchen appliance they were most likely to purchase in the next 12 months.
With the outbreak of the COVID-19 pandemic in 2020, many companies have embraced work from home arrangements. With workers around the globe drinking their morning coffee at home instead of the office, this presents a lucrative opportunity for the single-serve coffee market, especially since few consumers turn to instant coffee for gratification.
