Single-Serve Pushes New Boundaries

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Single-serve brewers are not disappearing.

By Anne-Marie Hardie

Single-serve is here to stay.

No matter what you hear this category is solidly entrenched and growing to meet consumer’s expectations for high quality at-home consumption. 

In its September 2015 Coffee Report market research firm Mintel International forecasts 19.6% growth in the segment.

“Single-serve will continue to grow because of its convenience. People are also looking at the environmental impact, but overall it has to be a convenient product and it has to work,” said Dan Ragan, national sales manager, Pod Pack.

 One of the primary concerns of roasters and tea blenders alike is that single-serve brewing systems are unable to deliver a high quality cup. Thankfully, research in material science and the development of innovative designs has resulted in a variety of single-serve options that bring forth the nuances of a brew. “Roasters need to begin by eliminating the negative connotation about single-serve,” says David Silverstein, founder, Pro-Line. “The key is finding a company that is not only knowledgeable about coffee, but is able to translate their knowledge to a single-serve solution and in turn bring out the true flavors of the roast.”

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Packaging with a Purpose

Single-Cup is Here to Stay

Offering both a polypropylene and compostable capsule, LBP’s UpShot mesh filter design allows consumers to both see and smell the roast providing a full sensory experience. The side wall mesh enables multiple contacts for water and grind. The UpShot solution ended up as Silverstein’s choice at Pro-Line. Launched in 2012, LBP’s UpShot continues to evolve as LBP expands their knowledge of material science while developing strong partnerships with roasters. The key, according to Marty Tierney, LBP Manufacturing, is developing the single-serve cup with the best extraction. 

Mother Parkers Tea & Coffee, based in Toronto, Canada, delivers packaging that brings together all the essential component: freshness, particle size and filter. Comprised of nonwoven fibers, Mother Parkers’  FlavorMax filter can be adapted to meet the extraction requirements of coffee or tea. While the see-through capsule has fostered a positive reception from the end consumer. “The filter is a huge enabler, but it is the filter in combination with the particle size, coffee/tea that we use, the dosage,” said Paul Yang, manager, packaging development, Mother Parkers. “For us, innovation is really about how you put the complete package together,” he said.

To respond to this continued interest for a better beverage, Pod Pak has launched a Superpod specifically developed to meet the expectations of hotel guests. The Superpod holds 50% more coffee resulting in a high quality cup for guests. Pod Pack’s Ragan, notes that the larger pod has gained the interest of both hotel guests and those intent on expanding expand their offerings to include espresso based beverages.

Espresso, and espresso based beverages, are increasing their market share in the single-serve segment. “One thing that is growing well this year is the espresso pod business which has a lot to do with what is going on with Nespresso, and the education that is going on to grow that segment,” said Ragan.

One company that is marking it’s mark in Nespresso compatible capsules is  ICA USA. Their AromaCup line was developed to address the needs of private label consumers eager to launch an espresso line.  Available in three different materials barrier, plastic and compostable, the capsules are configured to keep oxygen out while preserving aroma and flavor. “Our RC100 is the ideal entry level machine for making and packing espresso capsules,” said Phillip Angus.

One aspect that continues to gnaw at the back of consumer’s mind is the environmental impact of single serve. According to Mintel beverage analyst Elizabeth Sisel,  88% of consumers are concerned about the environmental waste with single-serve.

This growing segment is looking for convenient options that they can feel good about.  “Consumers are really demanding a sophisticated sustainable option, but they don’t want to compromise in taste and convenience,” said Tierney.

The controversy of sustainability

When taking into consideration all factors about single serve, from its preparation, water used and overall waste, there has been some indication that single serve “on-demand” coffee may have less of an environmental footprint than traditional drip coffee. “What we are finding is that when consumers are looking at waste, they need to look at all aspects, water, energy coffee grounds, and the package, “said Solange Ackrill, Club Coffee LP. “When all factors are considered, single serve may actually have less of an impact than traditional drip coffee.”  A third-party, peer-reviewed LCA study by PAC and Quantis supports this position. 

That being said, sustainability and less waste still remains a key area of concern for packaging, particular in the area of single serve. Chris Burger, business director, coffee, Fres-Co System USA, Inc, has been very active in researching the concerns in this segment, including visiting recycling centers and listening to their market challenges, in order to find the best solution. “It appears that the best solution in today’s world is to create a single-serve pod that is made out of a renewable material,” says Burger. “This package would need to be fully compostable and bio-degradable, not only in an industrial compost but also in the consumer’s backyard.”

One of the concerns about the perceived increased waste in single serve is that coffee grounds, which are organic waste, are entering into the landfill, contributing to the food waste and greenhouse gas issue.  “Our goal is to get coffee get back into the organics waste stream,” said Ackrill.

Concerned about whether the consumer would separate a recyclable plastic capsule, Club Coffee decided to research a fully compostable option for single serve, where no separation is required by the consumer. The end solution their PurPod100 a BPI certified solution which has begun the conversation about the option of having a single serve cup in curbside collection. The lid is composed of compostable materials including paper, a layer of PLA and K2.0 compatible inks. The mesh filter is a unique and patented material made from PLA. While the one-of-a-kind ring forming the pod is a highly compostable resin comprised of bio resin and more than 20% coffee chaff.

ICA USA also opted for compostable capsules, developing both a Keurig compatible and Nespresso compatible Bio capsule. Created from smash material, these products have received the OK-compost certification in compliance with the European regulation EN 13432.

When it comes to a sustainable solution, Mother Parker’s opted for a recyclable option that addresses the consumer’s need for convenience while still decreasing the amount of waste that is entering the landfill.   “Our driver was really towards using the lowest amount of materials used, both on a weight basis and components,” says Yang. “ It was really about building a smart design, using material science to enable this solution while not making the design more complex to enable that function.”

Mother Parker’s EcoCup, states Yang, is redefining the experience of single-serve beginning with a clear container that allows the consumer to see inside the capsule, enhancing their overall experience. Consumers can easily detach the filter by pressing on the capsule and clicking it open.

One of the challenges with both recyclable and compostable options, is getting the municipalities on board.  This is one of the reasons why LBP made the decision to offer both solutions to the market and have their customer choose which option would work best for their target market. “What we’ve tried to do is advocate for the story, we want to make sure that our roasters have options,” says Dorothy Heckle, LBP Manufacturing.  

The key for success in this industry is continuing the conversation about sustainability which includes looking at municipality regulations and providing solutions that will accepted. In the meantime, the industry can work together to build consumer education and develop partnerships who are invested in sustainable solutions.