Coffee capsule production has a steep learning curve, requiring potential producers to know many things before entering the single-serve market. Photo credit: Rychiger
The growing global coffee capsule market (valued at $39,524.5 million in 2024, according to Cognitive Market Research) attracts many potential newcomers. However, coffee capsule production is a complex process requiring precise roasting and grinding specifications and professional-grade machinery. Choosing the right capsule material to suit a target market’s needs and lifecycle regulations must also be considered. In an interview with STiR, Rychiger’s Senior Sales Food and Beverage Manager, Peter Kathriner, discusses the intricacies of single-serve capsule production and current market directives.
The Importance of Collaboration
Processing coffee for capsules varies differently from other forms of production. To achieve pronounced aromas and flavors in such a short brew time, the beans must be ground to a very fine consistency. This leaves little room for error, which means the beans must be perfectly roasted beforehand, typically on the darker side, to increase solubility and extraction.
“I have seen many companies enter the complex world of single-serve coffee packaging, assuming that it simply involves filling an empty container with coffee powder and then selling the product,” says Kathriner. “This approach rarely leads to success.”
Another difficulty in working with such finely ground powder is that increased surface area increases oxygen exposure. Coffee quickly goes stale if a capsule isn’t adequately sealed. Therefore, the filling and sealing machine also plays a crucial role in a company’s success, as preventing oxygen exposure is paramount.
“Quality must be a top priority throughout the entire process, from material selection to the final sealing of the capsule,” explains Kathriner. “If a company is not yet deeply familiar with this process, it should collaborate with experts who can provide the necessary knowledge and support.”
Working with single-serve industry leaders like Rychiger significantly shortens a company’s learning curve and reduces production costs in the long run.
Market Preferences
Target market data and requirements should be analyzed before deciding which material (aluminium, plastic, or biodegradable) to work with. “Each region has its own regulatory requirements and consumer preferences that strongly influence the market,” adds Kathriner.
For instance, Europe is at the forefront of recycling and sustainability requirements. “The EU’s Regulation 94/62/EG (Packaging and Packaging Waste Directive) has significantly driven the industry towards recycling and sustainability,” Kathriner notes. Regulation 94/62/EG officially designates coffee pods as packaging. Under the Extended Producer Responsibility legislation, companies introducing packaging to the European market are ultimately responsible for its end-of-life (waste) phase.
Several leading single-serve manufacturers, such as Nestlé/Nespresso, Nescafé, and JDE Peet’s, have joined forces with private waste management and recycling companies all over Europe to accommodate the appropriate sorting, recycling, or composting of capsules. “Aluminum capsules benefit from well-established [European] collection and recycling systems, while biodegradable capsules must meet strict compostability standards to gain acceptance,” adds Kathriner.
He also points out that the US places more emphasis on convenience, while quality and brand perception remain the dominant factors for purchasing in Asia. In his presentation on the coffee capsule market at World of Coffee Dubai in February, Kathriner stated, "The Middle East leans toward premium coffee products, with aluminum capsules being a preferred choice due to their superior freshness and aroma retention. However, sustainability concerns are also increasing in this region.”
The Right Materials: Aluminum vs. Biodegradable
When it comes to sealing in freshness, aluminum provides the best protection. “However, this is only ensured if the processes of nitrogen flushing, filling, and sealing are carried out with precision,” adds Kathriner. “Aluminum also offers a wider range of aesthetic and color options.”
The UK’s popular recycling service Podback turns aluminium pods into ingots to manufacture new products and converts spent coffee grounds into biogas and fertiliser using anaerobic digestion. The prevalence of aluminum capsule recycling collection/drop-off sites and its ability to be recycled multiple times have made aluminum Europe’s preferred capsule material.
Perceived as more environmentally friendly, biodegradable capsules made from mouldable bioplastics or paper can be home or industrial composted. Unfortunately, that’s only true under particular conditions.
“Some countries have already implemented successful programs for processing biodegradable capsules in industrial composting facilities,” Kathriner says. “However, home composting remains a challenge, as many so-called ‘compostable’ capsules on the market today require specific conditions to break down properly. Further technological advancements are needed to create broader acceptance and practical solutions for consumers.”
The materials used in biodegradable capsules are also more susceptible to oxygen and moisture erosion, resulting in a shorter shelf life. Therefore, ethical messaging and marketing must inform consumers of these facts. Although, many customers are happy to buy smaller amounts of coffee more frequently if it aligns with their values.
“That said, when both materials are consumed and disposed of correctly, they each offer advantages—and in both cases, the consumer can enjoy a great cup of coffee,” Kathriner concludes.